How to Invest in Chile: Consumer Protection

Chile has a solid legal framework that safeguards consumer rights and establishes clear rules for companies. Read on for the key regulations, institutions and mechanisms that strengthen market confidence in the country.

In Chile, protecting consumer rights is an essential part of the legal framework that regulates commercial relations between companies and their customers.

For foreign investors, being familiar with this framework is crucial for ensuring compliance with regulations and building relationships of trust within the local market.

A robust, modern legal framework

Law No. 19,496 is the cornerstone of Chilean consumer protection legislation.

It sets out the obligations of goods and services suppliers and the rights of those who acquire or use them.

It also establishes a series of sanctions, procedures and mechanisms to uphold consumer rights when they are infringed upon.

What is SERNAC?

Chile’s National Consumer Service (SERNAC) is the government agency responsible for enforcing this law.

Its main function is to inform, guide and mediate between consumers and companies, as well as to oversee and sanction instances of non-compliance.

In addition to SERNAC, other non-profit consumer associations represent consumers in their dealings with the authorities and the courts, promoting consumer education and defending consumer rights.

Rights and responsibilities in consumer relations

Consumers in Chile enjoy some basic rights, such as the right to freely choose goods and services, the right to receive truthful and timely information, and the opportunity to unilaterally terminate certain kinds of contracts within 10 days.

Consumers in Chile also have the right to demand that defective products be repaired, replaced or the cost refunded within six months of purchase.

For their part, suppliers are obliged to comply with their advertising claims, respect prices stated and not arbitrarily discriminate against consumers, in addition to cooperating with enforcement processes conducted by SERNAC.

Protection and enforcement

The Chilean consumer protection system has various mechanisms to ensure that consumer rights are protected, including:

• Direct enforcement by SERNAC, which is authorized to demand information and apply corrective measures.
• Mediation and voluntary collective procedures that allow conflicts to be resolved quickly and transparently.
• Individual and collective lawsuits, to sanction offending companies and obtain compensation for those affected.   

For financial consumers, the law extends protection to products such as loans, insurance and credit cards, granting those who use these products specific rights in terms of cost transparency, the release of guarantees and the invalidity of abusive clauses.

Penalties for violations can reach up to 2,250 Monthly Tax Units (UTM).

Compliance and trust: keys to investment

For foreign companies interested in operating in Chile, being familiar with this regulatory framework will allow them not only to comply with legal requirements, but also to strengthen their reputation and sustainability in the market.

The existence of solid institutions and clear procedures leads to legal certainty, a factor highly valued by global investors. 

Download the complete chapter on Consumer Protection and learn more about the rights, responsibilities and procedures established under Chilean law, and how this framework contributes to a transparent and reliable investment environment.