ALTERATION OF PRICES IN PUBLIC TENDERS AND AUCTIONS

Article 262 of the Penal Code punishes certain behaviors related to the alteration of public tenders and auctions, with the aim of protecting the proper formation of prices. Specifically, it penalizes persons who engage in any of the following behaviors:

1. Soliciting payments or promises not to participate in a public tender or auction.
2. Attempting to drive bidders away from a public tender or auction, using threats, payments, promises or any other deception.
3. To agree to alter the price of the auction in a public contest or auction.
4. Fraudulently failing or abandoning an auction after having obtained the award.

The behaviors described above carry a prison sentence of 1 to 3 years and a fine of 12 to 24 months, as well as the penalty of special disqualification from bidding in judicial auctions for a period of between 3 and 5 years.