The New Act No. 108/2024 Coll. on Consumer Protection
1. New Obligations for Disclosing Discounts
Effective 1 July 2024, the new Act No. 108/2024 Coll. on Consumer Protection (the “Consumer Protection Act”) aims to restrain artificial price increases preceding sales events, such as Black Friday, designed to deceive consumers into believing they are receiving a discount when they are not.
Under the new legislation, traders must maintain records of prices for individual goods. Previously, traders could reduce prices from any value listed in the price register. Now, they must discount goods based on the lowest price assigned to the product in the past 30 days. However, perishable goods, such as fresh meat and vegetables, are exempt from this rule due to their rapid deterioration and potential health hazards.
2. New Information Obligations
The legislation introduces new requirements for traders, including:
- The address of the trader or the representative for exercising product liability rights, contract withdrawal, requesting compensation or lodging complaints.
- The trader’s email address.
- Information on the consumer’s right of withdrawal, including conditions, time limits, and procedures, along with a model withdrawal form.
- Information on the consumer’s obligation to bear the costs of returning goods after withdrawal.
- Information on the consumer’s obligation to reimburse the trader for services already provided.
- A statement if the consumer is not entitled to withdraw from the contract.
- The selling price of the product and the calculation method if it cannot be pre-determined.
- Terms of performance, payment, delivery, and the period within which the trader undertakes to deliver the product.
- Details on the trader’s statutory liability for defects in goods, digital content, or services, and the availability of consumer guarantees.
- Information on the consumer’s right to seek compensation, with a link to the relevant alternative dispute resolution body’s website.
3. Contracts with Digital Performance
A consumer contract with digital performance, defined in Section 852a et seq. of Act No. 40/1964 Coll., Civil Code, is an agreement where a trader provides a digital performance, and the consumer pays with money, digital value, or personal data.
Digital performance includes:
- Digital content: Data created and delivered in digital form, such as a film available on DVD or via streaming.
- Digital services: Services enabling consumers to create, process, store, access, or interact with digital data, like streaming services.
If a trader provides the digital performance free of charge, it does not constitute a contract with digital performance. Consideration may include personal data, reflecting the reality that many services appear free or low-cost but are paid for with personal data.
4. Consumer Reviews
New obligations require traders to ensure that product reviews come from consumers who have actually purchased or used the product if the trader allows for product reviews.
Implications for Retail:
- Modifications to General Terms & Conditions (GTC)
Traders must clearly inform consumers before sending an order. This information should be included in the GTC or order form and cover:
- The trader’s email address and address for exercising product liability rights or lodging complaints.
- Information on the consumer’s right of withdrawal, including conditions, time limits, and procedures, along with a model withdrawal form.
- Information on the consumer’s obligation to bear the costs of returning goods after withdrawal.
- Information on the consumer’s obligation to reimburse the trader for services provided.
- A statement if the consumer cannot withdraw from the contract.
- The selling price and calculation method if it cannot be pre-determined.
- Terms of performance, payment, delivery, and the period within which the trader undertakes to deliver the product.
- Details on the trader’s statutory liability for defects and consumer guarantees.
- Information on the consumer’s right to seek compensation with a link to the relevant alternative dispute resolution body’s website.
It is recommended to separate the GTC into parts for consumers and non-consumers to prevent the application of strict consumer conditions to businesses.
2. Modifications to the Complaints Policy
The complaints procedure, regulated by the Civil Code, mandates clear and comprehensible information for consumers about liability for defects in goods or services and the procedure for exercising these rights. Traders must handle complaints within 30 days and provide documentation only if rejecting the complaint, stating the reasons for rejection.
3. E-shops
The legislation introduces the term “online interface” and defines digital content, digital services, and things with digital elements. E-shops must audit their processes and documents to comply with new obligations, such as informing consumers about the functionality, compatibility, and interoperability of digital goods, and providing accurate assembly or installation instructions.
4. Proceedings at the Slovak Trade Inspection
The new legislation clarifies the competencies of state administration bodies in consumer protection, aiming to increase efficiency and avoid duplicate inspections.
5. Fines
Fines will be proportionate to the trader’s turnover, introducing a fairer penalty system. A second chance mechanism allows for the reduction or waiver of fines if traders voluntarily rectify infringements and compensate affected consumers.
These measures encourage traders to remedy issues quickly, minimizing consumer harm with minimal public authority intervention.
