Indecopi presents proposal to regulate electronic commerce

By Espinosa Bellido Abogados

The National Institute for the Defense of Free Competition and the Protection of Intellectual Property (Indecopi) of Peru published an institutional working document that proposes updates to the Consumer Protection Code, looking to regulate electronic commerce in the country.

The project, which must be implemented through a law, is a direct consequence of the accelerated growth that e-commerce has experienced in Peru during the COVID-19 pandemic. It seeks to establish a minimum standard of compliance in transactions carried out through electronic means, protect consumers guaranteeing their safety against risky products and encourage dispute resolution between companies and consumers.

Although there are many benefits that e-commerce brings to consumers, including wider choices at competitive prices, as well as easy-to-use and more secure payment options, Indecopi understands that the online environment has a higher complexity and related risks for consumers, for example consumers’ understanding of their rights and obligations. Therefore, its goal is to modernize Peru’s approach to fair business practices, information disclosures, payment protections, unsafe products, dispute resolution, enforcement and education. 

Among other things, its states businesses should not make any representation, or omission, or engage in any practice that is likely to be deceptive, misleading, fraudulent or unfair. This includes the general impression likely conveyed to consumers by the representation or practice as well as implied factual misrepresentations conveyed through features such as the good or the service’s name, words, pictures, audio and/or video and the use of disclaimers that are hidden, hard to notice or to understand.

It took into account consumer protection suggestions from the Organization for Economic Cooperation and Development (OECD), which in In March 2016 revised its Recommendation on Consumer Protection for E-commerce, Such revision built upon preparatory work that included specific policy guidance on mobile and online payments and intangible digital content products.