Aruba’s Consumer Rights: Retailers and Banks Accountability

Consumer rights in Aruba have long been ignored. Despite clear legal protections, the public’s awareness remains low, giving retailers room to sidestep their obligations and take advantage of consumers. This opens the door to frequent abuses, especially in how product complaints and warranties are handled. In this column, we will examine key aspects of Aruba’s consumer protection laws, highlight common issues, and call on authorities like the AFTA (Aruba Fair Trade Authority) and the tax department to step up enforcement and hold businesses accountable.

Consumer Rights Under Aruba’s Civil Code

Aruba’s Civil Code offers clear consumer protections through several key articles, particularly articles 7:17, 7:18, 7:21, and 7:22 of the Civil Code. These sections establish consumer rights when products fail to meet the standards agreed upon at the point of sale. Unfortunately, many retailers ignore these rules, leaving consumers in a frustrating situation. Here’s a breakdown of what the law says:

• Article 7:17 – Conformity to the Agreement: When you purchase a product, it must conform to the qualities you reasonably expect based on the nature of the product and the information provided by the seller. If it lacks the qualities needed for everyday or agreed-upon use, you have the right to file a complaint.
  
  For example, purchasing a laptop that stops functioning after just a few months could violate your rights, as the product is not performing as reasonably expected for its lifespan. Similarly, if you buy clothes that fade or shrink significantly after just a few washes despite following care instructions, this may also constitute non-conformity under the law. Additionally, if you order a specific clothing size and the wrong size is delivered, the seller still needs to meet the agreed-upon terms, and you have the right to seek a remedy.
  
• Article 7:21 – Remedies for Non-Conformity: If the product does not conform to the agreement, you can request repair or replacement within a reasonable time. If the seller fails to fix the problem promptly, you may ask for a price reduction or, in more severe cases, dissolve the contract and seek a refund.
• Article 7:22 – Right to Dissolve the Agreement: You can dissolve the contract and request a refund if the seller cannot repair or replace the faulty product within a reasonable timeframe or if repair is not possible.
• Article 7:18 – Presumption of Defects in Consumer Goods: If a defect appears within six months of purchase, the law presumes that it existed at the time of delivery unless the seller proves otherwise. This shifts the burden of proof onto the seller, offering additional protection to consumers.

Interestingly, this six-month presumption period is often much longer than the short warranties typically offered by many retailers on the island, which can range from just a few days to a few months. This discrepancy leaves consumers vulnerable, as many retailers use shorter warranty periods to avoid responsibility for defective products, even though the law provides stronger protections.

These legal provisions should give consumers confidence. Unfortunately, many retailers do not comply, either out of neglect or deliberate avoidance.

Short Warranties and Fading Receipts: A Common Retailer Tactic

One recurring issue in Aruba is retailers imposing unreasonably short warranties, particularly on high-value electronics. For example, PriceSmart offers warranties as short as three days to three months on items like big-screen TVs and computers – products that any reasonable person would expect to last for several years. In countries like the Netherlands, courts have ruled that such high-value products must come with longer warranties, reflecting the expected lifespan of the item.

Compounding this issue is the insistence that customers present the original receipt to claim warranty services. Many retailers print receipts on thermal paper, which fades quickly – sometimes before the warranty period even ends. This practice is especially frustrating for consumers, given that stores like PriceSmart have a digital record of all purchases through their membership program. Why demand a physical receipt when the information is already stored electronically? On top of this, PriceSmart’s membership requirement itself raises concerns under Aruba’s competition laws. By limiting sales to members only, the store restricts access to its products, which may unfairly disadvantage some consumers. This is something the Aruba Fair Trade Authority  AFTA should investigate to ensure the membership system complies with local competition regulations.

Is PriceSmart’s return policy compliant?

After taking a bird’s-eye view of the return policy on the PriceSmart website, I find it lacking and in need of significant adjustments to follow local Aruban laws. The policy’s restrictive 30-day return window, insistence on the original invoice, and reliance on third-party service centers fail to align with the broader consumer protections provided under the Civil Code, particularly the six-month presumption of defects and the right to remedies without undue inconvenience. To better serve consumers and meet legal requirements, PriceSmart should extend its return periods and adopt more flexible practices that reflect modern record-keeping and local regulations.

Non-Compliant Receipts: A Widespread Problem

Another issue consumers face in Aruba is the use of non-compliant receipts, particularly in certain popular “Chinese” grocery and convenience stores. Take Wing Tun Home Center, for example. This store often issues receipts that are non-descriptive, lack a tax ID number, and are not in sequential order, violating Aruba’s BBO tax laws. When I raised this issue with a cashier, I was offered a handwritten receipt with a blue stamp as an alternative, which is again not in compliance with the BBO tax laws. For a business of this size operating with such practices is concerning. I also checked Tin Wei Supermarket, which is close to my house, and found their receipts to be non-compliant. Next time you buy from a retailer, look at the receipt to see if your retailer complies with the laws.  Could this modus operandi also be used purposely to avoid partying BBO and other taxes? If non-compliance with tax laws is widespread among these retailers, it begs the question: Why isn’t the tax department doing more to enforce the rules? Surely officials are aware of this practice, as many people – tax civil servants included –  shop at these stores. It may be time for the tax department to take a closer look at these businesses and ensure they are following the law. Wonder if this is on the radar screen of our tax department.

ArubaBank’s Outage: Apologies Are Not Enough

Consumer protection issues in Aruba aren’t limited to retailers. Recently, ArubaBank experienced a system-wide failure that affected thousands of customers and businesses. This was not the first time. Payrolls were delayed, and online banking was inaccessible from Friday morning until Saturday night. While the bank issued an apology, many customers are asking: Is an apology enough? What were people supposed to do when they couldn’t receive or make payments?

When a system failure affects so many people’s financial lives, banks should offer more than just a “sorry.” ArubaBank should look into compensating customers for any financial losses, delays, or inconvenience caused by the outage. The humorous memes circulating during the downtime may have been entertaining, but they don’t solve the real issue. Consumers deserve accountability and, in some cases, financial compensation for the disruptions. After all, Aruba Bank says it “understands” – but actions speak louder than slogans.

The AFTA’s Role: Learning to Crawl Before Walking

Aruba’s Fair Trade Authority (AFTA) plays a role in protecting consumer rights and ensuring fair competition, but so far, the agency has not been very proactive. Too often, the burden of filing complaints falls squarely on consumers, who may not have the time or resources to push back against infringers. While it’s understandable that AFTA is still developing as a competition watchdog, it’s high time they step up their game. Perhaps AFTA is still in its infancy, learning to crawl before it can walk. But to become a mature and effective authority, they need to take on a more proactive role, investigating consumer complaints and addressing questionable business practices before they spiral out of control.

Conclusion: Time for Retailers and the Bank to Step Up

It’s time for retailers and ArubaBank to step up their game and do more to protect consumers. From unclear return policies to system failures, businesses must prioritize consumer rights and implement transparent, customer-friendly practices. If they fail to take action, it’s essential for regulatory authorities like AFTA and the tax department to intervene and enforce compliance. Only through stricter oversight can we ensure that consumers receive the fair treatment they are legally entitled to.

Without their intervention, businesses will continue to exploit customers, leaving them with little recourse.

As a consumer, remember you have rights. Don’t hesitate to push back if you encounter unfair practices. By collectively speaking out and demanding better, we can create a fairer marketplace for everyone. If you ever need guidance on these consumer laws, check in with #YourFavoriteLawyer. See you next week! And don’t forget to visit www.lincolngomez.com for more insights, blogs, and podcasts.