Domestic trade and consumer protection activities are outlined in the Programme for Domestic Trade, Supply and Consumer Protection 1997-2000, which sets out strategies and actions aimed at fostering the modernisation and competitiveness of businesses in a fair and transparent way in the context of consumer relations. One of the main aims of this programme is the strengthening of consumer protection.

With  regard to consumer protection, SECOFI, PROFECO and other Federal agencies and entities carried out diverse actions aimed at reinforcing the protection and defence of consumers’ rights and fostering the development of a "consumer culture" taking account of changes in goods and service markets.

Consumer protection efforts in 1999 focused on five basic topics: standardisation of goods and services; consumer information and guidance; protection of  consumers' economic interests; verification and oversight; and procedures for complaints and redress.

In addition, SECOFI began work on the legal framework applicable to electronic commerce. This work is being carried out in co-ordination with private sector representatives as well as with other concerned agencies.

The most relevant actions and achievements in 1999 are summarised below:

1. Standardisation of goods and services

Mexican Official Standards (NOMs) are one of the main components of Mexican consumer protection policy. NOMs are national mandatory rules which establish technical specifications on safety and/or information. Their purpose is to provide better conditions for the marketing of goods and services.

 In 1999, SECOFI issued 17 NOMs on the following issues:

• Product safety standards

Three safety standards were issued on baby products, relating to the operation, specifications and test methods of the following products:

• Infant strollers
• Playpens
• Baby walkers

Other safety standards concerned the following products:

• Ballast in-gas electric discharge lamps
• Valves for inner tubes, and wheel rim valves used in tubeless tires
• Economical transportation service in medium-sized buses

• Commercial information standards

SECOFI issued two standards setting out the requirements for information that should appear in:

• Packaging, instructions and warranty certificates for electric and electronic products, and electrical household appliances.
• Labelling on toys.

• Commercial practices standards (NOM-PC)

NOMs on commercial practices are an essential component of consumer protection policy. They contain the basic elements, requirements and characteristics for the commercialisation of certain services, as well as the minimum information that must be provided by suppliers to consumers. In some cases, NOMs also establish minimum specifications for contracts that should be obligatorarily registered in PROFECO’s National Register of Contracts. In 1999, five NOM-PCs were issued concerning the following services:

Maintenance and decoration of houses, buildings and furniture

This NOM sets out the information that suppliers are required to provide to consumers in the commercialisation of this service, as well as other obligations, in particular the prior elaboration of a detailed estimate indicating price and means of payment, guarantees, delivery date, etc. The NOM also contains a provision for obligatory registration of the contract with PROFECO. The contract must include the following information:

1. full identification of the supplier and the consumer;
2. full description of the service;
3. estimated time for the conclusion of the work;
4. total price with the specification of items;
5. means of payment, and, where applicable, the advance payment, the contractual penalties and the guarantees offered by the supplier.

Time-sharing

This NOM establishes that time-share providers must notify SECOFI of the start-up of their operations and prove to PROFECO that they have sufficient guarantees to comply with their obligations to consumers; these basically consist in the fulfillment of irrevocability, efficiency, transparency and legality. The NOM also establishes the following obligations for service providers:

• Obligatory registration of contracts with PROFECO.
• A cooling-off period of five days, with no impairment of consumers' rights.
• Creation of a reservation system that responds to customers' needs and requirements.

Educative services providing qualifications and technical training that have not received official recognition

The main objective of this NOM is to offer greater transparency and security to consumers in choosing private educational services offering qualifications and training. This standard establishes the minimum information requirements and the elements that must be contained in contracts proposed by providers of these services.

Commercialisation of graduation sets

This NOM establishes the characteristics of the information, and the minimum elements, of contracts proposed by suppliers of packages of goods and services for graduation school celebrations. This commercial practice is growing strongly and it became necessary to develop a standard that ensures improved information for consumers to enable them to make better purchasing decisions.

Sale of building materials

This NOM sets out the characteristics of the commercial information that must be disclosed by suppliers of building materials as well as the requirements for contracts or purchase orders used for this purpose. The main objective of this NOM is to ensure that consumer’ decisions are based on sufficient information.

Consumer networks benefiting from grouped purchases of goods and services, known in Mexico as "self-financing groups" (grupos de autofinanciamiento)

The LFPC recognises a commercial practice which consists of the organisation of consumer networks designed to benefit from grouped purchases of goods and services. These groups are managed by a third person who is in charge of collecting periodically the contributions or payments of members of the group. Among other provisions, the NOM establishes the characteristics of the information and contract requirements, suppliers' obligations and guidelines for the creation and operation of the networks. Due to the growth of this commercial practice, an emergency standard was issued in 1999. The final standard will be issued in 2000.

Safety standards were issued applicable to:

• Folding steel rulers.
• Multipurpose measurer for electric systems.
• Electro-mechanical watt meters.

• Standards on tourism issues

The Ministry of Tourism issued three standards related to consumer protection on tourist services. These are part of a system designed to collect suggestions and complaints from consumers regarding services rendered by establishments providing accommodation, travel agencies, restaurants and time-share companies. In addition, the system will feed into the development of an alternative mechanism for tourist evaluation.

The standards establish the characteristics and elements of the information on the postage-paid cards which are available to consumers for the submission of complaints and suggestions in the establishments where the service is provided. The suppliers pay for the printing of the cards, which must be written at least in Spanish and English. 

• Food and beverages standards

Among other standards, the Ministry of Health issued a NOM for best practices in the production and sale of purified water, as well as three NOMs relating to sanitary specifications for the production and handling of eggs and derived products; meat products (in pieces and cured); and cereals and derived products.

2. Information and advice to consumers

Other essential components of consumer protection policy include the programmes and activities designed to promote a new "consumer culture" in which consumers are better informed and educated and are protected from unfair, deceptive or fraudulent schemes. One of the main objectives of these programmes is to avoid disadvantaged or mistaken purchasing decisions which can harm consumers' rights and economic interests.

Recent work has increased consumer participation – consumers have become more interested in their rights and are ready to demand their enforcement. Nowadays, more consumers look around for the best buy, compare price and quality, and complain when what they buy does not conform to the supplier's claims.

The results obtained in 1999, in terms of information, orientation and assistance to consumers, are the following:

•  Diffusion of NOMs on commercial practices

SECOFI, in co-ordination with PROFECO, continued to disseminate information on the NOMs, especially those regarding commercial practices. These activities are carried out through the Internet and other specialised means, such as the consumer magazine, radio and television programmes produced and broadcast by PROFECO. Informative leaflets were distributed; and orientation and advice were provided to both suppliers and consumers.

• Consumer telephone [(52 5) 568 87 22]

The "Consumer Telephone" is a consumer response center. The instrument is well-known among the population and allows PROFECO to provide nationwide orientation and legal advice in response to consumers' complaints and inquiries. In 1999, more than 2 million inquiries were handled, an average of 8 000 per day. Claims are referred to the appropriate area of concern. Another telephone number is 52 11 16 14 and there is a toll free number 01 800 9 03 13 00.

• Deceptive or fraudulent advertising

One of the basic principles in consumer relations is protection against misleading advertising, and deceptive or unfair commercial practices. In this area, PROFECO carried out a campaign targeted at advertising in the mass media in order to verify that such advertising fulfils the conditions of the LFPC and NOMs. In 1999, 36 000 advertisements were analysed, 730 administrative procedures due to infractions of the law were settled, and PROFECO ordered that deceptive advertising be modified. During this period, 368 advertisements were modified.

•  Publications

• The "Who's Who in Prices" Guide, offers consumers  best-price options for goods and services in a number of commercial establishments. This guide is freely distributed in six of Mexico’s regional zones. 1 590 000 copies were distributed in 1999. Information about prices is also provided over the "consumer telephone" and through the use of tactile screens available at "consumer information counters" installed in strategic places throughout the country.

• Consumer magazine. The Revista del Consumidor magazine edited by PROFECO publishes analysis, investigations and product quality tests and price comparisons, as well as other topics of interest to consumers. In 1999, 740 000 magazines were distributed across the nation, at a low price of 15 pesos (approximately USD 1.55). The magazine is appreciated by consumers, as evidenced by the fact that its print run has increased each year.

• Brochures, handbills and booklets. PROFECO issued and distributed more than 7 million booklets, leaflets, handbooks, etc., containing general or specific information on topics of interest to consumers.

• Radio and television programmes

PROFECO produced and broadcasted:

• 57 TV and 52 radio programmes diffusing information on quality tests, domestic technologies and other matters, as well as general information of interest to consumers.

• 52 TV capsules and 33 radio and television spots supporting the promotion of the consumer magazine and PROFECO’s activities.

•  Web pages

The SECOFI Web site recently launched a "First Contact" section, which constitutes the first step between users and the main activities of this Ministry and its co-ordinated institutions, including PROFECO. A toll-free number 01-800-410-2000 also provides this service.

• "Who's Who" in Money transfers between the United States and Mexico

In December 1998, PROFECO launched an information programme addressed to Mexicans working in the United States who periodically send money to relatives in Mexico. This programme was prepared in co-operation with Mexican consulates in the United States, and presents charts setting out the tariffs, prices, commissions and other charges applicable to the money transfer services provided by the most widely used firms in the United States. The charts are updated on a weekly basis and can be consulted at the offices of the six Mexican consulates in the United States (Chicago, Los Angeles, New York, Dallas, Miami and Houston). The programme is widely advertised on monitors and bill-boards and in printed material, as well as on the PROFECO Web site and through the "consumer telephone" referred to above.

• Consumer groups

PROFECO co-ordinates the creation and organisation of groups of consumers to whom preventive and informative actions are oriented. The groups are organised in their home communities, in accordance with their interests or common characteristics, such as age, sex, consumption preferences, etc. In 1999, PROFECO organized the creation of 3 578 new consumer groups which, in addition to existing groups, bring the total to 5 918. In the same year, efforts were undertaken to organise groups focused on basic education which include the participation of parents and teachers.

Public and private institutions working on community issues work together to disseminate information on PROFECO’s preventive actions and special consumer programmes. This tool has served to strengthen social programmes linked to the protection of family income and consumers’ rights.

With the aim of supporting the buying power of the population and contributing to the well-being of consumers, the Federal Government of Mexico carries out a number of activities designed to ensure sufficient supply of basic products at accessible and competitive prices. It also works on the establishment of a normative framework aimed to guarantee legal certainty for producers and commercial activities.

• Seasonal programmes

One of the main tools designed to strengthen the buying power of the population consists in the implementation of "Supply programmes" in high-demand seasonal periods; these entail entering into agreements with producers' representatives to guarantee sufficient quantities of products at affordable prices.

SECOFI is in charge of co-ordinating agreements with manufacturers, distributors and organised commerce, while PROFECO offers counselling and education to consumers and oversees the enforcement of the agreements to ensure consumers are protected from abuses. The most important programmes are:

• Lent: The supply of seafood is guaranteed; special prices are offered and information is provided on the types of fish in greatest demand.
• Beginning of the new school year: This programme operates from August to September, prior to the "back-to-school" period. It consists in offering special prices and promotions of school products and materials. PROFECO carries out a campaign to educate the population about buying and recycling these products.
• End of year and Christmas holidays: This program offers guidance to consumers to help them spend their "end-of-year bonus" well. At this time of the year, agreements are concluded with suppliers to offer price promotions on toys for Christmas and the Epiphany.
• Holiday season: This programme is traditionally launched during the summer and winter Holy Weeks; it includes a wide informative campaign on the best options and tourist destinations in the country. It is carried out in co-ordination with other governmental agencies to provide guidance and assistance to the population through "tourist information desks" strategically placed in the main tourist centres of the country.

• Register of contracts

In order to offer transparency and legal security to consumers in commercial contracts with suppliers of goods and services, the Federal Consumer Protection Law establishes, by means of a NOM, that certain types of contract are subject to obligatory registration in cases where they could contain unfair or unequitable clauses which go against consumers’ rights. In this regard, PROFECO administers a Public Register which is also open to those suppliers who wish to voluntarily register their contracts in order to provide greater legal certainty to consumers.

Registration in PROFECO is free of charge and suppliers can obtain advice on how to design their contracts; model contracts exist for different commercial branches. Contracts registered according to the applicable regulations will be labelled "Registered in PROFECO with the xxx number", which means a compliance with the applicable NOM or law, and it is a good reference of the supplier.In 1999, 4 300 contracts were registered, covering such areas as automobile repairs, laundry and dyeing; time-sharing; social events; photography; load transportation, and funeral services. The Register's database allows PROFECO and consumers to verify the background of each supplier.

• Detection of dangerous products

In accordance with its legal powers, PROFECO carries out visits to commercial premises in order to inspect and verify their compliance with the legal provisions applicable to standards, production and sale of good and services, to ensure their physical and legal security as set out in the applicable laws and NOMs. In 1999, PROFECO carried out 253 204 inspections of commercial establishments. Special programmes were launched for verification of the following products:

• Cigarettes: 4 581 057 products were verified, of which 21 181 were seized, and 10 financial sanctions were imposed for failure to comply with the law.
• Lighters: 991 775 products were verified, of which 895 714 were seized and 237 fines were imposed for non-compliance.
• Building materials: 20 086 691 products were verified, 91 955 were seized, and 184 fines were imposed for non-compliance.
• Alcoholic drinks: 2 971 091 products were verified, of which 131 860 were seized, and 184 fines were imposed.
• Electric products: 608 393 products were verified, 28 787 were seized, and 180 fines were imposed.

• PEMEX-PROFECO programme

One aspect of the Inspection and Verification Programme is the verification of gas stations carried out by PROFECO. In 1999, 3 262 establishments were visited, and 60 639 fuel pumps were checked to ensure a correct equivalence between quantity, quality and the price paid for fuel. During these visits, the operation and calibration of fuel pumps was corrected and those fuel pumps that represented risks for the consumer through mechanical, electrical or hydraulic faults were taken out of operation.

5. Procedures for consumer complaints and redress

In accordance with the Federal Consumer Protection Law, consumers have access to administrative bodies, aimed to defend their rights and provide mechanisms for solving disputes between consumers and suppliers. In 1999, the mechanisms and procedures for dealing with consumers’ disputes were modernised, with the following results:

• Conciliation

Conciliation continued to provide the main solution to the majority of complaints submitted to PROFECO. At present, the duration of the conciliation procedure is up to 30 working days. However, there is an "immediate conciliation" procedure by telephone, whose maximal duration is of 15 days. 224 469 consumers’ complaints were subjected to conciliation, of which 84% were concluded satisfactorily.

• Arbitration

Arbitration is the alternative procedure established by the Federal Consumer Protection Law  to resolve consumer disputes. However, until now arbitration has been less used than conciliation. In this regard, SECOFI and PROFECO continued the promotion of arbitration as an alternative tool for solving consumer disputes, especially those not resolved by conciliation; such cases are generally not taken to the tribunals because of the long and complicated procedures involved. During 1999, 630 cases were solved through institutional arbitration.

Both institutional arbitration offered by PROFECO and independent arbitration offered by arbitrators on the official List established by SECOFI have been continuously promoted. SECOFI’s List of arbitrators includes more than 107 experts selected through a formal procedure which includes a theoretical and practical examination.

In December 1999, an Seminar on Arbitration was organised by PROFECO, with the participation of experts in the field; this event highlighted the many advantages of arbitration compared with other forms of dispute resolution and analysed international trends in arbitration methods.

The arbitration promotion programme also features visits to PROFECO’s regional offices, as well as workshops for consumers and suppliers and distribution campaigns of  brochures and posters. In 1999, 140 visits and 227 conferences were organised.

 6. International co-operation

SECOFI and PROFECO, in co-operation with the Ministry of Foreign Affairs, have taken part in a number of consumer protection projects conducted by international organisations, such as the OECD, UNCITRAL, ISO-COPOLCO, among others.

At the same time, both institutions have established contacts with other national authorities and organisations, such as NACCA, FTC, CPSC, in order to exchange experiences and information relating to consumer protection, especially concerning fraud against consumers.