Latin American Consumer Guide 2024 |
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Paraguay |
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(Latin America/Caribbean)
Firm
Peroni Sosa Tellechea Burt & Narvaja
Contributors
Lia Zanotti-Cavazzoni |
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What is the applicable legal regime addressing consumer protection in your jurisdiction? | In Paraguay, the main applicable law regarding this matter is the Law 1334/98 – The Consumers and Users Protection Law, partially amended by Law 6.366 (hereinafter "CUPL").
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What is the definition of a consumer? | According to article 4 of the CUPL, consumer or user is any natural or legal person, national or foreign, who acquires, uses or enjoys, any good or service, as the end costumer, for the satisfaction of a personal, familiar or domestic need, and without this use being attached to a commercial activity. |
What goods and services are covered by consumer protection legislation in your jurisdiction? | According to article 3 of the CUPL, the Law is applicable to every transaction carried on between consumers and suppliers related to the distribution, sell, or buy of goods and services, including financial, insurance and credits services. The CUPL is also applicable to public services, unless special laws that governs those services establishes the contrary. Professional or specialized services (e.g., attorneys at law, doctors) that requires university degree and legal authorization to be provided are exempt from the Law, but not its false advertisement (article 4 of the CUPL). |
Do the applicable regulations provide a list of consumer rights? | Yes, Article 6 of the CUPL establishes that the following are basic consumers rights:
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Do the applicable regulations provide a list of consumer duties? | No, The CUPL does not establishes duties nor obligations for consumers and users. |
Does the authority have extraterritorial jurisdiction when the offeror of the products or services is not located in the territory under its jurisdiction? | No, jurisdiction is exclusively territorial regarding goods and services offered within the Paraguayan territory.
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Is there any alternative or special regime depending on the type of good or service? | Yes, the CUPL contemplates the possibility of applying rules contained in special laws, if any. For example, in the case of public utilities, telecommunication services, sanitary products, automotive products, where there are special laws that regulate the subject. Likewise, there is a special law that regulates and applies to digital commerce (Law 4.846/2.013, hereinafter "DCL"), but also states that CUPL is applicable subsidiarily. |
What is the minimum information required to be provided to the consumer with respect to goods? | Suppliers must provide to consumers, in Spanish, truthful, accurate, and complete information regarding essential characteristics of the goods and services, specifically, related to quality, quantity, composition, origin, price, guarantees, risks if applicable, and instructions to make potential claims.
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Is there a general warranty for products and/or services? | No, CUPL does not oblige suppliers of goods and services to offer guarantees. However, it does states that, when a guarantee is offered, then it must be done in Spanish, giving every information related in a clear and complete manner, including: identification and address of the offeror of the guarantee; identification of the manufacturer, importer or seller; description of the good or service, including technical specifications; conditions of the guarantee, including terms and coverage; and, any charges due by the consumer if applicable. |
Are there any products that have a legal warranty different from the general warranty? | No, as explained in the previous answer, the CUPL does not stablish mandatories guarantees. However, it does establishes the Right of the consumer to Withdraw from the buy within seven (7) days of the buy, when the transaction is made remotely, outside the commercial premise. Also, CUPL stablishes that when the good or service to be provided is defective, used, or reconstructed, such situation must be previously informed to consumers. |
For what reasons could the consumer initiate a complaint regarding a purchased product or service? | Consumers can file a complaint to the Consumer and Protection Authority (hereinafter, the "SEDECO") when they consider that their consumer rights have been violated.
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Is there a specific judicial action to resolve lawsuits arising from consumer matters? | No, consumer claims assessed by SEDECO – as mentioned in the previous answer – are administrative or pre-judicial instances. First, there is a conciliation hearing between consumer and supplier. If conciliation is not successful, then an administrative procedure is conducted by SEDECO, where both parties can make their arguments and provide any relevant evidence. This procedure ends with a resolution of the SEDECO, condemning or acquitting the supplier for the violation of the consumer's rights, and imposing sanctions and fines, if applicable. This procedure is relatively simple, costless, and consumers does not need to be represented by attorneys. Despite the administrative claims, consumers can file a judicial lawsuit seeking compensation for damages. This judicial lawsuit must be filed before civil courts. |
If there is no specific judicial action, how does the consumer make a claim? | No, consumer claims assessed by SEDECO – as mentioned in the previous answer – are administrative or pre-judicial instances. First, there is a conciliation hearing between consumer and supplier. If conciliation is not successful, then an administrative procedure is conducted by SEDECO, where both parties can make their arguments and provide any relevant evidence. This procedure ends with a resolution of the SEDECO, condemning or acquitting the supplier for the violation of the consumer's rights, and imposing sanctions and fines, if applicable. This procedure is relatively simple, costless, and consumers does not need to be represented by attorneys. Despite the administrative claims, consumers can file a judicial lawsuit seeking compensation for damages. This judicial lawsuit must be filed before civil courts. |
What types of damages are recognized in legal actions arising from consumer matters? E.g., compensatory damages and punitive damages. | Complaints for consumer rights violations are normally filed to the SEDECO. This authority, besides imposing fines to suppliers, can oblige them to repair material damages caused to the consumers, i.e., return the price paid for the good or service. On the other hand, if consumers file civil lawsuits, they can try to seek compensation for punitive, compensatory and moral damages. |
Can consumer issues lead to class actions? | Yes. |
How often does this occur? | The CUPL, in its article 43, establishes that the defense in a trial of the rights safeguarded by the law can be exercised both individually and collectively. It will be exercised collectively when diffuse or collective interests or rights are involved. The consumer or user, consumer associations, the national or local competent authority, and the Attorney General's Office (Fiscalía General del Estado) may take action. Actions aimed at seeking compensation for damages and losses may only be initiated by the affected consumers or users. Despite what is established in the law, hardly ever a class action has been filed to claim consumer rights or seek compensation for damages. |
Who is responsible for consumer satisfaction? E.g., Producer, supplier, carrier. | The CUPL establishes that all acts entered into between suppliers and consumers relating to the distribution, sale, purchase or any other form of commercial transaction of goods and services shall be subject to the provisions of the Law. The CUPL considers a supplier to be any individual or legal entity, whether national or foreign, public or private, that engages in the production, manufacture, import, distribution, marketing, sale or lease of goods or the rendering of services to consumers or users, respectively, for which it charges a price or fee. |
Does any authority have the power to regulate, monitor, investigate and sanction non-compliance with the consumer protection regime? | Yes, the Consumer and Protection Authority (The "SEDECO") was created by Law No. 4.974/2013. SEDECO is a legal entity of public law with its own assets. It is the body in charge of executing the national policy for the defense of consumers and users and the enforcement authority of the CUPL, its regulations and other complementary laws on the subject. Its purpose is to:
It also has the following functions:
SEDECO is a Department specifically created to advocate for and resolve consumer protection conflicts. Also, according to article 51 of the CUPL, judges, upon request from a party, may:
In all cases the sanctions will be applied respecting the right of defense of those affected by them. At the request of a party, judges may order precautionary measures aimed at preventing actions that involve a blatant violation of what is regulated by the CUPL, pose an imminent danger to the health or well-being of consumers or users, or could cause serious harm to the community; or to put an end to these actions, all of this without prejudice to the measures that public authorities may take within the scope of their competencies. Judges may impose fines on litigants who have requested precautionary measures in bad faith, whether by concealing information, using subterfuge, providing incorrect or biased information, or requesting them for their exclusive benefit. Against the resolutions issued by SEDECO, an administrative litigation action may be initiated within a period of 18 business days from the notification of the resolution before the Court (Tribunal de Cuentas). Likewise, the jurisdiction of the capital city courts is established for all judicial matters in which SEDECO is the plaintiff or defendant. |
What type of sanctions could be imposed by the authority? E.g., monetary (indicate max. value), closure of establishment | SEDECO has the power to impose and apply monetary fines in accordance with the provisions of Decree No. 21,004/03 "By which the single administrative procedure is established for the substantiation of summary processes in matters of consumer defense that are processed within the integrated National System of Consumer protection"; and Resolution No. 520/06 "by which a scale of fines is established for violations of provisions contemplated in the current regulations on consumer and user defense and by which the judicial collection of fines applied in the resolutions issued by the General Directorate of Consumer and User Defense. Resolution 520/06 establishes a scale of fines for infringement and non-compliance with the legal provisions regarding Consumer and User Defense based on the value of products and/or services according to the following table: Considering that Paraguay’s official currency is the Guaraní (Gs.), the following table refers to monetary fines in Guaraní. Of Gs. To Gs. Sanction up to
Consumer and User will be governed in accordance with the provisions of Article 9 of Law No. 904/63. This table will be applied to calculate the reference amount of the penalty. The final amount of the penalty will be determined by applying the mitigating and aggravating criteria contained in Article 32 of Decree No. 21004/03, which indicates: Application and graduation of sanctions. Suppliers are objectively responsible for violating the provisions contained in Law No. 1334/98, in this Decree and in its complementary and regulatory standards. In the application and grading of the sanctions provided for in this Decree, the seriousness of the offense will be taken into account, the damage resulting from the infringement for the consumer or user, the market position of the offender, the amount of the benefit obtained, the degree of intentionality, the seriousness of the risks or social harm derived from the infringement and its generalization, recidivism, the conduct of the offender in the procedure and the other relevant circumstances of the fact. A repeat offender will be considered anyone who, having been sanctioned for an infraction, commits another offense of a similar nature within a period of two years. |
Does the legal regime regulate safety campaigns or product recalls? | Yes, CUPL establishes as one of the basic rights of the consumer, the protection of life, health and safety against the risks caused by the provision of products and the provision of services considered harmful or dangerous. All goods and services whose use, by their nature, may pose a normal and foreseeable risk to the life, safety and health of consumers, must be marketed in compliance with the mechanisms, instructions and standards necessary to guarantee their reliability. Suppliers of goods and services that are risky to life, health and safety must inform, clearly and adequately, about their dangerousness or harmfulness, without prejudice to the adoption of other measures that may be taken in each specific case. Likewise, the law establishes that suppliers of goods or services, who after their introduction into the market, become aware of their danger, must immediately communicate this circumstance to the competent authorities and consumers, through advertisements, under penalty of be sanctioned in accordance with the provisions of the law. If a product is found to have a serious defect or constitute a considerable danger, even when used properly, the authority implementing this law shall oblige the manufacturers or suppliers to recall and replace it or to modify or substitute it with another product. If it is not possible to do so within a reasonable period of time, they must provide the consumer with adequate compensation. Therefore, once the fact is known about the possible failures of a product and the possible exposure to the danger that this represents, and in order to avoid possible claims and processes, one must proceed in accordance with the provisions of the CUPL and begin the communication process, and withdrawal of the products from the market immediately. |
Does the legal regime of safety campaigns or product recalls apply to products marketed abroad and not in the country? | No, If the products manufactured abroad are to be marketed in the country, the product recall process does apply. Only products to be marketed in the country must undergo the recall process in case of possible damage.
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Are there any special regulations on e-commerce? | Yes, E-commerce is governed by Law No. 4868/13 and its regulatory decree No. 1165/14. |
What types of e-commerce platforms are regulated by your legislation? List and define them. | Law 4868 aims to regulate commerce and contracting carried out through electronic or technologically equivalent means, like:
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Are there any additional rights for the e-commerce regime? E.g., Right to cancel the purchase. | Yes, Law No. 4868 in its Art. 30, establishes the Rights of Consumers or Users, namely:
Certain exceptions are established to the Consumer or User's Right of Withdrawal, which cannot be exercised in the following cases:
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Is this regime applicable for the purchase and sale of crypto assets? | Yes, in Paraguay there is still no regulation that applies specifically for the purchase and sale of crypto assets. However, considering that the CUPL does not make a discrimination as to which products and services it applies to, it must be understood that the CUPL is applicable for the purchase and sale of crypto assets. |
Are there any provisions or does the regime contemplate any regulations that must be applied by influencers when advertising? | No, Paraguayan legislation has not established specific regulations to be applied to influencers. However, the CUPL has established as one of the basic rights of consumers the adequate protection against deceptive advertising, coercive or unfair business practices, and abusive contractual clauses in the provision of products and the provision of services. Likewise, the CUPL contains a special chapter on Advertising Regulation, which states: Art. 35. Any advertising considered deceptive is prohibited. It shall be understood as such, any form of advertising information, dissemination, or communication that is wholly or partially false, or that in any other way, even by omission, is capable of misleading the consumer when providing information regarding the nature, characteristics, quality, quantity, properties, origin, price, marketing conditions, production techniques, or any other data necessary to define the consumer relationship. Article 36. Comparative advertising will not be allowed when, through deliberate actions or general and indiscriminate statements, the consumer is induced to establish the superiority of one product or service over another. Article 37. Abusive advertising is prohibited, understood as any advertising of a discriminatory nature, or that incites violence, exploits fear, takes advantage of the immaturity of children, violates environmental values, or is capable of inducing the consumer to behave in a harmful or dangerous manner to their health or safety. Article 38. Promotions aimed at the consumption of tobacco, alcoholic beverages, medications, and stimulant drinks shall be subject to the limitations imposed by special laws regulating their production, sale, and commercial advertising. Article 39. In disputes that may arise as a result of the provisions in the preceding articles, the advertiser must prove the truth of the claims contained in the advertising message. For all legal purposes, the advertiser shall be understood as the provider of goods or services who has commissioned the dissemination of the advertising message. On the other hand, Law No. 5830/17 has been enacted, which prohibits unauthorized advertising by mobile phone users. Influencers must comply with the regulations stipulated in the CUPL and other laws related to the duty of information and those pertaining to advertising. It is important to emphasize that the advertiser (or influencer) will be responsible for the damages caused by deceptive advertising in which they participate. Finally, Law 1333/1998 regulates the advertising and promotion of tobacco and alcoholic beverages, and, among other things, it prohibits: the use of images of children, adolescents, or representative characters for children and adolescents in the advertising of both products; associations with family settings, physical activities that require good physical condition; associations with or inducements to sexual activity; inducements to excessive consumption. |
Are there any expected changes over the next 12 months that are likely to have a significant impact on the regime in your jurisdiction? | Yes, it is possible that changes may occur considering that there has been a change of government and that we have a new President. However, we do not see this as a necessary or pending matter to be reviewed or updated at this time. The tools currently available for the effective protection of users and consumers are sufficient and fully operational. |
Latin American Consumer Guide 2024
Paraguay
(Latin America/Caribbean) Firm Peroni Sosa Tellechea Burt & NarvajaContributors Lia Zanotti-Cavazzoni Fabrizio Boggino Maria Alejandra Sosa
UpdatedIn Paraguay, the main applicable law regarding this matter is the Law 1334/98 – The Consumers and Users Protection Law, partially amended by Law 6.366 (hereinafter "CUPL").
According to article 4 of the CUPL, consumer or user is any natural or legal person, national or foreign, who acquires, uses or enjoys, any good or service, as the end costumer, for the satisfaction of a personal, familiar or domestic need, and without this use being attached to a commercial activity.
According to article 3 of the CUPL, the Law is applicable to every transaction carried on between consumers and suppliers related to the distribution, sell, or buy of goods and services, including financial, insurance and credits services.
The CUPL is also applicable to public services, unless special laws that governs those services establishes the contrary.
Professional or specialized services (e.g., attorneys at law, doctors) that requires university degree and legal authorization to be provided are exempt from the Law, but not its false advertisement (article 4 of the CUPL).
Yes, Article 6 of the CUPL establishes that the following are basic consumers rights:
- Right to choose: The free will to choose the goods and services that will be acquired.
- Right to safety and indemnity: The protection of life, health, and safety against the risks that may arise from hazardous products and services.
- Right to education: To be dully educated and informed about the different goods and services offered in the market, as well as the characteristics of each of them, in order to exercise properly their right to choose.
- Right to information: To receive clear information about the goods and services, and specifically regarding their compositions, quality, price, and risks that may arise from their consumption or use.
- Right to protection against false or misleading advertisement, coercive and unfair business practices.
- The right to reparation: To claim and be repaired from every material and non-material damage suffered as a consequence of a violation of their consumer rights, including collective interests.
- Right to associate: To constitute consumer associations for the common defense of their rights and representation of the consumers.
- Right to public services: To get access to public services in efficient and non- discriminatory manners
- Right to receive the goods or services acquired in time, quantity, quality and price agreed upon.
- Rights regarding credit operations: Right to be properly informed about the conditions related to anticipated cancellations of credit operations, and about the total cost of the credit operation.
No, The CUPL does not establishes duties nor obligations for consumers and users.
Moreover, in article 7, the CUPL states that in case of doubt, the rules must be interpretated in favor of consumers and users. In the same way, article 27 states that membership contracts clauses must be interpreted in favor of consumers and users to protect them against coercive and restrictive practices.
No, jurisdiction is exclusively territorial regarding goods and services offered within the Paraguayan territory.
Yes, the CUPL contemplates the possibility of applying rules contained in special laws, if any. For example, in the case of public utilities, telecommunication services, sanitary products, automotive products, where there are special laws that regulate the subject.
Likewise, there is a special law that regulates and applies to digital commerce (Law 4.846/2.013, hereinafter "DCL"), but also states that CUPL is applicable subsidiarily.
Suppliers must provide to consumers, in Spanish, truthful, accurate, and complete information regarding essential characteristics of the goods and services, specifically, related to quality, quantity, composition, origin, price, guarantees, risks if applicable, and instructions to make potential claims.
No, CUPL does not oblige suppliers of goods and services to offer guarantees.
However, it does states that, when a guarantee is offered, then it must be done in Spanish, giving every information related in a clear and complete manner, including: identification and address of the offeror of the guarantee; identification of the manufacturer, importer or seller; description of the good or service, including technical specifications; conditions of the guarantee, including terms and coverage; and, any charges due by the consumer if applicable.
No, as explained in the previous answer, the CUPL does not stablish mandatories guarantees.
However, it does establishes the Right of the consumer to Withdraw from the buy within seven (7) days of the buy, when the transaction is made remotely, outside the commercial premise.
Also, CUPL stablishes that when the good or service to be provided is defective, used, or reconstructed, such situation must be previously informed to consumers.
Consumers can file a complaint to the Consumer and Protection Authority (hereinafter, the "SEDECO") when they consider that their consumer rights have been violated.
No, consumer claims assessed by SEDECO – as mentioned in the previous answer – are administrative or pre-judicial instances.
First, there is a conciliation hearing between consumer and supplier. If conciliation is not successful, then an administrative procedure is conducted by SEDECO, where both parties can make their arguments and provide any relevant evidence. This procedure ends with a resolution of the SEDECO, condemning or acquitting the supplier for the violation of the consumer's rights, and imposing sanctions and fines, if applicable.
This procedure is relatively simple, costless, and consumers does not need to be represented by attorneys.
Despite the administrative claims, consumers can file a judicial lawsuit seeking compensation for damages. This judicial lawsuit must be filed before civil courts.
No, consumer claims assessed by SEDECO – as mentioned in the previous answer – are administrative or pre-judicial instances.
First, there is a conciliation hearing between consumer and supplier. If conciliation is not successful, then an administrative procedure is conducted by SEDECO, where both parties can make their arguments and provide any relevant evidence. This procedure ends with a resolution of the SEDECO, condemning or acquitting the supplier for the violation of the consumer's rights, and imposing sanctions and fines, if applicable.
This procedure is relatively simple, costless, and consumers does not need to be represented by attorneys.
Despite the administrative claims, consumers can file a judicial lawsuit seeking compensation for damages. This judicial lawsuit must be filed before civil courts.
Complaints for consumer rights violations are normally filed to the SEDECO. This authority, besides imposing fines to suppliers, can oblige them to repair material damages caused to the consumers, i.e., return the price paid for the good or service.
On the other hand, if consumers file civil lawsuits, they can try to seek compensation for punitive, compensatory and moral damages.
Yes.
The CUPL, in its article 43, establishes that the defense in a trial of the rights safeguarded by the law can be exercised both individually and collectively. It will be exercised collectively when diffuse or collective interests or rights are involved.
The consumer or user, consumer associations, the national or local competent authority, and the Attorney General's Office (Fiscalía General del Estado) may take action.
Actions aimed at seeking compensation for damages and losses may only be initiated by the affected consumers or users.
Despite what is established in the law, hardly ever a class action has been filed to claim consumer rights or seek compensation for damages.
The CUPL establishes that all acts entered into between suppliers and consumers relating to the distribution, sale, purchase or any other form of commercial transaction of goods and services shall be subject to the provisions of the Law.
The CUPL considers a supplier to be any individual or legal entity, whether national or foreign, public or private, that engages in the production, manufacture, import, distribution, marketing, sale or lease of goods or the rendering of services to consumers or users, respectively, for which it charges a price or fee.
Yes, the Consumer and Protection Authority (The "SEDECO") was created by Law No. 4.974/2013. SEDECO is a legal entity of public law with its own assets. It is the body in charge of executing the national policy for the defense of consumers and users and the enforcement authority of the CUPL, its regulations and other complementary laws on the subject.
Its purpose is to:
- To ensure compliance with the provisions of the CUPL and other rules that govern and are related to consumer and user protection;
- Disseminate rights and responsibilities, as well as conduct consumer information and education activities; and
- Promote market formalization, preventing consumer and user vulnerability.
It also has the following functions:
- To formulate, implement and promote consumer education and information programs, through the mass media and other available mechanisms;
- Receive and follow up on consumer concerns, claims and complaints;
- To arrange for inspections and expertise related to the application of the CUPL;
- Request reports and opinions from public and private entities regarding consumer and user protection regulations;
- To arrange on its own or at the request of a party, the holding of hearings with the participation of complainants, injured parties, alleged offenders, witnesses and experts, previously acting as conciliator, trying to conciliate the parties;
- Create, maintain and update a National Registry of Consumer Associations;
- Maintain a National Registry of Complaints, Inspections and Offenders, for statistical purposes and to detect possible cases of recidivism on the part of suppliers;
- Promote joint work with the Enforcement Authorities at the local level in the field of consumer protection;
- To initiate administrative inquiries and, consequently, to apply preventive, precautionary and corrective measures and to sanction or absolve suppliers who have been summoned for infringement of consumer protection regulations, as well as to provide other measures that may be necessary for the fulfillment of its functions;
- To order the execution of analyses of the type that may be necessary, of products or services in violation;
- Collect, elaborate, process, divulge and publish information to facilitate the consumer a better knowledge of the characteristics of the commercialization of goods or services offered in the market;
- To carry out and promote research in the area of consumption; and,
- To request, through the courts, the assistance of the public force, the intervention of the Public Prosecutor's Office (Ministerio Público) or as many proceedings as may be necessary for the fulfillment of its functions.
SEDECO is a Department specifically created to advocate for and resolve consumer protection conflicts.
Also, according to article 51 of the CUPL, judges, upon request from a party, may:
- Prohibit the display, circulation, distribution, transportation, or commercialization of products that violate provisions of the CUPL;
- Order the seizure of products that violate the provisions of the CUPL when they are dangerous or harmful to health;
- Order the cessation of the activity of individuals or entities engaged in operations or actions prohibited by this law;
- With prior due hearing, order the temporary closure of an establishment, business, or facility;
- Apply coercive fines aimed at enforcing what is ordered in final judgments or precautionary measures. These fines will be graduated in proportion to the economic capacity of the party responsible for paying them.
- Order the publication of final judgments or parts thereof, at the expense of the convicted party, in newspapers, magazines, on radio, or on television broadcasters.
- Demand compliance or adaptation to any provision of the CUPL and issue a warning to apply other sanctions provided for in the law or in other legal regulations;
- Void the clauses in agreements that are considered abusive.
In all cases the sanctions will be applied respecting the right of defense of those affected by them.
At the request of a party, judges may order precautionary measures aimed at preventing actions that involve a blatant violation of what is regulated by the CUPL, pose an imminent danger to the health or well-being of consumers or users, or could cause serious harm to the community; or to put an end to these actions, all of this without prejudice to the measures that public authorities may take within the scope of their competencies.
Judges may impose fines on litigants who have requested precautionary measures in bad faith, whether by concealing information, using subterfuge, providing incorrect or biased information, or requesting them for their exclusive benefit.
Against the resolutions issued by SEDECO, an administrative litigation action may be initiated within a period of 18 business days from the notification of the resolution before the Court (Tribunal de Cuentas).
Likewise, the jurisdiction of the capital city courts is established for all judicial matters in which SEDECO is the plaintiff or defendant.
SEDECO has the power to impose and apply monetary fines in accordance with the provisions of Decree No. 21,004/03 "By which the single administrative procedure is established for the substantiation of summary processes in matters of consumer defense that are processed within the integrated National System of Consumer protection"; and Resolution No. 520/06 "by which a scale of fines is established for violations of provisions contemplated in the current regulations on consumer and user defense and by which the judicial collection of fines applied in the resolutions issued by the General Directorate of Consumer and User Defense.
Resolution 520/06 establishes a scale of fines for infringement and non-compliance with the legal provisions regarding Consumer and User Defense based on the value of products and/or services according to the following table: Considering that Paraguay’s official currency is the Guaraní (Gs.), the following table refers to monetary fines in Guaraní.
Of Gs. To Gs. Sanction up to
- 0 600.000.- 10 wages
- 600.001 1.500.000.- 15 wages
- 1.500.001 3.000.000.- 20 wages
- 3.000.001 5.000.000.- 30 wages
- 5.000.001 7.000.000.- 45 wages
- 7.000.001 10.000.000.- 50 wages
- 10.000.001 15.000.000.- 60 wages
- 15.000.001 20.000.000.- 70 wages
- 20.000.001 25.000.000.- 80 wages
- 25.000.001 30.000.000.- 90 wages
- 30.000.001 40.000.000.- 100 wages
- 40.000.001 50.000.000.- 150 wages
- 50.000.001 60.000.000.- 200 wages
- 60.000.001 70.000.000.- 250 wages
- 70.000.001 80.000.000.- 300 wages
- 80.000.001 90.000.000.- 350 wages
- 90.000.001 100.000.000.- 400 wages
- 100.000.001 120.000.000.- 500 wages
- 120.000.001 150.000.000.- 600 wages
- 150.000.001 180.000.000.- 800 wages
- 180.000.001 200.000.000.- 900 wages
- 200.000.001 1.000 wages
Consumer and User will be governed in accordance with the provisions of Article 9 of Law No. 904/63.
This table will be applied to calculate the reference amount of the penalty. The final amount of the penalty will be determined by applying the mitigating and aggravating criteria contained in Article 32 of Decree No. 21004/03, which indicates:
Application and graduation of sanctions.
Suppliers are objectively responsible for violating the provisions contained in Law No. 1334/98, in this Decree and in its complementary and regulatory standards.
In the application and grading of the sanctions provided for in this Decree, the seriousness of the offense will be taken into account, the damage resulting from the infringement for the consumer or user, the market position of the offender, the amount of the benefit obtained, the degree of intentionality, the seriousness of the risks or social harm derived from the infringement and its generalization, recidivism, the conduct of the offender in the procedure and the other relevant circumstances of the fact.
A repeat offender will be considered anyone who, having been sanctioned for an infraction, commits another offense of a similar nature within a period of two years.
Yes, CUPL establishes as one of the basic rights of the consumer, the protection of life, health and safety against the risks caused by the provision of products and the provision of services considered harmful or dangerous.
All goods and services whose use, by their nature, may pose a normal and foreseeable risk to the life, safety and health of consumers, must be marketed in compliance with the mechanisms, instructions and standards necessary to guarantee their reliability.
Suppliers of goods and services that are risky to life, health and safety must inform, clearly and adequately, about their dangerousness or harmfulness, without prejudice to the adoption of other measures that may be taken in each specific case.
Likewise, the law establishes that suppliers of goods or services, who after their introduction into the market, become aware of their danger, must immediately communicate this circumstance to the competent authorities and consumers, through advertisements, under penalty of be sanctioned in accordance with the provisions of the law. If a product is found to have a serious defect or constitute a considerable danger, even when used properly, the authority implementing this law shall oblige the manufacturers or suppliers to recall and replace it or to modify or substitute it with another product. If it is not possible to do so within a reasonable period of time, they must provide the consumer with adequate compensation.
Therefore, once the fact is known about the possible failures of a product and the possible exposure to the danger that this represents, and in order to avoid possible claims and processes, one must proceed in accordance with the provisions of the CUPL and begin the communication process, and withdrawal of the products from the market immediately.
No, If the products manufactured abroad are to be marketed in the country, the product recall process does apply. Only products to be marketed in the country must undergo the recall process in case of possible damage.
Yes, E-commerce is governed by Law No. 4868/13 and its regulatory decree No. 1165/14.
Law 4868 aims to regulate commerce and contracting carried out through electronic or technologically equivalent means, like:
- relationships between Suppliers of Goods and Services via electronic channels;
- intermediaries in the transmission of content through telecommunications networks;
- commercial communications via electronic channels
- and communications with consumers or users via electronic channels.
Yes, Law No. 4868 in its Art. 30, establishes the Rights of Consumers or Users, namely:
- have a simple and free procedure, both at the time of data collection and in each of the commercial communications you send, to oppose the use of your data for promotional purposes;
- retract the commercial transaction, within a maximum period of 5 (five) business days from the receipt of the product or service from the Supplier of Goods and Services, with the simple electronic notification of their will. In the event that you timely exercise this right, the canceled amounts will be returned, provided that the service or product has not been used or deteriorated. The costs that Consumers must cover, in this case, will be those related to the return of the products or the payment of the services already provided; and,
- when the Suppliers of Goods and Services use data storage and recovery devices in terminal equipment, they will inform the Consumers or Users in a clear and complete manner about their use and purpose, offering them the possibility of rejecting the use of the data through a simple and free procedure.
Certain exceptions are established to the Consumer or User's Right of Withdrawal, which cannot be exercised in the following cases:
- when the items have been manufactured according to the specifications provided by the Consumer or User or when they have been personalized;
- products that due to their characteristics cannot be returned or that deteriorate quickly;
- audio, video recordings or software whose packaging has been opened by the Consumer or User, unless its content is different from that indicated on the packaging;
- the supply of newspapers or magazines;
- accommodation, transportation, catering and recreational services scheduled for a specific date; unless there is a notification of retraction, with a minimum of 5 (five) business days in advance; and,
- travel and baggage insurance contracts, as well as other short-term insurance contracts.
Yes, in Paraguay there is still no regulation that applies specifically for the purchase and sale of crypto assets. However, considering that the CUPL does not make a discrimination as to which products and services it applies to, it must be understood that the CUPL is applicable for the purchase and sale of crypto assets.
No, Paraguayan legislation has not established specific regulations to be applied to influencers.
However, the CUPL has established as one of the basic rights of consumers the adequate protection against deceptive advertising, coercive or unfair business practices, and abusive contractual clauses in the provision of products and the provision of services.
Likewise, the CUPL contains a special chapter on Advertising Regulation, which states:
Art. 35. Any advertising considered deceptive is prohibited. It shall be understood as such, any form of advertising information, dissemination, or communication that is wholly or partially false, or that in any other way, even by omission, is capable of misleading the consumer when providing information regarding the nature, characteristics, quality, quantity, properties, origin, price, marketing conditions, production techniques, or any other data necessary to define the consumer relationship.
Article 36. Comparative advertising will not be allowed when, through deliberate actions or general and indiscriminate statements, the consumer is induced to establish the superiority of one product or service over another.
Article 37. Abusive advertising is prohibited, understood as any advertising of a discriminatory nature, or that incites violence, exploits fear, takes advantage of the immaturity of children, violates environmental values, or is capable of inducing the consumer to behave in a harmful or dangerous manner to their health or safety.
Article 38. Promotions aimed at the consumption of tobacco, alcoholic beverages, medications, and stimulant drinks shall be subject to the limitations imposed by special laws regulating their production, sale, and commercial advertising.
Article 39. In disputes that may arise as a result of the provisions in the preceding articles, the advertiser must prove the truth of the claims contained in the advertising message.
For all legal purposes, the advertiser shall be understood as the provider of goods or services who has commissioned the dissemination of the advertising message.
On the other hand, Law No. 5830/17 has been enacted, which prohibits unauthorized advertising by mobile phone users.
Influencers must comply with the regulations stipulated in the CUPL and other laws related to the duty of information and those pertaining to advertising. It is important to emphasize that the advertiser (or influencer) will be responsible for the damages caused by deceptive advertising in which they participate.
Finally, Law 1333/1998 regulates the advertising and promotion of tobacco and alcoholic beverages, and, among other things, it prohibits: the use of images of children, adolescents, or representative characters for children and adolescents in the advertising of both products; associations with family settings, physical activities that require good physical condition; associations with or inducements to sexual activity; inducements to excessive consumption.
Yes, it is possible that changes may occur considering that there has been a change of government and that we have a new President. However, we do not see this as a necessary or pending matter to be reviewed or updated at this time. The tools currently available for the effective protection of users and consumers are sufficient and fully operational.