Consumer Law: New Advertising Regulations for Goods and Services

On April 24, 2024, the Ministry of Economy’s Secretariat of Industry and Commerce issued Resolution No. 12/2024, introducing new regulations for advertising goods and services that qualify as offers under Article 7 of Law No. 24.240 and its amendments.

The resolution aims to ensure that users and consumers are properly informed when making purchasing decisions based on advertisements across print, radio, television, and film media. It establishes several conditions that must be met when advertisements constitute an offer, including:

• Information on the offer’s territorial and temporal validity, and the name, address, and tax ID (CUIT) of the advertiser. The regulation also sets minimum size requirements for such information and minimum durations for its display or announcement, depending on the medium. For example, in print media, the information must appear in a font size of at least 3 mm in height, in contrasting colors, and be clear and legible to avoid confusion.
• Details on the essential features of the product or service, conditions of sale, stock limitations (if applicable), and any other relevant information to ensure proper understanding of the message.

This information must also be available on the provider’s website and/or via a toll-free phone line, with such channels clearly indicated in the advertisement. The resolution also outlines minimum display durations or visibility standards for this information.

Article 2 further establishes that when prices are voluntarily included in advertisements, these must comply with the guidelines of Resolution No. 7/2022 issued by the Secretariat of Competition, Deregulation, and Consumer Protection. Specifically, prices must be expressed in legal currency, reflect the total cash price payable by the final consumer, and not include misleading terms.

If installment pricing is advertised, the following details must be included: down payment (if any), number and amount of installments, annual effective interest rate, total financial cost, and any additional charges, insurance, or fees. This information must also be accessible through the advertiser’s website and/or a toll-free number.

Finally, Article 5 sets forth the applicable sanctions for non-compliance, as provided by Decree No. 274/2019 and/or Law No. 24.240 and its amendments.

These measures aim to promote transparency in commercial advertising, protect consumer rights, and encourage fairer business practices. Companies are advised to become familiar with these new requirements and incorporate them into their advertising strategies to ensure compliance and maintain consumer trust. Failure to comply may result in penalties under current legislation.