The closing of an establishment, whether temporary or permanent, is one of the most relevant sanctions that may be imposed by the administrative authority. Its legal basis is found in Article 70 of the Federal Law of Administrative Procedure, and its application responds to the need to ensure compliance with the rules governing the operation of various businesses and services.
First, it is important to point out that the purpose of the closure is to prevent the operation of an establishment when it fails to comply with the applicable legal provisions. This measure may be of a temporary nature, when its objective is to give the owner of the business time to correct irregularities detected during a verification visit. A common case occurs in low-impact establishments, such as grocery stores, which upon starting operations do not notify the corresponding authority; in such situations, the closure remains in force until the owner submits the notice of commencement of activities and pays, if applicable, the corresponding fines (Estrada, A.). This type of closure has a corrective nature and seeks to regularize the establishment.
On the other hand, permanent closure is imposed in more serious cases. This sanction is reserved for situations in which repeated infractions have been incurred or when serious violations of legal provisions are committed (Estrada, A.).
It is important to note that, before the closure -in any of its modalities- becomes effective, the Federal Administrative Procedure Law guarantees the right of the alleged violator to a hearing. According to Article 72, the authority must notify the initiation of the procedure and grant a term of 15 days for the interested party to defend itself and present evidence.
Finally, according to Article 73 of the same law, the authority must evaluate several elements before imposing the closure: the damages caused or that could be caused, whether the conduct was intentional or not, the seriousness of the infraction and whether there is recidivism. This assessment allows the sanction to be proportional and in accordance with the circumstances of the case.
In conclusion, administrative closure is a legal tool that seeks to preserve order and legality in the operation of establishments.
List of References
Federal Law of Administrative Procedure. Last amended on May 18, 2018. https://www.diputados.gob.mx/LeyesBiblio/pdf/112_180518.pdf
Estrada Carbajar, A. 81 Questions and Answers on Suspension and Closure of Commercial Establishments in Mexico City.
