News Alerts

Constitutional Court green-lights Sernac bill

July 10, 2018

On July 5th, 2018, the Chilean Constitutional Court ruled on the official request from the President of the Republic asking the court to settle the controversy that arose when the General Comptroller of the Republic rejected the decree promulgating the proposed legislation that would reform the Chilean consumer protection bureau, SERNAC.

This bill, which modifies Law No. 19,496 Consumer Protection Act, was initially approved by the Congress on October 24th, 2017. In January of 2018, the bill was significantly altered by the Constitutional Court, in the context of its constitutionality exam.

After the constitutionality exam, the President, following standard legislative procedure, sent the bill to the General Comptroller of the Republic for approval, on March 20th. However, on April 27th, the Comptroller rejected the bill. According to the General Comptroller, the bill's text was not consistent with the Constitutional Court's ruling. Some of the provisions that were found to be unconstitutional remained in the bill, for example, sanctioning powers for SERNAC.

Due to the General Comptroller’s rejection, the President of the Republic submitted an official request before the Constitutional Court, asking the court to declare what would be the definitive text of the bill.

Finally, on July 5th, the Constitutional Court ruled that the President of the Republic must adjust the bill, entirely excluding sanctioning powers for SERNAC and removing every provision related to the administrative sanctioning procedure –among all the provisions declared as "unconstitutional"–. Once this correction takes place, the bill will be enacted into law.

If you have any questions regarding the matters discussed in this news alert, please contact the following attorneys or call your regular Carey contact.

Guillermo Carey
Partner
+56 2 2928 2612
gcarey@carey.cl

Aldo Molinari
Partner
+56 2 2928 2213
amolinari@carey.cl

María José Martabit
Associate
+56 2 2928 2638
mjmartabit@carey.cl

 


This news alert is provided by Carey y Cía. Ltda. for educational and informational purposes only and is not intended and should not be construed as legal advice.

Carey y Cía. Ltda.
Isidora Goyenechea 2800, 43rd Floor.
Las Condes, Santiago, Chile.
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