One of the most common ways of unfair competition in the Ukrainian market is misleading consumers. In practice, misleading the consumer, as a rule, consists in attributing positive and attractive qualities to the product that are unusual for the consumer.
December 11, 2019 entered into force Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine Regarding the Harmonization of Legislation in the Sphere of Comparative Advertising with the Law of the European Union" dated 12.11.2019 No. 286-IX.
The Verkhovna Rada of Ukraine decided to amend some legislative acts of Ukraine, including of the Law of Ukraine "On Protection of Consumer Rights" (hereinafter referred to as the Law), namely Article 19 of the Law.
So, in part 2 of Article 19, the list of information is expanded, the failure to provide which or the provision of false or incomplete information is considered to be misleading the consumer. Part 3 of Article 19, paragraphs 9-16 and amendments to paragraph 4, is supplemented with a list of forms of business practice that is misleading.
Thus, Article 19 of the Law in the new edition is set out as follows:
Dishonest business practices are prohibited. Unfair business practices include:
committing actions that are qualified by law as a manifestation of unfair competition; any activity (action or inaction) that misleads the consumer or is aggressive. Business practice is considered misleading if it induces or may induce a consumer to consent to a transaction to which he would otherwise not agree, by providing him with false or incomplete information or by failing to provide information about: the essential characteristics of the product, such as its availability, benefits, hazards, composition, methods of use, method and date of manufacture or provision, supply, quantity, specification, geographic or other origin, expected results of consumption or results and essential characteristics of tests, or product checks; warranty period and product warranty service; any warnings regarding direct or indirect support by the manufacturer of the seller or products; method of sale, price or method of pricing, availability of discounts or other price advantages; terms of payment, delivery, execution of the contract of sale; requirements for services, parts replacement or repairs; the location and full name of the seller, and, if necessary, the location and full name of the person on behalf of whom the seller is acting; the nature, attributes and rights of the seller or his agent, in particular information about his identity and assets, qualifications, status, license, affiliation and intellectual or industrial property rights, his distinctions and awards; the danger to the consumer in connection with the purchase and / or use of the product; consumer rights, including the right to refuse products (for the relevant types of goods, works and services), the right to replace products or indemnify. Business practice is such that it is misleading if, at the time of offering a product, the consumer is not provided, or is provided in a fuzzy, incomprehensible or ambiguous way, with the information necessary to make a conscious choice.
Entrepreneurial practices that materially distort or may significantly distort the economic behavior of only a clearly defined (separate) group of consumers, especially vulnerable to such activities due to their mental or physical disabilities, age or gullibility, if the seller had an objective opportunity to foresee their behavior and features, should be assessed from the point of view of the average representative of such a group, and also taking into account the assumption that, despite the circumstances set forth, there is no opportunity to make an informed and competent choice and the consumer is mistaken in the transaction for circumstances that are of significant importance. These terms do not apply to legitimate promotional activities, including the creation of statements or expressions that cannot be taken literally.
Prohibited as misleading: an offer to sell products at a certain price, if there is reason to believe that the seller or contractor will not be able to provide such products at such a price or in such volumes as can be foreseen, given the price offered and the characteristics of the products; an offer with the aim of selling one product to selling another; refusing to present to the consumer the product that is being offered and accepting the order, or failing to provide the product within a reasonable time or displaying a defective sample of the product; Falsely reporting that a limited number of products are available or products are sold for a limited period of time encourages consumers to make a quick decision and deprives them of a sufficient period of time to make a conscious decision; an offer for the free sale of products that are withdrawn from circulation or whose circulation is restricted; Falsely asserting that there will be a threat to the personal safety of the consumer or his family if he does not purchase or order the product; Establishing, operating, or promoting pyramid schemes where a consumer pays for the opportunity to receive compensation provided by bringing other consumers into the scheme rather than by selling or consuming a product; use of a sale message in connection with the termination of a business entity, its structural unit, or the termination of the corresponding type of economic activity, while this is not true; marking products with a trust mark, quality mark or conformity mark without obtaining the appropriate permission from an authorized person or owner of such marks; offers to sell products at a special price if: a) such products are not available for sale;
b) the seller refuses to accept an order for such products or deliver them within a reasonable time;
c) the seller offers low-quality copies of such products with the intention of selling other products;
representing a consumer's statutory right as a privilege granted by the seller of the product; false statement about the termination of the seller's trading activities or his relocation; A statement that the purchase of the product may contribute to winning the lottery; distributing false information about the state of the market or the opportunity to purchase products in order to encourage the consumer to purchase products on less favorable terms for him; announcing a competition or giveaway without the subsequent delivery of such gifts or their equivalent; A misleading statement that the seller is not acting in a trade, business or professional interest, or that the seller does not represent himself as a consumer. The list of misleading business practices is not exhaustive. Aggressive business practices are those that actually contain elements of coercion, harassment or improper influence and significantly affect or may affect the consumer's freedom of choice or behavior regarding the purchase of products. When determining whether an entrepreneurial practice contains elements of coercion, harassment or improper influence, it is not taken into account:
the timing, nature, and frequency of offers to purchase products; using offensive or threatening language; the use of a difficult circumstance for the consumer, of which the seller or contractor was aware, to influence the decision of the consumer; imposition of onerous or disproportionate non-contractual barriers to the consumer's exercise of their rights under the contract, including provisions on the consumer's right to terminate the contract or replace a product or enter into a contract with another business entity; A threat to do something illegal or illegal. The following forms of entrepreneurial practice are prohibited as aggressive: creating the impression that the consumer cannot leave the premises of the seller (executor) without concluding a contract or making payment; making prolonged and/or periodic visits to the consumer's residence despite the consumer's request to stop such activities or leave the residence; making permanent telephone, facsimile, electronic or other communications without the consent of the consumer; the requirement to pay for products supplied by the seller (executor), if the consumer did not give direct and unambiguous consent to its purchase. The list of forms of aggressive business practices is not exhaustive. Transactions made using dishonest business practices are void. Business entities, their employees are liable for dishonest business practices in accordance with the law. Thus, our company recommends that consumers, when purchasing any device with an electronic component, ask the seller to present all the documents available for a particular product or at least one of the documents listed below: Sellers, representatives and manufacturers are advised to have copies of documents at each point of sale or issue, certifying the compliance of their products with the Technical Regulations. If this is not possible, then provide free access to this information online by notifying the buyer or accompanying the product with a copy of the relevant documents. Do you have any questions? We have the answers! Ask a question in any form convenient for you in the section Contacts . Call us and get a free consultation