Search for:
Antitrust / Competition

Peru: INDECOPI establishes precedent for audit of advertising for promotions

By and 3 Mins Read

In brief

INDECOPI has established a criterion of interpretation regarding the prohibition of disseminating misleading advertising material referring to promotional prices or discounts, in accordance with the provisions of Legislative Decree No. 1044 (“Law on Repression of Unfair Competition“). In order not to be identified as performing an ‘act of deception’ in advertising promotional prices or discounts, the following must be observed:

  1. When a company wishes to disseminate advertising on a promotion consisting of a discount on the price or equivalent modality, this must be exceptional and temporary.
  2. The promotional offer to be advertised must be calculated according to the ordinary offer of the product or service.
  3. The value of the ordinary offer is determined by identifying and comparing the conditions of the promotion with the conditions (especially the price) in which the concerned product or service is usually offered.

For example, if a specific promotional discount is offered, this discount should be applied to the price at which the product is normally sold and not to a higher price.

This criterion constitutes a precedent of mandatory observance and has been approved by Resolution No. 186-2021/CCD-INDECOPI, published on 19 January 2022.

The Law on Repression of Unfair Competition established that ‘misleading advertising’ is one that disseminates information that can mislead recipients (as consumers) on the characteristics, quality, quantity, price, and other attributes of the goods and services offered. Acts of deception can be punished with fines of up to 700 tax units, provided they do not exceed 10% of the gross revenue.

You can find the resolution here.

We trust that this information will be relevant to you and your company. If you need to delve into the subject, please contact us

Click here to access the Spanish Version.

Estudio Echecopar is a member firm of Baker & McKenzie International, a Swiss Verein with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a “partner” means a person who is a partner or equivalent in such a law firm. Similarly, reference to an “office”, means an office of any such law firm. 

Before you send e-mail to Estudio Echecopar, please be aware that your communications with us through this message will not create a lawyer-client relationship with us. Do not send us any information that you or anyone else considers to be confidential or secret unless we have first agreed to be your lawyer in the matter. Any information you send us before we agree to be your lawyers cannot be protected from disclosure.

@2022 Estudio Echecopar
All rights reserved.

No part of this publication may be reproduced in any form or by any means without the written permission of Estudio Echecopar.

Categories:
Author

Teresa Tovar leads the Antitrust and Competition, Compliance and TMT groups in the Firm's Lima office, where she has been partner since 2007. She is also currently a member of Baker McKenzie's Latin America Antitrust and Compliance Steering Committees.

Author

Viviana is a senior associate and has extensive experience in competition law, with experience in advising companies on matters related with the application of the antitrust law, unfair competition law, and consumer protection law. Viviana has participated in several administrative procedures before the Free Competition Commission, the Unfair Competition Commission, the Consumer Protection Commission, and the Elimination of Bureaucratic Barriers Commission and before the Competition Court of the National Institute of Competition Defense and Protection of Industrial Property (INDECOPI). Viviana also has experience in data privacy matters, having advised several companies on their implementation to such legal framework.

Related Posts