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Daco Order Created Anti-Discrimination Unit
(Orden de Daco crea unidad anti-discrimen)

(Applicable to USA)

e-PRESS RELEASE

Release Date     : September 30, 2011

Approval Date   : September 1, 2011.

Formal Citation :  DACO Administrative Order 2011-0006  of September 1, 2011.

Purpose and Application:

DACO Creates Office against Discrimination in Commerce

On September 1, 2011, the Puerto Rico Department of Consumer Affairs (“DACO” by its Spanish acronym) issued Administrative Order No. 2011-0006, requiring all entities using any method, including the Internet, direct sales, catalogs or any other means, to offer and sell goods and services to Puerto Rico consumers to do so on terms that do not result discriminatory as compared to their dealings with consumers in the remaining 50 US states.

The Order states that any significant difference in the offer of goods and services, such as differences in service / warranty / delivery terms or conditions, as well as pricing and accessibility to goods or services, as compared to those offered the 50 US states shall be deemed discriminatory.  The business will need to justify differences in the offer to the local consumer to avoid imposition of fines which can amount to $1,000 per day and $10,000 per consumer claim.  To do so, the business will need to be able to evidence that the difference is the direct result of factors beyond its control such as existing trade or contractual restrictions and/or licensing limitations and/or dealer-principal relations, or perhaps, issues with permits or taxes, copyrights, trademarks and/or patent law issues or restraints or perhaps, delivery/shipping costs are consistent and reasonable due to destination.

The Administrative Order No. 2011-0006 is predicated on the belief that US nation side businesses treat Puerto Rico differently and such differences are not based on actual costs of doing business in the island or with the island consumers.  DACO ventures that many such differences are simply discriminatory due to origin and are therefore, offensive to the equal rights protection afforded to Puerto Ricans as American citizens under both the Puerto Rico and United States Constitution.

Effectiveness:

The obligations under this Adm Order are effective Sept 1, 2011.

Recommendation/Tip:

Any person or entity that sells at retail level from the USA, shall review their pricing and delivery availability does not discriminate against purchases originating from Puerto Rico.

Penalties:

The penalty for non-compliance is up to $1,000.00 per day and 10,000.00 per consumer claim.

NOTE: The above summary is for information purposes only.