"New era" for e-shops from 01.07.2024

The new law, which will enter into force on 1 July2024, brings significant changes in the area of consumer protection. The aim is to strengthen consumer protection while relieving traders of unnecessary obligations. These changes are in response to recent amendments to European Union law which are already in force in some Member States, such as the Czech Republic.

The main changes include e.g.:

• Extension of the withdrawal period: from the previous 14 days to 30 days for contracts concluded during a sales event or an unsolicited visit to the trader's home.
• Increased protection against artificial price increases: the consumer will know how the price has actually behaved over the last 30 days and whether the discount is therefore a price reduction after an artificial price increase.
• Guarantee faster redress and compensation for consumers.
• Terminology changes: for example, instead of "seller" or "supplier" only "trader" will be used

The changes in question will have an impact on your GTC. For the sake of clarity, let's remind ourselves what the GTC are:

General Terms and Conditions (GTC) are a set of basic rules for trading between a trader and a consumer. These terms and conditions are usually published on the merchants' websites or sent by email for electronic orders. GTCs are used not only in e-shops but also in brick-and-mortar shops in printed form.

GTCs help to ensure efficient trading and provide legal certainty for both parties. They allow both parties to know where they stand from the outset, thus minimising the risk of confusion and disputes.

The GTC should include:

• Basic definitions for better clarity.
• Rules for conducting business, including price, payment, shipping and discounts.
• Conditions for claims and termination of the contract.
• Protection of consumers' personal data.
• Dispute resolution rules and information on complaining about unfair practices.
• Sample forms (e.g. for withdrawal).

Common errors in the GTC

• Inconsistency and absence of mandatory provisions
• Common mistakes include the absence of provisions on data protection, the possibility to withdraw from the contract and the absence of model documents. Another problem is the inconsistency of the GTC, where changes in one provision are not reflected in other related parts.

Legal practice

Courts are often faced with inconsistent T&Cs where it is not clear what the trader and the consumer have agreed. Usually, the fault is found on the side of the trader, who is the stronger party. Another problem is "unfair terms in consumer contracts", where the trader undermines the consumer's rights.

New approach to GTC from 1.7.2024

The new terms and conditions of trade between the trader and the consumer include:

• Extension of the withdrawal period from 14 to 30 days.
• Extension of information obligations.
• Introduction of new terminology, e.g. "trader" instead of "supplier" or "seller".
• Deletion of obsolete obligations, such as the publication of notices of temporary closure of an establishment.
• One of the most visible changes is the obligation for traders to disclose the previous price of the goods in any price reduction notice. This price must be the lowest price for a period of at least 30 days prior to the reduction in the price of the goods.

Recommendations for traders

We encourage merchants to incorporate the above changes into their GTC as soon as possible and to consider the impact on their business. If approached correctly, these changes may even help the business. It is important to avoid unprofessional copying of the model GTCs and to consult with experts for modifications.

For more information about the new changes to the Consumer Protection Act and how to properly implement these changes into your GTC, please contact us.

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