14 | 2 | 2022

News: Draft Law on Illegal Trade

After nearly 15 years of legal processing, on February 12, 2022, the new Law 21.426 on Illegal Commerce was published in the official gazette, which strengthens the regulation related to the prosecution of crimes against the Intellectual Property Law and other regulatory bodies.

Among other aspects, the new law includes the following advances:

  • It establishes new faculties for the supervisory court in preliminary proceedings in relation to the investigation of this type of crimes;
  • It establishes new supervisory faculties for the police, municipal inspectors and officials of the Internal Revenue Service;
  • It establishes the duty of the Municipalities to regulate in their respective legal bodies, the places where street commerce may be exercised;
  • It establishes new sanctions and fines for those who associate to commit these crimes;
  • Fines related to street commerce without a municipal permit or without the respective authorization and recidivism are increased;
  • It increases the fines associated with commerce exercised without complying with tax requirements and its recidivism;
  • Among others.

Thus, the new regulation will provide additional tools to combat the importation and sale of counterfeit products, with which it is expected to reduce transactions associated with illegal trade which, according to the Undersecretary for Crime Prevention, María José Gomez, would amount to one billion dollars and the non-payment of VAT with losses of 160 million dollars. 

In case of requiring assistance in matters of Intellectual and Industrial Property infringements, please contact:


Juan Avendaño Parra

Juan Avendaño Parra

Head of the Privacy, Data Protection and Trademarks department

Rodrigo Marré Grez

Rodrigo Marré Grez