Peru (Updated April 2024)

 

1. General Information

Peru currently does not have any laws or regulations in place to govern the Direct Selling industry. However, it is the responsibility of Direct Selling companies to ensure that their products and services are suitable for their customers. This means that there must be a clear correspondence between what the consumers expect and what they receive. Companies must deliver on their promises, such as providing high-quality products, ensuring product durability, and meeting the customers’ expectations.

 

1. Cooling-off Period

Article 28 from the Consumer Protection and Defense Code refers to suppliers’ measures to eliminate or reduce unforeseen hazards. If products or services are placed on the market, in which the existence of unforeseen risks is subsequently detected previously or unpredictably, the supplier is obliged to take reasonable measures to eliminate or reduce the danger in the immediate term; among them, notify the competent authorities of this circumstance, withdraw the products or services, arrange their replacement or repair, and inform consumers, as soon as possible, about the warnings. The supplier assumes the proof of the measures taken.

Article 29 of the Consumer Protection and Defense Code outlines the criteria for providing adequate risk and hazard information and warnings. When warning about the risks and dangers associated with specific products or services, or when unforeseen or unpredictable risks and dangers are detected after products or services have been placed on the market, the following criteria must be followed:

1.  The warning should be clear and easy to understand.  It must also be disseminated with due speed. The notices must be issued within a reasonable period according to the severity of the risk or danger involved. In the case of severe damage to consumers’ lives or health, the warnings must be disseminated immediately, as soon as there are indications to assume the existence of the danger.
2. It is recommended to use an appropriate warning heading or signal that matches the level of hazard or danger present. The title of the warning should be attention-grabbing enough to inform the consumer of the potential risk without causing unnecessary alarm. This will help ensure that the warning reaches the appropriate audience and helps interested parties understand its significance for the affected population.
3. c. The warning size and frequency must be adequate. If the warning is made using communication, the warning and frequency dimensions should allow affected or potentially affected consumers to be reached.
4. The nature of the risk or danger that is warned must be specified, indicating whether said risk affects the life or health of the consumer, their property, or the loss or affectation of the product purchased.
5. Accessible and understandable language should be used by a consumer who acts with ordinary diligence according to the circumstances of the case. Therefore, the use of excessively technical or scientific language should be discarded, using, on the other hand, terms that allow the consumer to understand what are the risks or dangers that are warned.

The level of certainty surrounding the foreseeable risk or danger must be described. If the risk is only potential or there is no absolute certainty of the risk, this must be indicated in the notice or warning, and in these cases, conditional expressions may be used. By contrast, if it is an accurate and precise risk, a language that makes the consumer understand it must be used.

1. The measures taken to avoid the risk or damage or to mitigate the effects that may occur must be explained. The warning should, if possible, indicate how to correct these problems clearly and straightforwardly.
2. An alternative source of information should be included, which is free and easily accessible to consumers, to have more information about the warnings of the risks and dangers of the product, indicating the free contact number or its location. This information must also be communicated immediately to Indecopi (National Institute for the Defense of Competition and Intellectual Property)

 

• Pyramid Schemes

There is no specific legislation. However, Article 11 of the General Law of the Financial System and Insurance System prohibits and sanctions the activity of raising money outside the authorization of The Superintendency of Banking, Insurance and Pension Fund Management (SBS). Paragraph 1 of said article states, “Any person who operates under the framework of this law requires prior authorization from the Superintendence in accordance with the regulations established in this law. Consequently, individuals who lack this authorization cannot:

“Engage in financial system companies’ business, particularly in regularly collecting or receiving money from third parties, in deposit, mutual, or any other form, and habitually place such resources in the form of credits, investment, or authorization of funds, under any contractual modality.”

For its part, Article 351 empowers the SBS to close the premises where this informal activity occurs, indicating the following: “The Superintendent must order the immediate closure of the premises in which unauthorized operations are carried out following this law, with the intervention of the Public Ministry. He will also call for the seizure of the documentation found in them, for which he is empowered to demand the support of the public force directly. The exercise of this power does not generate any responsibility for the superintendent. Whoever disregards the requirement referred to in the previous paragraph is guilty of the crime of abuse of authority provided for in the first paragraph of Article 378 of the Penal Code. “

Additionally, the superintendent will formulate the corresponding complaint to promote criminal action against offenders, a process in which the superintendent will be considered aggrieved. Therefore, it is up to him to constitute himself as a civil party and offer the necessary evidence to clarify the crime.

 

1. Multi–Level Marketing

No specific legislation exists, although the articles previously explained that Pyramid Schemes apply.

 

1. Prohibition on Products

Perú does not have exclusive legislation for the products and services for Direct Selling.

However, the commercialization of antibacterial soaps containing triclosan and triclocarban in limits higher than those allowed by the General Directorate of Medicines, Supplies, and Drugs (Digemid) has been prohibited in Peru since October 9, 2017, in this regard:

– Triclosan: can be used as a preservative at a maximum concentration of 0.3%.

– Triclocarban: It can be used as a preservative with a maximum concentration of 0.2% and only up to 1.5% when the cosmetic product that contains it is removed with water”.

The General Directorate of Medicines, Supplies, and Drugs—Digemid is the authority responsible, among other things, for supervising the sale of health products, following the Law on Pharmaceutical Products, Medical Devices and Health Products (Law 29459).

Likewise, trading cosmetic products containing long-chain parabens such as isopropyl paraben, isobutyl paraben, phenyl paraben, benzyl paraben, and pentyl paraben has been banned in Peru since February 14, 2017.

Transversally, there is progress in legislation that regulates single-use plastic and disposable containers or packaging, as well as the progressive reduction of polymer-based bags. Those included in article 4 of the single-used plastic law are excepted, such as:

“4.1 Polymeric-based bags to contain and transfer bulk foods or foods of animal origin, as well as those that for asepsis or safety are used to manage processed or pre-processed food or wet inputs, per the applicable regulations.

4.2 Polymeric-based bags when their use is necessary for reasons of cleanliness, hygiene, or health, by the applicable regulations.

4.3 Polymer-based straws (straws, straws, or straws) that are used for medical necessity in establishments that provide medical services, those that are necessary for people with disabilities and the elderly, and polymer-based straws that are part of a product as a unit of sale and can be recycled with the commercialized packaging”.

Although it’s not a prohibition, according to law N° 30021, several products (processed foods and non-alcoholic beverages) have nutritional advertising warnings in the form of octagons (also referred to as octagons) on labels and advertising disseminated through various media. Octagons in product advertising are mandatory for processed foods whose sodium, sugar, saturated fat, and trans-fat content exceed the technical parameters established in the Healthy Eating Guidelines. Currently, the Executive Branch is working on new nutritional parameters. However, there is not official update.

Additionally, Congress approved law N° 31919, modifying law N° 30021, which requires that octagons be permanently labeled on products. In case the products are imported or sold by an MSE, a permanent label is not an obligation; stickers are required instead.

A law was recently published authorizing gluten-free products to display the symbol of a barred ear within a circle on their packaging, containers, wrappers, or labels. The characteristics of this labeling have not been defined, and the regulations of this law have not been published.

1. Credit Restrictions Country

There is no specific legislation.

 

• Money Collections

The Superintendency of Banking, Insurance, and Pension Fund Management regulates and supervises the Financial, Insurance, and Private Pension Systems.

Mission: “Protect the interests of the public, ensuring the stability, solvency, and transparency of the supervised systems, as well as promoting greater financial inclusion and contributing to the system of prevention and detection of money laundering and terrorist financing.”

• Licenses

There are no registration/license requirements for independent entrepreneurs.

 

1. Status of Direct Sellers

The relationship between direct selling companies and independent entrepreneurs is commercial/contractual and non-labor, so:

Independent entrepreneurs do not act under the orders or directives of direct-selling companies. There is no subordination relationship. They manage their business as they consider appropriate according to their needs.

It is also important to mention that some direct-selling companies help independent entrepreneurs build their businesses. In this case, the existing contractual relationship is with the companies of independent entrepreneurs.

 

1. Earnings Claims

Since there is no Direct Selling law, Peruvian laws would apply in case of a commercial or civil relationship.

CAPEVEDI (Peruvian Chamber of Direct Sale), through the Code of Ethics Administrator, processes claims that the companies have not resolved. The attention to consumer complaints will be free.

The Consumer Protection and Defense Code regulates claims as follows:

“Article 24.- Claims service

24.1 Without prejudice to the right of consumers to initiate the corresponding actions before the competent authorities, suppliers are obliged to respond to the claims submitted by their consumers and respond to them within a period not exceeding thirty (30) calendar days. This term can be extended by another equal when the nature of the claim is justified by the Consumer Protection and Defense Code, a situation that is informed to the consumer before the end of the initial term.

24.2 If the provider has a complaint service line or some other electronic or similar means for that purpose, it must be ensured that attention is timely and that it does not become an obstacle to the claim before the company.

24.3 The attention for consumer or user claims cannot be conditioned on the prior payment of the product or service subject to said claim or the amount that would have caused it, or any other fee.”

 

1. Taxes

By the Resolution of the Deputy Superintendence of Internal Taxes No. 000020-2023, anyone selling products through social media is obliged (starting in December 2023) to provide their National Register of Taxpayers number in their advertising. This also applies to certain occasions when the offer is made using digital e-commerce platforms, web pages, advertising emails, mobile applications, etc.

However, last December, Congress approved the repeal of the obligation for companies and influencers to register their Single Taxpayer Registry (RUC) in digital advertising. The measure was adopted through Bill No. 5434-2021. The approved text was observed by the Executive Branch and returned to the parliament’s economic commission, which is pending review.

 

• Social Security Taxes

There is no legislation. Independent entrepreneurs are not considered employees.

 

• Others

Congress has presented and revised the following bills relevant to the industry. These are still pending for debate on the Plenary Session in Congress:

• Bills 5801 and 5802 seek to amend articles of the Consumer Protection Code

The bills propose to modify articles 1 and 45 of the Consumer Protection Code in such a way that the consumption contract, which accredits the purchase and allows restitution, is validated only with the ID or RUC of the consumer since the supplier must have such contract registered in its internal and tax system.

• Bills 2942, 3131, and 3541 that seek to modify the Consumer Protection Code on spam calls

The bill aims to enable consumers to accept commercial calls consciously and unequivocally. Therefore, the commercial practice is sanctioned when these were not requested in the first place.

• Bill 6435 law creating the sanitary register of food supplements

The bill seeks to establish the Health Register of Food Supplements for products specially prepared to add to, increase, or supplement the regular daily diet. Thus, the bill designates the General Directorate of Environmental Health and Food Safety (DIGESA) as the competent authority to grant the Health Register that enables the importation and marketing of food supplements.

• Bill 6814 law that proposes to repeal law n° 27821, the law on the promotion of nutritional supplements for alternative development

The purpose of the bill is to repeal Law No. 27821, Law on the Promotion of Nutritional Supplements for Alternative Development, as it is considered irrelevant and ineffective in its intended application. They also seek to avoid over-regulation of aspects that are already regulated. This is because the law establishes that the subject matter of the regulation consists mainly of the promotion of the production, processing, and marketing of plants for traditional use that are linked to health conservation. DIGESA already regulates this.

• Bill 5851 Law on the rights of members of collective funds

Incorporates Chapter VII Collective Funds, in Title IV Consumer Protection in specific products or services in the Code of Consumer Protection and Defense, to guarantee the rights of the members of collective funds; it also states that insurance, when applicable, shall be contracted independently and at the free choice of the member.

• Bill 2753 that implements the use of the Braille system in packaging.

This is expected to be applied to household products, food, cosmetics, pesticides, toiletries, and medical products, as well as in public places such as supermarkets, tourist services, public libraries, and others.