Sedeco updates Consumer Protection Code for online purchases and AI

Sedeco is pushing for an update to Paraguay's Consumer Protection Code to adapt legislation to online purchases, digital services, artificial intelligence, social media advertising, and credit operations, including minimum legal guarantees, expanded cooling-off rights, and rules for influencers and automated customer service.

The Secretariat for Consumer and User Defense (Sedeco) is pushing for an update to the Consumer Protection Code to bring Paraguayan legislation in line with new forms of purchasing, digital services, artificial intelligence, social media advertising, and credit operations.

The proposal seeks to modernize Law 1334/98, which has been in force since an era when the internet had less penetration in Paraguayan households. The draft bill has already gone through a consultation phase with business entities and civil society organizations, which had until May 31 to submit comments on the latest version.

Among the planned changes is the introduction of a minimum legal warranty of one year for new products and six months for used products. The bill also expands the right of withdrawal, allowing consumers to return a product within 10 days without having to justify the decision.

The reform includes rules for digital advertising, technology platforms, and the use of artificial intelligence in customer service. In the case of influencers and content creators, the bill establishes that they must disclose when a post corresponds to paid advertising, with potential liability in the event of non-compliance.

The proposal also requires companies to ensure that consumers can communicate with a real person, even when chatbots or automated customer service systems are used.

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Updated: Jun 9, 2026, 4:56 AM