FEDERICO VILLARREAL NATIONAL UNIVERSITY

FACULTY OF LAW AND POLITICAL SCIENCESCHOOL

OF POLITICAL SCIENCE

SUBJECT: POLITICAL ECOLOGY

TOPIC: PROTECTION OF CONSUMER

RIGHTS2nd. YEAR

TEACHER: Mag. ERNESTINA EMPRESS BUSTAMANTE

VALENTINOCTUBRE-2019
LIMA-PERU
• PROTECTION OF CONSUMER RIGHTS
1. THE ECONOMIC CONSTITUTION

• Among the most important institutions of Contemporary Constitutional Law is the so-
called Economic Constitution.

• This concept has a dual dimension:

• The Economic Constitution seen as content and which Domingo García Belaunde himself
calls the Material Economic Constitution, understood as the real ordering of the
economy in a given community.
• The Economic Constitution seen as the supreme legal norm and which García Belaunde
himself calls the Formal Economic Constitution, understood as "the way in which the
written constitution collects, recognizes or regulates this reality"
• The definition of the Economic Constitution leads to considering it as:
• The economic system enshrined in the Constitution of a given State, which
includes: the regulation of property, of the public and private economy, of
the actions of economic agents, of the rules of the market, of the company
and, in general, of the economic phenomenon, whose incorporation in the
constitutional regulations,
• Added to the dogmatic part and
• The organic part makes up the three fundamental parts of a modern
Constitution: (Economic Constitutional Law, Constitutional Law of Freedom
and Constitutional Law of Power).
 THE ECONOMIC CONSTITUTION IN THE 1993 CONSTITUTION
^ The Peruvian Economic Constitution of 1993 contains both principles that inform the entire
legal system and binding constitutional legal norms. Its fundamental bases are the principle of
subsidiarity of the State, the principle of economic pluralism, the social market economy, the
principle of free competition and the protection of consumers and the guarantees of national
and foreign investment.

• The Peruvian Economic Constitution has enshrined in Article 65 the rule transcribed
below:

• The State defends the interests of consumers and users. To this end, it guarantees the
right to information about the goods and services available on the market. It also
ensures, in particular, the health and safety of the population.
 PROTECTION OF CONSUMER RIGHTS
• The protection of consumer rights constitutes a guiding principle of the social
and economic policy of the State as established by the Political Constitution of Peru,
typical of the social market economy model.
which confers on the State a special duty to protect the interests of consumers.
• State policy on consumer protection is vital since its success depends on whether
consumers have access to suitable products and services, enjoy effective rights and
mechanisms for their protection, and prevent or eliminate conduct and practices
that affect their legitimate interests.
The Constitutional Court, the highest body that interprets the Constitution of the
Republic, has ruled that Article 65 of the Constitution - which defends the interests of
consumers and users, and ensures the health and safety of the population - actually
constitutes a limit on the actions of companies vis-à-vis consumers.
The main principles that —according to the TC— govern consumer protection are:
a) the pro-consumer principle, which favors the consumer in case of asymmetries,
b) the prohibition of abuse of rights,
c) the principle of real isonomy, which establishes equal treatment for equals and
unequal treatment for unequals,
.
 d) restitutio in integrum, where the State safeguards the compensation for damages
caused by the supplier to consumers,

g) the in dubio pro consumer - in case of doubt - the interpretation of legal norms in
favor of the consumer, and
h)the pro-associative principle, which facilitates the creation and action of consumer
associations
e) transparency,
f) truthfulness,
Based on these principles, two fundamental obligations emerge:
1) Guarantee the right to information and the defense of consumer interests, and
2) Ensure that the products or services offered do not endanger the life, safety and
health of the population.
Given its constitutional nature, this is the core rule of the normative regulation of
consumer protection in Peru. Three basic functions of the State are derived from it:
a) The State assumes a role of defending the interests of consumers and users, ) The State
guarantees the right to information that suppliers must offer about the goods and
services that are on the market available to consumers and users, precisely to
counteract (in part) the natural information asymmetry.
c) The State takes particular care of the health and safety of the population, considering
that these are two legal assets of special relevance, which is why they deserve greater
State protection.
 CONSUMER LAW
Consumer Law is the branch of Law that seeks to protect the weaker party in the consumer
relationship (Roppo 2011: 361, 362), through flexible and economic administrative action
mechanisms.
It also protects the safety and health of consumers.
Consumer law establishes the minimum protection of its regulations, based on the principle of
minimum protection, which guarantees that conditions less than those established in the
Consumer Protection and Defense Code cannot be established.
The reason and founding principle of Consumer Law is the principle of information asymmetry,
which is based on the inequality of information in which the party that acquires a product
or service from a supplier finds itself.
 1. THE CONSUMER
Consumer is the natural or legal person who acquires products and services for
personal or family use.
A consumer is someone who does not use the goods and services he or she acquires for
a rational or commercial purpose.
The consumer –or user– is the end of all economic activity; that is, he or she is the
one who closes the economic circle by satisfying his or her needs and increasing his or
her well-being through the use of a range of products and services.
Strictly speaking, it is a natural or legal person who acquires, uses or enjoys certain
products [as a consumer] or services [as a user] that have previously been offered to
the market.
The Institute for the Defense of Competition and the Protection of Intellectual
Property, hereinafter simply INDECOPI, considers that a consumer is:
“…a person who acquires, uses or enjoys, as the final recipient, products or services,
that is, someone who will not continue with the production chain”
• The Consumer Protection and Defense Code defines what is meant by consumer, in
its article IV paragraph
• 1. The essential elements that can be extracted from the definition are:
7 Natural or legal person who acquires goods and services for a personal purpose.
• Section 1.2 defines a consumer as a micro-entrepreneur who acquires goods and
services for non-business purposes.
• The United Nations General Assembly adopted general guidelines for the protection of
consumers worldwide starting in 1985, and in its session on April 16, 1985, it approved,
through Resolution 39/248, the Guidelines for Consumer Protection.
• In this document, it states in point 2 within the General Principles, that "it is up to
governments to formulate, strengthen or maintain a vigorous consumer protection policy,
taking into account the guidelines (...)
• In doing so, each government must establish its own priorities for consumer
protection, according to the economic and social circumstances of the country and the
needs of its population, taking into account the costs and benefits of the measures proposed.”
In point 3, it indicates the legitimate needs that the guidelines seek to address, that is to
say, the urgent needs in terms of consumer protection, which will give rise to consumer
rights. The following are indicated:
a) Protecting consumers from risks to their health and safety.
b) The promotion and protection of the economic interests of consumers.
Consumers' access to adequate information that enables them to make informed
choices in accordance with their individual desires and needs.
d) Consumer education
e) The possibility of effective compensation to the consumer
f) The freedom to form groups or other relevant consumer organisations and the
opportunity for such organisations to have their views heard in decision-making processes
affecting them.
THE HISTORICAL EVOLUTION OF CONSUMER PROTECTION IN PERU
The historical evolution of Consumer Protection in our country is somewhat later, but
in some ways very similar. Consumer protection finds its legal origins in the DS 036-83-
JUS of the year 1983.
The first consumer protection law was passed in 1991. Before this law, disputes
between suppliers and consumers were settled sporadically in accordance with the
Civil Code and the commercial and trade laws administered by the Judiciary.
1992, the administration of the new law is handed over to INDECOPI, a newly
created institution to resolve competition, intellectual property and
consumer problems.
Although the law establishing INDECOPI establishes that the Consumer Protection
Commission (in the first instance) and the Court (in the second and final instance)
are the only administrative bodies competent to hear violations of the law, impose
sanctions and order corrective measures.
The amendments to the law in 1994 left open the possibility of granting
consumer powers to other specific institutions, provided that this is done
through laws enacted by the Congress of the Republic.
Economic development, market opening, globalization and competition have
strengthened the ability of consumers to choose and satisfy their needs.
Technology brings better products, quality becomes a watchword for any company
that prides itself on being competitive, and greater competition brings us better
prices and opportunities.
The development of a country depends not only on the quality of its
companies, but also on the quality of its consumers.
Demanding consumers generate companies that are demanding of themselves.
 THE SEVEN PUBLIC ENTITIES RESPONSIBLE FOR DEALING WITH CONSUMER
PROTECTION CASES
The seven public entities in charge of handling consumer protection cases are: Osiptel (Private
Investment Supervisory Body in Telecommunications), Osinergmin (Energy and Mining
Investment Supervisory Body), Ositran (Public Transport Infrastructure Investment Supervisory
Body), Sunass (National Superintendency of Sanitation Services), SBS (Superintendency of
Banking, Insurance and AFP), Susalud (National Health Superintendency) and Indecopi
(National Institute for the Defense of Competition and Protection of Intellectual Property).
These entities that protect Peruvian consumers belong to the
National Consumer Protection Council, chaired by INDECOPI, in its
capacity as National Consumer Protection Authority and which is
also made up of the Ombudsman's Office, business associations,
consumer associations, local governments, regional
governments, the Ministry of Economy and Finance, the
Ministry of Housing, Construction and Sanitation, the
Ministry of Transport and Communications, the Ministry of
Health, the Ministry of Production and the Ministry of
Education.
In this context, the Peruvian State has authorized public service regulators to act
as authorities to apply the consumer protection law.
Each regulator has established a court within itself which, among other matters,
has the authority to hear, sanction and order corrective measures to protect
consumers within its scope of application.
THE NATIONAL INSTITUTE FOR THE DEFENCE OF COMPETITION AND THE
PROTECTION OF INTELLECTUAL PROPERTY (INDECOPI)
The National Institute for the Defense of Competition and the Protection of
Intellectual Property (INDECOPI) was created in November 1992, by Decree Law No.
25868.
Its functions are to promote the market and protect consumer rights.
In addition, it fosters a culture of fair and honest competition in the Peruvian
economy, safeguarding all forms of intellectual property: from distinctive signs and
copyrights to patents and biotechnology.
Indecopi is a Specialized Public Body attached to the Presidency of the Council of
Ministers, with legal status under internal public law. Consequently, it enjoys
functional, technical, economic, budgetary and administrative autonomy (Legislative
Decree No. 1033).
Its Institutional Mission is
Defend, promote and strengthen competition in markets, creativity and
innovation and balance in consumer relations. for the well-being of citizens, in a
transparent, solid, predictable manner and in harmony with business freedom.
And as an Institutional Vision
Guarantee the well-being of citizens in the market, exercising the role of
authority in a reliable, solid and transparent manner.
As a result of its work in promoting the rules of fair and honest competition
among the agents of the Peruvian economy, INDECOPI is currently conceived
as a service entity with a strong concern for promoting a culture of quality to
achieve the full satisfaction of its clients: citizens, business and the State.
INDECOPI is the regulatory body that protects consumers when purchasing products
and services in general, such as:
Banking, financial and insurance services, Telecommunications equipment, Air, land
and river passenger transport, Household appliances and technical service, Private
educational services and educational items, Tourist services, investment and shows,
Food, Hotels and restaurants, Automobiles, accessories, spare parts and
mechanics and Others
Some of the cases that INDECOPI helps to resolve are those related to cell phones or
computers, improper charges by educational institutions, flight cancellations, vehicle
defects, lack of response to claims, among others.
THE CONSUMER PROTECTION CODE
By Law 29571, the Consumer Protection and Defense Code was approved in
September 2010. It is a set of rules that protects and defends consumers in order to
improve access to quality services and products. The standard helps to resolve
conflicts regarding the purchase of a product or the contracting of a service.
This regulation governs the relationship between consumers and suppliers,
establishing the rights and obligations that correspond to each one, as well as the
role that the consumer authority must play in order to comply with its provisions,
guaranteeing the adequate protection of the rights and interests of consumers.
This regulatory body has the merit of condensing into a single document a series of
provisions of both a legal and administrative nature that in one way or another
regulated consumer rights. By virtue of this, this law gives an organic character, with a
certain order and technical criteria to the legal treatment of consumer rights and its
nomenclature alone shows where it is headed from a legal point of view in this matter
for the future.
The Code includes in its text the theories, principles, institutions and rights of the
consumer, and what it intends is to establish a normative text of a comprehensive
nature that not only punishes and sanctions as a defense but also has a preventive
character, of promotion and education of the consumer and in this sense it is more
convenient to speak of protection, that is, to act before the violation of a consumer
right.
Compliance is monitored by the National Institute for the Defense of Competition
and the Protection of Intellectual Property (INDECOPI).
Th Consumers are people who acquire, use or enjoy tangible and intangible
os products or services as final users.
e
yo Suppliers are distributors, traders, producers, manufacturers, importers and
providers,
u among the most representative categories.
For the law to be applicable, there must be a consumer relationship, which is when
“a consumer acquires a product or contracts a service with a supplier in exchange for
financial compensation.”
The code will always be more favourable to consumers, ensuring that they “have
access to suitable products and services and that they enjoy their rights”.
For suppliers, it establishes “obligations that will be enforceable even if they are not
included in the contract signed.”
What does the Consumer Protection and Defense Code require?
In the relationship between suppliers and consumers, which may occur in the areas
of health, security, food, real estate, education or financial services, among others,
the entrepreneur is obliged to:
– Provide consumers with “timely, sufficient, truthful and easily accessible”
information to make a decision or purchase.
– Provide accurate information on how to use or consume the products purchased
– Prominently display the total price of the products, including applicable taxes,
commissions and charges.
– Clearly inform when the purchase is financed through a loan from a financial
institution other than the one that markets the product.
Inform the scope, duration and conditions of the guarantee offered.
– Address complaints submitted by consumers and respond within a period of no
more than thirty (30) days.
– Provide equal attention to consumers, without discrimination based on origin, race,
sex, language, religion, opinion, economic condition or any other type.
– Do not round prices to the detriment of the consumer.
PENALTIES FOR THE SUPPLIER
The supplier is responsible for the suitability and quality of the products and services; the
authenticity of the brands and legends displayed on its products; the lack of conformity
between the advertising and the product; the content and shelf life of the product indicated
on the packaging.
Violating the code involves sanctions ranging from 192,500 to 1,732,500 soles and may
include compensation, replacement of the product, new execution of the service or
even the refund of the money.
In the case of micro-enterprises, the fine cannot exceed 10% of the sales that the offender
received in the year prior to the date of the sanction. For small businesses, the limit is 20%.
The Peruvian Consumer Protection Law is enforced by the Consumer Protection
Commission of INDECOPI.
The law establishes a wide range of consumer rights, including the right to effective
protection against unhealthy and dangerous products,
And the obligations of suppliers, including the obligation to issue an invoice for
every transaction; display prices;
Maintain price lists and make them available to consumers upon request;
Warn consumers of potential problems in obtaining spare parts or accessories
promptly
Provide services diligently; provide sufficient information about products and
services; ensure that foreign-made products have warranty information and
warnings in Spanish; make repairs, replacements or refunds for defective products,
and compensate consumers for damages caused by inadequate service.
It also regulates the granting of consumer credit.
The Technical Secretariat of the Consumer Protection Commission devotes much of
its time to managing informal queries from consumers and businesses.