How will the new Consumer Protection Act affect entrepreneurs?

The new Consumer Protection Act brings entrepreneurs new obligations and rules designed to bring domestic regulations into line with European legislation. Entrepreneurs, especially those who sell goods or services online, will have to update their business processes. The Act requires clear labelling of whether products are sold by traders or by private sellers, and it introduces stricter rules on the display and truthfulness of consumer reviews and ratings. In addition, entrepreneurs must now provide more detailed information about the mechanisms that determine the ranking of products in search results and their relative importance. The new Act also prohibits false marketing practices, such as unjustified comparisons of products with those sold in other EU Member States, and introduces new rules on price marking and price manipulation. Entrepreneurs are also advised to prepare for the extension of the period within which consumers can return goods, which changes from 14 to 30 days for certain types of transactions and may affect logistics and financial planning.

The new Consumer Protection Act has been approved and will become the key piece of legislation in this area, replacing several current acts. The Act modernises consumer legislation and aligns it in detail with European legislation.

The most significant changes include the unification of terminology in line with the EU, updated information requirements for distance and off-premises contracts as a result of digitalisation, and new information obligations for operators of online marketplaces, who must now clearly state whether an offer comes from a trader or a non-trader.

In response to market changes and updates to European legislation, the amendment to the Civil Code introduces definitions of digital content, digital services and products with digital elements. The new Act will thus also replace the act on consumer protection in the sale of goods and the provision of services at a distance or off business premises, as well as the act on the prohibition of unjustified geographical discrimination against customers in the internal market.

A new Consumer Protection Act has been approved which, in connection with unfair commercial practices on online marketplaces, introduces requirements to inform consumers whether and how the trader ensures the authenticity of consumer reviews of products, as well as about the main parameters that determine the ranking of products in search results on an online interface and their relative importance.

• Marketing that promotes goods as identical to goods in another Member State when they are not is prohibited, in response to the problem of the dual quality of goods.
• Compared with the previous legislation, the new Consumer Protection Act does not substantially change the obligations relating to the price marking of goods, but it introduces new rules on price reductions to prevent price manipulation in the form of misleading consumers about the size of the actual discount. This is an unfair commercial practice that has been identified in the practices of several major traders in the EU, especially during special sales events (e.g. Black Friday).

From 1 July 2024, the period for consumers to withdraw from a contract is extended

The new Consumer Protection Act extends the period within which consumers can withdraw from a contract without giving a reason from the current 14 days to 30 days, if the contract was concluded during an unsolicited visit by the trader to the consumer’s home or at an organised event for the sale and presentation of products.