ProCompetencia warns that private label brands must comply with regulations to ensure fair competition

Santo Domingo.– The president of the National Commission for the Defense of Competition, María Elena Vásquez Taveras, warned that the so-called “private labels” or supermarket brands must adhere to the regulations established in the industrial sector to ensure fair competition conditions in the Dominican market. The official explained that, so far, the institution has not received formal complaints related to alleged cases of unfair competition linked to this type of product. However, she indicated that the entity maintains a constant monitoring of the different markets of goods and services through its observation mechanisms. Vásquez Taveras pointed out that, although private labels are registered and can generate positive effects for competition by expanding the offer for consumers, all market players must comply with current regulations.

“Everyone has to comply with the regulations, because it’s the only way the playing field will be level and they can compete on equal terms,” he said.

In that sense, it reported that the institution is working on a study that will evaluate the conditions of competition in the retail trade. This analysis will include a profile of private label brands in the country, their presence in the market, proportion and possible impact on the commercial dynamics, with the aim of identifying whether regulatory improvements or new public policies are required.

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The president of ProCompetencia also indicated that the executive direction of the entity continues to monitor the behavior of the markets through the Competition Conditions Observatory, while a competition advocacy report is being prepared that will serve as the basis for proposing regulatory adjustments.

Preliminary draft of law

During her statements, the official also highlighted the presentation of a preliminary draft to amend the General Law on Defense of Competition, with the aim of strengthening the legal framework and offering greater legal certainty to economic actors. Among the main novelties of the proposal is the creation of a business concentration control regime, a tool that the Dominican legislation does not currently contemplate. As explained by Vásquez Taveras, the Dominican Republic is the only country in Latin America that has a competition law and a regulatory authority, but still does not have the power to carry out prior controls of business concentrations. The initiative also contemplates new powers for the institution, including more severe sanctions against unfair competition practices, increased fines, and the creation of the instructor counselor figure to strengthen due process guarantees.

Penalties for unfair competition

The preliminary draft proposes to classify acts of unfair competition as serious infringements, with fines that could reach up to five percent of the gross revenue of the infringing company, which could be doubled in the event of recidivism. Furthermore, the strengthening of inter-institutional collaboration is established, as well as the obligation to provide information to the competent authorities, with a system of consequences in case of omission, unjustified delay, or refusal to provide it. According to the head of ProCompetencia, these measures seek to reinforce the effectiveness of the institution and contribute to the creation of more competitive, transparent, and attractive markets for investment.