PROFECO and its Current Relationship with Consumer Companies, Agreement Signings with Them, Important Differences with Other Authorities, and More

Unlike other federal authorities, PROFECO not only prosecutes but also has the legal authority to enter into agreements with companies to improve consumer relations. For this reason, it is that practically every week, said procuraduría announces agreements or convenios with the largest companies in the country.

I emphasize this because many companies still find it "strange" that they are turned away by other federal authorities and are practically not allowed any kind of contact. On the other hand, PROFECO even seeks out companies when it identifies an issue that needs to be corrected, always seeking negotiation before initiating sanctioning processes, and even more so when the issues are highly publicized. Some companies even question whether this is "legal" or correct, and the answer is a resounding YES, because federal legislation itself and various agreements published in the Official Gazette of the Federation (DOF) allow and promote this type of arrangement and agreement between the authority and companies for the benefit of consumers, within the framework of the law.

It is very important that companies with a high number of consumers know this, so that their legal and Compliance teams seek this relationship of institutional communication with the authority, within the bounds of the law.

Surely every week we will continue to see these types of agreements between the competent authority and major brands, so the most important questions are: DO YOU KNOW HOW TO HANDLE THESE INVITATIONS FROM THE AUTHORITY? DOES YOUR LEGAL TEAM KNOW THE REGULATORY FRAMEWORK OF THE AUTHORITY'S ACTIVITY AND IS IT PREPARED FOR THESE TYPES OF APPROACHES TO HAPPEN WITHIN THE FRAMEWORK OF THE LAW? If not, it is very important that you prepare, as every day there are more reviews of any activity involving the purchase and sale of products, provision of services, e-commerce, and advertising by companies through any means.

Recommendation: All companies should be clear about their risks (including reputational ones) when engaging in consumer relations and advertising. These risks should be reflected in their Compliance programs, and they should have preventive and corrective action protocols in place in case of interactions with the authority. Prevention and engaging with the authority before a problem explodes will always be much more advisable than taking corrective actions.

At ESCARTIN ABOGADOS, we have many years of experience advising the most important brands in the country on the signing of this type of agreement with the authority, which later become public, and I can undoubtedly tell you that prevention will always be much more efficient and, above all, much cheaper than correction.