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NEW REGULATIONS OF THE HONDURAS CONSUMER PROTECTION LAW

[vc_row][vc_column][vc_column_text] NEW REGULATIONS OF THE HONDURAS CONSUMER PROTECTION LAW [/vc_column_text][us_separator][vc_column_text] Everyone has the right to access safe products and quality services, to fair treatment, and to effective remedies if things don't work as they should. But individuals alone can find it difficult to make their voices heard or influence change. The United Nations Guidelines on […]

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NEW REGULATIONS OF THE HONDURAS CONSUMER PROTECTION LAW

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Everyone has the right to access safe products and quality services, to fair treatment, and to effective remedies if things don't work as they should. But individuals alone can find it difficult to make their voices heard or influence change. The United Nations Guidelines on Consumer Protection invoke the fundamental principles of consumer protection; they explain what consumers need and provide consumer organizations with practical recommendations on how to meet those needs. Operating within this valuable framework can help companies that supply goods and services and those involved in national policymaking provide guidance to consumers and businesses.

Consumer protection begins with good business practices. The Guidelines establish that businesses should meet legitimate consumer needs by:

  • Fair and honest treatment of consumers at all stages of the relationship;
  • Avoiding practices that pose unnecessary risks or harm to consumers, particularly those who are vulnerable and disadvantaged;
  • Provide consumers with accurate information about products and services, terms and conditions, charges, and costs, enabling them to make informed decisions.
  • Help consumers develop the knowledge and skills necessary to understand the risks, as well as provide them with access to competent advice and assistance;
  • Adopt effective measures to protect consumer privacy and personal information;
  • Provide easy access to fair, effective, transparent, and cost-effective dispute resolution programs that help consumers resolve their complaints if things don't go as expected.

On December 27, 2021,Agreement No. 084-2021 was published in the Official Gazette of the Republic of Honduras,by which the new REGULATIONS OF THE CONSUMER PROTECTION LAW are approved, so it is important to take into account the main aspects to consider: The regulation contains 106 articles andCompletely repeals Executive Agreement No. 15-2009, published in the Official Gazette La Gaceta on April 15, 2009, which contained the previous REGULATIONS OF THE CONSUMER PROTECTION LAW.

The purpose of the new regulations is to develop in detail the provisions of the Consumer Protection Law, in order to facilitate its implementation and enforcement. The new Regulations of the Consumer Protection Law will apply to: i. Consumer relations contracted or acquired within the territory of Honduras, through any means or mechanism of sale; ii. Consumer relations between natural or legal persons; iii) Consumer relations between consumers and suppliers; iv) The marketing of public or private goods or services; v) Public services and private activities of national public interest not provided for in specific legislation.

In Honduras, the Secretary of State in the Office of Economic Development, through the General Directorate of Consumer Protection, is the authority responsible for enforcing the Law, the Consumer Protection Regulations, and other legal and regulatory provisions emanating from the Law. Suppliers of goods that sell so-called original products must guarantee their authenticity, providing proof of the information provided by the manufacturer.

Legal metrology, which consists of the verification of official measurement instruments, methods, and standards, must be emphasized. These verifications must be carried out in accordance with the provisions of consumer protection law, standards, technical regulations, health, environmental regulations, and other applicable legal provisions.

It is also established that complaint books will be kept, which may be physical or digital and will be intended for consumers or users to record their complaints or claims regarding conduct that is harmful to dignified and equitable treatment by suppliers, as well as any other breach or non-compliance provided for by the Law; the authorization of said Books will be made through the General Director, Deputy General Director or through the municipal governments within their jurisdiction once the necessary requirements have been met, namely: 1. Application; 2. Operating permit or articles of incorporation of the company; 3. Single notebook (minimum 200 pages) initialed, paginated, labeled (name of book and establishment); 4. The digital complaint book must have an electronic platform that provides easy and free access via the internet and have a button to access the platform from the establishment's website; 5. Provide free access to the enforcement authority to properly follow up on the complaints filed; 6. Maintain a database of consumer complaints; 7. Provide users with a complaint number for follow-up; 8. Be posted and located near collection points or customer service areas. A sign must be displayed at the checkout or customer service line informing consumers that a complaint book is available. If the complaint book is tampered with or found in poor condition, it may be confiscated by the authorities and must be replaced within five days.

Establishments displaying split prices are required to have coins in stock to provide the full change to the consumer and must do so in the same currency as the payment is received when cash is used.

  • When, for any reason, an offer includes contradictory information, the most favorable to the consumer or user will always prevail.
  • In advertising, offers, discounts and promotions, suppliers must meet the following requirements:
    1. Previous sale price.
    2. Discount percentage and value.
    3. Total amount to pay

Exceptions are made for products that are being marketed for the first time and do not have a previous price.

The guarantee to which the supplier undertakes includes damages. The damages resulting from the harmful event may be conciliated through this administrative process, or otherwise, they must be determined judicially by request of the consumer. The supplier is obligated to transfer the guarantee granted by the manufacturer of the goods to the consumer. The period will begin to run from the date of purchase and cannot be reduced. When the supplier offers the consumer an extra-guarantee service, it cannot have the same protection coverage as that extended by the manufacturer if its validity period runs simultaneously. The acquisition of the extra-guarantee cannot be conditioned on the consumer; their acceptance must be recorded in writing. The guarantee cannot be limited to specifications not established by the manufacturer of the goods. Suppliers must ensure the supply of new parts and spare parts during the validity of the guarantee. The use of used parts will be permitted only in cases where new parts are not available on the national market and there is express authorization from the consumer.

Sales made through e-commerce must comply with the same provisions established in the Consumer Protection Law for conventional sales. Suppliers who sell goods or services through e-commerce, social media, or similar means are required to provide consumers with the business's email address, telephone number, or physical address to ensure the consumer's right to file a complaint.

When a consumer receives goods or services they did not request, or the supplier had no right to charge for, or they were wrongfully charged, the supplier is obligated to accept the return of the goods or cancel the service and refund the amount charged. Refunds for improper charges must be made within a maximum of five days.

Other practices considered abusive and violative of consumer rights are detailed below:

  1. Limit liability for damage caused to the consumer's economic interests by a third party within its establishment.
  2. Do not place warnings in spaces and places that could be considered a risk to the life or health of consumers.
  3. Limiting the rights of preferential care groups and not providing the discounts to which they are entitled by law.
  4. Charge or add a tip for services to the bill, since paying a tip is a reward from the consumer for the quality of service received.
  5. Make full payments for services provided for a fraction of a time.
  6. Charging higher amounts than agreed upon without having been accepted by the consumer.
  7. Carrying out actions or practices that violate human dignity and cause shame, ridicule, absurdity, or discomfort to consumers.
  8. Creating false expectations in consumers about advertising carried out through any means of communication.
  9. Failure to guarantee the protection of consumers' personal information without the appropriate use of security and transparency control mechanisms.

Terms or clauses that unfairly affect the consumer or user in the balance of rights and obligations between both parties will be considered abusive.

When contractual clauses in adhesion contracts or similar are classified as unfair, the Enforcement Authority will record the incident and the allegedly infringed provision, instructing the alleged offender to defend themselves and provide evidence that supports their rights. If the Enforcement Authority maintains this position, it will require the alleged offender, in its final resolution, to remove the clause and notify consumers of this circumstance within the timeframe set by the Enforcement Authority.

Contracts must meet the following requirements:

  1. It must be in writing; 2. In Spanish; 3. The font must be legible and no smaller than 2.5 millimeters; 4. Maintain adequate contrast between the document's form and content; 5. Contract clauses must be clear and easy for the consumer to understand; 6. The consumer's acceptance must be confirmed by a signature on the contract itself.

The General Directorate of Consumer Protection will act ex officio or at the request of an interested party. In the event that a consumer files a complaint and does not submit a request for personal compensation, it will carry out the process ex officio. The conciliation process is only applicable in cases of complaints from individuals or duly registered consumer associations. Under no circumstances is it applicable in cases of actions initiated ex officio by the Enforcement Authority. Alternative means for receiving complaints may be by telephone or electronic means. The Enforcement Authority will issue the procedures for handling claims, complaints, and reports.

To file a complaint, documents proving the business relationship that is the subject of the complaint and any other documents deemed necessary to verify the reported facts must be submitted.

The new regulations specify penalties for suppliers based on the violations committed. These violations will be classified as: a) Very serious; these are those that, through action or omission by the supplier, pose a risk to human life, health, and safety in the acquisition, use, or consumption of goods and services; b) Serious; these are those that are detrimental to the economic interests of consumers; c) Less serious; these do not pose a risk to human life, health, and safety and do not violate the economic interests of consumers.

If you need support regarding anything regulated by the Honduras Protection Law or its new regulations, do not hesitate to contact us at the emailnamaya@lexincorp.com, we invite you to visit our website at the same timewww.lexincorp.com

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Written by:Lic. Nora Amaya

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