Reforms and Additions to the Mexican Federal Consumer Protection Law in Advertising Matters in Mexico
On December 15th, 2011, a Decree was published in the Office Gazette, by means of which several articles relating to advertising of the Federal Consumer Protection Law (LFPC) are reformed and added, which will be in force the day after their publication. Among the main changes are the following:
- To the last paragraph of article 32 of the LFPC, which defines misleading or abusive advertising, it was added that the Consumer Protection Agency (PROFECO) may issue rules for the analysis and verification of information or advertising considering the temporal context being disseminated, the moment at which it is transmitted with regard to other contents disseminated in the same media and the economic or special circumstances of the market.
- Misleading or abusive advertising is expressly considered to be, by articles 128 Bis and 128 Ter of the LFPC, a particular serious case.
- In consequence of the above, the penalties to those responsible for disseminating misleading or abusive advertising incremented considerably by providing for the ability to fine with total or partial closure and with a fine of $ 119,326.23 to $ 3,341,134.55 Mexican pesos.
- In case of recidivism, violations of article 32 of the LFPC will be fined with a fine of up to 10% of the annual gross income obtained by the infringer from the commercialization of the goods, products, or services contained in the respective advertisement corresponding to the last fiscal year in which the infringement was committed.