Consumer rights in the Czech republic Ing. Lukas Gottwald Department of Business Management lukasgottwald@gmail.com Business Management in the Czech Republic Structure of the Lecture nHistorical Context ¨Pre Velvet,Post Velvet, Pre EU ¨8 basic consumer rights (UN, 1985) nCurrent situation ¨Legislative Authorities and relevant legal acts ¨Non-government institutions nCase study: Setting up an e-store in CR Historical context nEastern Block / Pre Velvet Era (1948-1989) ¨Majority of the conumer rights were covered by legislation ¨In practice not always followed nThe idea of centralized and concentrated production is not in sync with the right to choose n„price of eductaion“ example nweak measures taken after Czernobil explosion in Ukraine (1986) ¨Czechoslovakia was a member of the United Nations (1945-1992) nCurrent UN document on Consumer rights http://www.un.org/esa/sustdev/publications/consumption_en.pdf nBuilt on the „Eight basic consumer rights“ adopted in 1985 Eight basic consumer rights (1985) nThe right to safety ¨To be protected against products, production processes and services which are hazardous to health or life. nThe 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. nThe 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) nThe 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 nThe right to satisfaction of basic needs ¨To have access to basic essential goods and services, adequate food, clothing, shelter, health care, education and sanitation. nThe 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) nThe 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. nThe 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 nVelvet Revolution Era 1989-1993 ¨Czechoslovak government started reforming and reconstructing the communist legislature nWas 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 nStill the base of consumer protective laws in CR nowadays nAct No. 634/1992 Coll. Historical Context nPre 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: nRight to be heard ¨Facilited by developement of non-government sector in CR nRight to be informed nRight to be educated Current Situation nIn 2004 CR joined EU ¨Compatible consumer rights legislature ¨Since 2005 Eurepean Consumer’s Centre operates in Czech republic nhttp://www.coi.cz/cs/esc-2/ ¨Well Established Legislative Authorities ¨ Legislative Authorities nMinistry of Industry and trade is responsible for most of the legislative work in the consumer rights area nFormulates consumer rights policies nEstablishes special organizations, (supervisory etc.) nhttp://www.mpo.cz/default_en.html nhttp://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 nNon-agriculture goods ¨Czech trade inspectorate nhttp://www.coi.cz/en/ nstate administrative office subordinated to the Ministry of Industry and Trade nEstablished by the Act No. 64/1986 Coll. ¨State Institute for Drug Control nhttp://www.sukl.cz/ nAgriculture goods and food ¨Czech Agriculture and Food Inspection Authority nhttp://www.szpi.gov.cz/en/ ¨State Veterinary Administration Office nhttp://www.svscr.cz/?lng=en&cat=0 ¨ Consumer rights NGOs in CZ nwww.spotrebitel.cz ¨Since 1997, a non-profit operates information portal and a free advisory service, recently completely translated to English nConsumers Defence Association ¨Since 1998 very active consumer rights organization nIn czech http://www.spotrebitele.info/ nIn 9 other languages http://www.consumers.cz/ nwww.dtest.cz ¨Unbiased product testing since 1992 n ¨ Main Consumer Rights Legal Acts nThe Consumer rights Act nAct No. 634/1992 Coll. nhttp://business.center.cz/business/pravo/zakony/spotrebitel/ nEspecially 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 nThe Civic Code nAct No. 40/1964 Coll. nhttp://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 nTo get a layer nCzech Bar Association nhttp://www.cak.cz/pages/index_en.html EU Initiatives in Consumer rights nAim to guarantee the same consumer rights all across EU ¨Network of Consumer Advisory Centers in all 27 countries nhttp://ec.europa.eu/consumers/redress_cons/index_en.htm ¨What they do nNext slide n ¨ European Consumer Centres nWhat they do: ninform consumers about the opportunities offered by the Internal Market. nadvise individuals facing a consumer-related problem and support them in pursuing cross-border complaints. nadvise on out-of-court-settlement procedures for consumers throughout Europe. nprovide consumers with easy and informed access to such procedures across borders. nco-operate with each other and with other European networks nprovide information on EU and national legislation and case law nconduct cross border comparisons of such things as prices, legislation and other issues nprovide the European Commission with important ‘grassroots’ information on consumer concerns Case study: Setting up an e-store in CR nResearch Target Market ¨Among others research regulations on the target market, research consumer rights nWhat Guarantee will we have to offer ¨Legally ¨To get a competitive advantage nWhat 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 nLegal Minimum ¨2 years warranty ¨14 days return grace period nExpected: ¨E-store certification (i.e. from www.apek.cz) nAdded value: ¨Priority shipping, 3 years warranty… ? ¨ Thank you nReferences ¨Textbook Business Mangement in Czech republic ¨Online Resources nhttp://www.choice.com.au/viewArticle.aspx?id=100736&catId=100528&tid=100008&p=1&title=The+eight+ba sic+consumer+rights nhttp://www.tiscali.cz/mone/mone_center_060709.930304.html nhttp://business.center.cz/business/pravo/zakony/obcanzak/ nhttp://business.center.cz/business/pravo/zakony/spotrebitel/ nhttp://ec.europa.eu/consumers/redress_cons/index_en.htm n ¨Download nMUNI Document server ¨