On November 4, 2014 an e-commerce bill passed the first round of debate in the Venezuelan Congress pending a second debate before the bill is enacted into law. The bill has come to cover two basic problems Venezuela is currently facing due to inefficient economic measures adopted by the government, namely:
- The black market of goods through electronic media due to shortage of goods in the regular commerce
- The lack of regulation on email marketing and online advertising because earlier this year the consumer protection act was superseded by the Act creating the Superintendence for the Protection of Socioeconomic Rights (SUNDDE).
The first issue is regulated through the banning of the sale of the following specific goods and services through e-commerce:
- Medicines
- Essential goods, price-controlled goods, goods sold through governmental food distribution chains;
- Goods subsidized by the Government purchased up to two years ago;
- Vehicles purchased up to two years ago;
- Low-income houses;
- Expired or spoiled food products.
Specific regulations regarding online promotion, dissemination, information and advertising of goods and services are incorporated into the bill. Email marketing is included in the text and opt-out system is specifically accepted.
The bill incorporates several definitions such as misleading advertising, abusive advertising, digital invoices and cloud, among others, and provides the requirement of prior authorization for sweepstakes and promotions by the agency in charge of consumer rights protection, which must be requested at least 10 days prior to the launching date, and decided by such agency within 5 working days.
It is worth mentioning the penalties provided by the Bill, including fines up to 1000 tax units and, in certain cases, the national telecommunications agency (CONATEL) will have the power to block web pages upon request of the Superintendence for the Protection of Socioeconomic Rights.
Although the Bill may be subject to amendments in the second round of debate at the National Assembly, it currently seems intended to be highly restrictive. Notwithstanding the foregoing, once enacted, Venezuela at least will have specific regulations governing email marketing and online advertising, which currently are in sort of a limbo.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.