By The Star Staff
The House Judiciary Committee began public hearings Wednesday on House Bill (HB) 1372, which prohibits acts of unfair competition in the market in Puerto Rico.
The bill, authored by Rep. José Meléndez Ortiz and House Speaker Rafael ‘’Tatito’’ Hernández Montañez would create the Puerto Rico Unfair Competition Act.
‘’This measure will serve the development and growth of different companies that, as long as these types of laws are not adequately regulated, are exposed to unfair competition and to the detriment of economic development in different regions and areas of production,” Committee Chairman Orlando Aponte Rosario said. “This bill is very important for the district we represent and all of Puerto Rico.”
Appearing before the committee was Fernando Echegaray Daleccio, who wrote a doctoral thesis entitled “New Legal Regime on Unfair Competition for Puerto Rico: Comparative Study between Spanish, American and Puerto Rican Laws.” The Department of Justice (DJ) was summoned, but did not appear or send an explanatory brief.
During the hearing, Echegaray Daleccio emphasized that the person or persons harmed by acts of this nature will have the right to present their complaints under the Antitrust Law, or file a legal claim under the Unfair Competition Law.
In Puerto Rico there is no law that regulates in a general way and prohibits specific acts of unfair competition that are carried out in commerce as they exist in the states of the United States, in Spain, in the European Union and in other countries, Echegaray Daleccio said.
In Puerto Rico currently, people harmed by unfair competition practices are not allowed to file before the courts petitions for cease and desist orders (injunctions), or private actions for compensation for damages suffered due to unfair commercial practices. The situation is contrary to the rule of law in force in the state jurisdictions of the United States, Spain and the European Union that do allow natural or legal persons injured by illegal commercial acts to file lawsuits in judicial forums.
However, HB 1372 would provide an alternative claim in court for market participants harmed by such actions.
The measure recognizes as unfair acts those that involve deceit, confusion, misleading omissions, aggressive practices, denigration, certain comparisons, exploitation of the reputation of others, violation of secrets, violation of rules, discrimination, economic dependence and some sales below cost.
Echegaray Daleccio stressed that “this lack of adequate regulation deteriorates the trade and economy of Puerto Rico, harming the general interests of all market participants on this island.”
“I concur that this bill should be promulgated, which will effectively regulate illegal acts that arise in the market, granting consumers and companies the right to file private actions in court against these illegal acts for the recovery of losses caused by these illegal actions in the territory of Puerto Rico,’’ he said.