The DIACO and its sanctioning processes

The Directorate of Consumer Attention and Assistance (DIACO), a dependency of the Ministry of Economy of the Republic of Guatemala, is the authority in charge of any administrative sanctions derived from the dissatisfaction of consumers of products or services through administrative complaints. 

The Consumer and User Protection Law (CUPL) and its respective regulations establish a series of obligations for suppliers of goods and/or services that, in case of non-compliance, sanction the supplier with a financial fine that often exceeds the value of the goods or services. 

Usually, the consumers file the complaint; however, the provider has the burden of proof of compliance with their obligations. We have observed that many suppliers do not have documentary support for the sale nor comply with their CUPL obligations, taking the high risk of being sanctioned. 

All suppliers facing this type of administrative procedures, have legal solutions that may be handled prior to the imposition of the administrative penalty or, even when it has already been imposed, that can be used as legal mechanisms to avoid paying the penalty or reduction thereof. 

The supplier must ensure protocols and procedures that comply with CUPL and meet its obligations to avoid sanctioning. Moreover, it is essential to be accompanied by professional and specialized advice to defend these sanctioning procedures. At BLP, we can provide this preventive legal advice. It will be a pleasure to help you.