#CostaRica 🇨🇷 #APriori_Article: Your Data, the New Currency
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The exchange of goods, commonly known as "bartering," brings to mind the saying by Parag Gupta: "One person's trash is another person's treasure." Indeed, we often have items at home that we no longer use or value, yet others may be desperately seeking them.
Recently, I was invited to join a WhatsApp group created by community leaders, administrators, and neighbors from various communities and condominiums. The group's purpose is to promote bartering and swapping among neighbors and acquaintances. This invitation reminded me of this practice, which I had not considered for quite some time.
Bartering, as a system for acquiring goods and services, dates back to the Neolithic era and played a crucial role in the development of markets, boosting communities and activities. It was particularly prevalent in times when currency was scarce or economic conditions were unfavorable. Although it fell out of common use for various reasons, a combination of factors has led to its recent resurgence. Today, swapping or bartering has regained traction, aided by technology, specialized websites, and mobile applications.
Why the Resurgence of Bartering?
Never before in human history have we had such access to goods, services, and purchasing opportunities. However, inflation, rising living costs, sustainability concerns, and a shift in consumer behavior provide key insights into why younger, tech-savvy generations are embracing bartering to procure goods and services through social media, online platforms, and apps dedicated to cashless bartering.
Advantages of Bartering
- Cost Savings – Transactions do not necessarily involve money.
- Community Building – Encourages social interaction, negotiation, and engagement with others.
- Promotion of sustainable practices by reusing goods.
- No Restrictions on Items – Anything that can be sold can also be bartered.
Disadvantages of Bartering
- Difficulty in Matching Needs – Supply and demand may not always align; for instance, one may seek a specific brand of shoes in a certain size but fail to find the right size or an interested party with the right trade.
- Unequal Commercial Value – While valuing new items is straightforward, determining fair exchange value for used goods can be more challenging.
- Limited Reach and Scale – As discussed above, exchanges depend on availability, interest, and feasibility.
- Potential for Disputes and Misunderstandings – Bartering requires negotiation skills and mutual agreement, which can be challenging to resolve in written form.
What Does Costa Rican Law Say?
Costa Rica has a 1965 Bartering Act applicable to business entities, along with a single provision in the Civil Code, which stipulates that bartering is governed by the same principles as sales. Under this provision, each party in a barter transaction is considered a seller.
It should be noted that while the law does not prohibit businesses or entrepreneurs from engaging in bartering, certain considerations must be taken into account. Seeking appropriate advice is also recommended for those interested in implementing this practice.
Although it is unrealistic to expect that all individuals and goods will be part of this system, it is reassuring to know that we can give a second life to items in our homes, contribute to a more sustainable economy, and—why not?—strengthen community ties, all within a framework of legality and mutual respect
Angie Portela
Legal Manager of APriori
