Filenews 2 January 2022 - by Evagoras Prokopiou
The new law effectively strengthens the level of consumer protection
The Cypriot consumer must know and claim his rights, but at the same time understand and comply with his obligations. The information but mainly the protection comes to cover the Consumer Protection Service.
With the implementation of the consumer protection legislation of 2021, it now has more weapons to rationally implement its purpose, as explained to us in an interview given to us by the Deputy Director of the Service, Antonis Ioannou. Among other things, he explains how the imposition of fines works and what will change from 01/01/2022 for the benefit of consumers.
How many years has the Consumer Protection Service counted and what is its main mission?
The Price Control and Consumer Protection Service has existed since the foundation of the Republic of Cyprus and was known as Agoranomia. In January 1994 it was named Competition and Consumer Protection Service to be renamed again to Consumer Protection Service on 27/10/2016.
The Agency's mission is to ensure a high level of consumer protection in the new liberalised and competitive market. The main and fundamental strategic objective of the Consumer Protection Service is to strengthen the protection and empower consumers. This objective is achieved through a network of actions aimed at (a) ensuring enforcement, (b) enhancing consumer safety and (c) improving consumer and (c) improving the information and education of consumers and businesses.
Is there sufficient resources in material and manpower for the service to be able to fulfil its mission?
First of all, we must mention that the Agency has offices in all the provinces and in total employs 90 people. In general, we are satisfied with the means at our disposal, both in terms of material and human resources. It should be noted that in 2021, the Office was strengthened with four lawyers who are expected to significantly assist its work in implementing the laws to which it has competence.
In which areas does your Service operate?
The Service is mainly active in the following sectors: Consumer Economic Interests, Competition issues, monitoring of oil prices and Product Safety.
What key changes have come with the implementation of the 2021 Consumer Protection legislation?
The new Law effectively enhances the level of consumer protection, both through the strengthening of the powers of the Consumer Protection Service and through various amendments to the current legal framework, which provide huge benefits for consumers, such as:
• It introduces the possibility for the consumer, whose financial interests have been affected as a result of any violation of the provisions of the Law, to bring an action before a competent Court for the payment of damages, and/or for withdrawal from the contract, and/or for a reduction of the price of the product and/or service that is the subject of the contract.
• The way prices are indicated during a sales period is changed, since the product must indicate both the new price or the percentage of reduction, as well as the immediately preceding selling price, in order to fully inform consumers.
• The seller's obligations to the buyer are increased in order to reduce the scope for unfair and misleading commercial practices.
• Service outlets are now obliged to post a price list of the prices of the basic services they offer.
• In addition, the obligation to inform the consumer in writing (marked) is introduced in relation to the policy of returns / changes of stores, as well as in relation to the right to legal guarantee.
WITH A PROFIT IN THE NEW YEAR
What are the consumer's rights to defective products?
Recently, the new law on product guarantees has been published, which comes into force on 1/1/2022. The new Law is expected to contribute to the strengthening of the protection of consumers' interests. In addition to the right to a minimum legal guarantee of 2 years, the most important new consumer rights are summarized below:
- if a product shows a serious defect within 30 days of the date of receipt, then the consumer has the right to terminate the contract (reimbursement of the price paid) or to request its replacement.
- the repair or replacement of a defective product should be carried out within 25 days of the seller being informed by the consumer of the lack of conformity. The 25-day period may be extended only with the express consent of the consumer.
- the time elapsed for the repair of a defective product, does not count towards the warranty time of 2 years.
We must also be aware that the commercial guarantee is different from the legal guarantee on electrical appliances and not only. If a product is accompanied by the seller with a five-year warranty instead of the two-year warranty that the law says then as consumers we must keep the paper guarantees that comes with that electrical appliance. It is essentially a commercial agreement between buyer and business.
Online shopping is on the rise at this time due to the pandemic. What does one need to know when buying products online? When and how do I cancel a purchase?
It is a fact that the pandemic has contributed to the increase in online shopping and it is important that the European legislative framework for online shopping gives enhanced rights to consumers in relation to purchases from physical stores.
Therefore, under the current legislation on online transactions, throughout the European Union, the consumer has a right to information. Before the consumer makes an online transaction, the trader has an obligation to provide him with specific information in a clear and comprehensible manner, which is the terms of the contract and does not change without the express agreement of the parties.
In addition, it is very important to stress that the consumer within a period of 14 days has the right to withdraw from the contract he has concluded online (i.e. to return the product), without stating the reasons and without any charge beyond what is foreseen.
The main problem observed, as it emerges from the complaints submitted by consumers, mainly concerns purchases from social media or from unknown sellers from countries outside the European Union. Therefore, the Office recommends that consumers do not make purchases from unknown sellers because they risk falling victim to fraud from alleged "businesses" which, upon receiving their money, will disappear or shirk responsibility arising from the legislation.
If a product is purchased from a digital platform, the Consumer Service can intervene immediately if the platform has a legal entity in Cyprus. If it is in a Country of the European Union we can also do the same through the European Consumer Association. If it is from a third country, unfortunately, any intervention becomes very difficult.
It is very important to inform consumers about their rights and what to look out for when it comes to online shopping. In this area we have a serious problem and it was particularly evident in the period of the pandemic. An example is the incorrect use of credit cards. There are cases where children have also made or proceed to purchases within online games and not only using their parents' cards. There are even complaints in this light about large Internet platforms both at European level and globally. This is an area where we need to place more emphasis on consumer information.
Information is one part, the second part concerning digital markets is a sector that originates mainly from China and the USA and we are trying in Europe to find a way to limit unfair trading practices wherever they arise, difficult task as among other things we lack the know-how.
There is a lot of talk about the so-called discounts, how does the Consumer Protection Agency handle the whole thing?
During the period of predetermined discounts (e.g. Black Friday) the Service carries out Pancyprian checks on the market to verify the correctness of the promoted offers and the adequacy of the dealers' stocks. At the same time, checks are carried out, at regular intervals, in online stores in order to detect violations. The Office carefully studies the results and, where appropriate, proceeds to the adoption of administrative decisions. It is worth noting that since "Black Friday" of 2019, the Office proceeds every year to in-depth investigations and issues decisions for findings of violations.
INFORMATION, INFORMATION...
Which campaigns does the Consumer Protection Service run?
One of the activities of the Services is the improvement of information and education of consumers and businesses and the development of proper consumer consciousness. In order to achieve and implement this goal, various actions are being carried out to inform both consumers and businesses. Important importance is given to informing the students who will be tomorrow's citizens and, by extension, the consumers of the country.
Furthermore, every year the Service runs two information campaigns. Usually, one concerns product safety issues and the other the protection of consumers' economic interests. At the moment, the theme of our information campaign was about informing consumers about the new legislation on product guarantees and their most important rights arising from its implementation.
How can a consumer contact the Consumer Protection Service?
The easiest way to contact the Service is through the 1429 hotline, which is the free consumer hotline. It should be noted that the line responds to more than 6000 calls each year, guiding consumers or answering their queries. Furthermore, through our website (www.consumer.gov.cy), consumers can find important information that concerns them and even submit their complaints or queries. Finally, important communication channels are the accounts maintained by the Service on Social Media.
FINES €1.1 MILLION IN 5 YEARS
Fines for matters falling within the jurisdiction of your service is now possible, how many have you imposed so far and what amounts are we talking about? How much is the general revenue that the service brings to the state coffers?
Administrative fines have always been possible for the Office. With the new Law, however, there is now the possibility of imposing administrative fines in cases of detection of unfair terms in contracts as well as in cases of detection of violations of product guarantees. Furthermore, the administrative fines imposed by the Office will be immediately payable, regardless of whether the trader intends to appeal against its decision.
It should be noted that the imposition of fines is not an end in itself for the Service. The aim of the Service is to ensure the proper functioning of the market and to cooperate with traders in order to ensure the rights and protection of consumers.
In several cases, however, fines are inevitable. Therefore, in the last 5 years, 36 administrative decisions have been issued by the Office which imposed fines of €1.1 million.
UNFAIR TERMS
Unfair terms (in loan agreements, contracts for the purchase of real estate by land and construction companies, insurance policies, telecommunications service contracts, etc.): A financial institution includes in the loan agreements it concludes with consumers, a specific term that allows it, for instance, to unilaterally modify the terms of the contract, without good reason provided for in the contract. This is considered an unfair term because it creates a significant disparity between the rights and obligations of the parties to the contract to the detriment of the consumer. If, following a complaint or following an ex officio investigation by the BPS, the above is found, the Service has the possibility of imposing an administrative fine, which is immediately payable.
