Law on Consumer Law Has Been Amended
A. INTRODUCTION
Law No. 7511 ("Amendment Law") published in the Official Gazette on May 29, 2024 introduced some important amendments to the Law No. 6502 on the Protection of Consumers ("CPL"), which are explained in detail below. The Amendment Law updates the authority of the Advertisement Board to issue access blocking decisions and the authority to impose administrative fines.
B. IMPORTANT REGULATIONS UNDER THE AMENDMENT LAW
1. Authority of the Advertisement Board to Decide on Blocking Access
Article 63 of the CPL titled "Advertisement Board" regulates the duty of the Advertisement Board ("Board") to determine the principles to be followed in commercial advertisements and to protect consumers against unfair commercial practices. Prior to the Amendment Law, the Board's powers to be used by the Board in fulfilling its duties were regulated as the following: conducting inspections and audits when necessary, imposing a suspension or correction with the same method, issuing administrative fines or, if deemed necessary, precautionary suspensions for up to three months, based on the results of the inspection and audit.
As a result of the innovation introduced by the Amending Law, the Board has become also authorized to "decide to remove content and/or block access". However, the Amendment Law does not provide objective criteria for the cases in which removal of content and/or blocking of access may be decided.
2. Procedure to be Followed for the Board's Access Blocking Decision for Violations Occurring on the Internet
The Amending Law and Article 77 of the Consumer Law titled "Sanction Provisions" stipulate that the Board may block access to the website in the event of advertisements on the internet in violation of the obligations regarding commercial advertisements in the field of advertising law.
Pursuant to the Amending Law, in order to issue a decision to block access, the Board must first notify the relevant website to remove the content by means of communication tools, domain name, IP address, etc., and if the relevant content is not removed within 24 hours despite the notification, the Board may decide to block access.
It is possible for the Board to issue a direct access blocking decision limited to the case where the notification regarding the removal of the content cannot be made to the addressee. The decision to block access will be sent to the Association of Access Providers to be implemented limited to the content where the violation has occurred. Although this decision may be limited to the content where the violation has occurred, it is stated that in cases where this is not technically possible or access to the relevant content cannot be blocked in this way, a decision to block access to the entire website may be applied.
3. Amendments to the Administrative Fine Provisions
The title of Article 77 of the CPL titled "Penalty Provisions" which regulates administrative fines has been amended as "Sanction Provisions".
Among the violations for which sanctions are stipulated by the Amending Law, violations of the pre-contractual information obligation in consumer loans and residential mortgage financing are regulated in a different paragraph and the amount of administrative fines foreseen for these violations has been reduced.
The fine to be imposed on those who act in violation of the obligations specified in the first paragraph of Article 77 and within the scope of the aforementioned articles and those who do not deliver or install the goods in due time in accordance with the third paragraph of Article 8 titled "Defective Goods" has been increased to two thousand two hundred Turkish Liras for each transaction or contract found to be in violation.
With the Amending Law, the sanction imposed under this paragraph regarding Article 6 titled "Avoiding Sales", which is listed among the articles in the first paragraph of Article 77, has been removed from the first paragraph and rearranged in subparagraph (b) of the paragraph. With the new regulation, an administrative fine of 10 percent of the total sales price including all taxes of the goods or services avoided, not less than the legal minimum amount for each transaction or contract that is determined to be in violation, has been stipulated for those who avoid the sale of goods and services.
C. CONCLUSION
The Amendment Law includes revisions regarding the amount and procedure of sanctions to be imposed in case of breach of the regulations under the CPL and will be effective as of May 29, 2024.
For more information and support, please contact us at info@lbfpartners.com.
LBF Partners
Law No. 7511 ("Amendment Law") published in the Official Gazette on May 29, 2024 introduced some important amendments to the Law No. 6502 on the Protection of Consumers ("CPL"), which are explained in detail below. The Amendment Law updates the authority of the Advertisement Board to issue access blocking decisions and the authority to impose administrative fines.
B. IMPORTANT REGULATIONS UNDER THE AMENDMENT LAW
1. Authority of the Advertisement Board to Decide on Blocking Access
Article 63 of the CPL titled "Advertisement Board" regulates the duty of the Advertisement Board ("Board") to determine the principles to be followed in commercial advertisements and to protect consumers against unfair commercial practices. Prior to the Amendment Law, the Board's powers to be used by the Board in fulfilling its duties were regulated as the following: conducting inspections and audits when necessary, imposing a suspension or correction with the same method, issuing administrative fines or, if deemed necessary, precautionary suspensions for up to three months, based on the results of the inspection and audit.
As a result of the innovation introduced by the Amending Law, the Board has become also authorized to "decide to remove content and/or block access". However, the Amendment Law does not provide objective criteria for the cases in which removal of content and/or blocking of access may be decided.
2. Procedure to be Followed for the Board's Access Blocking Decision for Violations Occurring on the Internet
The Amending Law and Article 77 of the Consumer Law titled "Sanction Provisions" stipulate that the Board may block access to the website in the event of advertisements on the internet in violation of the obligations regarding commercial advertisements in the field of advertising law.
Pursuant to the Amending Law, in order to issue a decision to block access, the Board must first notify the relevant website to remove the content by means of communication tools, domain name, IP address, etc., and if the relevant content is not removed within 24 hours despite the notification, the Board may decide to block access.
It is possible for the Board to issue a direct access blocking decision limited to the case where the notification regarding the removal of the content cannot be made to the addressee. The decision to block access will be sent to the Association of Access Providers to be implemented limited to the content where the violation has occurred. Although this decision may be limited to the content where the violation has occurred, it is stated that in cases where this is not technically possible or access to the relevant content cannot be blocked in this way, a decision to block access to the entire website may be applied.
3. Amendments to the Administrative Fine Provisions
The title of Article 77 of the CPL titled "Penalty Provisions" which regulates administrative fines has been amended as "Sanction Provisions".
Among the violations for which sanctions are stipulated by the Amending Law, violations of the pre-contractual information obligation in consumer loans and residential mortgage financing are regulated in a different paragraph and the amount of administrative fines foreseen for these violations has been reduced.
The fine to be imposed on those who act in violation of the obligations specified in the first paragraph of Article 77 and within the scope of the aforementioned articles and those who do not deliver or install the goods in due time in accordance with the third paragraph of Article 8 titled "Defective Goods" has been increased to two thousand two hundred Turkish Liras for each transaction or contract found to be in violation.
With the Amending Law, the sanction imposed under this paragraph regarding Article 6 titled "Avoiding Sales", which is listed among the articles in the first paragraph of Article 77, has been removed from the first paragraph and rearranged in subparagraph (b) of the paragraph. With the new regulation, an administrative fine of 10 percent of the total sales price including all taxes of the goods or services avoided, not less than the legal minimum amount for each transaction or contract that is determined to be in violation, has been stipulated for those who avoid the sale of goods and services.
C. CONCLUSION
The Amendment Law includes revisions regarding the amount and procedure of sanctions to be imposed in case of breach of the regulations under the CPL and will be effective as of May 29, 2024.
For more information and support, please contact us at info@lbfpartners.com.
LBF Partners
e.copur@lbfpartners.com