Panama will implement a landmark consumer protection law mandating all-inclusive pricing starting June 20, 2026. Known as Law 473, the legislation requires all advertised prices to be the final amount a customer pays, including all taxes and mandatory fees. The Government of Panama enacted the law in June 2025 and published its regulatory framework, Executive Decree No. 2, in January 2026.
This new rule fundamentally changes how prices are displayed for goods and services nationwide. Businesses must now present a single, comprehensive figure that reflects the complete cost at the point of advertisement. The law aims to eliminate checkout surprises by integrating the 7% Transfer Tax on Goods and Services, commonly called ITBMS, and any other compulsory charges directly into the listed price.
New Pricing Rules Mandate Full Transparency
Officials from the Panamanian Authority for Consumer Protection and Defense of Competition (ACODECO) will enforce the regulation. They confirm the law applies universally to physical products, digital goods, and all service offerings. Every price tag, menu, website listing, and advertisement must show the total sale price clearly and visibly.
“The era of hidden charges is over in Panama. This law empowers consumers with honest information before they make a purchasing decision,” said ACODECO Director, Carlos Pérez. [Translated from Spanish]
Enforcement carries the weight of significant penalties for non-compliance. Businesses found listing pre-tax prices separately after the deadline face administrative fines and other sanctions. The regulatory executive decree provides a detailed framework for these penalties to ensure consistent application across all commercial sectors.
Consumer and Business Adaptation Required
For Panamanian shoppers, the change promises a more straightforward shopping experience. The confusion of calculating the sales tax mentally at the register will disappear. Consumers will see the exact amount they need to pay from the first moment they look at a price.
The burden of adaptation falls squarely on businesses and service provider networks. Companies have a roughly 17-month transition period to overhaul their pricing systems. They must update physical labels, digital storefronts, and all marketing materials to reflect the inclusive sale price.
“This is a significant operational shift, but it fosters fair competition and builds trust. Businesses that are transparent will earn customer loyalty,” noted Economy Minister, José Luna. [Translated from Spanish]
Industry groups are already preparing guidance for members. The law aligns Panama with consumer protection standards in many other countries where all-inclusive pricing is the norm. Its passage reflects a broader global trend toward commercial transparency.
With the effective date now set, the countdown for implementation has officially begun. Panama’s marketplace will look very different in mid-2026, promising greater transparency less confusion for everyone at the cash register.