CZECH REPUBLIC

Annual Report on Consumer Policy Developments
1999

The "Concept of Consumer Legislation", approved on 9 June 1999, is considered to be an important step towards full harmonisation of Czech consumer protection legislation with that of the EC. It contains principles of harmonisation, and a list of terms, responsible bodies, and agreed procedures for implementation of consumer acquis.

The positive results of the harmonisation effort can be shown by Directive 1999/34/EC, which was approved by the European Parliament and Council in May 1999. This Directive is an amendment of Directive 85/374/EEC, which concerns liability for defective products. The Czech Government approved the draft amendment of Act No. 59/1998 Coll. on 17 January 2000, implementing this change. It is expected to come into force on 1 July 2000.

The following developments took place in relation to the harmonisation of consumer legislation:

• On 30 June 1999, the Parliament of the Czech Republic approved Act No. 159/1999 Coll., on Certain Conditions of Business in Tourism, which fully implements the directive relating to package travel, package holidays and package tours. The Act has been published.
• The Parliament of the Czech Republic is discussing in a second reading, the draft amendment to the Civil Code transposing directives on protection of the consumers in respect of contracts negotiated away from business premises, in respect of distance contracts, and on unfair terms in consumer contracts (expected to come into force on 1 October 2000).
• On 24 February 2000, the Parliament of the Czech Republic approved an Amendment to the Act on Consumer Protection transposing the directives concerning products which appear to be other than they are, relating to crystal glass, and relating to labeling the materials used in the main components of footwear (expected to come into force on 1 April 2000).
• The Parliament of the Czech Republic is discussing in the second reading the draft amendment to Act No. 59/1998 Coll., on Liability for Damage Caused by Defective Products, transposing the Directive No. 1999/34/EC amending the directive 85/375/EEC concerning liability for defective products (expected to come into force on 1 April 2000).
• The Government of the Czech Republic has approved the legislative intention of the amendment to the Advertising Regulation Act which aims to transpose the directives concerning promotion and advertisements. A draft version will to be submitted to the government by 31 March 2000 (expected to come into force on 31 January 2001).
• The draft Act on Consumer Credit has been passed to ministries for comment (expected to come into force on 31 January 2002).
• The draft Act on the General Safety of Products is being discussed in the Ministry of Industry and Trade (expected to come into force on 30 June 2001);

Full compatibility of Czech consumer legislation with that of the EC will be achieved by 2001.

The Czech legislation under preparation also responds to the requirement to make it easier for consumers to raise and settle certain claims. The first step in this area is the amendment to the Civil Code which enables the lawsuit actions not only by individual consumers but also by juridical persons representing their interests. A substantial change, however, will not take place until the overall reform of the judiciary of the Czech Republic and of the Court proceedings have been adopted; the basic elements of this reform are already in preparation.

II. Non-legislative area

"The Concept of Consumer Policy" was approved by Government Resolution No. 813/1998 of 9 December 1998. It consists of the following parts:

• General principles, where the goals of government consumer policy towards citizens, consumer associations, inner and external trade, environment are given. Following objectives of Consumer Policy are recognised in the Concept:

a) protection of the safety of life and health of the population,

b) protection of  the internal market against unfair activities, especially those that are difficult to combat by legal or private means,

c) encouragement of the activities of civil consumer associations,

d) dissemination to the general public of information about citizens' rights citizens related to the purchase of goods and services as well as about methods how to pursue economic interests on the markets.

An important issue of the Concept is an acknowledgement of five fundamental consumers' rights:

• Responsibility for consumer policy co-ordination is entrusted to the Ministry of Industry and Trade, even in areas where other ministries are otherwise responsible.
• Legal steps in the interest of consumers shall be concentrated on implementation of "acquis" as a priority.
• Consumer information should cover more broadly important results published by the supervising institutions. Non-governmental organisations' (NGO) efforts to enhance consumer awareness should be supported. A programme targetting the elaboration of teaching aids for consumer education in schools will be implemented.
• Broader responsibilities will be given to the consumer associations through the implementation of Directive 98/27/EC on injunctions in the interest of consumers. Improved co-operation with existing NGOs will be encouraged, and a consumers advertising committee established for the period after 2001.
• Financial support will be granted for activities such as independent product testing, complaints mediation, etc.

III. Institutional area

The Czech Government approved Resolution No. 1047 of 6 October 1999 relating to the co-ordination role of the Ministry of Industry and Trade in the area of consumer policy. The consumer policy working group was set up and started its work; this group meets every six weeks or so, and has responsiblity for such tasks as summary information on market supervision activities and results, consumer protection in electronic commerce, consumer acces to justice, implementation of the RAPEX system, etc.

In the area of market inspection, the division of responsibilities and co-operation among the inspection institutions was established. The amendment to the Czech Trade Inspection Act, which is now being discussed in a second reading by the Parliament will further facilitate the role of the inspection. (entry force is expected on 30 September 2000).

The situation in the area of the non-governmental consumer organisations has improved. The major organisations concluded an "agreement on co-ordinated action as regards specific issues of consumer protection". Two other organisations of this type were established and  total membership havs increased from 300 to 600 persons. In 1999, a network of 28 independent centres for consumer information and complaints mediation was set up.

A document entitled "Measures to Strengthen the Influence of Non-governmental Consumer Organisations on the Domestic Market, including Funding Subsidies, for the Period Following the year 2000" was passed by the Czech Government on 12 January 2000. It proposes the establishment of a consumer advisory committee as a consulting body of the government in 2000. Support for independent consumer organisations has been increased from CZK 6 million in 1999 to CZK 10 million in 2000.

Staffing at the Consumer Protection Department of the Ministry of Industry and Trade was increased from seven to nine.

Latest update 25 January 2001

[OECD Home ] [ STI Home ] [ ICP Home ]