All commercial promotions that promote the consumption of products or services and that designate winners by any random mechanism require prior authorization from the Consumer Defense Unit.

To date, carrying out a promotion without said authorization or in breach of any other aspect of the regulations exposed the organizer to sanctions of warning, request for suspension of the promotion or confiscation of prizes in extreme cases. And, if there are three prior warnings, the prohibition of carrying out promotions for a period of 180 days

Since the last Accountability Law, it was established that economic sanctions may also be applied. They range from 10 to 1,000 Adjustable Units, which will be graduated taking into account the offender’s background, market position and the severity of the non-compliance.

The above represents an important change by introducing the possibility of applying fines that until now were not in the list of possible sanctions, which, depending on the case, could become considerable.

For more information contact:

Carla Arellano  | Counselor Ferrere | carellano@ferrere.com