First recommended actions for the company and protection of the brand

Key message:

“The health and safety of individuals are the highest priority.”

“Statements must be truthful and based on verifiable facts.”

General considerations

Consumers are increasingly filing complaints with the Consumer and User Protection Secretariat (SEDECO), which means companies must be prepared to act with speed, precision, and responsibility in addressing the situation.

Prompt and precise initial actions help in responding effectively to the consumer and to the administering agency, while also protecting the brand’s reputation by complying with the requirements of the governing regulatory framework, Law No. 1334/98, which establishes consumer rights in Paraguay and regulates suppliers’ obligations.

Indeed, a complaint before SEDECO that is poorly managed represents a legal and reputational risk for any company. A late or inadequate response may lead to penalties, loss of trust, and damage to the brand. When facing events that affect its consumers, a company must have a clear and precise roadmap in order to act effectively and responsibly.

What SEDECO does and the applicable legal framework

SEDECO is the national authority responsible for protecting consumer rights in Paraguay. It receives complaints, investigates, requests documentation, conducts inspections, and may impose penalties. Law No. 1334/98 establishes that suppliers must guarantee the quality, safety, and truthfulness of the products and services offered. Penalties may include fines, corrective measures, suspension of activities, and the publication of public alerts.

Recommended preliminary actions the company should take in response to a consumer claim or complaint (Checklist)

As a first measure, it is advisable to: designate a person responsible for receiving and internally channeling the consumer’s complaint and, where applicable, any notice sent by SEDECO.

• Preserve technical and documentary evidence.
• Immediately notify Management and the Communications or Legal Department, or in-house counsel.
• Activate the incident response plan (staff must necessarily have and be familiar with the steps to follow in a crisis and identify whom to turn to immediately).
• Review the complaint with an expert attorney.
• Apply technical mitigation measures.
• If needed, issue a truthful and empathetic public institutional statement through a single channel.
• Contact affected consumers.
• Prepare the formal report required by SEDECO.
• Document every action and measure taken.
• Review internal policies and train staff on Consumer Law and crisis management in these situations (claims or complaints).

What is the procedure before SEDECO? What to expect? 

The procedure established for handling complaints before SEDECO is conducted electronically, which requires designating an electronic domicile (email address) for both the CONSUMER and the affected COMPANY.

SEDECO admits the complaint filed by the CONSUMER and notifies the company involved, which must submit its detailed and itemized report on the case within a peremptory period of five (5) days. At the same time, a conciliation hearing is scheduled between the parties.

If no agreement or conciliation is reached between the parties (between the consumer and the company), the case, together with all the background, is referred to SEDECO’s Legal Department, which will analyze whether the opening of an administrative proceeding is warranted. Referring the complaint to the opening of an administrative proceeding already constitutes a process that will result in the imposition of a penalty if a violation of the law is established.

What to avoid

• Do not delete evidence or records.
• Do not issue statements without verifying the facts or having detailed knowledge of the situation. Communication must always be through a single institutional channel.
• Do not involve or blame third parties without concrete evidence.
• Do not ignore SEDECO notices or exceed deadlines.

Essential to keep in mind

A complaint before SEDECO in which the company and the brand’s reputation are at stake—even when the dispute is not considered serious—requires a response that is prompt, legally sound, and communicationally responsible. Protecting the brand depends on the ability to act transparently, preserve evidence, and cooperate with the authorities. This guide offers the tools needed to face the process effectively and minimize risks.

If you require further advice on these matters, our Dispute Resolution Department, led by the litigation team, will be glad to support you: