What can be expected from the planned overhaul of the Consumer Protection Act?

The changes include among others: 

• The introduction of a hierarchy of warranty claims for material defects, which means that when material defects are identified, consumers will first have to request that the goods be brought into conformity free of charge by repair or replacement within 30 days of the notification. Only at the second step could the consumer request a reduction in the purchase price or withdraw from the contract and request a refund. 
• The consumer would have the option of withholding part of the payment until the seller had delivered goods in proper working condition. The consumer would exercise this option by addressing a statement to the seller that he exercises this right.
• The right of rejection, which means that, despite the newly introduced order to be followed by the consumer, the consumer would be able to withdraw from the contract immediately, but only if the non-conformity of the goods had already occurred within thirty days of delivery. 
• Extension of the reversal of the burden of proof from six months to one year, which means that the defect will be deemed to have already existed at the time of handover if it occurs within one year and the consumer will not be required to prove it (the seller or the manufacturer will have to prove otherwise). 
• New elements of contracts for the supply of digital content and services will be enacted, particularly as regards warranties and the obligation for companies to provide the necessary updates. In addition, the same rules will apply to individuals who pay for digital content and services with personal data instead of money – with access to personal data, for example in exchange for the company using the consumer’s photographs for marketing purposes. 
• A new obligation for online marketplaces to give consumers clear information about whether they are entering into a contract with a business or a consumer, which will help them choose the right legal protection. 
• Clear information to consumers on price adjustments based on automated decision-making, which means that the consumer will be informed whether prices have been adjusted according to the consumer’s profile. In fact, prices can be adapted to specific consumers or specific categories of consumers on the basis of automated decision-making and consumer behaviour profiling, which allows for an assessment of consumers’ purchasing power. 
• Certain prohibitions will also be introduced, such as: i) a ban on disguised advertising, which means that the provider will have to disclose if the provider’s higher ranking is due to payment; ii) a ban on fake consumer reviews and recommendations; iii) a ban on dual quality of goods on the market, which means that it will no longer be possible to market products as identical if they differ in quality. 
• Clear labelling in the case of price reductions, or an indication of the previous price in each announcement. 
• The possibility to pursue individual legal remedies in the event of unfair commercial practices. 
• Extension of the withdrawal period from 14 days to 30 days in case of unsolicited home visits or promotional trips.
• Introduction of new means of communication with consumers (chosen by the provider) and termination of the obligation to provide a fax number. The means of communication must allow for communication on a durable medium and enable the consumer to contact the business quickly and communicate effectively with it. 

The amendment of the law will therefore bring about a number of substantial changes and, in particular, additional obligations for customer-facing businesses. 

Author: Tina Marciuš Ravnikar, Senior Associate