News on Fair Trade and Consumer Regulations
By Mariano Peruzzotti and Antonella Balbo.
We provide below a brief report on the developments taken place during the last weeks on Fair Trade and Consumer Protection, namely: (i) the one stop shop scheme for consumers’ claims; (ii) labelling oversight; and (iii) the approval of the Code of Good Practices for Wholesale and Retail Distribution in the context of the Supermarket Shelf Law.
One Stop Shop
On March 30, 2021, Resolution 274/2021 (“Resolution”) of the Secretariat of Domestic Trade was published in the Official Gazette. This Resolution provides for the creation of a one stop shop scheme (“OSS”), whose primary goal will be to receive and record consumers’ complaints, and to implement relevant actions or measures aimed at improving consumers’ protection.
The Resolution has been issued within the scope of Consumer Protection Law No. 24.240 (“CPL”) and states that the aim of the OSS is to handle the reception of consumers´ claims throughout the country in order distribute the cases. Provinces are invited to join this system.
Any company summoned in a claim that was filed before the OSS must establish an electronic domicile within 10 working days. Suppliers who already have established an electronic domicile under the Pre-Conciliation Service in Consumer Relations will be notified of future claims in such domicile.
Suppliers that commercialize goods and services through digital platforms are compelled to include on their websites a link that allows the direct access to the relevant OSS complaint form. The link shall be referenced using the following language in Spanish: “Consumers Protection. For claims. Enter here”. Companies have a grace period until May 29, 2021, to adjust websites and applications.
Failure to comply with the provisions of the Resolution may result in sanctions according to the CPL.
Labelling oversight
On March 31, 2021, Resolution 283/2021 (“Resolution”) of the Secretariat of Domestic Trade creating a system aimed at overseeing labels of certain products named “SiFIRE” was published in the Official Gazette.
The Resolution provides that labels of products within the industry of food, beverages, drinkable foods, perfumery and cosmetics, personal hygiene, personal care and household cleaning, suitable for human handling and use shall be subject to a governmental oversight conducted through SiFIRE that will take place before commercialization. SiFIRE will be in charge of the Undersecretariat for Actions for Consumer Protection (“Undersecretariat”), a governmental body that depends on the Secretariat of Domestic Trade.
The oversight involves the verification and approval of the labels. The process will be carried out online through the Remote Digital Platform (TAD for its acronym in Spanish).
The Undersecretariat has a ten-day period to declare whether a label submitted for approval includes false or misleading statements or may confuse consumers about product features, composition, raw materials or ingredients, unit of measure or quantity, origin, price and/or has adverse effects, as well as whether its placement in the market affects the fair trade or the transparency in commercial relations. The silence of the authority shall be construed as an implicit approval.
The Undersecretariat may order the placement of a sticker on the product packaging or label in those cases where a breach of the rules has been detected. This sticker has to be used until the label is removed from the market. The costs associated with this measure shall be borne by the supplier or importer.
The provisions of this Resolution shall apply to new labels of products belonging to the above-mentioned industries that will be launched on the market as from May 1st, 2021.
Failure to comply with these obligations shall lead to sanction pursuant to the Consumer Protection Law N° 24.240, which may include fines of up to Argentine Pesos 5,000,000- and Fair Trade Decree No. 274/19, which stipulates fines of up to 10,000,000 Mobile Units, equivalent to Argentine Pesos 552,900,000.
Code of Good Practices for Wholesale and Retail Distribution
Resolution No. 340/2021 of the Secretary of Domestic Trade (“Resolution 340”) ordered the creation of the Code of Good Practices for Wholesale and Retail Distribution (“Code”) within the frame of the new Shelf Law.
On April 9, 2021, Resolution 340 approving the Code was published in the Official Gazette. The Code will be mandatory for the subjects covered by article 3 of Supermarket Shelf Law No 27,545 including total supermarkets or hypermarkets, supermarkets, superstores, food products self-services, non-food products self-services, retail business chains, wholesale supply organizations, perishable goods packers and shopping centers. The adherence to the Code is optional for entities that are not listed above but voluntarily decide to be bound by its terms.
The Code provides for several commitments that must be addressed by the entities mentioned above regarding their relationship with suppliers as well as consumers. For example, it is mandatory to designate a person responsible for compliance with the Code. The appointment must be notified by reliable means to the Providers and also be reported through the Platform of “Remote Procedures” (TAD, for its acronym in Spanish).
The text of the Code can be accessed on the following site:
http://servicios.infoleg.gob.ar/infolegInternet/anexos/345000-349999/348652/res340.pdf
Resolution 340 came into effect on May 12, 2021.
For further information please contact: mperuzzotti@ojambf.com
