President Miloš Zeman has signed the amendment to the Consumer Protection Act and the Civil Code. This means that this year’s Christmas will bring their entry into force alongside family well-being and gifts. For owners of the FastCentrik e-shop solution, we have prepared an expert overview of the most important changes in this legal area, so that entrepreneurs and consumers alike can familiarize themselves with their new rights and, in particular, their obligations.
Consumer Protection 2023: How to handle reviews
Nowadays, an increasing number of potential customers look for reviews of a seller before ordering a service or purchasing a product; therefore, the legislator has decided to tighten the rules for posting these reviews. Sellers will now be required to inform consumers about whether and how the seller ensures that a published review originates directly from a consumer who actually used or purchased the product or service. This information obligation applies to all reviews on the seller’s web interface.
If a seller decides they want to verify reviews, they must, for example, state in their terms and conditions not only that the reviews are verified, but also specify the verification method—for instance, that they only allow reviews to be posted after logging into a user account or after providing an order number. This also applies if the seller chooses not to verify reviews; in that case, they must clearly and comprehensibly state that the reviews provided are not verified.
If this rule is not reflected, the seller faces a fine of up to CZK 5 million. Furthermore, the consumer will be able to withdraw from the contract within 90 days of its conclusion or request a discount due to a violation of the ban on unfair commercial practices.
The aim of the new regulation is to prevent the publication of misleading reviews that could influence consumers.
Consumer Protection 2023: How to handle discounts
Furthermore, there is a regulation preventing fake discounts that misled consumers. In the past, sellers often calculated discounts from the selling price of the goods at the time of their market launch or invented discounts altogether. This is now over; the seller-entrepreneur will have to provide information on the lowest price of the product at which they offered and sold it for their discounted goods:
- a) during the period of 30 days prior to the provision of the discount,
- b) from the moment they began offering and selling the product until the moment the discount was provided, if the product has been on sale for less than 30 days, or
- c) during the period of 30 days prior to the first provision of the discount, if the seller is increasing the price discount gradually.
This will not apply, for example, to perishable products or products with a short shelf life (typically meat products, flowers, etc.), or to combined or tied conditional offers (2+1 free).
For failure to comply with these rules, the seller again faces a fine of up to CZK 5 million.
Consumer Protection 2023: How to handle order buttons
Until now, when a buyer-consumer ordered goods on an e-shop, they most often clicked on a button labeled “submit order.” Now, however, sellers will have to change this on their online stores. The law stipulates that buttons must be marked with an easily legible inscription “Order with obligation to pay”, or another corresponding unambiguous formulation. The seller must thus clearly mark the step by which the consumer commits to payment.
For insufficient labeling of the button, the supervisory authority may impose a fine of up to CZK 5 million.
Consumer Protection 2023: How to handle complaints
A consumer may claim a defect that manifests itself within two years of receipt. Thus, the consumer claims a defect that was already present in the item at the time of receipt but only manifested itself later.
The law now stipulates that if a defect manifests itself within one year of receipt, it is presumed that the item was already defective upon receipt. In practice, this means that if a consumer claims a defect within one year of receipt, they will be at an advantage, as the seller, as a professional, will have to prove that the item was not defective upon receipt if they wish to reject the claim.
Whereas in cases where the defect manifests itself only after one year from receipt, it will be the consumer who, in the event of a dispute, will have to prove using expert opinions that the defect was already present in the item upon receipt.
The methods for handling complaints are also changing. Primarily, the consumer may request, at their choice, either repair of the item or delivery of a new item without defects, unless one of the chosen methods of rectifying the defect is impossible or disproportionately expensive.
They will be entitled to a reasonable discount or withdrawal from the contract and a subsequent refund only if:
- the seller refuses to rectify the defect or fails to rectify it,
- the defect manifests itself repeatedly,
- the defect constitutes a material breach of contract,
- it is evident from your statement or the circumstances that the defect will not be rectified within a reasonable time or without significant inconvenience to the buyer.
It is also important for the seller that the complaint, including the rectification of the defect, must be settled and the consumer must be informed of this no later than within 30 days from the date the complaint was filed, unless the seller agrees on a longer period with the consumer.
In the event of a breach of obligations by the seller, the consumer may withdraw from the contract or request a reasonable discount.
Therefore, we recommend that all entrepreneurs update their terms and conditions and complaint procedures, and align their processes accordingly to avoid potential fines and other adverse consequences.
If you want to be certain that your documents are compliant with the new law, you can contact our law firm, and we will be happy to assist you with the changes.
