Puerto Rico Department of Consumer Affairs reactivates its Office Against Discrimination in Commerce
The Puerto Rico Department of Consumer Affairs (DACO, per its acronym in Spanish) reactivated its Office Against Discrimination in Commerce (OADC) in September 2024 to ensure Puerto Rican consumers receive fair and equal treatment from the United States and foreign companies offering goods and services on the island.
The OADC has since issued more than 80 requests for information (RFIs) to companies for alleged commercial discrimination.
Administrative Order 2011-006: DACO's effort in combatting commercial discrimination
In 2011, DACO promulgated Administrative Order 2011-006 (AO 2011-006), whereby it created the OADC, the mission of which is to:
- Educate companies doing business in Puerto Rico about the commercial relationship between Puerto Rico and the United States
- Raise awareness about illegal and/or discriminatory practices of these companies, and
- Educate consumers about companies that comply with inclusive practices as they relate to residents of Puerto Rico, to encourage their use and support.
The OADC is responsible for receiving and investigating consumer complaints regarding discriminatory commercial practices.
Commercial discrimination: Implications under AO 2011-006
AO 2011-006 defines this commercial discrimination as any significant difference in access, sale, products, goods, services, warranties, or delivery that has no real justification based on shipping costs, taxes, requirements imposed by the federal or state government, or limitations based on licenses, contracts, permits, patents, copyright, or any other aspect that is directly or indirectly beyond the control of the business.
If a company imposes any type of limitation affecting the Puerto Rico market, it must demonstrate that these restrictions are justified.
Process for filing a complaint for commercial discrimination with DACO
According to AO 2011-006, a consumer who is a victim of commercial discrimination may file a complaint with the nearest DACO regional office, providing details of their complaint, including a brief account of the facts and the remedy requested. Consumers are advised to include evidence, where possible, of documentation supporting the discriminatory treatment. Thereafter, OADC personnel shall contact the company that allegedly discriminated commercially to offer them guidance to address the discriminatory practice.
DACO Secretary’s role
Per AO 2011-006, the DACO Secretary may represent consumers before companies and appear in any forum on their behalf.
Penalties for violations
Violations of AO 2011-006 will be subject to the penalties and fines of the DACO Organic Law, including fines of $10,000 per violation. Any person affected by AO 2011-006 may file a reconsideration with the Secretary's office, specifying objections to the regulations, accompanied by evidence to support their position.
Key takeaways
In issuing RFIs to companies that allegedly have commercial restrictions, DACO seeks to understand current business practices and identify whether any restrictions towards Puerto Rican consumers exist and, if so, determine whether they are justified.
Companies are encouraged to review their commercial practices in all jurisdictions in which they conduct business to guarantee as much standardization as possible.
For more information, please contact Janine Guzmán or your usual DLA Piper attorney.
