NEW REGULATION OF THE FEDERAL CONSUMER PROTECTION LAW

Dear clients and friends:

On December 19, 2019, a new Regulation to the Federal Consumer Protection Law ("RFCPL") was published in the Official Gazette of the Federation, whose content, although similar to the regulation it abrogates, calls upon the business sectors dedicated to the commercialization of goods, products and services to pay particular attention to the following three aggregates in effect as of the day following their publication.

1. Registration of Compensation Policies for Delays and Flight Delays

Relevant for the providers of public service of air transportation of passengers and, following the reforms made on June 26, 2017 to the Civil Aviation Law in matters of passenger rights, the Federal Consumer Protection Procuracy (“Profeco” for its Spanish abbreviation) has been granted the power to create and administer a registry in matters of compensation for delays and flight delays, which - in line with the reforms already mentioned - for the concessionaires and permit holders of the sector implies:

a) The obligation to register before Profeco their compensation policies for passengers affected by delays or lags, greater than 1 hour and less than 4 hours.

b) They may also register their compensation policies for passengers affected by delays or lags of more than 4 hours, in cases of cancellation and overbooking.

c) The registered compensation policies must be minimally adjusted to the Civil Aviation Law (Article 47 BIS), under penalty of Profeco initiating administrative proceedings for violations of the law.

d) The registration will be valid for 6 months, so a renewal must be requested at least 10 working days before the expiration date. Profeco will decide within 30 working days whether to grant or deny the extension; if the administration is silent, the affirmative will operate.

e) The registration and its renewal are mandatory, in case of omission Profeco will initiate proceedings for violations of the law.

f) The registration, of course, does not exempt the fulfillment of the policies of compensation.

2. Voluntary review of advertising (copy advice)

With this addition, the powers granted to Profeco in the reform to the law of January 11, 2018 to receive requests for advertising diagnosis on the advertising of goods and services prior to their dissemination are regulated, a figure known in practice as copy advice and which the authority already made use of even before its express legal provision.

In this regard, Profeco will issue a non-binding opinion within 10 working days, that it will not constitute any type of authorization, permit, or approval regarding compliance with legal provisions.

3. Public Registry of Consumers

Finally, this addition regulates the right of consumers to register before Profeco with the intention of publicly transmitting to suppliers their intention not to receive advertising, unless of course, they have given their express consent, by physical, electronic, optical or any other technology.

The intention to regulate this pre-existing registration, obviously is to facilitate the submission of suppliers to an administrative procedure for violations of the law when they disregard the public will of the consumer not to receive advertising.

We remain at your service in case you wish to receive further information.



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