Who is ACODECO, and what are they doing for you?
The Autoridad del Protection del Consumidor y Defensa de la Competencia (ACODECO), Panama’s competition agency, is an organization that is working to up hold consumer rights. They do so by promoting economic competition and publishing information to raise awareness and create market transparency. Competition policy was first introduced in Panama in 1994, with the election of President Ernesto Perez Balladares. The first competition law in Panama was enacted in 1996, to encourage economic growth and development within the country. “In an effort to promote general competition, the government eliminated the agency that managed price controls and passed Law 29 on 1 February 1996. The law created a combined competition and consumer protection agency called ACODECO.” (Competitive Law and Policy in Panama, 2010, 12). Today, ACODECO is a public organization, legally independent from the central Government of Panama.
The currently law, “Law 45, Consumer Protection and Defense of Competition”, was revised October 2007, and is mostly consistent with other international competition laws. The law aims to integrate Panama into the global economy.
With the ambitious goal of economic modernization in mind, ACODECO is working to eradicate monopolistic practices in the country. They are doing so by setting guidelines for legal collaboration between competitors and creating economic penalties for those who fail to follow these guidelines.
While it will be difficult for ACODECO to eradicate anti-competitive conduct all together, given the countries existing problem with competition, particularly cartels, the agency is making progress.
Creating a competition market in Panama will be a slow process, but there is evidence that ACODECO is making progress in diminish cartels. “A number of cases brought by ACODECO involving absolute monopolistic practices involved explicit evidence of cartels.” (Competitive Law and Policy in Panama, 2010, 17).
These cases are mostly still in progress.
Currently there is decision pending on a case against Transporte de Carga Colon, in which ACODECO accused several transport companies of raising tariffs without proper notice.
Another case, that is also pending is against the Lavanderias. In this case ACODECO has accused several laundry mats of conspiring to raise prices by using complicated pricing format.
One case that was (somewhat) resolved was against the “Estaciones de Comustible.” In 2010, ACODECO filed a complaint against six gas stations accusing them of forming a cartel in the fuel market. It was confirmed that these six stations had agreed to fix their retail prices over a one-year period. In this case the court held in favor of ACODECO, and confirmed that the gas stations were at fault. However, the court reduced the time of malpractice to four months, to which both parties disagreed. The court of appeal has not yet set a sentence.
ACODECO has also developed guidelines for controlling mergers to resist against economic concentration. “The Merger Guidelines establish that mergers will be approved only if they do not have a negative net effect on competition.” (Competitive Law and Policy in Panama, 2010, 27).
While the Law does not require that businesses notify ACODECO of mergers, there is an optional procedure to notify the agency. An example of a merger that ACODECO approved occurred in the banking sector between HSBC and Banistmo. Today we can see the results of this merger right here in the beach area, in Coronado.
While ACODECO works to keep big player in check, their primary goal is informing consumers of their rights. These rights vary from the right to a healthy environment, rights when purchasing a car, and rights in regards to purchasing real estate, as well as the right to health care and the jubilado discount.
The organization’s primary goal, to inform consumers, is based on the belief that the informed consumer is the more empowered consumer. Secondarily, the agency will also work to defend the consumer.
If a consumer feels that their rights have been undermined, ACODECO will review the case. For amounts under $2500.00 ACODECO has the authority to make the final decision. For cases exceeding this amount, ACODECO works primarily to reach an amicable settlement between both parties. If no settlement is reached ACODECO will provide the services of a free attorney to represent the consumer in court (ACODECO, Junio, 2013).
ACODECO has independent offices in each province of Panama. The closest offices to the Pacific beach area are in Penonomé and Chorrera.
Penonomé Office Administrator: Lic. Alberto A. Fernández Address: Penonomé, Via Panamericana, Global Bank building, Lower floor Hours: 8:00 a.m. – 4:00 p.m. Phone: (507) 997-9423 Chorrera Office Administrator: Arleen Castillo Address: La Chorrera, Avenida de Las Americas, Emisora La Exitosa building Hours: 8:00 a.m. – 4:00 p.m. Phone: (507) 253-1295
To learn more about ACODECO visit: http://www.acodeco.gob.pa/.
