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Significant Amendments to Consumer Protection, Retail Trade, and Product Safety Legislation

COMMERCE LAW
30 May 2024
Post görseli

Significant Amendments to Consumer Protection, Retail Trade, and Product Safety Legislation

1. Overview

The Law Amending the Turkish Commercial Code and Certain Laws No. 7511 (the “Law No. 7511”), published in the Official Gazette dated May 29, 2024, and numbered 32560, introduced substantial amendments to the Law on the Protection of Consumers No. 6502, the Law on the Regulation of Retail Trade No. 6585, and the Product Safety and Technical Regulations Law No. 7223. These amendments introduce notable innovations, particularly in the areas of consumer rights, retail trade practices, and product safety. The new regulations are expected to significantly impact both businesses and consumers.

2. Amendments to the Law on the Protection of Consumers No. 6502

  • 2.1. Advertising Board’s Authority to Issue Access Blocking Decisions
  • Pursuant to the decision of the Constitutional Court dated September 13, 2023 (E.2022/70, K.2023/152) (“Constitutional Court Decision”), which takes effect on July 27, 2024, the fifth, sixth, seventh, eighth, and ninth sentences of Article 77, Paragraph 12 of the Law on the Protection of Consumers were annulled. These provisions granted the Advertising Board the authority to issue access blocking orders against unfair commercial advertisements disseminated online.

    The Constitutional Court found such provisions unconstitutional, citing concerns that they infringed on freedom of expression, the right to work, and the freedom to establish private enterprises. It emphasized the need for less intrusive measures that comply with the principle of proportionality before applying severe measures like access blocking.

    Under the new amendment, Article 18 of Law No. 7511 grants the Advertising Board authority to impose sanctions, including removal of content, access blocking, or administrative fines for unfair commercial advertisements. Access blocking decisions will now be limited to content that remains online despite notifications requiring removal within 24 hours. This regulation aims to strengthen monitoring mechanisms against unfair commercial practices in digital environments.

  • 2.2. Sanction Provisions
  • The amendments increase administrative fines for various violations under the Law on the Protection of Consumers. These include:

    • Administrative fines of TRY 2.200 for failing to fulfill provisions in consumer contracts, providing misleading information, or violating the right of withdrawal.
    • The same fine applies to those offering unsolicited goods or services to consumers.

    Violations concerning the adequacy of post-sale services may result in administrative fines of up to TRY 1.115.000. These adjustments aim to enhance consumer rights protection while encouraging more transparent and compliant commercial practices.

  • 2.3. Timeshare Arrangements
  • Individuals who do not hold property rights over the assets subject to timeshare may now offer timeshare rights. This amendment seeks to improve transparency in the timeshare sector.

3. Amendments to the Law on the Regulation of Retail Trade No. 6585

The amendments to the Law on the Regulation of Retail Trade introduce stricter penalties for activities disrupting competition, including excessive price increases and creating market scarcity. Key provisions include:

  • Administrative fines ranging from TRY 100.000 to TRY 1.000.000 for excessive price increases.
  • Fines between TRY 1.000.000 and TRY 12.000.000 for activities hindering consumer access to goods by disrupting market balance.

Additionally, the Ministry now has the authority to impose operational suspension penalties for up to six days on businesses subjected to at least three fines. This measure aims to promote healthier retail trade practices and safeguard free competition.

For large-scale enterprises, cumulative penalty amounts within a calendar year will be capped as follows:

  • TRY 20.000.000 for small-scale enterprises.
  • TRY 200.000.000 for medium-scale enterprises.
  • TRY 1.000.000.000 for large-scale enterprises.

4. Amendments to the Product Safety and Technical Regulations Law No. 7223

The new regulations impose stricter controls on products exported to non-European Union countries. Key provisions include:

  • Administrative fines ranging from TRY 240.566 to TRY 2.405.665 for safety violations.
  • Fines between TRY 96.226 and TRY 962.265 for other non-compliance instances, including mislabeling, falsification, and misleading certifications.

These amendments aim to strengthen product safety measures and prevent the circulation of hazardous products, thereby safeguarding consumer health.

5. Conclusion

The new amendments bring significant changes to Turkey’s consumer protection, retail trade, and product safety legislation. Businesses must take proactive steps to align their operations with these regulations. These measures aim to provide stronger consumer protection and foster fair trade practices. Companies are urged to carefully review the new requirements and expedite compliance processes to continue their activities in adherence to these updated frameworks.

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