	Latin American Consumer Guide 2024
	Panama
	(Latin America/Caribbean) Firm Arias, Fábrega & Fábrega Contributors Melissa Irene Del Busto
What is the applicable legal regime addressing consumer protection in your jurisdiction?	In Panama there is a special legislation on consumer protection contained in Law 45 of May 31, 2007, "which dictates rules on consumer protection and defense of competition" (hereinafter "consumer protection law"), regulated, specifically the section related to Consumer Protection, by Executive Decree No. 46 of June 23, 2009 (hereinafter "the regulation").
What is the definition of a consumer?	Article 33, paragraph 2 of the consumer protection law defines a consumer as "a natural or legal person who acquires from a supplier final goods or services of any nature". Successively, article 2, paragraph 2 of the regulation defines consumer as "Natural or legal persons who acquire or enjoy goods or services as final beneficiaries or who can prove that they have received a good or service for a value or acquired the same from the initial consumer as final recipient establishing a consumer relationship. Natural or legal persons who acquire or use goods or services to integrate them into production, transformation, commercialization or provision of third-party services will not be considered consumers".
What goods and services are covered by consumer protection legislation in your jurisdiction?	Consumer protection regulations applies to all contracts or transactions for the purchase of personal property (goods), real estate and the rendering of professional or technical services to the consumer that are perfected in the Republic of Panama.
Do the applicable regulations provide a list of consumer rights?	Yes, the consumer protection law establishes that consumers shall have, among others, the right to: Be effectively protected against products and services that, under normal or foreseeable conditions, represent a risk or danger to life, health or physical safety. Receive from suppliers all the information on the characteristics of the product or service offered, in a clear and truthful manner, in order to be able to make a decision at the time of purchasing the product or service, as well as to make the appropriate use or consumption of it. To have access to a variety of value-competitive products and services that allow them to freely choose the ones they want. To be protected in their economic interests, by means of equitable and fair treatment, in all consumer relations, and against coercive commercial methods or those that imply lack of truthfulness or erroneous or incomplete information on products or services. To be heard individually or collectively, either through associations, groups, boards or other consumer organizations, as to defend their interests through public or private consumer defense entities, using the means allowed by the legal system. To receive education and guidance, in order to train them properly so that consumer relations become balanced and transparent. Receive effective compensation or reparation for damages attributable to the responsibilities of the supplier or service provider. To receive protection against false or misleading advertising, as well as to denounce it.
Do the applicable regulations provide a list of consumer duties?	No, the applicable legislation does not provide a list of duties; however, the Authority for Consumer Protection and Defense of Competition (hereinafter "ACODECO"), has been promoting consumer education where it has indicated, in practice, as duties of the consumer: Critical Consciousness: Must observe, examine and investigate the products to be purchased. Action: Defend your rights as consumers when they are not fulfilled and seek help to solve them. Responsibility: To achieve a better benefit, buy and use only what is necessary. Education: Learn how to buy, use, save and defend your rights as a consumer. Solidarity: to act together to defend our rights as consumers. Do not make reckless denunciations: Do not denounce a business if you do not have proof of what happened and much less with the purpose of annoying. Social concern: to think that our actions as consumers do not affect other people. Environmental awareness: to be responsible in the care of the environment, so that natural resources are preserved for the future.
Does the authority have extraterritorial jurisdiction when the offeror of the products or services is not located in the territory under its jurisdiction?	No, the jurisdiction of the authority is in the Republic of Panama, for products and/or services destined to consumers in the Republic of Panama.
Is there any alternative or special regime depending on the type of good or service?	Yes, the consumer protection law contemplates the possibility of applying supplementary rules contained in special laws. It is worth noting that there are special regulations for public utilities (electricity, telecommunications, water supply, sanitary sewage, radio and television, transmission and distribution of natural gas), as well as for products related to human health (medicines, cosmetics, etc.), food, banking services, among others.
What is the minimum information required to be provided to the consumer with respect to goods?	Information on the characteristics of the product or service offered, such as nature, composition, content, weight, origin, expiration date, toxicity, precautions, price and any other determining condition, which shall be stated on the packaging, container, container or label of the product or on the shelf of the commercial establishment, in understandable and legible terms. Said information shall necessarily appear on the label and in Spanish language in the case of medicines, agrochemicals and toxic products and food products that require specific warnings or precautions that represent a danger to human health. Indicate in a visible place and in a clear, precise and legible manner the price. As well as to indicate any additional charge, its concept and amount. Provide the consumer with instructions on the proper use of the article and information on the risks it entails for his health or safety. Inform them about the guarantees of the products or services and the conditions of these. Inform about the conditions of the product. That is, if the parts or spare parts have been used. If there is no warning on the matter, it will be presumed that such goods are new. To inform about repair service information. As well as reporting the non-existence of parts. Information on deadlines for making claims. Informing the buyer of the conditions of sale offered by the supplier of goods or services.
Is there a general warranty for products and/or services?	Yes, guarantees stipulated in the consumer protection law or its regulation: Legal guaranty, which shall be three (3) months for new products, notwithstanding that a lower guaranty may be agreed upon depending on the nature and/or price of the goods. For new motor vehicles the minimum guaranty is one (1) year or thirty thousand kilometers, whichever occurs first. Please note that when the manufacturer's guaranty is more favorable to the consumer, it will be mandatory for the supplier to offer the manufacturer's guaranty. For used motor vehicles sold to final consumers, the guaranty shall be for six (6) months or fifteen thousand kilometers, whichever occurs first. Guaranty on repair services: unless otherwise expressly provided in writing, a period of thirty (30) days is given to evidence deficiencies or defects in the work performed. For new residential constructions, of serviced or unserved land lots, urban or rural, as well as real estate in general, no specific period is established as such, but it is stated that the terms and conditions of the guaranty of the work must be clearly established in writing. In the event that there are different coverages in the guarantee, these must be duly detailed. The foregoing is without prejudice to any special laws applicable to certain goods and/or services.
Are there any products that have a legal warranty different from the general warranty?	Yes, as detailed in the previous point, the regulation of the consumer protection law establishes a legal guaranty, for new products, but it does not detail or list specific products
For what reasons could the consumer initiate a complaint regarding a purchased product or service?	The consumer may initiate a claim when he/she observes a transgression to his/her rights as a consumer, established in the consumer protection law, its regulations and/or special applicable laws, as the case may be. Likewise, the consumer may initiate proceedings to claim the termination, rescission or annulment of adhesion contracts or proceedings arising from the breach of consumer contracts or to demand the fulfillment of guarantees, compensation for damages or any other claim resulting from a consumer relationship; for misleading information or advertising, as well.
Is there a specific judicial action to resolve lawsuits arising from consumer matters?	Yes, the consumer have access to authorities specialized in the subject, with well knowledge in controversies related to consumer protection.
If there is no specific judicial action, how does the consumer make a claim?	N/A
What types of damages are recognized in legal actions arising from consumer matters? E.g., compensatory damages and punitive damages.	In consumer protection proceedings, the consumer has the right to receive effective compensation (pecuniary compensation) or reparation for damages attributable to the liability of the supplier or service provider, or any other claim resulting from a consumer relationship. Without prejudice to any civil or criminal actions that may arise, if applicable.
Can consumer issues lead to class actions?	Yes.
How often does this occur?	This occurs less frequently, as complaints are usually filed individually by consumers, but indeed class action could occur.
Who is responsible for consumer satisfaction? E.g., Producer, supplier, carrier.	The responsibility, before consumers, is of the supplier or service provider. Responsibility for this type of consumer relationship and its obligations are the responsibility of the supplier. For the purposes of the guarantee, the consumer protection law establishes that each intermediary, in the marketing chain, will have to respond for the guarantee to its respective client. Manufacturers, importers, distributors or suppliers, as the case may be, will be responsible for the suitability, quality, veracity of commercial advertising and the authenticity of the legends exhibited on the products and services, as well as for the content and useful life of the product indicated on the package, container, packaging or label.
Does any authority have the power to regulate, monitor, investigate and sanction non-compliance with the consumer protection regime?	Yes, the ACODECO regulate, monitor, investigate and sanction non-compliance with the consumer protection regime. However, for public services (electricity, telecommunications, water supply, sanitary sewage, radio and television, transmission and distribution of natural gas), it will be the National Authority of Public Services. For banking consumer protection, it would be the Superintendence of Banks of Panama. For the protection of consumers in health matters, it would be the Ministry of Health. The above without prejudice to any other claim of a civil or criminal nature that a consumer may file before the courts of justice in Panama.
What type of sanctions could be imposed by the authority? E.g., monetary (indicate max. value), closure of establishment	ACODECO may impose these sanctions: Warnings Fines of up to twenty-five thousand dollars (US$25,000.00), for violations related to consumer protection. In case of breach by suppliers of consumer protection regulations, which affects or may affect human health, with fines of up to fifty thousand dollars (US$50,000.00) without prejudice to the corresponding civil or criminal liabilities. In case of repetition, the Authority may request the Ministry of Commerce and Industries (MICI) to cancel the license or the respective commercial registration
Does the legal regime regulate safety campaigns or product recalls?	Yes, product recall campaigns are regulated in the consumer protection law and its regulations. In this regard, the regulation indicates that once the manufacturer, importer, distributor or supplier becomes aware of any recall due to a defect in the product or its harmful effect, they are obliged to announce it through means of recognized national circulation, as well as to communicate it to the Authority. In these cases, the manufacturer, importer, distributor or supplier must replace the part, correct the damage, or withdraw the product immediately after becoming aware of it, to all consumers who purchased the product. The Authority will ensure that the diffusion of the advertisement reaches the knowledge of the affected consumers, and to this end it may instruct on the form, means of diffusion and duration of the advertisement.
Does the legal regime of safety campaigns or product recalls apply to products marketed abroad and not in the country?	No, the recall of products regulated in the consumer protection law and its regulations refers to those products marketed within the national territory.. For products related to human health, although national or foreign manufacturers have the obligation to notify suspicions of adverse reactions and the withdrawal of products marketed in Panama, it has been observed in the practice that some manufacturers or distributors inform the Authority of Health of the voluntary withdrawal of products in a foreign country, and said authority informs consumers that the product does not have a registration in Panama.
Are there any special regulations on e-commerce?	Yes, Law 51 of July 22, 2008, adopts provisions for the development of electronic commerce.
What types of e-commerce platforms are regulated by your legislation? List and define them.	The legislation does not specifically indicate the type of platforms. It refers to commercial service providers through the Internet, so it is applicable to any electronic means or technological platforms through which a company offers its commercial services.
Are there any additional rights for the e-commerce regime? E.g., Right to cancel the purchase.	Yes, apart from the rights already protected in the consumer protection law, users (consumers) have the right not to have their information used without their authorization and they may revoke the consent given to receive commercial communications at any time.
Is this regime applicable for the purchase and sale of crypto assets?	No, the current legislation does not indicate the concept of crypto assets specifically, but rather refers to the protection of consumers of goods and services in general. Currently there is no special regime in force.
Are there any provisions or does the regime contemplate any regulations that must be applied by influencers when advertising?	Yes, there is no special regime for influencers, so they must comply with what is indicated in the consumer protection law, which states that every advertisement ("ad") must be truthful, with the advertiser taking care that the facts are not distorted and that the ad or publication does not lead to error or confusion. Every advertiser is obliged to comply with what is offered in the terms contained in the advertising notice.
Are there any expected changes over the next 12 months that are likely to have a significant impact on the regime in your jurisdiction?	No, in September 2022, ACODECO promoted amendments to the Consumer Protection Law, through a draft bill submitted to the Ministry of Commerce and Industries (MICI) For the moment, there is no further information about its presentation as a bill before the National Assembly of Panama.

Latin American Consumer Guide 2024

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What is the applicable legal regime addressing consumer protection in your jurisdiction?

In Panama there is a special legislation on consumer protection contained in Law 45 of May 31, 2007, "which dictates rules on consumer protection and defense of competition" (hereinafter "consumer protection law"), regulated, specifically the section related to Consumer Protection, by Executive Decree No. 46 of June 23, 2009 (hereinafter "the regulation").

What is the definition of a consumer?

Article 33, paragraph 2 of the consumer protection law defines a consumer as "a natural or legal person who acquires from a supplier final goods or services of any nature".

Successively, article 2, paragraph 2 of the regulation defines consumer as "Natural or legal persons who acquire or enjoy goods or services as final beneficiaries or who can prove that they have received a good or service for a value or acquired the same from the initial consumer as final recipient establishing a consumer relationship.

Natural or legal persons who acquire or use goods or services to integrate them into production, transformation, commercialization or provision of third-party services will not be considered consumers".

What goods and services are covered by consumer protection legislation in your jurisdiction?

Consumer protection regulations applies to all contracts or transactions for the purchase of personal property (goods), real estate and the rendering of professional or technical services to the consumer that are perfected in the Republic of Panama.

Do the applicable regulations provide a list of consumer rights?

Yes, the consumer protection law establishes that consumers shall have, among others, the right to:

Be effectively protected against products and services that, under normal or foreseeable conditions, represent a risk or danger to life, health or physical safety.
Receive from suppliers all the information on the characteristics of the product or service offered, in a clear and truthful manner, in order to be able to make a decision at the time of purchasing the product or service, as well as to make the appropriate use or consumption of it.
To have access to a variety of value-competitive products and services that allow them to freely choose the ones they want.
To be protected in their economic interests, by means of equitable and fair treatment, in all consumer relations, and against coercive commercial methods or those that imply lack of truthfulness or erroneous or incomplete information on products or services.
To be heard individually or collectively, either through associations, groups, boards or other consumer organizations, as to defend their interests through public or private consumer defense entities, using the means allowed by the legal system.
To receive education and guidance, in order to train them properly so that consumer relations become balanced and transparent.
Receive effective compensation or reparation for damages attributable to the responsibilities of the supplier or service provider.
To receive protection against false or misleading advertising, as well as to denounce it.

Do the applicable regulations provide a list of consumer duties?

No, the applicable legislation does not provide a list of duties; however, the Authority for Consumer Protection and Defense of Competition (hereinafter "ACODECO"), has been promoting consumer education where it has indicated, in practice, as duties of the consumer:

Critical Consciousness: Must observe, examine and investigate the products to be purchased.
Action: Defend your rights as consumers when they are not fulfilled and seek help to solve them.
Responsibility: To achieve a better benefit, buy and use only what is necessary.
Education: Learn how to buy, use, save and defend your rights as a consumer.
Solidarity: to act together to defend our rights as consumers.
Do not make reckless denunciations: Do not denounce a business if you do not have proof of what happened and much less with the purpose of annoying.
Social concern: to think that our actions as consumers do not affect other people.
Environmental awareness: to be responsible in the care of the environment, so that natural resources are preserved for the future.

Does the authority have extraterritorial jurisdiction when the offeror of the products or services is not located in the territory under its jurisdiction?

No, the jurisdiction of the authority is in the Republic of Panama, for products and/or services destined to consumers in the Republic of Panama.

Is there any alternative or special regime depending on the type of good or service?

Yes, the consumer protection law contemplates the possibility of applying supplementary rules contained in special laws.

It is worth noting that there are special regulations for public utilities (electricity, telecommunications, water supply, sanitary sewage, radio and television, transmission and distribution of natural gas), as well as for products related to human health (medicines, cosmetics, etc.), food, banking services, among others.

What is the minimum information required to be provided to the consumer with respect to goods?

Information on the characteristics of the product or service offered, such as nature, composition, content, weight, origin, expiration date, toxicity, precautions, price and any other determining condition, which shall be stated on the packaging, container, container or label of the product or on the shelf of the commercial establishment, in understandable and legible terms. Said information shall necessarily appear on the label and in Spanish language in the case of medicines, agrochemicals and toxic products and food products that require specific warnings or precautions that represent a danger to human health.
Indicate in a visible place and in a clear, precise and legible manner the price. As well as to indicate any additional charge, its concept and amount.
Provide the consumer with instructions on the proper use of the article and information on the risks it entails for his health or safety.
Inform them about the guarantees of the products or services and the conditions of these.
Inform about the conditions of the product. That is, if the parts or spare parts have been used. If there is no warning on the matter, it will be presumed that such goods are new.
To inform about repair service information. As well as reporting the non-existence of parts.
Information on deadlines for making claims.
Informing the buyer of the conditions of sale offered by the supplier of goods or services.

Is there a general warranty for products and/or services?

Yes, guarantees stipulated in the consumer protection law or its regulation:

Legal guaranty, which shall be three (3) months for new products, notwithstanding that a lower guaranty may be agreed upon depending on the nature and/or price of the goods.
For new motor vehicles the minimum guaranty is one (1) year or thirty thousand kilometers, whichever occurs first. Please note that when the manufacturer's guaranty is more favorable to the consumer, it will be mandatory for the supplier to offer the manufacturer's guaranty.
For used motor vehicles sold to final consumers, the guaranty shall be for six (6) months or fifteen thousand kilometers, whichever occurs first.
Guaranty on repair services: unless otherwise expressly provided in writing, a period of thirty (30) days is given to evidence deficiencies or defects in the work performed.
For new residential constructions, of serviced or unserved land lots, urban or rural, as well as real estate in general, no specific period is established as such, but it is stated that the terms and conditions of the guaranty of the work must be clearly established in writing. In the event that there are different coverages in the guarantee, these must be duly detailed.

The foregoing is without prejudice to any special laws applicable to certain goods and/or services.

Are there any products that have a legal warranty different from the general warranty?

Yes, as detailed in the previous point, the regulation of the consumer protection law establishes a legal guaranty, for new products, but it does not detail or list specific products

For what reasons could the consumer initiate a complaint regarding a purchased product or service?

The consumer may initiate a claim when he/she observes a transgression to his/her rights as a consumer, established in the consumer protection law, its regulations and/or special applicable laws, as the case may be.

Likewise, the consumer may initiate proceedings to claim the termination, rescission or annulment of adhesion contracts or proceedings arising from the breach of consumer contracts or to demand the fulfillment of guarantees, compensation for damages or any other claim resulting from a consumer relationship; for misleading information or advertising, as well.

Is there a specific judicial action to resolve lawsuits arising from consumer matters?

Yes, the consumer have access to authorities specialized in the subject, with well knowledge in controversies related to consumer protection.

If there is no specific judicial action, how does the consumer make a claim?

N/A

What types of damages are recognized in legal actions arising from consumer matters? E.g., compensatory damages and punitive damages.

In consumer protection proceedings, the consumer has the right to receive effective compensation (pecuniary compensation) or reparation for damages attributable to the liability of the supplier or service provider, or any other claim resulting from a consumer relationship.

Without prejudice to any civil or criminal actions that may arise, if applicable.

Can consumer issues lead to class actions?

Yes.

How often does this occur?

This occurs less frequently, as complaints are usually filed individually by consumers, but indeed class action could occur.

Who is responsible for consumer satisfaction? E.g., Producer, supplier, carrier.

The responsibility, before consumers, is of the supplier or service provider. Responsibility for this type of consumer relationship and its obligations are the responsibility of the supplier.

For the purposes of the guarantee, the consumer protection law establishes that each intermediary, in the marketing chain, will have to respond for the guarantee to its respective client.

Manufacturers, importers, distributors or suppliers, as the case may be, will be responsible for the suitability, quality, veracity of commercial advertising and the authenticity of the legends exhibited on the products and services, as well as for the content and useful life of the product indicated on the package, container, packaging or label.

Does any authority have the power to regulate, monitor, investigate and sanction non-compliance with the consumer protection regime?

Yes, the ACODECO regulate, monitor, investigate and sanction non-compliance with the consumer protection regime. However, for public services (electricity, telecommunications, water supply, sanitary sewage, radio and television, transmission and distribution of natural gas), it will be the National Authority of Public Services.

For banking consumer protection, it would be the Superintendence of Banks of Panama.
For the protection of consumers in health matters, it would be the Ministry of Health.

The above without prejudice to any other claim of a civil or criminal nature that a consumer may file before the courts of justice in Panama.

What type of sanctions could be imposed by the authority? E.g., monetary (indicate max. value), closure of establishment

ACODECO may impose these sanctions:

Warnings
Fines of up to twenty-five thousand dollars (US$25,000.00), for violations related to consumer protection.
In case of breach by suppliers of consumer protection regulations, which affects or may affect human health, with fines of up to fifty thousand dollars (US$50,000.00) without prejudice to the corresponding civil or criminal liabilities.
In case of repetition, the Authority may request the Ministry of Commerce and Industries (MICI) to cancel the license or the respective commercial registration

Does the legal regime regulate safety campaigns or product recalls?

Yes, product recall campaigns are regulated in the consumer protection law and its regulations.

In this regard, the regulation indicates that once the manufacturer, importer, distributor or supplier becomes aware of any recall due to a defect in the product or its harmful effect, they are obliged to announce it through means of recognized national circulation, as well as to communicate it to the Authority. In these cases, the manufacturer, importer, distributor or supplier must replace the part, correct the damage, or withdraw the product immediately after becoming aware of it, to all consumers who purchased the product.

The Authority will ensure that the diffusion of the advertisement reaches the knowledge of the affected consumers, and to this end it may instruct on the form, means of diffusion and duration of the advertisement.

Does the legal regime of safety campaigns or product recalls apply to products marketed abroad and not in the country?

No, the recall of products regulated in the consumer protection law and its regulations refers to those products marketed within the national territory..

For products related to human health, although national or foreign manufacturers have the obligation to notify suspicions of adverse reactions and the withdrawal of products marketed in Panama, it has been observed in the practice that some manufacturers or distributors inform the Authority of Health of the voluntary withdrawal of products in a foreign country, and said authority informs consumers that the product does not have a registration in Panama.

Are there any special regulations on e-commerce?

Yes, Law 51 of July 22, 2008, adopts provisions for the development of electronic commerce.

What types of e-commerce platforms are regulated by your legislation? List and define them.

The legislation does not specifically indicate the type of platforms. It refers to commercial service providers through the Internet, so it is applicable to any electronic means or technological platforms through which a company offers its commercial services.

Are there any additional rights for the e-commerce regime? E.g., Right to cancel the purchase.

Yes, apart from the rights already protected in the consumer protection law, users (consumers) have the right not to have their information used without their authorization and they may revoke the consent given to receive commercial communications at any time.

Is this regime applicable for the purchase and sale of crypto assets?

No, the current legislation does not indicate the concept of crypto assets specifically, but rather refers to the protection of consumers of goods and services in general. Currently there is no special regime in force.

Are there any provisions or does the regime contemplate any regulations that must be applied by influencers when advertising?

Yes, there is no special regime for influencers, so they must comply with what is indicated in the consumer protection law, which states that every advertisement ("ad") must be truthful, with the advertiser taking care that the facts are not distorted and that the ad or publication does not lead to error or confusion.

Every advertiser is obliged to comply with what is offered in the terms contained in the advertising notice.

Are there any expected changes over the next 12 months that are likely to have a significant impact on the regime in your jurisdiction?

No, in September 2022, ACODECO promoted amendments to the Consumer Protection Law, through a draft bill submitted to the Ministry of Commerce and Industries (MICI)

For the moment, there is no further information about its presentation as a bill before the National Assembly of Panama.

Latin American Consumer Guide 2024

Panama

Latin American Consumer Guide 2024

Panama

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