Bogus price reductions, pressure selling, quoting incomplete prices - these and other unfair commercial practices influence our purchase decisions. Now there is an answer to the abuses of trust and deliberate misleading of consumers. The Act on unfair commercial practices, which came into force on 21 December, will facilitate pursuing consumer claims

The survey conducted by TNS OBOP for the Office of Competition and Consumer Protection revealed the harsh truth - as many as 44% of us are not able to tell which information included in advertising materials is real and which is not. The Office’s experience shows that businesses often abuse this fact and disregard reliability when struggling for more customers.

The President of UOKiK conducts approx. 30 administrative proceedings annually concerning businesses using misleading advertising. The new legislation will enable each consumer to take matters into his or her own hands. Pursuing claims individually will now be easier, first of all thanks to the right to bring an action to court in the case of a threat or infringing of economic interests and moving the burden of proof to the trader accused of misleading practices. In practice, this means that it is the trader who will have to convince the court that he did not infringe the interests of the weaker market participants. So far, many consumers have been giving up executing their rights on account of the significant difficulties and costs of proving that the acquired product or service did not have the features claimed by the trader.

The Act on unfair commercial practices is the effect of the transposition of Community regulations into the Polish system. The so-called “black list” of practices included in the Act describes in detail the behaviours of traders which may distort consumers’ purchase decisions in an essential way. The list includes aggressive sales practices, e.g. threats of physical or psychological duress, which limit or may limit a consumer’s freedom of choice. The Act lists aggressive practices which are forbidden under all circumstances. For example, it is forbidden to pay visits at a consumer’s place of residence and ignore his or her requests to leave the house or cease such visits (the only exception are the cases of enforcing contractual obligations in the scope allowed by other binding regulations). It is also forbidden to create the impression that the consumer cannot leave the trader’s premises without concluding the agreement.

UOKiK’s past experience shows that both misleading advertising and aggressive sales practices may concern every kind of service. Letters informing about record winnings you will never receive, touting the effects of preparations that - contrary to the promises - do not work, passing on misleading information on bank account interests - these are only a few examples of abuses which have been questioned by UOKiK and with which, thanks to the transposition of the Community rules in Poland, individual consumers will now be able to fight more effectively.

A couple of days ago the President of UOKiK issued a decision finding Przedsiębiorstwo Usługowe Radio Taxi Serwis in Poznań guilty of using misleading advertising. The firm’s practice consisted in including untrue information in the firm’s visiting cards, stating that its services were the cheapest in town. In the course of the proceedings the firm’s owner was not able to prove the truthfulness of the statements included in the advertisement. According to the new legislation in effect since 21 December, in an analogous situation, each consumer will be able to request that the trader cease such a practice, remove its effects and repair the loss - in particular the consumer will be able to demand that the agreement be declared invalid. Moreover, the Act makes it possible for the court to order the firm to pay a specified sum for charitable purposes and to make a relevant statement. It should, however, be borne in mind that each case is different and it will be decided by the court individually.

The new Act is the answer to the actions targeted against the economic interests of consumers, but it is also supposed to protect the interests of firms running their business in a fair and legal way. In this context, stronger emphasis was put on self-regulation of different market sectors. According to the new law, declaring to be acting on the basis of a code of conduct and failing to adhere to it constitutes an unfair commercial practice.

Contrary to the fears voiced by businesses, in the opinion of the President of UOKiK, the Act is a good solution - it makes it easier for consumers to pursue their claims. The new legislation is an attempt at comprehensive regulation, which in many cases is meant to fill the gaps in the previously binding legislation. The provisions concerning unfair B2C commercial practices have so far been dispersed across various legal acts. The new legislation gathers them in one piece - the Act of 23 August 2007 on preventing unfair commercial practices.

Additional information:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warszawa
Tel. (+48 22) 827 28 92, 55 60 106, 55 60 314
faks (+48 22) 826 11 86
E-mail [SCODE]bWNpZWxvY2hAdW9raWsuZ292LnBs[ECODE]