DACO: From consumer guardian to political theater?
The Department of Consumer Affairs (DACO, in Spanish), created by Act 5 on April 23, 1973, to shield Puerto Rico consumers from deceptive practices, price gouging and unfair commerce through education, complaints and fines of up to $10,000 — succeeding wartime regulators such as the Office of Price Administration in the 1940s — now veers into political theater.
While the agency may intend to combat consumer abuse, its public relations problem stems from recent spectacles that expose leadership agendas over core priorities — raw evidence such as videos and raids speaks louder than stated intentions. DACO must revert to quiet consumer protection, not media frenzies that mistake announcements for effectiveness.
On Dec. 4, 2025, Gov. Jenniffer González fired Secretary Valerie Rodríguez-Erazo for “gossip and discord,” appointing Hiram Torres-Montalvo, a La Fortaleza aide.
Rodríguez-Erazo retaliated via videos, boasting that raids created “panic compliance” amid “shots from within,” signaling New Progressive Party optics over policy. Torres-Montalvo then launched Operation “Ojo al Precio” on Dec. 8, monitoring online platforms like Facebook Marketplace for clear pricing under Regulation 9158, Rule 18 — yet another visible enforcement push craving public approval.
Publicly telegraphing crackdowns defies logic: if DACO aims to catch wrongdoers in the act, why announce campaigns beforehand? This strengthens the case that leadership seeks public opinion, not genuine enforcement.
Days earlier, on Dec. 1, Puerto Rico Supreme Court Case CT-2025-0003 vindicated DACO against LUMA Energy, voiding the utility’s liability shield for outage-damaged appliances. The ruling rejected 1,828 dismissed claims, mandating fixes for mismanagement costs like pensions and fuel charges passed to ratepayers. DACO’s ideal role: wielding authority against systemic hikes harming both consumers and businesses, not sheriff-badge crackdowns on retail. Silent operations yield results like this victory; media fanfare on turkey scales serves no investigative purpose.
Rodríguez-Erazo’s spectacles — teams of inspectors filmed weighing turkeys, checking expired food, parking and ads — yielded modest fines despite shortages, with Rodríguez-Erazo admitting staff constraints, yet prioritizing videos over quiet probes, imposing significant compliance costs on small retailers.
Torres-Montalvo’s “Ojo al Precio” expands this scrutiny to digital sales, distorting supply-demand through interventionist overreach, as in Texaco v. Ocasio Rodríguez (749 F. Supp. 348, 1990), where courts struck down rigid gasoline margins ignoring competition. True effectiveness measures by outcomes — refunds secured, abuses curbed — not press conferences. Leadership silence drives performance; announcements tip off targets, undermining real protection.
Consider the absurdity: preannounced raids give violators time to comply temporarily, creating compliance theater rather than sustained reform. This public posturing translates into agency effectiveness only in political terms — gathering applause for “action” — while discouraging businesses from investing amid uncertainty.
Consumers gain nothing from videos of inspectors with scales; they benefit from lower bills when DACO quietly dismantles LUMA-style gouging. Leadership catapults itself politically by wielding DACO as a badge, but this obvious self-promotion has zero to do with protecting shoppers — it’s career-building at market stability’s expense.
Agencies must work silently — praising initiatives or probing quietly — without equating consumer protection with fear-based tactics aimed at businesses for political points. Effective regulators operate invisibly until results appear: fines collected, disputes resolved, markets stabilized. DACO’s frenzy broadcasts intentions, alerting wrongdoers while businesses brace for spectacle over substance.
This deters innovation. Publicized crackdowns hike compliance costs, stifling investment in Puerto Rico’s economy and sending wrong signals that regulators prioritize clout over collaboration. Small retailers face raids over parking fees while LUMA passes on fuel mismanagement costs to every household — priorities inverted.
Emulate LUMA targeting, not retail theater that discourages growth. Pivot from sheriff announcements to silent guardianship: hotlines for tips, competition reports exposing distortions and swift court wins like CT-2025-0003.
Torres-Montalvo’s hire sparked Popular Democratic Party cronyism cries; Rodríguez-Erazo’s defiance amplified egos.
Politics pervades, but evidence — firings, videos, raids — reveals priorities without interpretation. Don’t use DACO to catapult politically; judge by results that protect consumers and businesses from real threats, like unchecked utility hikes.
Puerto Rico demands market peace through quiet, effective stewardship — not leadership spotlights.
Antonio Santos is a hospitality, service and tourism professional with more than 30 years of industry experience. In 2024, he ran for the Puerto Rico House of Representatives, representing District 1 in San Juan under the conservative Proyecto Dignidad party. His work focuses on entrepreneurship and economic development, with an emphasis on small government and economic independence in Puerto Rico.
