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Latin American Consumer Guide 2024

Uruguay

(Latin America/Caribbean) Firm Guyer & Regules

Contributors Melanie Ollero

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

There is a special regime In Uruguay based on consumer protection contained in the Consumer Relations Law No. 17.250 and its Regulatory decree No. 244/000, with other rules that regulate it or complement it.

 

What is the definition of a consumer?

Article 2 of Law No. 17.250 defines the consumer as "any natural or legal person who uses products or services as the final recipient in a consumer relationship or as a function thereof. A consumer or user is not a person who, without being a final recipient, acquires, stores, uses or consumes products or services to integrate them into production, transformation, or commercialization processes"

 

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

Law No. 17,250 considers "any tangible or intangible, movable or immovable property" as a product, and "any remunerated activity supplied in the consumer market, except for those arising from labor relations" as a service.

 

Do the applicable regulations provide a list of consumer rights?

Yes, Law No. 17.250 lists a series of basic consumer rights in its Article 6, without prejudice to the fact that these are generic rights later regulated specifically within the same law (for example, the right of withdrawal).

These listed basic rights are:

  1. Protection of life, health, and safety against risks arising from practices in the supply of products and services considered dangerous or harmful.
  2. Education and dissemination regarding the proper consumption of products and services, freedom of choice, and equal treatment when entering into contracts.
  3. Sufficient, clear, truthful information in the Spanish language, without prejudice to the use of other languages.\
  4. Protection against deceptive advertising, coercive or unfair methods in the supply of products and services, and abusive clauses in adhesion contracts, each within the terms established by this law.
  5. Association in organizations with a specific objective of consumer defense and being represented by them.
  6. Effective prevention and compensation for both pecuniary and non-pecuniary damages.
  7. Access to judicial and administrative bodies for the prevention and compensation of damages through swift and efficient procedures.

In addition, please note that there are other rights recognized for consumers in relation to certain activity sectors (e.g., the financial consumer, e-commerce, etc.).

These rights, in general, are derivations of the general rights listed above.

Do the applicable regulations provide a list of consumer duties?

Not applicable. While Law 17,250 does not dedicate a specific chapter regarding consumer duties, it does stipulate certain obligations that consumers must fulfill in specific situations throughout the regulation.

As an example, Article 16 states that the consumer may exercise the right to rescind or terminate the contract ipso iure "... within five business days counted from the formalization of the contract or the delivery of the product, at their sole option, without any liability on their part. The choice of rescission or termination must be communicated to the supplier by any reliable means."

Similarly, Article 38 establishes: "The action to claim compensation for personal injuries shall prescribe within four years from the date on which the plaintiff became aware or should have become aware of the injury, defect, or flaw, and the identity of the producer or manufacturer".

On the other hand, the consumer, as well as the supplier, has the general duty to act in good faith and fairly.

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

Yes, In accordance with the provisions of Law No. 19,920 on Private International Law, Article 59 states that Uruguayan courts have jurisdiction in matters of consumer relations "In matters of consumer relations, if the consumer is the plaintiff, provided that the contract was concluded in the Republic or the provision of the service or delivery of the goods subject to the consumer relationship occurred in the Republic." Therefore, there could be a scenario in which Uruguayan courts have jurisdiction even if the provider of the product or service is not domiciled in Uruguay (provided the aforementioned requirements are met).

Likewise, Law No. 19,920 on Private International Law stipulates in Article 50 the law that will govern consumer contracts in cases where the parties do not have the authority to choose applicable law. In this regard, it states that contracts entered into in consumer relations are governed by:

  1. The law of the State where the goods are acquired or the services are used by the consumer.
  2. In cases where goods are acquired or services are used in more than one country, or it cannot be determined by other circumstances, they shall be governed by the law of the consumer's place of domicile.
  3. In distance contracts, as well as when the conclusion of the contract follows specific offers or advertising at the consumer's domicile, the law of this State shall apply, provided that the consumer has given their consent to it.

The applicable law to consumer contracts is relevant with regard to the jurisdiction of the court, as Law No. 19,920 on Private International Law, Article 57, establishes that Uruguayan courts shall have jurisdiction to hear a dispute - among others - when "the subject matter of the claim is governed by Uruguayan law under the rules on conflicts of laws of the Republic."

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

No, However, there are some special rules that must be also complied by suppliers in certain activity sectors (for example, financial activities, food sector, etc.).

 

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

The offer directed at consumers must contain sufficiently precise information regarding the products or services offered. This information should be expressed in the Spanish language, without prejudice to the use of other languages.

In particular, product offers must provide clear and easily readable information about their characteristics, nature, quantity, quality, composition, warranty, product origin, price, necessary details for proper storage and use of the product, and, as applicable, the expiration date and any risks it may pose to the health and safety of consumers (Article 17 of Law 17,250).

Finally, there are other minimum information requirements that must be provided to consumers related to certain sectors of activity (e.g., e-commerce, financial sector, etc.).

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

Yes, while there is no obligation to provide a warranty for products and/or services, every supplier in the product offering must indicate whether they offer a warranty or not.

If they do, they must provide all the information stipulated in Article 23 of Law 17.250:

  1. Identification of the party offering the warranty, whether it's the manufacturer or importer of the product or the service provider.
  2. Precise identification of the product or service, including its basic technical specifications.
  3. Terms of validity of the warranty, its duration, and coverage, specifying the parts of the product or service covered by it.
  4. Address and telephone number of those contractually obligated to provide the warranty.
  5. Terms of product or service repair, specifying the location where the warranty will be honored.
  6. Costs borne by the consumer, if applicable.
  7. Place and date of product delivery or completion of the service to the consumer.

Despite the fact that there is no obligation to provide a warranty the Consumer Relations Law No. 17.250 states a minimum legal protection for consumers that applies automatically (legal warranty).

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

No.

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

No, article 32 of Law 17,250 stipulates that "the supplier's violation of the duty to act in good faith or the breach of the duty to provide information during the pre-contractual, contractual, or execution stage of the contract entitles the consumer to choose between repair, termination, or contract performance, in all cases, plus any corresponding damages and losses."

Therefore, the article provides the consumer with various options in case of a breach of the legal obligation to provide information and a violation of good faith at any stage.

On the other hand, Article 34 holds the supplier liable in accordance with the regime established in the Civil Code for damages caused to the consumer due to defects or risks associated with the product or service. In such cases, the retailer or distributor will only be liable when the importer and manufacturer cannot be identified.

Different types of defects can be distinguished in the product or service:
  1. manufacturing defects;
  2. construction defects;
  3. information defects; and
  4. preservation defects.
Is there a specific judicial action to resolve lawsuits arising from consumer matters?

Yes, Law No. 18.507 regulates an specific judicial process applicable to consumer claims where the value of the claim in the lawsuit does not exceed 100 indexed units (approximately USD 4,200 as of september/2023).

The benefits of this process are:
  1. shorter deadlines compared to an ordinary process;
  2. the consumer is not required to have legal representation; and
  3. the fees to be paid by the consumer are considerably lower than in an ordinary process
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.

Article 33 of Law 17,250 stipulates that in the event of the supplier's failure to fulfill any of their obligations, the consumer is empowered to freely choose from the following options:

  1. Demand the forced fulfillment of the obligation whenever it is possible.
  2. Accept another product or service or equivalent repair.
  3. Terminate the contract with the right to a refund of the amount paid, monetarily adjusted, or rescind it, as applicable.

Furthermore, the aforementioned article establishes that, in any of these cases, the consumer has the right to compensation for compensatory or delay damages, as applicable.

Can consumer issues lead to class actions?

N/A

How often does this occur?

No regulation governs this possibility. The specific case should be analyzed to determine if it is applicable. We are not aware of any cases in which consumers of a product or service have filed a group action.

 

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

The responsible party depends on the consumer's claim. As provided in Article 34 of Law 17,250, if the defect or risk of the product or service results in harm to the consumer, the supplier shall be held responsible.

However, the retailer or distributor will only be liable if the importer and manufacturer cannot be identified.

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

Yes, in Uruguay, the Consumer Protection Unit was created through Law No. 19,996, Article 130. It operates as a decentralized body under the Ministry of Economy and Finance and has all the responsibilities and powers provided for in Law No. 17,250 on Consumer Relations, including the regulation and sanctioning of violations of consumer protection regulations.

However, other authorities have the power to regulate, monitor, investigate, and sanction non-compliance with the consumer protection regime (e.g. the Uruguayan Central Bank in the case of institutions subject to its supervision, URSEC on telecommunications matters, etc.).

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

The potential sanctions to be applied are described in Article 47 of Law No. 17,250, and they may be applied independently or jointly, as appropriate:

  1. Warning, when the offender has no prior record of similar violations and the violation is classified as minor.
  2. A fine, the lower limit of which shall not be less than 20 UR and the upper limit shall not exceed 4,000 UR (approximately USD 850 to USD 170,000).
  3. Confiscation of goods and products involved in the violation when they may pose a clear risk to the health or safety of the consumer.
  4. In the case of repeated serious violations or very serious violations, the temporary closure of the commercial or industrial establishment for up to ninety days may be ordered.
  5. Suspension for up to one year from the supplier registries that enable contracting with the State.
    In the event of serious violations of the provisions established in the aforementioned law, the Consumer Protection Unit may place signs on the front and interior of the establishment clearly indicating the violator's status under the Consumer Protection Law for a period of up to twenty days from the date of the violation.
    Furthermore, in cases of repeat offenses of a similar nature, proven intent to violate, or circumstances that constitute a risk to the health or safety of consumers, the competent regulatory body may order the publication of the sanctioning resolution in national newspapers at the expense of the offender.
Does the legal regime regulate safety campaigns or product recalls?

Yes, the "recall" process is regulated by Law No. 17,250 on Consumer Relations and by Mercosur Common Market Group Resolution 04/17, which has been incorporated into Uruguayan law through Decree No. 399/018.

 

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

No. Article 11 of Law 17,250 states that: "Suppliers of products and services who, after their introduction into the market, become aware of their harmfulness or dangerousness, must immediately report such circumstances to the competent authorities and consumers." Therefore, the recall regime presupposes the existence of a party introducing products or services into Uruguay for commercialization.

 

Are there any special regulations on e-commerce?

Yes, Uruguay has Decree No. 167/021, which provides for the incorporation of Mercosur Common Market Group Resolution No. 37/19 into the country's legal framework. This resolution regulates Consumer Protection in Electronic Commerce and governs the duty of information for providers in the field of electronic commerce.

 

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

The legislation does not specifically define the types of platforms it encompasses, so it should be interpreted broadly, including all platforms.

 

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

Yes, Article 6 of Decree No. 167/2021 establishes the consumer's right of withdrawal or retraction within the timeframes established by applicable regulations.

In this regard, Article 16 of Law 17,250 stipulates that in the case of offers of products or services made outside the business premises, by postal, telephone, television, computer, or similar, the consumer who accepts it has the right to withdraw or "ipso iure" terminate the contract. This right can be exercised within five business days counted from the formalization of the contract or the delivery of the product, with no liability on their part.

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

No, Cryptocurrencies do not have specific consumer protection regulations, so the entire regime detailed above will apply to them.

 

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

No, Influencers do not have specific consumer protection regulations, so the entire regime detailed above will apply to them.

Just bear in mind that Law 17,250 stipulates in Article 24 that: "All advertising must be conveyed and disseminated in such a way that the consumer identifies it as such." Therefore, while we are not aware of any cases where this point has been monitored by the Consumer Protection Unit, influencers should, when conducting advertising, communicate that it has the nature of advertising.

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, there are no expected changes over the next 12 months that are likely to have significant impact.

Latin American Consumer Guide 2024

Uruguay

(Latin America/Caribbean) Firm Guyer & Regules

Contributors Melanie Ollero

Updated