reactions to changes in competition rules While I think that in general, changes to the rules of competition and consumer protection have been positive, there are several aspects that are controversial. Here I have some comments from teachers Percy García Cavero, Juan Francisco Rojas and Julio Durand on recent changes in the rules of competition and consumer protection.
From reading these articles are derived several important points:
(i) the importance and impact of these standards in society, would not it have been better if these rules had been discussed by the Congress?
(ii) all proposed changes have been made within the framework of delegated powers?
(iii) can be regarded as collusive bidding is less serious than the conduct of a pickpocket? According to García Cavero, decriminalization of anticompetitive conduct is a benefit even in his country are U.S. companies.
(iv) the concept of diligent consumer does not protect the Peruvian consumer?
would be important to publish the exhibition memorandum to each of the amended rules, in order to ascertain what were the reasons that were behind these changes and, from there, consider whether these reasons justify or not the changes.
FTA "without criminal law? About the decriminalization of economic crimes against the competition and consumers
By Percy Rafhael García Cavero (*)
http://www.dircom.udep.edu.pe/boletin/viewArt.php?art = 2141 few weeks ago I took knowledge of the various legal reform projects that were taking place in the Executive in bankruptcy, antitrust and consumer protection. As a member Commission devolved Indecopi-Piura in bankruptcy matters, consumer protection, deceptive advertising and market access, I assumed that these new laws seek to bridge the gaps or deficiencies in existing legislation. And without doing further analysis of recent legislative decrees approved by the Executive, I would think that will bring great advantages in the important work of monitoring and control plays Indecopi. However, I have found a legislative policy clearly intended to make criminal law various economic crimes, to become mere administrative breaches. Surely the Executive to have assessed that it is much more efficient leave all against market misconduct under the control and punishment of Indecopi. As there has been more discussion about it, I guess there will be some reason.
However, I regret to say that I think the worst decision I've seen in criminal matters in recent times. And I mean from all levels.
In strictly legal, the decriminalization of abuse of economic power in the market (232 CP), hoarding (233 CP), misleading advertising (238 PC), consumer fraud (239 CP) , unfair competition (240 CP) and collusive tendering (241 subsection 3 CP), would say that this does not social disvalue already have enough to be criminally punished. This means that if firms in a sector of the market at a price agreed between nakedly harming consumers, may not receive a penalty or if a company with a dominant position makes exclusionary practices of other competitors, nor can receive any criminal sanction. Nor may receive penalty clearly denigrates the competitor competitor's products or openly exploits the reputation of the competitor, and neither the producer, manufacturer or dealer that detracts from the market in order to create scarcity and ultimately harm consumers . And not to mention of those involved in public procurement and collude to set a price and defrauding the state, getting a much higher price that would have resulted from a struggle between competing companies really. With these new rules of the executive, approved in order to adapt our legislation to the FTA, it would remove from the criminal sphere all the above cases.
arguably no need to fear, because these behaviors are administrative violations that come with them enormous administrative fines. Well, first we must remember that Indecopi functional organs not usually make very high fines. But independence of the reference data, which is completely unaware that an administrative fine of not only has a very limited virtual intimidating, but the offense gives it a neutral pound social criticism that deserves this type of behavior. I mean, if the fine may be he could be sentenced to a company engaged in anticompetitive conduct was a hundred and gain by this practice was a thousand, do you think the company is going to stay faithful to the law? On the contrary, if the penalty was imprisonment for managers, confiscation of illicit profits or gains (section 102 of the CP or the Law of loss of control), did not generate this more effective preventive? Sure, you could say that Indecopi is pursuing better and ability to punish rather than the judiciary, where entrepreneurs always go offenders go free. But then this means that the problem is the lack of a criminal justice specialist in economic issues, which would bring the solution to provide the Judiciary of adequate infrastructure and training to combat economic crime, instead of giving give certain conduct the necessary criminal sanction in exchange for an administrative fine in the big cases, will not generate any preventive effect. But further consideration of mere infringement administrative offenses listed above would equate, at least formally, a step of red light or failure to issue a bill. So there is nothing to criticize those who abuse their dominant position of those who make unfair competition, market hogs, leaving consumers without supplies, etc. Anyone passing a red light [The example is not accurate. In theory, the fine must exceed the profit from the illegal practice, which is why employers would not have incentives in this practice. Could be made supportive to company executives who participated in the unlawful conduct. Now But this is theory should be accompanied by empirical research to confirm this hypothesis. Otherwise, everything is at the level of assumptions]
In terms of legislative technique, is also a tremendous mistake what you are doing the Executive. His policy of decriminalization not only follows a completely opposite to what happens in the civilized world, but that does not correspond precisely with the country which has concluded the FTA. In fact, the Sherman Act of 1890 which regulates the conduct U.S. antitrust law is a criminal, that is, that while in the United States anticompetitive conduct are serious crimes in our country these behaviors are only an administrative offense. What a great scenario for Americans, Peruvians penalty for what they do in the U.S. and U.S. administrative penalty for practicing in Peru anticompetitive behavior. It seems that symmetrical treatment was not considered at all in this case. [The fact that in other countries to penalize a particular practice does not mean it should also be so in the country. Should give reasons why it is necessary that such conduct is punishable by imprisonment]
But the legislative decision is not saved or politically. In fact, I think a big political mistake what you are doing the Executive. There appears to be typical of a government "progressive" proceed to decriminalize behaviors related to the activity of certain economic groups. Thus, while the pickpocket who steals a wallet valued at a minimum living wage will go up to three years in jail (even when arrested), who defraud consumers or the state itself in collusive tendering in terms of millions just going to receive an administrative fine. I should add that I am not making a critique of classism, because entrepreneurs might not realize that themselves are affected by this type of crime. In fact, normally have an anticompetitive exclusionary effect, ie out of the market to other competitors or in the case of unfair competition is always the injured competitor, or hoarding may be made by a producer and harm traders. Economic crimes generate a detrimental impact on all operators in the market and what is worse, confidence in the entire economic system, so use a purely administrative reaction mechanism predicts an absolute failure in the fight against this type of crime. [The qualification that this policy is not typical of a government "Progressive" is ideological. In any case, the penalty or not conduct should not depend on whether a government is progressive or liberal. Must be reasons for the criminalization of certain conduct, which must be sustentandas on value judgments as empirical research, which is not usually do much in the law]
(emphasis mine) The
comments in brackets are mine.
http://aeperu.blogspot.com/2008/07/en-el-per-los-mercados-no-son-libres.html markets in Peru are not free. Juan Francisco Rojas
It is usual to claim that the free market means letting things happen without regulation and without control, much less the evil state that only serves to annoy the initiative of individuals.
In eighteen years of dogma and enthusiast can compare some results: the most important markets in Peru are highly concentrated. This means that there are powerful groups that can impose their conditions on others, which do not depend on the efficiency or quality production, but the power they have on their business, built on the basis of factors such as market share, access exclusive technology, inability to find replacements easily, large investments required for the entry of new competitors, lack of consumer information, among others.
According to the prestigious consulting Maximixe (1) and other findings, are highly concentrated markets include: financial and insurance, food (milk, oil, wheat, meats, sodas, beer), fuel, service stations, electricity (generation and distribution), sanitation, construction materials (iron, cement, brick), Oil, LPG, cooking gas, pension funds, stationery, telephone, rail, air transport, department stores, supermarkets.
In markets there is no competition, there is only a farce that ensures the benefits of those who have built their position of power and who are able and willing to do anything to keep it. Market power also expands the world of political decisions, opinion formation, education and even the pseudo knowledge.
How much is the importance of this issue in the daily life of Peruvians? How much impact the economy of the citizens these power structures? When a market agent is not competent decisions based on their unique individual interests. Prices rise, quality low, tied sales are common and discrimination is installed. The big hurt is the consumer because the free market where competition prevails, there.
[Here the author should provide evidence that current market structures which refers not benefit consumers. The fact that the market is concentrated does not necessarily imply a loss for the consumer, which is what the author wants to convey implicitly]
is time for society to raise the struggle for free markets recover, to regain competition, to eliminate the abuse of dominant position and to oppose all forms of speculation, hoarding and consultation that cause so much damage to the economy of all Peruvians. not meet these requirements is quite effective hatching a formula to generate a situation of violence and popular protest. With great blindness, the government called to defend the free market competition and give up just giving up legislation on merger control and the Criminal Code repealing economic crime.
is necessary for laws regulating the markets is discussed in Parliament and not decided at midnight under the influence of a coterie of enlightened only represent the interests of some. [At this point, I partially agree with the author. In the sense it is the Congress that adopted such laws, but not if they should develop them. I think Congress should establish the principles upon which laws should be developed. The principles would express the political agreements and values \u200b\u200bthat have reached various political groups in Congress. The next step would be to develop standards on these principles. I think this would be a proper alignment between policy and technology] (1) Jorge Chávez Álvarez, "Market Structures and Institutions Where We Are."
(emphasis added)
The comments from brackets are mine.
reasonable consumer
For example, for Doctor of Law and university professor in July Durand Carrión, we must revise the amendment to paragraph a), Article 3 of the new Consumer Protection Act, which literally says: "This law protects consumers acting in the market ordinary diligence, according to the circumstances. "
"If we apply the term strictly, a large sector of consumers who do not have access to education consumption, would be unprotected. That is, for the consumer would Indecopi stupid and irrational, unable to drive on the market, and therefore do not deserve legal protection, "said the specialist.
Durand recalled that according to the National Institute of Statistics and Informatics ( INEI), the country had 12.1% of illiterates. "So we can not be taken to the extreme of creating in the process of interpretation a reasonable consumer or diligent ideal exists only in imperfect market economy like ours, where information is a scarce resource, economic agents behave in an atypical manner, and, more critically, no market culture, "he added.
Counsel considers a success include intermediate customers and not just the end, under the protection of the law, but warns that the rule should also include new developments in the procurement of goods and services, purchases over the Internet.