Puerto Rico DACO Advocates for Legislative Clarity on Consumer Protection Roles

Puerto Rico's Department of Consumer Affairs (DACO) is poised to enhance consumer protection through proposed legislation aimed at addressing unfair competition practices. During a recent meeting of the Cámara de Representantes, officials discussed the implications of the new bill, which seeks to expand DACO's regulatory scope beyond consumer-business interactions to include disputes between competing businesses.

The current regulatory framework, established by Law No. 5 in 1973, focuses on safeguarding consumer rights and ensuring compliance with regulations regarding goods and services. However, the proposed legislation aims to tackle issues of unfair competition, which DACO officials believe is essential for fostering a fair marketplace. They emphasized that while the new law would complement existing regulations, it should not replace DACO's primary role as a consumer protection agency.

Key recommendations from DACO include clarifying the agency's functions in relation to the Department of Justice and other regulatory bodies, as well as mandating educational campaigns to inform both consumers and businesses about their rights and responsibilities. There is also a call for clear guidelines on whether DACO will retain its adjudicative role under the new law or shift to a more advisory capacity.

The proposed bill, identified as Cámara 664, has been recognized as a significant legislative advancement. It aims to make anti-monopoly laws more accessible and effective for consumers. DACO expressed its support for the measure, highlighting its potential to strengthen consumer protection and promote fair competition.

Concerns were raised during the meeting regarding the potential for misuse of the new provisions, particularly by larger businesses against smaller competitors. DACO officials acknowledged the need for safeguards to prevent abuse of the legal mechanisms introduced by the bill, ensuring that it does not become a tool for stifling competition.

As the legislative process continues, DACO remains committed to collaborating with lawmakers to ensure the effective implementation of the proposed changes, which could reshape the landscape of consumer rights and business practices in Puerto Rico. The agency's proactive stance reflects a broader commitment to enhancing consumer protection and fostering a competitive marketplace.