The Superintendency of Industry and Commerce (SIC) recently defined the rules applicable to loyalty programs in Colombia.
Loyalty programs that attract consumers to products or services by providing benefits, such as points, are categorized as "offers and promotions with incentives" buy the Consumer Statute.
Those who promote or publicize loyalty programs are governed by the rules of the Consumer Statute and the Single Circular of the Superintendence of Industry and Commerce in order to avoid acts of deception to consumers through pieces of misleading advertising.
All advertising material, including loyalty plans created by the producer or supplier of a product or service, must provide the consumer with sufficient, clear, truthful, timely and accurate information regarding the products they offer in market.
Advertising will be deemed misleading when the conditions of loyalty program associated with a product or service are untruthful about its components, properties or benefits or when information provided is incomplete or not transmitted in a suitable way.
Finally, the SIC argues that the principles of economic freedom enshrined in the Constitution allows for individuals to carry out activities of an economic nature that create, maintain or increase assets. However, such freedom is limited by the rights of others and by the prevalence of the general interest.
Accordingly, entrepreneurs can enact market strategies for goods and services in a way they consider most appropriate as long as the limits imposed by the law and the general principles of law are respected.
Dentons is the world's first polycentric global law firm. A top 20 firm on the Acritas 2015 Global Elite Brand Index, the Firm is committed to challenging the status quo in delivering consistent and uncompromising quality and value in new and inventive ways. Driven to provide clients a competitive edge, and connected to the communities where its clients want to do business, Dentons knows that understanding local cultures is crucial to successfully completing a deal, resolving a dispute or solving a business challenge. Now the world's largest law firm, Dentons' global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 125 locations serving 50-plus countries. www.dentons.com.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.