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What it is

Rules for retail commerce, sales, special sales and penalties

BOE step 7 of 7 · Passed

It is a members’ bill. Introduced by parliamentary groups, the Senate, regional governments or citizens. It was introduced on 16 July 1993. Introduced by: Grupo Parlamentario Catalán (Convergencia i Unió).

Official title: Private member's bill on the regulation of retail trade.

Source: Congreso de los Diputados, file 122/000002· updated 11 Nov

Automatic summary, not yet reviewed

  1. The law sets the general framework for retail commerce: it defines retail commerce and commercial establishments, and requires large stores over 2,500 square meters to obtain a specific commercial license from the Autonomous Community, with a report from the Competition Defense Court.
  2. Retailers must sell to buyers who meet the purchase conditions, cannot limit quantities or raise prices for large purchases, and buyers returning a product do not compensate for wear from simple testing; if no period is set, the withdrawal period is seven days. The minimum warranty for durable goods is six months, and spare parts must be supplied for at least five years after a product stops being made.
  3. Prices are free, but selling below cost is banned except in specific cases, and the Government may set prices for products such as basic necessities or where effective competition is lacking. Payments between retailers and suppliers are due the day of receipt unless otherwise agreed, with rules for deferred payments and late-payment interest.
  4. The law regulates sales promotion activities: sales (rebajas) only in two annual seasons, for products previously offered at the regular price; rules for promotions, clearance of damaged goods, liquidations and gifts; and a ban on pyramid selling and on abusive conditions in multilevel selling.
  5. Special sales (distance selling, automatic vending, street trading and public auctions) require authorization. In distance selling, the buyer may freely withdraw within seven days, need not return unordered goods, and may demand the cancellation of charges made using their credit card number. Franchisors must give written information to the future franchisee at least twenty days before signing.
  6. Violations are classified as minor, serious or very serious, with fines from a warning up to 100,000,000 pesetas, and after a third repeat very serious offense a temporary closure of up to one year may be ordered. The Autonomous Communities are responsible for imposing sanctions.

Who it affects

  • Retail merchants: Must follow rules on sales, prices, warranties, promotions and supplier payments, and can be fined if they do not.
  • Consumers and buyers: Get rights such as withdrawal, warranties for durable goods, and protection against pyramid selling and unordered shipments.
  • Large stores: Need a specific commercial license from the Autonomous Community to open.
  • Distance selling, auction and franchise companies: Must be authorized, registered and give prior written information.
  • Autonomous Communities: Grant licenses, authorize special sales and sanction violations.

Words worth knowing

Desistimiento (withdrawal right)
The buyer's right to cancel the contract and return the product within a set period, without giving reasons.
Venta con pérdida (selling below cost)
Selling a product below what it cost the retailer to buy or make it.
Venta multinivel (multilevel selling)
Selling through a network of independent sellers who earn a percentage of the network's sales.
Franquicia (franchise)
A contract by which one company grants another the right to use its system for selling products or services.
Acción cambiaria (bill of exchange action)
The ability to claim payment in court using a document such as a bill of exchange.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 7 of 7 steps. It reached BOE, and today it is passed.

  1. Introduced16 July 1993Someone registers the text in the Congreso.
  2. Admitted20 July 1993The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendmentsno dateGroups propose changes.
  4. Committeeno dateA committee goes through the text in detail.
  5. Plenaryno dateAll 350 deputies vote.
  6. Senateno dateThe Senate can pass it, amend it or veto it.
  7. BOEno dateIt is published in the Official State Gazette (BOE) and comes into force.
See the 2 official steps on a timeline
Jul 199311. 16 July 1993: Presentación22. 20 July 1993: Calificación

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

It is law, or will be once published in the BOE. It comes into force on the date its own text sets.

Published in the BOE: Law 7/1996, of January 15, on the Regulation of Retail Trade.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.