Law 543 of 2026 introduces new obligations for supermarkets, retail stores, and other commercial establishments in Panama regarding the identification of the origin and nature of food products offered to consumers.
The law requires businesses to clearly indicate whether food products are domestic or imported and, where applicable, whether they are original, substitute, or imitation products.
These measures are intended to strengthen consumer protection, reduce confusion at the point of sale, and ensure that consumers have clear and accurate information to make informed purchasing decisions.
What does Law 543 of 2026 establish?
Law 543 of 2026 requires commercial establishments to properly identify food products displayed at points of sale.
Under the new legislation, businesses must provide visible information enabling consumers to identify:
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Whether the product is domestic or imported.
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The name of the product.
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The product’s country of origin.
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Whether it is an original, substitute, or imitation product, where applicable.
The objective is to ensure that consumers can easily determine both the origin and the nature of the products they purchase.
What obligations will supermarkets and retailers have?
The Law introduces several obligations concerning the organization, labeling, and display of food products.
Among the principal requirements are the following:
Identifying domestic and imported products
Businesses must place visible signage on shelves, display racks, refrigerated units, and other sales areas indicating whether a product is a:
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Domestic Product, or
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Imported Product.
The product’s name and country of origin must also be displayed.
This information must be presented clearly so consumers can easily identify the origin of products before making a purchasing decision.
Identifying substitute and imitation products Where applicable, businesses must expressly indicate when a product is classified as a substitute or imitation product.
In addition, the areas where these products are displayed must include a clearly visible notice stating:
“SUBSTITUTE OR IMITATION PRODUCT”
The notice must comply with the minimum specifications established by the Law and any implementing regulations issued thereafter.
Maintaining clear separation between products
The legislation also requires businesses to maintain a clear distinction between:
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Domestic and imported products.
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Original products and substitute or imitation products.
This requirement seeks to prevent consumer confusion and ensure that the presentation of products does not mislead purchasers regarding their origin or nature.
What are substitute and imitation products?
Generally, a substitute product is intended to replace another product, while an imitation product is designed to resemble an original product.
Properly distinguishing these products is particularly important because it enables consumers to better understand the characteristics of the products they purchase and make more informed decisions.
The implementing regulations will play an important role in defining the technical criteria applicable to these classifications.
Which authority will enforce the Law?
Compliance with these obligations will be supervised by the Authority for Consumer Protection and Competition Defense (ACODECO).
ACODECO will be responsible for conducting inspections, verifying compliance with the labeling and display requirements, and imposing the applicable sanctions in cases of non-compliance.
Businesses should therefore review their internal procedures to ensure that the information provided to consumers complies with the new legal requirements.
When will Law 543 of 2026 enter into force?
The Law will become effective on July 7, 2027.
This one-year transition period provides supermarkets, retailers, and other businesses sufficient time to implement the operational changes necessary to comply with the new legal framework.
During this period, businesses should evaluate the adjustments required for product labeling, classification, separation, and display.
How can businesses prepare?
Although the Law will not take effect until 2027, businesses should begin assessing its operational impact now.
Recommended actions include:
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Reviewing product organization on shelves, display racks, and refrigerated units.
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Verifying the origin of food products.
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Confirming information received from manufacturers, importers, and distributors.
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Designing new signage and labeling systems.
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Evaluating the physical or visual separation of different product categories.
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Training personnel responsible for merchandising and product displays.
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Implementing internal compliance controls to verify adherence to the new requirements.
Early preparation can facilitate compliance and reduce regulatory risks once the Law becomes effective.
New compliance challenges for businesses
The implementation of Law 543 of 2026 will create new operational, logistical, and regulatory challenges for supermarkets, retailers, distributors, and other businesses involved in the commercialization of food products.
Companies will need to determine how to reorganize product displays, implement compliant identification systems, and verify the accuracy of the information presented to consumers.
Businesses should also establish internal responsibilities and procedures to promptly identify and correct potential compliance issues.
Greater transparency for consumers
Law 543 of 2026 represents an important step toward greater transparency in the commercialization of food products in Panama.
By requiring businesses to identify product origin and distinguish between original, substitute, and imitation products, the Law seeks to provide consumers with clearer and more reliable information at the point of purchase.
At the same time, it creates new compliance obligations for businesses, requiring them to adapt their operations to a more demanding consumer protection framework.
Implementing regulations will be critical
The practical application of the Law will largely depend on the implementing regulations and the enforcement criteria adopted by ACODECO.
These regulations are expected to clarify matters such as signage specifications, product display requirements, and the criteria for determining when a product should be classified as a substitute or imitation product.
Accordingly, businesses should closely monitor future regulatory developments and review their compliance programs to ensure timely implementation of the new requirements.
Obtaining legal advice during the preparation phase can help businesses identify necessary operational changes, mitigate regulatory risks, and ensure full compliance before the Law enters into force.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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