Consumer protection: Lawmakers propose changes to curb abusive practices

A bill presented in Paraguay's Chamber of Deputies seeks to stop companies from using contract terms and procedural obstacles to make consumer rights difficult to enforce.

The proposal, submitted on Sept. 1 by deputies Juan Manuel Acevedo of the PLRA and Santiago Benítez of ANR-HC, would amend Article 2 and expand Articles 28, 30 and 44 of Law No. 1334/98 on the protection of consumers and users. Its stated goals are equality, due process and effective judicial protection.

The lawmakers argue that many consumers must accept adhesion contracts whose conditions providers set unilaterally, leaving little or no room for negotiation. They say the imbalance can lead to rights being violated, including when contracts require disputes to be heard in jurisdictions far from the consumer's home.

The bill also addresses unjustified refusals to accept payments, contractual or procedural mechanisms that hinder the right of defense, and clauses that become abusive because of their content or reach. It seeks to ensure that no citizen loses the ability to claim their rights because of abusive terms, procedural barriers or conditions that make access to justice excessively burdensome.

Under the proposal, disputes arising from contracts would proceed through ordinary legal channels. Any clause, mechanism or practice that directly or indirectly gives a contract executive force, or limits the consumer's defenses, would be considered null. The measure has been sent to several committees for analysis before lawmakers consider it further.