Consumer rights in the Czech republic Ing. Lukas Gottwald Department of Business Management lukasgottwald@gmail.com Structure of the Lecture n Historical Context ¨ Pre Velvet,Post Velvet, Pre EU ¨ 8 basic consumer rights (UN, 1985) n Current situation ¨ Legislative Authorities and relevant legal acts ¨ Non-government institutions n Case study: Setting up an e-store in CR Historical context n Eastern Block / Pre Velvet Era (1948-1989) ¨ Majority of the conumer rights were covered by legislation ¨ In practice not always followed n The idea of centralized and concentrated production is not in sync with the right to choose n „price of eductaion“ example n weak measures taken after Czernobil explosion in Ukraine (1986) ¨ Czechoslovakia was a member of the United Nations (1945-1992) n Current UN document on Consumer rights http://www.un.org/esa/sustdev/publications/consumption_en.pdf n Built on the „Eight basic consumer rights“ adopted in 1985 Eight basic consumer rights (1985) n The right to safety ¨ To be protected against products, production processes and services which are hazardous to health or life. n The right to be informed ¨ To be given facts needed to make an informed choice, and to be protected against dishonest or misleading advertising and labelling. n The right to choose ¨ To be able to select from a range of products and services, offered at competitive prices with an assurance of satisfactory quality. Eight basic consumer rights (1985) n The right to be heard ¨ To have consumer interests represented in the making and execution of government policy, and in the development of products and services n The right to satisfaction of basic needs ¨ To have access to basic essential goods and services, adequate food, clothing, shelter, health care, education and sanitation. n The right to redress ¨ To receive a fair settlement of just claims, including compensation for misrepresentation, shoddy goods or unsatisfactory services. Eight basic consumer rights (1985) n The right to consumer education ¨ To acquire knowledge and skills needed to make informed, confident choices about goods and services while being aware of basic consumer rights and responsibilities and how to act on them. n The right to a healthy environment ¨ To live and work in an environment which is non-threatening to the well-being of present and future generations. Historical Context n Velvet Revolution Era 1989-1993 ¨ Czechoslovak government started reforming and reconstructing the communist legislature n Was not always smooth n „Shady Entrepreneurs“ took advantage of ¨ Consumers keen for western goods ¨ Slow Courts ¨ Success in 1992, a complete Act on Consumer rights has been validated by the Parliament n Still the base of consumer protective laws in CR nowadays n Act No. 634/1992 Coll. Historical Context n Pre EU Era (1993 – 2004) ¨ In 1993 the accession process of CR to EU started ¨ Compatibility both on the legislative level and on the institutional level had to be established ¨ Improvements needed especially in these areas of consumer rights: n Right to be heard ¨ Facilited by developement of non-government sector in CR n Right to be informed n Right to be educated Current Situation n In 2004 CR joined EU ¨ Compatible consumer rights legislature ¨ Since 2005 Eurepean Consumer’s Centre operates in Czech republic n http://www.coi.cz/cs/esc-2/ ¨ Well Established Legislative Authorities Legislative Authorities n Ministry of Industry and trade is responsible for most of the legislative work in the consumer rights area n Formulates consumer rights policies n Establishes special organizations, (supervisory etc.) n http://www.mpo.cz/default_en.html n http://www.mpo.cz/en/consumer-protection/ ¨ Ministry of Industry and trade often cooperates with Ministry of Agriculture and Ministry of Health on consumer rights issues, on complex projects the whole Government may be involved Supervisory authorities n Non-agriculture goods ¨ Czech trade inspectorate n http://www.coi.cz/en/ n state administrative office subordinated to the Ministry of Industry and Trade n Established by the Act No. 64/1986 Coll. ¨ State Institute for Drug Control n http://www.sukl.cz/ n Agriculture goods and food ¨ Czech Agriculture and Food Inspection Authority n http://www.szpi.gov.cz/en/ ¨ State Veterinary Administration Office n http://www.svscr.cz/?lng=en&cat=0 Consumer rights NGOs in CZ n www.spotrebitel.cz ¨ Since 1997, a non-profit operates information portal and a free advisory service, recently completely translated to English n Consumers Defence Association ¨ Since 1998 very active consumer rights organization n In czech http://www.spotrebitele.info/ n In 9 other languages http://www.consumers.cz/ n www.dtest.cz ¨ Unbiased product testing since 1992 Main Consumer Rights Legal Acts n The Consumer rights Act n Act No. 634/1992 Coll. n http://business.center.cz/business/pravo/zakony/spotrebitel/ n Especially important Part II. ¨ § 3 - § 20 § § 3 Honesty of trade § § 4 Mischievous business practicies § § 5 Misleading trade practicies § § 6 Agresive business practicies Main Consumer Rights Legal Acts n The Civic Code n Act No. 40/1964 Coll. n http://business.center.cz/business/pravo/zakony/obcanzak/ n § 1 – 122 General regulations (i.e. Human rights, also applicable in a consumer rights claim…) n § 850 – 852 on public offering n To get a layer n Czech Bar Association n http://www.cak.cz/pages/index_en.html EU Initiatives in Consumer rights n Aim to guarantee the same consumer rights all across EU ¨ Network of Consumer Advisory Centers in all 27 countries n http://ec.europa.eu/consumers/redress_cons/index_en.htm ¨ What they do n Next slide European Consumer Centres What they do: n inform consumers about the opportunities offered by the Internal Market. n advise individuals facing a consumer-related problem and support them in pursuing cross-border complaints. n advise on out-of-court-settlement procedures for consumers throughout Europe. n provide consumers with easy and informed access to such procedures across borders. n co-operate with each other and with other European networks n provide information on EU and national legislation and case law n conduct cross border comparisons of such things as prices, legislation and other issues n provide the European Commission with important ‘grassroots’ information on consumer concerns Case study: Setting up an e-store in CR n Research Target Market ¨ Among others research regulations on the target market, research consumer rights n What Guarantee will we have to offer ¨ Legally ¨ To get a competitive advantage n What are the Institutions and Associations ¨ Merchant Associations… § In our case: http://www.apek.cz/ § Association for E-Commerce, offers advice and certification for e-merchants Case study: Setting up an e-store in CR n Legal Minimum ¨ 2 years warranty ¨ 14 days return grace period n Expected: ¨ E-store certification (i.e. from www.apek.cz) n Added value: ¨ Priority shipping, 3 years warranty… ? Thank you n References ¨ Textbook Business Mangement in Czech republic ¨ Online Resources n http://www.choice.com.au/viewArticle.aspx?id=100736&catId=100528&tid=100008&p=1&title=The+eight+bas ic+consumer+rights n http://www.tiscali.cz/mone/mone_center_060709.930304.html n http://business.center.cz/business/pravo/zakony/obcanzak/ n http://business.center.cz/business/pravo/zakony/spotrebitel/ n http://ec.europa.eu/consumers/redress_cons/index_en.htm ¨ Download n From 19.3: http://www.doubleflava.com/18-3.htm n From 20.3. MUNI Document server