Uneven and aggressive practices of shuffle moves into online trading or offers by phone.
"The good news for consumers is that the Czech Trade Inspection registered a decline in the organization of classic demonstration events last year. Although there has been a significant limitation on the conduct of these events, the inspections will continue in 2018, as the victims are mostly seniors, " says CTI Director Mojmír Bezecný.
The Czech Trade Inspection Authority carried out a total of 107 inspections in 2017. In addition to detecting unfair business practices, including aggressive practices, inspectors paid attention to complying with the notification obligation, compliance with the prohibition of accepting transactions with the corresponding purchase price of the product or service or part thereof before the expiration of the 7-day period from the conclusion of the contract. Out of the total number of checks carried out, a breach of legislation was detected in 31 inspections, ie 29%.
The number of traditional demonstration events is decreasing, as is the number of consumer submissions, when in 2016 the Czech Trade Inspectorate sent 281, in 2017 only 51 .
Infringements detected
The consumer protection law was most frequently violated:
- 25 violations of statutory reporting obligations in connection with the event
- In 12 cases, the organizers' invitation did not include a timetable for the event, the identification of the offered or promoted products and their price, ie the price without taking into account any discounts individually negotiated with the consumer on the organized event, also found cases where no name, the number of the person who organized the event
- In 7 cases it was found that sellers who sold products or provided services in the framework of an organized event demanded or received from consumers a payment corresponding to the purchase price of the products or services offered during the event or before the expiration of the seven day period after the conclusion of the contract has been banned since December 2015
- In 8 cases, some of the forms of unfair commercial practices were used, for example, for example, the participants did not receive refreshments or a "valuable gift", even though both were promised by the seller at invitations to the event, in some cases the consumers received the gifts but at a lower amount, than they were promised
- In 1 case, there was a violation of the provisions prohibiting consumer discrimination, as the seller restricted the entry to organized event by the age limit "from 18 years"
- 6 violations of other provisions were found
In 2 cases, the Sellers violated Act No. 255/2012 Coll., On control by failing to comply with the imposed measures.
Measures and sanctions imposed
CTI imposed a total of 72 fines totaling CZK 22,164,000 in 2017, which is CZK 7,503,000 less than in 2016 (CZK 29,667,000).
The highest fines in the total amount of CZK 9,010,000 were deposited with BNM-MEDICAL CZECH SE, sro The organizers of the events from BNM-MEDICAL CZECH SE, sro mostly did not observe the obligation to announce the proper conduct of the events. WORM sro was also involved in fines totaling CZK 4,300,000, mostly for unfair commercial practices. The third highest fine in the amount of CZK 1,500,000 was imposed on CARLES House sro, mainly for non-fulfillment of obligations related to the organization of organized events.
Source: tz CTI, edited editorially