Consumer Rights and Supplier Obligations in Contracts

Posted on Dec 9, 2024 in Law & Jurisprudence

Adhesion Contracts

Clauses or provisions in adhesion contracts will not be effective if they:

  • Grant one party the power to waive or modify the contract by their own will or to unilaterally suspend its implementation.
  • Set price increases for services, accessories, financing, or charges, unless such attachments can be accepted or rejected.
  • Charge the consumer for the effects of deficiencies or administrative errors when they are not attributable to them.
  • Shift the burden of proof to the detriment of the consumer.
  • Contain absolute limitations of liability to the consumer that would deprive the latter of their right to be compensated for deficiencies in the product or service.
  • Include spaces that have not been filled or disabled before the contract is signed.
  • Cause a significant imbalance in the rights and obligations of the parties arising out of the contract, to the detriment of the consumer. If the contract designates an arbitrator, the consumer may request the judge to appoint another, without explanation.

Promotions and Offers

In any promotion or offer, the consumer must be informed of the bases and the time of its duration. It will not suffice to have deposited the bases before a notary. In the case of promotions where the incentive is participation in contests or sweepstakes, it is required to disclose the amount or number of prizes and the deadline to claim them. The results must also be properly disseminated.

Consumer Rights and Responsibilities

  • The right to accurate and timely information on goods and services offered, price, contract conditions, and other relevant characteristics thereof, and the duty to be informed responsibly.
  • Not being arbitrarily discriminated against by providers of goods and services. This is based on the constitutional guarantee against arbitrary discrimination in economic matters but comes under this law to make it easier to appeal to the provider itself, before the SERNAC, or to the local police magistrate, and bring an action for protection against respective appeals court.
  • The right to redress and adequate and timely compensation for all material and moral damages for breach of any of the obligations of the provider, and the duty to act in accordance with the media that the law provides. In general, moral damages are not compensated for breach of contract, so this is a novelty.
  • Education for responsible consumption and the duty to conclude transactions and consumption in the established trade. The SERNAC must formulate, implement, and promote programs of information and consumer education. The duty of holding consumer operations with established trade concerns that rights are lost if contracts are made with illegal traders.
  • The right of withdrawal: the consumer may terminate the contract unilaterally within 10 days of receipt of the product or service procurement and before providing the same in the following cases:
    • When buying goods and contracting services at meetings convened by the supplier in which the consumer has to express their acceptance within the same day of the meeting. This law is enforced by the letter sent to the address of the provider in a contract.
    • Contracts concluded by electronic means and those in which an offer made through catalogs or any form of distance communication is accepted. The deadlines are computed differently.

In any case, the supplier must return the money paid. This is not applicable to services already rendered.

Consumers should return the items in good condition, with packaging, labels, warranty, box, etc.

Consumer rights cannot be waived in advance. Once the rights are exercised, for example, once a failure is denounced, there is no problem in reaching an agreement with the supplier, but one cannot decline to exercise their rights, for example, by signing a contract.

Supplier Obligations

  • Any supplier of goods or services shall be bound by the terms and conditions under which it has offered or agreed with the consumer to deliver the goods or provide the service.
  • For contracts concluded by electronic means and where an offer made through catalogs or any form of distance communication is accepted, consent will not be deemed to have been formed if the consumer has not had clear access to the conditions of the contract and the possibility of storing or printing it.
  • The single visit to a website does not impose any obligations on the consumer unless they unequivocally accept the terms offered. If a contract is concluded, the supplier must send a copy to the consumer.
  • Providers cannot unreasonably refuse the sale of goods or services contained in their respective drafts on the terms offered.
  • If products with a deficiency are offered, with knowledge of the supplier, this fact must be expressly informed. Sufficient expressions are “second choice,” “made with used material,” or equivalent on posters or notices about the product. If the provider complies with this, they are freed from responsibility for the warned fact.
  • Security and surveillance systems must respect the dignity and rights of individuals. There cannot be a camera in the bathroom.

Liability for Failure

  • Charging a higher price than displayed, reported, or publicized is a violation of consumer law.
  • The consumer is entitled to the replacement of the product or, failing that, to qualify for a bonus of its value in the purchase of another or the return of the price paid in excess when the amount or the net product content is less than indicated on the package.
  • Without prejudice to compensation for damages, the consumer may choose between repairing the goods or free replacement or a refund upon its return for the amount paid in the following cases:
    • When products subject to mandatory safety or quality standards do not meet specifications.
    • When materials, parts, or ingredients do not meet the specifications or terms of labeling.
    • When any product has deficiencies in manufacturing, processing, materials, etc., that make it not entirely suitable for the use or consumption for which it is intended or that the supplier had indicated in their advertising.
    • When the supplier and consumer have agreed that the goods covered by the contract must have certain characteristics, and this does not happen.
    • When, after the first time the guarantee has been paid and provided for the service, gaps still exist that make it unfit according to letter c).
    • When things under contract have hidden defects that prevent the use for which they are usually intended.
    • When the law of metals in items of jewelry, and others is less than that stated in them.

For these purposes, it shall be deemed to be a single good that has been sold as a whole but is made up of different components or parts, notwithstanding that these may or may not provide a utility independently of each other. Notwithstanding the foregoing, in the case of replacement, this may be made in respect of a part or piece unit where the other is equal to that which is returned.

Other Breaches of Consumer Law

1) False and misleading advertising regarding the price and generally on the characteristics of the goods and services disseminated by means of social communication is punishable. The penalty is increased if it affects the qualities of the products or services that affect the health or safety of the public or the environment. For the application of fines, the court will take into account the level of the accused, the degree of negligence of the offender, the severity of the damage, the risk that the victim was exposed to or the community, and the economic situation of the offender.

  • Mark: A word or words with or without idiomatic meaning, letter combinations, or such numbers.
  • Figurative marks: Labels with pictures, images, symbols, or drawings.
  • Mixed Marks: In a cloud with words or words.

Registration Procedure

  • Submission of application: Applications are multiclass, i.e., for instance, on the same form of products, different kinds of products can be ordered:
    • Products: Using the form, protection can be requested for a mark that distinguishes a product of various kinds.
    • Services: Protection can be requested for a trademark distinguishing lawful activities which consist of services.
      • Retail outlets: For brands that differentiate stores in what you buy or sell one or more classes, the products of each class should be detailed. Form coverage pays for classes and requested region.
      • Industrial establishments: Marks to distinguish an establishment of manufacturing.
      • Propaganda phrase: Request protection for a phrase that serves to advertise a mark previously registered or is necessarily required to have a trademark registration to require a sentence of propaganda. Coverage of the sentence depends on the coverage of the register you have.
    • Formal examination: The application entered into the INAPI performs a formal examination and may accept or observe the application if it detects any error or omission by the applicant. The applicant must correct or clarify the application within 30 days, and if it does not, the application is declared abandoned.
    • Publication in the Official Gazette and substantive examination: If the application is accepted for processing, the individual must make the publication of the extract of the application in the DO running on the INAPI, within 20 days after acceptance. If not, the application is deemed abandoned. With the publication begins to run within 30 days for third parties to oppose the application for registration.
    • Final resolution: A resolution is communicated to accept or reject the mark. If the request is accepted, the applicant must pay within 60 days of notification of the decision to accept. If you reject the brand, you can appeal to the court of industrial property attorney and consign 2 UTM.
    • Trademark: Once the payment is made, the mark will be registered.

Consumer Credit

When consumer credit is granted, the provider must report:

  • The spot price of goods or services, which should be expressed in a size equal to the amount of contributions.
  • The interest rate applied, in addition to taxes, legal costs, insurance, and any fees permitted by law associated with the credit.
  • The total amount payable by the borrower or the amount of fees to pay.
  • Alternatives for the amount and number of payments to be made and their frequency.

In the case of goods that are displayed in cabinets or shelves, information for a) and b) must be specified.