Panama’s Single Price Law for 2027 Aims to Ensure Consumers are Clearly Informed of the Final Price of Products
“Single Price Law” (officially passed as Bill 185, reforming Law 45 of 2007 on consumer protection) requires all businesses to display the final, total cash price of goods and services. Advertised prices must include all applicable taxes and mandatory fees, ensuring the price you see is exactly what you pay.
Key Features of the Law
- All-Inclusive Pricing: Total prices must include the 7% ITBMS (Panama’s value-added tax) and any other required surcharges, preventing hidden fees at checkout.
- Tip Regulations: Establishments are prohibited from automatically adding a tip (gratuity) to the advertised price. Tips can only be suggested on the bill if the total amount payable (including taxes) and the voluntary tip are clearly separated.
- True Promotions: The legislation strictly prohibits deceptive marketing, such as raising prices right before a “sale” to make a discount look artificially large.
- Enforced Transparency: Sellers cannot charge a higher price than what is marked on the product or advertised on shelves.
Who and What It Affects
- Applies to: All retail stores, restaurants, service providers, and digital sales channels operating within Panama.
- Exclusions: Pre-booked services (such as certain tourism or hospitality bookings) are exempt from strict upfront final pricing rules due to the varying nature of the packages.
The National Government announced a postponement, extending the implementation of this regulation—which aims to enhance transparency regarding prices offered to consumers—until July 1, 2027. The decision was made just one day before the law was set to take effect nationwide. According to authorities, the goal is to allow businesses to make the necessary technological and operational adjustments to comply with the new requirements.
Changes that establishments must implement include adjustments to billing systems, inventory management, product labeling, and technology platforms. The Single Price Law aims to ensure consumers are clearly and directly informed of the final price of products, thereby facilitating price comparisons and increasing transparency in purchasing. New effective date: July 1, 2027.
The Single Price Law Will Not Come Into Effect This Year 2026
