Text consolidated by Valsts valodas centrs (State
Language Centre) with amending laws of:
22 November 2001 [shall
come into force from 26 December 2001];
16 April 2003 [shall come into force from 1 February
2004];
29 April 2004 [shall come into force from 26 May
2004]];
27 October 2005 [shall come into force from 25 November
2005];
22 March 2007 [shall come into force from 11 August
2007];
17 May 2007 [shall come into force from 12 June
2007];
19 June 2008 [shall come into force from 23 July
2008];
21 May 2009 [shall come into force from 23 June
2009];
26 November 2009 [shall come into force from 24 December
2009];
28 October 2010 [shall come into force from 1 January
2011];
20 December 2010 [shall come into force from 1 January
2011];
9 June 2011 [shall come into force from 22 June
2011];
19 September 2013 [shall come into force from 1 January
2014];
24 April 2014 [shall come into force from 28 May
2014];
18 September 2014 [shall come into force from 25
September 2014];
19 February 2015 [shall come into force from 1 March
2015];
28 May 2015 [shall come into force from 1 January
2016];
18 June 2015 [shall come into force from 9 July
2015];
9 June 2016 [shall come into force from 1 August
2016];
4 October 2018 [shall come into force from 1 January
2019];
21 November 2019 [shall come into force from 24 December
2019].
If a whole or part of a section has been amended, the
date of the amending law appears in square brackets at
the end of the section. If a whole section, paragraph or
clause has been deleted, the date of the deletion appears
in square brackets beside the deleted section, paragraph
or clause.
|
The Saeima1 has adopted and
the President has proclaimed the following Law:
Consumer Rights
Protection Law
Chapter I
General Provisions
Section 1. Terms Used in this
Law
The following terms are used in this Law:
1) directions for use - instructions of the
manufacturer or the service provider through compliance with
which goods or services retain their operational (utilisation)
characteristics and adequate quality, and do not pose a threat to
the property, health and life of the consumer and to the
environment;
2) service - performance of a consumer's order or such
fulfilment of a contract entered into with a consumer, for
remuneration or free of charge, within the scope of the economic
activity of a person as a result of which an article is leased,
an existing article or its characteristics are improved or
altered, or work is performed, or intangible result of work is
achieved;
21) durable medium - any instrument which
enables the consumer to store information addressed personally to
him so as to ensure the accessibility, use and reproduction
thereof in an unchanged form for a period of time necessary for
the provision of such information;
3) consumer - a natural person who expresses a wish to
purchase, purchases or might purchase, or use goods or a service
for a purpose, which is not related to his or her economic or
professional activity;
4) the service provider - any natural person or any
legal person who within the scope of his or her economic or
professional activity provides a service to a consumer, also
including through any other person acting in his name or on his
behalf;
5) trader - any natural person or any legal person
(also an importer) who within the scope of his economic or
professional activity offers or sells goods to a consumer, also
including through any other person acting in his or her name or
on his or her behalf;
6) goods - any item offered or sold to a consumer, with
the exception of item sold by way of execution of a court
adjudication or resolution of a judge or in accordance with
recording, assessment, sale, transfer free of charge, destruction
of property under the jurisdiction of the State and inclusion of
sale income into the State budget, or in accordance with the laws
and regulations governing a commercial pledge. Water, gas and
electricity shall be considered as goods where they are offered
or put up for sale in a limited volume or a set quantity. Digital
content together with a material medium (CD, DVD or similar
material medium) shall be considered as goods;
7) manufacturer - a person who within the scope of his
or her economic or professional activity manufactures or
renovates goods for sale, or identifies itself as the
manufacturer by indicating (labelling) on the goods or the
packaging thereof, or in the technical documentation of the
goods, its name (firm name), given name, surname, trademark or
other distinguishing mark;
8) digital content - data which are produced and
supplied in digital form;
9) total costs of the credit to a consumer - all costs,
including interest, commission, fees and any other payments,
which must be paid by the consumer in relation to the credit
agreement and which are known to the creditor (except costs of a
sworn notary). The total costs of the credit shall also include
costs for additional services in relation to the credit
agreement, including insurance premiums, if conclusion of an
additional services contract is a mandatory precondition in order
to receive credit or in order to receive it on the terms and
conditions offered. If the credit repayment is secured with an
immovable property or the objective of the credit is to obtain or
retain the right to an immovable property, the total costs of a
credit to a consumer shall also include the costs of the property
valuation, if such valuation is necessary for the receipt of the
credit, but shall not include the fee which is related to the
recording of the immovable property and the corroboration of the
rights related thereto in the Land Register;
10) credit intermediary - a natural or legal person who
does not act as a creditor, but who, in the framework of its
economic or professional activity, acts for a fee which may take
a pecuniary form or any other form of financial consideration
under the concluded agreement, and performs any of the following
activities:
a) presents or offers credit agreements to consumers;
b) concludes credit agreements with consumers on behalf of the
creditor;
c) provides assistance to consumers by carrying out the
preparation work related to credit agreements (if the credit
repayment is secured with an immovable property, also other
pre-contractual administrative work);
11) representative of a credit intermediary - a natural
or legal person who fulfils obligations of a credit intermediary,
acts on behalf of only one credit intermediary, and assumes full
liability for it;
12) staff - a natural person:
a) who is employed by a creditor or a credit intermediary and
who is contacting consumers or performs activities which are
subject to the laws and regulations governing consumer
credit;
b) who is working for the benefit of a credit intermediary and
is contacting consumers, performing such activities which are
subject to the laws and regulations governing consumer
credit;
c) who directly manages or supervises the natural persons
referred to in Sub-clauses "a" and "b" of this Clause.
[22 November 2001; 27 October 2005; 19 June 2008; 28
October 2010; 24 April 2014; 28 May 2015; 9 June 2016]
Section 2. Purpose of this Law
The purpose of this Law is to ensure that consumers are able
to exercise and protect their lawful rights, as well as to
protect the collective interests of consumers.
[24 April 2014 / The new wording of this Section
shall come into force on 13 June 2014. See Paragraph 22 of
Transitional Provisions]
Section 2.1 Scope of
Application of this Law
(1) The provisions of this Law shall be applied, unless
otherwise provided for in the special norms governing consumer
rights protection.
(2) The provisions of this Law shall not affect contractual
relations especially validity of a contract, concluding and
consequences, unless otherwise provided for in this Law.
(3) The trader or the service provider is entitled to offer
such provisions of a contract that ensure higher consumer rights
protection than determined in this Law.
[24 April 2014]
Section 3. Violation of Consumer
Rights
Consumer rights are violated, if:
1) upon purchase of goods or receipt of a service, freedom of
choice and the expressed will of the consumer are not
observed;
2) the principle of equality of the contracting parties is not
observed and the terms of the contract are unfair;
3) the possibility to receive comprehensive and complete
information regarding the goods, or the service or the price of
the service is not ensured;
4) unsafe goods, or goods that do not conform to the
provisions of the contract, or unsafe services or services that
do not conform to the provisions of the contract are sold to the
consumer;
5) the payment for the purchase or the weight or measure is
not correctly determined and no opportunity is provided to check
it;
6) contractual obligations are not adequately performed;
7) no opportunity is provided to a consumer to exercise the
right of withdrawal, revocation of a contract concluded,
alteration of conditions of a contract concluded, or other lawful
or contractual rights;
8) a document that confirms the transaction is not issued.
[22 November 2001]
Section 3.1 Prohibition
of Differential Treatment
(1) Differential treatment based on sex, race, ethnic
belonging or disability of a consumer is prohibited when offering
goods or a service, selling goods or providing a service.
(2) Differential treatment to a consumer shall be allowed, if
offering of goods or a service, selling of goods or provision of
a service only or mainly to persons of a particular sex, race or
ethnic belonging or persons with disability is objectively
substantiated with a legal purpose, for the achievement of which
proportional means are chosen. Differential treatment to a
consumer based on disability shall be allowed, if it is
objectively substantiated with a legal purpose for the
achievement of which proportional means are chosen, or if
ensuring of equal treatment imposes disproportionate load on the
trader or the service provider.
(3) The prohibition of differential treatment shall not affect
the freedom of conclusion of contracts, except for the case when
the choice of a contracting party is substantiated with sex,
disability, race or ethnic belonging of the person.
(4) If the prohibition of differential treatment is infringed,
a consumer may protect the rights thereof in accordance with the
procedures laid down in the Ombudsman Law, and also by applying
to court in accordance with the procedures laid down in the Civil
Procedure Law.
(5) If in the case of a dispute a consumer refers to
conditions that may serve as the basis for his direct or indirect
discrimination based on sex, disability, race, or ethnic
belonging, the trader or provider of a service has an obligation
to prove that the prohibition of differential treatment is not
violated.
(6) Direct discrimination is such attitude towards a person
who on the basis of his sex, disability, race, or ethnic
belonging in a comparable situation is, was, and could be less
favourable than towards another person. Indirect discrimination
is a seemingly neutral provision, criterion, or practice that
creates or could create an unfavourable outcome on the basis of
sex, disability, race, or ethnic belonging of a person, except
for the case when such provision, criterion, or practice is
objectively substantiated with a legal purpose for the
achievement of which proportional means are chosen.
(7) Offence to a person or an instruction to discriminate him
or her shall be considered as discrimination as well.
(8) Offence shall be the exposure of a person on the basis of
his sex, disability, race, or ethnic belonging to such action
that is unfavourable from the point of view of this person
(including action of sexual nature) the purpose or the result of
which is the violation of the person's honour and the creation of
an intimidating, hostile, derogatory or degrading
environment.
(9) A less favourable attitude towards a woman during the
period of pregnancy or during the period following childbirth up
to one year, but if the woman is breastfeeding - during the whole
period of breastfeeding, shall be considered as discrimination on
the basis of sex as well.
(10) It is prohibited to cause directly or indirectly an
unfavourable outcome to the customer, if he or she protects the
rights thereof in accordance with the procedures laid down in
this Section.
(11) If the prohibition of differential treatment or
prohibition to create an unfavourable outcome is violated, a
consumer has the right to request the fulfilment of the contract,
as well as a compensation of losses and a compensation of
emotional distress. In the case of a dispute, the amount of the
compensation of emotional distress shall be determined by court
at its discretion.
[19 June 2008; 28 October 2010]
Section 4. Freedom of Choice and
Will of the Consumer
(1) When entering into contractual obligations with the trader
or the service provider, the consumer shall be provided an
opportunity to fully exercise his choice and will, purchasing
exactly the type of goods or receiving exactly the service the
consumer wishes, except for restrictions laid down in law. The
trader or the service provider has an obligation to respect such
will. Choice and will shall be expressed in the terms of
contract, or it shall be apparent from the circumstances.
(2) Before a consumer purchases goods or receives a service,
he or she shall be provided an opportunity to evaluate the
fitness and conformity of the relevant goods or the service. The
consumer shall receive complete information regarding the goods
or services, procedure for settlement of accounts, contract
performance and liability if contractual obligations are
breached.
(3) A consumer does not have an obligation to accept goods or
service and to pay the price or other payment for the goods or
service if the goods are supplied or the service is provided
without an order being made by the consumer. If the consumer does
not reply to such order, it does not mean that he or she has
agreed to the order.
(4) Before concluding the contract, the trader or the service
provider shall seek the express consent of the consumer to any
extra payment in addition to the remuneration agreed upon for the
main contractual obligation. If the trader or service provider
has not obtained the consumer's express consent for such payment,
but has obtained the consent by using previously activated choice
options which the consumer is required to reject in order to
avoid the additional payment, the consumer has the right to
receive reimbursement of such additional payment.
(5) If during provision of the service the necessity to
perform any additional work arises regarding which there was not
agreement with a consumer, the service provider shall request a
consumer's express consent for additional work. If the service
provider has not received a consumer's express consent for such
additional work, then the consumer has no obligation to pay for
such additional work.
(6) The trader or the service provider has an obligation, when
transferring the goods to a consumer, to ensure the possibility
for him or her to see or inspect the goods. If such possibility
is not ensured for the consumer, the trader or the service
provider has an obligation to prove that at the time of transfer
the goods have no defects.
[24 April 2014; 18 June 2015]
Section 4.1 Application
of Certain Provisions of Law
(1) The provisions of Chapters III and IV of this Law shall be
applicable to such legal relations which are established between
the trader or the service provider and a consumer, and also any
other legal subject who expresses a wish to purchase, purchases,
or may purchase goods or use services for a purpose which is not
related to economic or professional activity of such legal
subject.
(2) The provisions of Sections 5 and 6 of this Law shall also
be applicable to such legal relations which on the basis of a
contract are established between a natural person and a
manufacturer, trader, or service provider according to the
contract concluded with a consumer, including for the provision
of the fulfilment of contractual obligations of the consumer with
a pledge or guarantee, if the establishment of such relations is
not related to economic or professional activities of the
abovementioned natural person.
(3) Section 4, Paragraph four, Sections 9, 10, 12 and Section
17, Paragraph one of this Law shall not be applied to:
1) package tourism services;
2) contracts on the right of long-term use of a holiday
accommodation, contract on long-term holiday services, resale
contracts on the right of long-term use of a holiday
accommodation or resale contracts on long-term holiday services
and exchange contracts on the right of long-term use of a holiday
accommodation;
3) passenger transport services (except for Section 4,
Paragraph four and Section 31.2, Paragraph three of this
Law);
4) contracts on the supply of the foodstuffs, beverages or
other goods intended for current consumption in the household,
and which are physically supplied by the trader on frequent and
regular rounds to the consumer's home, residence, or
workplace;
5) contracts concluded by means of automatic vending machines
or automated commercial premises;
6) contracts concluded with electronic communications
merchants through public payphones for their use or concluded for
the use of one single connection by telephone, Internet or fax
established by a consumer;
7) financial services (except for Section 10 and Section 12,
Paragraph one of this Law);
8) contracts for the acquisition of immovable property or
transfer of rights related to immovable property;
9) contracts for the construction of new buildings, the
substantial conversion of existing buildings and for rental of
accommodation for residential purposes;
10) contracts prepared by a notary, bailiff, or other person
comparable to a public official;
11) gambling.
(4) Section 14.1 of this Law shall be applied to
services, as a result of which movable tangible property or its
properties are improved or altered.
(5) Within the framework of Sections 13, 14, 16, 17, 19, 20,
21, 27, 28, 30, and 33 of this Law, a movable tangible property
shall be considered as the goods, and also a movable tangible
property produced as a result of the provision of a service.
(6) Provisions of this Law on services shall be applied to
contracts for the supply of water, gas and electricity where
water, gas or electricity are offered or put up for sale in a
limited volume or a set quantity, as well as to contracts for the
district heating, insofar it is not otherwise provided for in the
laws and regulations governing public utilities or consumer
rights protection.
(7) Provisions of this Law which regulate provision of a
service shall be applied to a digital content which is not
supplied in a tangible medium, unless it is otherwise provided
for in the norms governing consumer tights protection.
[27 October 2005; 21 May 2009; 24 April 2014; 18 September
2014; 9 June 2016]
Section 4.2 Provisions
for the Application of Legal Norms of Different Countries
(1) [9 June 2016]
(2) Where the legal norms applicable to legal relations are
the legal norms of a country other than a European Economic Area
Member State, a consumer shall not lose the rights specified in
this Law and other laws and regulations in relation to a contract
on the right of long-term use of a holiday accommodation, a
contract on long-term holiday services, a resale contract on the
right of long-term use of a holiday accommodation or a resale
contract on long-term holiday services and an exchange contract
on the right of long-term use of a holiday accommodation if:
1) the relevant immovable property is situated within the
territory of any of the European Union Member States;
2) the trader pursues commercial or professional activity in a
European Union Member State or directs the referred to activity
to a European Union Member State and the contract falls within
the scope of such activity.
[26 November 2009; 28 October 2010; 9 June 2016]
Chapter
II
Contracts
Section 5. Legal Equality of the
Contracting Parties
(1) Contracts concluded between a consumer and a manufacturer,
the trader or the service provider, shall provide for equal
rights to both contracting parties.
(2) Contract terms shall be deemed to be in contradiction with
the principle of legal equality of the contracting parties if the
terms:
1) reduce the liability of the parties prescribed by law;
2) restrict the right of the consumer to conclude contracts
with third parties;
3) stipulate privileges to the manufacturer, trader or service
provider, and restrictions to the consumer;
4) [24 April 2014 / See Paragraph 22 of Transitional
Provisions];
5) put the consumer in a disadvantageous position and are
contrary to the requirements of good faith.
[24 April 2014 / See Paragraph 22 of Transitional
Provisions]
Section 6. Unfair Contractual
Terms
(1) In draft contracts drawn up in advance, a manufacturer,
trader, or service provider may not offer such contractual terms
as are in contradiction with the principle of legal equality of
the contracting parties, this Law or other laws and
regulations.
(11) A contractual term providing that a consumer
withdraws from his or her lawful rights shall be regarded as
unfair and not in effect.
(2) Contractual terms shall be expressed in plain and
comprehensible language.
(21) Ambiguous and imprecise terms of a written
contract shall be interpreted in favour of the consumer.
(22) Provisions of this Section shall not apply to
such contractual terms which define subject matter and price of
the contract or adequacy of the remuneration for the goods or
service, if they are expressed in plain and comprehensible
language.
(3) A contractual term which has not been mutually discussed
among the contracting parties shall be deemed to be unfair, if
contrary to the requirements of good faith it creates substantial
non-conformity with the rights and obligations of the contracting
parties provided for by the contract which is to the disadvantage
of the consumer. Contractual terms shall be deemed unfair if
they:
1) are in contradiction with Section 5 of this Law;
2) reduce the liability of the manufacturer, trader, or
service provider, or release them from liability in cases where
the consumer has incurred harm to health, or in a case of death
of the consumer, resulting from an act or failure to act of the
trader or the service provider;
3) unjustifiably restrict or exclude the possibility for the
consumer to exercise his or her lawful right to claim if the
manufacturer, trader or service provider has failed to fulfil
contractual obligations, or have fulfilled them partially,
including also the extinguishing of the claim of the
manufacturer, trader, or service provider with a counterclaim
from the consumer;
4) impose a disproportionately large contractual penalty or
other compensation for the non-fulfilment or unacceptable
fulfilment of the contractual obligations upon a consumer who
fails to fulfil the contractual obligations or fulfils them
unacceptably in comparison to losses caused by the non-fulfilment
or unacceptable fulfilment of the contractual obligations or
taking into account other conditions;
5) provide for the determination of the price of goods or
services at the moment of supply, or permit the manufacturer,
trader of service provider to increase the price and do not give
the consumer the right to revoke the contract if the final price
is unreasonably high in comparison with the price on which the
contracting parties agreed when concluding the contract;
6) restrict the obligation of the manufacturer, trader or
service provider to fulfil the commitments undertaken by their
representative, or subject such commitments to formalities;
7) exclude or hinder the right of the consumer to apply to
consumer rights protection institutions or to the court or to use
rights protection means, especially those providing for the
examination of disputes only in arbitration court, unjustifiably
restrict the use of proof available for a consumer or impose a
burden of proof on a consumer which in accordance with the laws
and regulations is an obligations of other contractual party;
8) permit a manufacturer, trader, or service provider to
unilaterally withdraw from a contract, except for the case when
such a possibility is ensured also for the consumer;
81) permit a manufacturer, trader, or service
provider to terminate an unlimited contract without warning,
except for the case when it has a justified reason;
9) provide for the automatic extension of the limited contract
if the consumer does not inform of the non-extension of the
contract, and determines an obligation for the consumer to
provide such information unjustifiably early before the end of
the term of the contract;
10) permit a manufacturer, trader, or service provider to
retain the amount paid by a consumer if the consumer withdraws
from the contract, but does not provide for the same possibility
for a consumer, respectively, to receive an equivalent amount if
the manufacturer, trader, or service provider withdraws from the
contract;
11) permit a manufacturer, trader, or service provider to
transfer their rights and obligations to other person, if thus
the amount of guarantee provided to a consumer is reduced without
the consent of the consumer;
12) permit a manufacturer, trader, or service provider to
unilaterally amend the contractual terms, except for the case
when it has a justified reason provided for in the contract;
13) permit a manufacturer, trader, or service provider to
unilaterally change the characteristics of the goods or service
without a justified reason;
14) permit the trader or the service provider to keep the
amount of money paid by the consumer for a service not yet
provided, if the trader or the service provider withdraws from
the contract;
15) make binding on a consumer a contract where the sale of
goods or provision of service is subject to the term the
performance of which depends only on the will of the
manufacturer, trader or service provider itself;
16) make binding on a consumer such contractual term with
which the consumer did not have any real possibility to become
familiar with before concluding the contract;
17) provide a manufacturer, trader, or service provider the
right to unilaterally determine whether the goods supplied or
services provided comply with the contractual terms, or provide a
manufacturer, trader, or service provider exclusive rights to
interpret any provisions of the contract;
18) impose an obligation on a consumer to fulfil all
contractual commitments, but a manufacturer, trader, or service
provider fails to fulfil its contractual commitments.
(31) The condition of Paragraph three, Clause 5 of
this Section shall not apply to provisions which provide a lawful
price indexation if the methodology for determining changes in
price is clearly provided for in the contract.
(32) The condition of Paragraph three, Clause
8.1 of this Section shall not apply to provisions of
contract for financial services in accordance with which the
service provider is entitled to terminate an unlimited contract
without a warning, if there is a justified reason for it and if
the service provider complies with an obligation to inform a
consumer immediately of the termination of the contract.
(33) The conditions of Paragraph three, Clause 12
of this Section shall not apply to:
1) the terms of a contract for financial services in
accordance with which the service provider is entitled to change
without a warning the interest rates which must be paid by a
consumer or disbursed to a consumer, or other payments for
financial services, if there is a justified reason for it and the
service provider complies with an obligation to inform a consumer
thereof as soon as possible, as well as the right to terminate a
contract immediately is intended for the consumer;
2) provisions according to which the trader or service
provider is entitled to unilaterally amend the terms of an
unlimited contract, if the trader or service provider complies
with an obligation to duly inform the consumer thereof and the
consumer is entitled to withdraw from the contract.
(34) The conditions of Paragraph three, Clauses 5,
8.1 and 12 of this Section shall not apply to
transactions with transferable securities, financial instruments
and other products or services, the price of which is related to
fluctuations in exchange price or exchange price index or
financial market rate, which the trader or the service provider
does not influence, and also to contracts for the purchase or
sale of foreign currency, traveller's cheques or international
money transfers in foreign currency.
(4) In assessing contractual terms, the nature of the goods
sold or services provided and all the circumstances under which
the contract was concluded, as well as the provisions of the
contract concluded and a contract associated therewith, shall be
taken into account.
(5) A contractual term shall always be deemed to be not
mutually discussed if the contract has been drawn up in advance
and therefore the consumer did not have an opportunity to
influence the content of the relevant contract; especially it
applies to standard contracts prepared in advance.
(6) If specific contractual terms or relevant aspects of
certain contractual provisions have been discussed, it may not
therefore be deemed that other contractual provisions have also
been mutually discussed.
(7) If a manufacturer, trader, or service provider maintains
that the contract terms have been mutually discussed with the
consumer, its obligation is to prove it.
(8) Unfair terms included in a contract concluded between a
manufacturer, trader, or service provider and a consumer shall
not be in force from the moment of concluding the contract, but
the contract shall remain effective if it may continue
functioning also after exclusion of the unfair provisions.
(9) [19 June 2008]
10) [18 June 2015]
(101) If losses are incurred by a consumer due to
unfair contractual terms, the consumer is entitled to bring an
action to court for the protection of his or her lawful rights
and interests.
(11) Upon resolving a dispute or carrying out other procedural
actions arising from the contract concluded between a
manufacturer, trader, or service provider and a consumer, the
court shall evaluate the terms of the contract and for the
resolution of the dispute shall not apply the unfair terms
provided for in the contract in relation to the consumer.
[22 November 2001; 19 June 2008; 21 May 2009; 28 October
2010; 24 April 2014; 18 June 2015]
Section 7. Contracts in Which the
Consumer is a Third Person
(1) In contracts by which the manufacturer or trader
undertakes to supply goods or the service provider undertakes to
provide services for the benefit of the consumer as a third
person, it shall be the obligation of the contracting party which
has received such promise to familiarise the consumer with the
contract concluded, and to provide him or her with an opportunity
to join therein within a specified period of time, so that the
consumer obtains an independent right to require performance of
such contract from the manufacturer, trader or service provider,
and compensation for losses in case of inappropriate performance
or delay.
(2) A manufacturer, trader, or service provider may not refuse
to conclude a contract or refuse to perform a contract concluded
for the supply of goods or provision of services to the consumer
as a third person only because other previous obligations have
not been settled with the person who has received the
promise.
Section 8. Consumer Credit
(1) According to a consumer credit agreement, the person who
is engaged in consumer crediting (hereinafter - the creditor)
shall grant or promise to grant credit to a consumer as a
deferred payment, loan, or other financial agreement. A contract
for the provision on a continuing basis of services or for the
supply of goods shall not be considered as a consumer credit
agreement within the meaning of this Law, if a consumer pays for
the services or goods during the operation of the contract in
instalments.
(11) A credit service may be provided to a consumer
by a capital company which has received a special permit
(licence) for the provision of a consumer credit service
(hereinafter - the special permit (licence)) and the minimum
amount of equity capital to be payable of which is EUR 425 000.
This requirement shall not be applied to:
1) a capital company which is to be considered a credit
institution in accordance with the laws and regulations governing
operation of credit institutions;
2) a manufacturer, trader, or service provider who offers to
pay for the acquisition of goods or services by means of a
deferred payment, loan, or other similar financial agreement, not
involving financing of the third person;
3) a merchant which according to the contract concluded
between a manufacturer, trader, or service provider, offers to
conclude only such consumer credit agreements for the acquisition
of goods or services, according to which the interest or other
additional payments are not paid;
4) a savings and loan company.
(12) A capital company shall pay a State fee for
the issuance of the special permit (licence) for the provision of
consumer credit services, as well as for the supervision of the
operation of a provider of credit services.
(13) The special permit (licence) is issued for an
indefinite period of time. The procedures for issuing,
cancelling, and suspending the operation of the special permit
(licence), the requirements to which a capital company must
conform to in order for it to receive the special permit
(licence), including the requirements for equity capital, as well
as the requirements in relation to members of the supervisory
board and executive board of a capital company, the amount of a
State fee for the issuance of the special permit (licence) and
the amount of the annual State fee for supervision of the
operation of the provider of credit services, and the procedures
for payment shall be determined by the Cabinet.
(14) Also such services within the framework of
which a consumer's property is accepted for sale or storage from
the consumer and the payment for the property is made at the time
of transfer of the property, if the right of the consumer to
withdraw from the contract is provided for in the contract
intending fee for it, shall be considered to be consumer credit
services.
(2) A consumer credit agreement shall be drawn up in writing
(on paper or on other durable medium), and each contracting party
shall be given one copy of such agreement. The payment for goods
or services shall be specified in cash.
(21) It is prohibited to conclude a consumer credit
agreement in the time period from 23.00 o'clock to 7.00 o'clock,
unless more strict restrictions for the provisions of the
consumer credit service are provided for in the laws and
regulations regarding consumer credit.
(22) The costs of a consumer credit agreement shall
be commensurate and corresponding to fair transaction practice.
The total costs of the credit to a consumer shall be calculated
in accordance with the procedures laid down in the laws and
regulations regarding consumer credit.
(23) Such total cost of the credit to a consumer
shall be considered as not corresponding to the requirements
referred to in Paragraph 2.2 of this Section which
exceed 0.07 per cent of the credit amount per day. Restriction of
the total costs of the credit to a consumer shall not be applied
to such consumer credit agreements upon the conclusion of which
an item is to be deposited as security in the creditor's
safe-keeping and according to which the liability of the consumer
is limited only to that pledged item.
(24) The amount of any expenses related to credit
in any consumer credit agreement providing for that a consumer
must repay the credit within a time period not exceeding three
months, including the sum of interest, late interest, contractual
penalties, commission fee, payments related to postponing the
time period and other payments related to the fulfilment of the
credit agreement, shall not exceed the sum of the credit issued.
This provision shall not apply to:
1) consumer credit agreements upon the conclusion of which an
item is to be deposited as security in the creditor's
safe-keeping and according to which the liability of the consumer
is restricted only to that pledged item;
2) contract with overdraft;
3) contracts, according to which the creditor has agreed
through the silence thereof that a consumer uses funds which
exceed the current balance in the consumer's current account or
granted overdraft credit.
(25) If a consumer credit agreement has been
concluded, using distance communication techniques, credit shall
be repaid in parts in proportion to the term of the agreement, as
well as the interest amount and the principal amount not less
than once a month, except for consumer credit agreements:
1) the credit repayment term of which is not more than one
month;
2) upon the conclusion of which the creditor grants an
overdraft credit to the consumer or such credit for the receipt
of which a payment card issued by the creditor should be
used.
(26) The provision of a consumer credit agreement
that provides for a possibility to request late interest from the
consumer shall not be in effect if the amount of such interest
exceeds 36 percent points above the loan rate per year. This
conditions does not apply to such consumer credit agreement in
which repayment of credit is ensured by an immovable property
mortgage or which has been concluded by the legal subject
referred to in Section 4.3, Clause 10 of this
Section.
(27) It is prohibited to determine promissory notes
as the means for the settlement of accounts in consumer
credit.
(28) In the consumer credit agreement which has
been concluded for a period of up to 30 days and which provides
for the repayment of the credit in one payment:
1) the amount of the loan may not exceed 50 per cent of the
amount of the minimum monthly salary specified in the State. This
provision shall not apply to credit agreements upon the
conclusion of which an item is to be deposited as security in the
creditor's safe-keeping and according to which the liability of
the consumer is restricted only to that pledged item;
2) it is prohibited to extend the term for the repayment of
the credit more than twice. This provision shall not apply to
cases when such payment schedule is offered according to which
the principal amount of the credit must be repaid in
instalments.
(3) A consumer has the right to fulfil his or her obligations
fully or partly at any time prior to the time period specified in
the consumer credit agreement. In such case, the consumer has the
right to fair reduction of the total cost of the credit, which
consists of interest and other costs during the remaining time
period of the contract. The abovementioned consumer rights shall
not apply to credit contracts referred to in Section
12.1, Paragraph eight, Clauses 2 and 4 of this
Law.
(4) The Cabinet shall determine the following:
1) the content of the information to be provided prior to
concluding a consumer credit agreement and the procedures for
providing it;
2) the conditions for the provision of additional
services;
3) the requirements to be brought forward for the consumer
credit agreement and the information to be included therein;
4) the method for calculating the annual interest rate;
5) the conditions for a foreign currency credit and a variable
interest rate credit;
6) informing of a consumer during the term of operation of the
credit agreement;
7) early repayment of a credit and fair reduction of the total
costs of the credit;
8) the requirements to be applied to certain types of credit
agreements;
9) the requirements to be set for giving advice;
10) the obligations of credit intermediaries and
representatives of credit intermediaries;
11) the legal framework for a consumer crediting against
movable property pledge.
(41) Prior to concluding a consumer credit
agreement, the creditor shall evaluate the consumer's
creditworthiness on the basis of sufficient information obtained
from the consumer and, where necessary, on the basis of data from
the databases established for the processing of personal data in
accordance with the laws and regulations (hereinafter - the
database) regarding person's income and fulfilment of payment
commitments, which is obtained in accordance with the procedures
laid down in the laws and regulations regarding personal data
protection and access to databases. If the refusal to issue a
credit is based on the data acquired from the database, the
creditor shall inform the consumer immediately and without charge
of the result of such consultation and of the particulars of the
database consulted.
(42) Before a consumer and the creditor agree on
any significant increase in the total amount of credit during the
term of operation of the credit agreement, the creditor shall
update the financial information at the disposal thereof
concerning the consumer and repeatedly assess the consumer's
creditworthiness. If the refusal to increase the total amount of
credit is based on the data acquired from the database, the
creditor shall inform the consumer immediately and without charge
of the result of such consultation and of the particulars of the
database consulted.
(43)The obligations specified in Paragraphs
4.1, 4.2, 4.4, and
4.7 of this Section shall not be applied to consumer
credit agreements:
1) [24 April 2014 / See Paragraph 21 of Transitional
Provisions]
2) in accordance with which the creditor grants the consumer
the right to use funds which exceed the current balance in the
consumer's current account (hereinafter - the overdraft credit)
and which must be repaid during a period of time that does not
exceed one month;
3) in accordance with which the creditor has agreed through
the silence thereof that a consumer uses funds which exceed the
current balance in the consumer's current account or granted
overdraft credit;
4) upon the conclusion of which an item is to be deposited as
security in the creditor's safe-keeping and in accordance with
which the liability of the consumer is limited only to that
pledged item;
5) which have been concluded between an employer and employee,
if the credit is granted without interest or at annual interest
rate lower than those prevailing on the market and which is not
offered to the public generally and if issuing of credits is not
the main activity of the employer;
6) which are concluded with investment companies or credit
institutions for the purposes of allowing an investor to make a
transaction relating to one or more of the instruments governed
in conformity with the laws and regulations regarding financial
instrument market, where the investment company or credit
institution granting the credit is involved in such
transaction;
7) which are the outcome of a settlement reached in court or
another institution specified in laws and regulations;
8) which are related to covering of a debt in the way of
deferred payments, without paying the interest and any other
additional charges;
9) which are related to loans granted, with a general interest
purpose, to a restricted public in accordance with the procedures
laid down in laws and regulations at lower interest rates than
those prevailing on the market or without interest, or in
accordance with other terms which are more favourable to the
consumer than those prevailing on the market and at interest
rates not higher than those prevailing on the market;
10) which are concluded by a manufacturer, trader, or service
provider for the purchase of goods or services in the way of
deferred payments, loan or other similar financial agreements and
according to which the credit is granted, without paying the
interest rate and without any other additional charges;
11) which provide that the consumer should repay the credit
within a period of time which does not exceed three months and in
accordance with which only insignificant additional charges are
requested for the use of the credit in comparison with the total
amount of the credit and the time period of the operation of the
credit agreement.
(44) When fulfilling the obligation laid down in
Paragraphs 4.1 and 4.2 of this Section, a
creditor has an obligation to request, acquire and evaluate
information regarding a consumer's income and expenses for the
fulfilment of the obligation in adequate amount. The consumer has
an obligation, upon a request of the creditor, to provide
information regarding his or her income and expenses. The
creditor may base on information which has been received only
from the consumer if it is sufficient and documentarily
justified. The creditor is entitled to grant a credit only after
it has evaluated the consumer's creditworthiness and the
evaluation attests that the credit liabilities will, most likely,
be fulfilled according to the provisions of the contract. If the
credit application is rejected, the creditor shall, without
delay, inform the consumer of such rejection and, in the relevant
case, also of the automation of the decision-making process.
(45) If the creditor grants a credit to a consumer
without evaluating the consumer's creditworthiness, the creditor
is not entitled to request that the consumer would pay more than
the lawful interest for the money use allocation granted in a
credit agreement and apply means of reinforcement of obligations
or compensation to the consumer. That referred to in this
Paragraph shall apply to such means of reinforcement of
obligations or compensation related to delay in payments, if a
reason for delay is the consumer's creditworthiness that has not
been assessed in compliance with the requirements of this Section
at the time of granting of the credit. That referred to in this
Paragraph shall not release the consumer from the obligation to
pay the remaining total amount of a credit in accordance with the
credit agreement.
(46) A claim for the reduction in interest payment
of the credit agreement in accordance with Paragraph
4.5 of this Section shall be brought to the court
within three years from the day of concluding the credit
agreement or substantial increase in the total amount of the
credit in accordance with the procedures laid down in the Civil
Procedure Law. In the claims for money recovery in which the
application is submitted by a creditor, a consumer has the right
to request the court to reduce a credit agreement interest
payment in conformity with Paragraph 4.5 of this
Section. In the case of dispute it shall be considered that the
creditor has not fulfilled the obligation laid down in Paragraphs
4.1, 4.2 and 4.4 of this Section
to evaluate the consumerʼs creditworthiness, unless the creditor
proves the contrary.
(47) For the creditors to be able, in accordance
with the requirements of this Law, to evaluate the consumer's
creditworthiness in cases when the information submitted by the
consumer is not sufficient and documentarily justified, as well
as the ability of the guarantor to fulfil the liabilities arising
from the guarantee contract, the creditors have an obligation to
mutually exchange information, with the intermediation of credit
bureaus, regarding the consumer or guarantor, their liabilities,
and the course of fulfilment of the liabilities to the extent
which is sufficient for the performance of the evaluation.
(48) So that, upon fulfilling the obligations
specified in Paragraphs 4.1, 4.2, and
4.4 of this Section, the creditor would have access to
the information which is included in the databases of all credit
bureaus, the credit bureau with which the creditor has concluded
a contract shall, upon a request of the creditor, request under
its assignment and receive the information from the databases of
other credit bureaus regarding the consumer or guarantor, their
liabilities, and the course of fulfilment of the liabilities.
(5) If the amount of credit is equal to EUR 100 or higher, the
creditor shall:
1) prior to the issuing of credit, request and receive a
statement from the State Social Insurance Agency or the State
Revenue Service on the income of the consumer or a statement with
a similar content from a tax administration of another country.
The abovementioned statement shall not be requested if the
consumer is a public official and information regarding his or
her income is publicly accessible;
2) prior to the issuing of credit to a consumer, by
documenting the implemented measures, evaluate the consumer's
creditworthiness, taking into account the documents referred to
in Clause 1 of this Paragraph;
3) ensure the storage of all documents associated with the
issuing of credit for one year after the fulfilment of the
obligations specified in the consumer credit agreement.
(6) [19 June 2008]
(7) [28 October 2010]
(8) The Cabinet shall determine the statement issued by the
State Revenue Service regarding the content of the income of the
taker of the credit, as well as the procedures for the requesting
and issuing of statements.
(9) The provisions of Paragraph five of this Section shall not
be applicable to the crediting of such transactions, which are
made with financial instruments.
(10) A credit, the amount of which is equal to 100 minimum
monthly wages or higher, shall be issued as follows:
1) in the amount of not more than 90 per cent of the market
value of the relevant immovable property, if its repayment is
ensured with an immovable property mortgage;
2) in the amount of not more than 95 per cent of the purchase
transaction amount or planned construction costs of the relevant
immovable property, if its repayment is ensured with an immovable
property mortgage and a State guarantee in conformity with the
State assistance for the purchase or construction of a housing
laid down in the law On Assistance in Solving Apartment
Matters.
(101) Consumer credit agreements in accordance with
which the purchase of a particular good is financed for the
amount exceeding EUR 1400, a credit shall be issued in the amount
of not more than 90 per cent of the price of the relevant good.
The provisions of this Paragraph shall not be applied to consumer
credit agreements for a credit repayment of which is ensured with
an immovable property mortgage.
(11) The provisions of Paragraphs five and nine shall not be
applied to consumer credit agreements which have been concluded
with inhabitants of another state if the purpose of the granting
of the credit is not the acquisition or utilisation of immovable
property or other property to be registered in the public
registers of the Republic of Latvia.
(12) If such credit agreement is concluded upon the conclusion
of which a consumer shall transfer some property for storage by a
creditor as a security and according to which the liability of
the consumer is limited only by the pledged property, the
creditor shall acquire the right to the sale of the pledge not
bought out for the discharge of the consumer's credit commitments
on the seventh day after the end of the term for repayment of the
credit indicated in the credit agreement.
(13) If the pledge referred to in Paragraph twelve of this
Section is not bought out until the end of the term for repayment
indicated in the credit agreement, a consumer has the right to
buy it out until the time when a creditor sells the
abovementioned property for the discharge of the debt
commitments. The fee requested for the buying out of the pledge
after the end of the term for buying out laid down in the credit
agreement for the use of the credit or administrative expenses
(if any have been provided for in the credit agreement concluded
by the parties) shall not exceed the fee or expenses which were
applied during the term of operation of the credit agreement.
(14) After the sale of the pledged property referred to in
Paragraph thirteen of this Section a creditor's right to claim
against a consumer shall terminate also in the case when the
income from the sale of the property is not sufficient for
covering of the consumer's credit obligations.
(15) Upon developing consumer credit services, granting
credits, providing credit intermediation services, giving advice,
providing additional services in relation to the credit services
to consumers, or fulfilling the liabilities referred to in the
credit agreement, the creditor, credit intermediary, or
representative of a credit intermediary shall act fairly, justly,
transparently, and professionally, taking into consideration the
rights and interests of the consumer. In the laws and regulations
governing consumer credit, giving of an advice shall mean the
provision of individual recommendations to the consumer regarding
one transaction or several transactions which are related to the
credit agreement and which are an activity separated from the
activities of granting a credit and credit intermediation.
(16) The institutions shall, according to their competence and
within the scope of the budget resources assigned, in cooperation
with consumer rights protection associations promote educating of
consumers in the field of consumer credit, particularly in issues
regarding responsible borrowing and management of debt
liabilities.
[17 May 2007; 19 June 2008; 28 October 2010; 20 December
2010; 9 June 2011; 19 September 2013; 24 April 2014; 18 September
2014; 28 May 2015; 18 June 2015; 9 June 2016; 4 October 2018
/ The new wording of Paragraph 2.3 shall come into
force on 1 July 2019. See Paragraph 34 of Transitional
Provisions]
Section 8.1 Special
Provisions in Relation to Credits the Repayment of Which is
Secured by an Immovable Property Mortgage or the Objective of
Which is to Acquire or Retain the Right to Immovable Property
(1) The activities referred to in Section 8, Paragraph fifteen
of this Law must be based on information regarding the
circumstances and needs of a consumer of which the consumer has
informed the creditor and on justified assumptions on the
potential risks which might occur for the consumer during the
term of operation of the credit agreement.
(2) The way in which the creditor is remunerating its staff
and credit intermediaries, as well as the way in which the credit
intermediary is remunerating its staff and representatives of the
credit intermediary may not be an obstacle for the conformity
with the obligation referred to in Section 8, Paragraph fifteen
of this Law.
(3) Upon developing and applying the remuneration policy to
the staff which evaluates the consumer's creditworthiness, the
creditor shall, according to the amount of activities, internal
work organisation, nature and complexity of the activity of the
creditor, ensure that:
1) the remuneration policy promotes justified and efficient
risk management and is compatible with it, as well as does not
encourage undertaking of risks which exceed the limit of the
admissible risk of the creditor;
2) the remuneration policy conforms to the operational
strategy, objectives, values, and long-term interests of the
creditor and includes measures for the prevention of conflicts of
interests and corruption risks, particularly providing for that
the remuneration does not depend on the number or proportion of
the credit applications accepted.
(4) If creditors, credit intermediaries, or representatives of
credit intermediaries give advice to a consumer, the structure of
the remuneration of the staff involved in giving advices shall
not prejudice the ability thereof to act in the interests of
consumers and does not particularly depend on the sales
objectives.
(5) Prior to concluding a consumer credit agreement, the
credit intermediary or representative of the credit intermediary
is prohibited from requesting any payments from the consumer
which are directly related to the conclusion of the consumer
credit agreement.
(6) The creditor, the credit intermediary, and the
representative of the credit intermediary have an obligation to
maintain the level of knowledge and competence of the staff
corresponding to the obligations thereof in relation to:
1) the development, offering, or granting of consumer credit
agreements;
2) the performance of credit intermediation activities, if
applicable;
3) the giving of an advice to the consumer, if applicable;
4) additional services, if the conclusion of the consumer
credit agreement includes an additional service.
(7) The creditor, credit intermediary, or representative of
the credit intermediary shall develop the policy for the
maintenance of the level of knowledge and competence of the staff
thereof, ensuring the professional qualification of the staff
with requirements in relation to the education of the staff, the
staff training programmes, or regular examinations of
competencies. At least the following knowledge must be included
in the requirements referred to in Paragraph six of this Section
in relation to the level of knowledge and competence:
1) regarding credit services and, if necessary, additional
services which are usually offered together with them;
2) regarding consumer rights protection and other legal acts
applicable to consumer credit agreements;
3) regarding the process of acquisition of an immovable
property, the evaluation of the security, the recording of the
immovable property, and the corroboration of the rights related
thereto in the Land Register;
4) regarding the credit market;
5) regarding ethics of economic activity;
6) regarding the process by which the consumer's
creditworthiness is assessed, or in the particular case - the
competence for the evaluation of the consumer's
creditworthiness;
7) regarding financial and economic issues.
(8) The creditor which has received a credit application from
a consumer has an obligation to offer him or her a choice of at
least two different credit agreement provisions one of which
foresees that the immovable property for the purchase of which a
credit is taken serves as a sufficient security to allow full
settlement of the liabilities against the creditor.
(9) In addition to the requirements referred to in Section 8,
Paragraphs 4.1 and 4.4 of this Law to
assess the consumer's creditworthiness, the creditor shall also
take into account other factors which are essential for
ascertaining the ability of the consumer to fulfil the
liabilities arising from the credit agreement, including the
information provided by the consumer to the credit intermediary
or representative of the credit intermediary in the process of
credit application, as well as the ability of the guarantor to
fulfil the liabilities arising from the guarantee contract. The
creditor shall duly check the obtained information, including, if
necessary, using information that can be checked in an
independent manner. The credit intermediary or representative of
the credit intermediary shall submit the information received
from the consumer which is necessary to assess the consumer's
creditworthiness to the relevant creditor.
(10) Prior to concluding a consumer credit agreement, the
creditor shall indicate in a clear and comprehensible manner what
information and evidence that can be checked in an independent
manner must be submitted by the consumer to assess his or her
creditworthiness, and the time limit for the submission of such
information. The request for such information shall be
commensurable and shall not exceed that necessary for the duly
performance of the abovementioned assessment. The creditor may
request adjustments in relation to the information received from
the consumer if it is necessary to assess the consumer's
creditworthiness. The creditor, the credit intermediary, and the
representative of the credit intermediary shall warn the consumer
that credit will not be granted if the consumer's
creditworthiness cannot be assessed due to incompleteness of the
submitted information.
(11) Prior to concluding a guarantee contract, the creditor
shall inform the guarantor of the consumer credit agreement of
the amount an nature of the liabilities of the guarantee and also
of the consequences thereof which shall set in if the guarantor
(principal debtor) does not fulfil the liabilities arising from
the consumer credit agreement.
(12) The creditor has an obligation to develop, document, and
store procedures and information on which the assessment on the
consumer's creditworthiness is based. The assessment may not be
based only on the value of an immovable property which exceeds
the amount of the credit or on an assumption that the value of an
immovable property will increase. The assessment may be based on
an assumption that the value of an immovable property will
increase if the objective of the consumer credit agreement is to
carry out construction work in the immovable property.
(13) The assessment of an immovable property may be performed
by an appraiser of immovable property certified in accordance
with the procedures laid down in laws and regulations. The
appraiser of immovable property has an obligation to ensure an
independent and objective assessment of an immovable property.
The assessment of an immovable property shall be stored on paper
or on a durable medium. The documentation shall be stored by the
creditor.
(14) The creditor is not entitled to request from a consumer
who has not committed any significant violation of the
contract:
1) additional security of the granted credit on the basis of
reduction of the value of immovable property in the credit
security due to the changes in the immovable property market;
2) any costs for the re-assessment of the security of a
mortgage credit during the term of operation of the contract,
except when the credit has been granted on the basis of an
assumption that the value of the immovable property in security
will increase;
3) the pre-term repayment of the credit granted.
(15) Paragraph fourteen of this Section shall not be applied
in cases when, according to a court ruling in effect, a recovery
has been brought against the security of the issued credit in
favour of third persons.
(16) If a consumer who has not committed any significant
violation of the contract asks to do it, the creditor has an
obligation to examine the proposal of the consumer regarding
extension of the period of time for credit repayment or change of
the currency of the credit. In case of refusal the creditor
shall, within 30 days, issue a motivated reply to the
consumer.
(17) The changes in contractual terms referred to in Paragraph
sixteen of this Section may not be less favourable for a consumer
in comparison with the existing market conditions at the time
when the changes to be made in the agreement are offered. The
consumer is entitled to request the making of the changes
referred to in Paragraph sixteen of this Section not less than
once a year. The creditor is not entitled to request any
compensation for making of such changes, except for a justified
and reasonable payment for administrative expenditures of the
service.
(18) Within the meaning of this Law, the following shall be
considered a significant violation of the contract:
1) delay of the repayment of credit or interest payment for
more than 60 days or more than three times a year for more than
30 days each time;
2) the use of credit for the purpose other than specified in
the contract;
3) intentional provision of false information for the receipt
of credit.
(19) The guarantor of the consumer credit agreement has the
right to request and the creditor has an obligation to provide
information regarding the payments made by the consumer according
to the consumer credit agreement, the term, payment schedule, and
the amount of the remaining debt liabilities.
(20) Prior to termination of the consumer credit agreement and
initiation of the alienation of immovable property, the creditor,
if possible, shall offer solutions to the consumer which would
allow continuation of the fulfilment of the liabilities arising
from the consumer credit agreement, as well as inform the
guarantor of the debt of the consumer, the possibility for the
guarantor to pay it or to take over the liabilities of the
consumer.
(21) The creditor has an obligation to store information
regarding the types of immovable property which are used as the
security, as well as regarding the policies and procedures
applied for the assessment of credit risk.
[9 June 2016]
Section 8.2 Procedures
for the Registration of a Credit Intermediary and a
Representative of a Credit Intermediary which Offer Credit to a
Consumer the Repayment of which is Secured with Mortgage on
Immovable Property or the Objective of which is to Obtain or
Retain the Right to Immovable Property
(1) When offering a consumer credit the repayment of which is
secured with mortgage on an immovable property or the objective
of which is to obtain or retain the right to an immovable
property, services of a credit intermediary and a representative
of a credit intermediary may be provided to a consumer by credit
intermediaries and representatives of credit intermediaries
registered in the Register of Credit Intermediaries and
Representatives of Credit Intermediaries or in the register of
competent institutions of another European Union Member State. A
person who only directly or indirectly introduces the consumer
with the creditor or credit intermediary shall not be considered
a credit intermediary.
(2) The Register of Credit Intermediaries and Representatives
of Credit Intermediaries shall be maintained by the Consumer
Rights Protection Centre.
(3) The procedures by which credit intermediaries and
representatives of credit intermediaries are registered in the
Register and deleted from the Register, the amount of information
to be included in the Register and the procedures for updating
it, the conditions for professional indemnity insurance, the
amount of the State fee for registration and the State fee for
annual supervision and the procedures for payment thereof, the
procedures for the cooperation with the competent institutions of
other European Union Member States, as well as the requirements
for credit intermediaries and representatives of credit
intermediaries shall be determined by the Cabinet.
[9 June 2016 / Paragraph one shall come into force
on 1 March 2017. Paragraphs two and three shall come into
force on 1 January 2017. See Paragraphs 32 and 33 of
Transitional Provisions]
Section 8.3 Restrictions
on Consumer Credit Advertising
(1) Credit services may not be advertised, except when:
1) it is implemented by the creditor or credit intermediary in
premises where it is performing economic activity;
2) it is implemented on the Internet website or online system
of the creditor or credit intermediary which, after
authentication, is used by the creditor for the receipt of
services;
3) it is implemented on the mobile application of the creditor
or credit intermediary which, after authentication, is used by
the consumer for the receipt of services of the creditor;
4) it is implemented by addressing the potential customer in
person or by telephone if the consumer agrees to it;
5) it is implemented via postal or electronic consignments to
a consumer if beforehand the consumer has unequivocally agreed to
receive them;
6) in an advertisement of goods or service not related to
credit, except for an advertisement in television or radio, a
person who is not a creditor or credit intermediary provides
information regarding a possibility of financing the payment with
the intermediation of a credit agreement.
(2) Paragraph one of this Section shall not apply to the brand
name advertising of the credit service provider. Advertising of
the brand name, including sponsorship, of credit service
providers is prohibited in projects implemented in television or
radio within the scope of public order which are funded from the
resources of State or local government budget.
[4 October 2018 / Section shall come into force on 1
July 2019. See Paragraph 34 of Transitional
Provisions]
Section 9. Contract Concluded
Outside the Permanent Location of Economic or Professional
Activity
(1) A contract between a consumer and trader or service
provider is concluded outside the permanent location of economic
or professional activity, if it is concluded:
1) in the physical presence of the consumer and trader or
service provider at the location other than the permanent
location of economic or professional activity of the trader or
the service provider;
2) upon invitation expressed by the consumer to the trader or
the service provider at the location other than the permanent
location of economic or professional activity of the trader or
the service provider;
3) at the permanent location of economic or professional
activity of the trader or the service provider or using means of
distance communication immediately after the trader or the
service provider has personally and individually addressed to the
consumer at the place other than the permanent location of
economic or professional activity of the trader or the service
provider, by a physical presence of the consumer and trader or
service provider;
4) during an excursion organised by the trader or the service
provider with the aim to promote popularity or demand of the
goods or service and sell the goods or provide services to the
consumer.
(2) The Cabinet shall determine the content of the information
to be provided prior concluding a contract and to be included in
a contract, the procedures for the provision thereof, the time
periods and procedures for exercising the right of withdrawal
provided for in Section 12 of this Law, the rights and
obligations of a consumer and trader or service provider in the
case of use of the right of withdrawal, and also a sample form of
withdrawal and exceptions in relation to informing of consumers
and use of the right of withdrawal.
(3) [24 April 2014 / See Paragraph 22 of Transitional
Provisions]
(4) The trader which sells the goods using automatic
goods-vending machine shall indicate the name (firm name) of the
trader, the registration number in the Enterprise Register or in
the Taxpayer Register of the State Revenue Service and the legal
address on the automatic goods-vending machine.
(5) A permanent location of economic or professional activity
shall be:
1) any immovable retail premises where the trader or the
service provider performs its activities on a permanent
basis;
2) any movable retail premises where the trader or the service
provider performs its on a usual basis.
[27 October 2005; 21 May 2009; 24 April 2014; 9 June
2016]
Section 10. Distance Contract
(1) A distance contract is an agreement between a consumer and
the trader or the service provider that they have concluded
without the simultaneous physical presence at the same location,
with the exclusive use of one or more means of distance
communication up to and including the time at which the contract
is concluded, as well as an organised sales or service provision
scheme. A phone, web, electronic mail, television, fax,
catalogue, advertisements published on press, to which an order
coupon is attached, and other distance means for information
sending and transmission shall be regarded as means of distance
communication.
(2) The Cabinet shall determine the content of the information
to be provided prior concluding a contract and to be included in
a contract, the procedures for the provision thereof, the time
periods and procedures for exercising the right of withdrawal
provided for in Section 12 of this Law, the rights and
obligations of a consumer and trader or service provider in the
case of use of the right of withdrawal, and also a sample form of
withdrawal and exceptions in relation to use of the right of
withdrawal.
[24 April 2014 / New wording of this Section shall
come into force on 13 June 2014. See Paragraph 22 of
Transitional Provisions]
Section 11. Contract on the Right of
Long-term Use of a Holiday Accommodation, Contract on Long-term
Holiday Services, Resale Contract on the Right of Long-term Use
of a Holiday Accommodation or on Long-term Holiday Services and
Exchange Contract on the Right of Long-term Use of a Holiday
Accommodation
(1) A contract on the right to long-term use of a holiday
accommodation (hereinafter in this Section - the contract on the
right of use of accommodation) means a contract which has been
concluded for a duration of more than one year and according to
which a consumer, for consideration, acquires the right to use
one or more holiday accommodations for more than one period
during the operation of the contract.
(2) A contract on long-term holiday services (hereinafter in
this Section - the contract on holiday services) means a contract
which has been concluded for a duration of more than one year and
according to which a consumer, for consideration, acquires the
right to obtain discounts or other benefits in respect of
accommodation services, in isolation or together with travel or
other services.
(3) A resale contract on the right of long-term use of a
holiday accommodation or on long-term holiday services
(hereinafter in this Section - the resale contract) means a
contract in accordance with which the trader, for consideration,
assists a consumer to sell or buy the right of temporary use of a
holiday accommodation or the right to receive other holiday
service.
(4) An exchange contract on the right of long-term use of a
holiday accommodation (hereinafter in this Section - the exchange
contract) means a contract in accordance with which a consumer,
for consideration, joins an exchange system which gives the right
for the consumer to use a holiday accommodation or other holiday
service in exchange for a permission of such consumer to other
persons to use the rights provided for in his contract on the
right of use of accommodation.
(5) An ancillary contract means a contract according to which
the consumer acquires a service related to a contract on the
right of use of accommodation or a contract on holiday services
from the service provider or a third party with which the service
provider has concluded a contract.
(6) Prior concluding a contract on the right of use of
accommodation, a contract on holiday services, a resale contract,
and an exchange contract, the information according to choice of
a consumer referred to in Paragraph thirteen of this Section
shall be provided in the language of the European Union Member
State in which the consumer is resident or a national, provided
that it is an official language of the European Union.
(7) A contract on the right of use of accommodation, a
contract on holiday services, a resale contract, and an exchange
contract shall be concluded in writing (on paper or on another
durable medium) and one copy of such contract shall be issued to
the consumer at the time of concluding the contract.
(8) A contract on the right of use of accommodation, a
contract on holiday services, a resale contract, and an exchange
contract shall be concluded in the language of the European Union
Member State in which the consumer is resident or a national, at
the choice of the consumer, provided that it is an official
language of the European Union.
(9) In calculating the duration of a contract on the right of
use of accommodation or a contract on holiday services, the
provisions of the contract regarding extension, also regarding
tacit renewal of the term of operation of the contract, shall be
taken into account.
(10) When concluding a contract on the right of use of
accommodation, a contract on holiday services, or an exchange
contract, it is prohibited to demand advance payments, provision
of guarantees, explicit acknowledgement of debt or any other
consideration to the trader or to any third party by the
consumer, as well as reservation of money on account of the
consumer is prohibited before the end of the period during which
the consumer may use the right of withdrawal.
(11) When concluding a resale contract, it is prohibited to
demand advance payments, provision of guarantees, explicit
acknowledgement of debt or any other consideration to the trader
or to any third party by the consumer, as well as reservation of
money on account of the consumer is prohibited before he or she
has sold his right of temporary use of holiday accommodation or
the right to receive a holiday service or the resale contract is
terminated.
(12) A consumer may use the right of withdrawal and to
withdraw unilaterally form a contract on the right of use of
accommodation, a contract on holiday services, a resale contract
or an exchange contract without provision of any
substantiation.
(13) Prior to concluding a contract on the right of use of
accommodation, a contract on holiday services, a resale contract,
and an exchange contract, clear information regarding significant
provisions of the contract shall be provided to the consumer. The
content of the information to be provided prior concluding a
contract and to be included in a contract, the procedures for the
provision thereof, the time period and procedures for exercising
the right of withdrawal, the withdrawal form and the effects of
exercising the right of withdrawal, as well as the special
requirements to be observed upon concluding the relevant
contract, shall be determined by the Cabinet.
[28 October 2010; 24 April 2014]
Section 12. Right of Withdrawal in
Respect of a Distance Contract and Contract Concluded Outside
Location of Economic or Professional Activity
(1) The consumer may use the right of withdrawal within a
specified time period and, without giving any reason, withdraw
from a distance contract and contract concluded outside permanent
location of economic or professional activity.
(2) Before expiry of the withdrawal period, the consumer shall
inform the trader or the service provider of his decision to
withdraw from the contract, by submitting withdrawal form or
notification regarding the use of the right of withdrawal. The
deadline shall be deemed to have been met if the consumer sends a
withdrawal form or notification regarding the use of the right of
withdrawal to the trader or the service provider before expiry of
the withdrawal period. The consumer has an obligation to prove
the use of the right of withdrawal.
(3) The trader or service provider is entitled to ensure the
option to the consumer to electronically fill in and submit
either the withdrawal form or a notification regarding the use of
the right of withdrawal on the trader's or service provider's
website. In such case the trader or the service provider shall
communicate to the consumer an acknowledgement of receipt of such
a withdrawal on a durable medium (including electronic mail)
without delay.
(4) Sending of a withdrawal form or notification regarding the
use of the right of withdrawal within the deadline shall
terminate a contract and release a consumer from any contractual
obligations arising from the distance contract or contract
concluded outside location of economic or professional activity,
or from obligations to conclude such contracts, if the offer is
expressed by the consumer.
(5) The consumer shall send back the goods to the trader or
the service provider or hand them over to the trader or the
service provider or to his person authorised to receive the
goods, without undue delay and in any event not later than 14
days from the day on which he has sent a withdrawal form or
notification regarding use of the right of withdrawal to the
trader or the service provider. The deadline shall be deemed to
have been met if the goods are sent back before the period of 14
days has expired. This requirement shall not apply to the cases
when the trader or the service provider himself or herself has
offered to take the goods back.
(6) The trader or the service provider shall reimburse all
payments received from the consumer, including the costs of
delivery paid by the consumer without undue delay and in any
event not later than 14 days from the day on which he is informed
of the consumer's decision to withdraw from the contract in
accordance with Paragraph two of this Section. The trader or the
service provider shall carry out the reimbursement referred-to
amount of money using the same means of payment as the consumer
used for the initial transaction, unless the consumer has
expressly agreed to other means of payment and provided that the
consumer does not incur any fees as a result of us of such means
of payment.
(7) If a consumer has expressly opted for a type of delivery
other than the least expensive type of standard delivery offered
by the trader or the service provider, the trader or the service
provider shall not be required to reimburse the supplementary
costs.
(8) The trader or the service provider is entitled to withhold
the reimbursement of the amount of money paid by the consumer in
accordance with a purchase contract until the trader or the
service provider has received the goods back, or until the
consumer has supplied evidence of having sent back the goods to
the trader or the service provider, whichever is the earliest.
Such right shall not apply to the cases when the trader or the
service provider has offered to take the goods back by
himself.
(9) The consumer shall bear the direct costs of returning the
goods, except for the cases when the trader or the service
provider has agreed to bear such costs or has not informed the
consumer that the costs have to be covered by the consumer.
(10) If in accordance with the contract concluded outside
location of economic or professional activity the goods have been
delivered to the consumer's place of residence at the time of
concluding the contract, in the case of exercising of the right
of withdrawal the trader or the service provider shall collect
the goods free of charge if, by their nature, those goods cannot
normally be returned by post.
(11) The consumer shall be liable for any diminished value of
the goods resulting from the handling of the goods other than
what is necessary to establish the nature, characteristics and
functioning of the goods. The consumer shall in any event not be
liable for diminished value of the goods where the trader or the
service provider has failed to provide notice of the right of
withdrawal in accordance with the procedures laid down in the
laws and regulations governing consumer rights protection.
(12) If the consumer exercises the right of withdrawal during
the period of exercising thereof and, in relation to a distance
contract or a contract been concluded outside the permanent
location of economic or professional activity, another additional
contract is concluded according to which the consumer obtains
goods or services in relation to a distance contract or a
contract concluded outside the premises of the undertaking and
the abovementioned goods are delivered by the trader or the
abovementioned services are provided by the service provider or
third party, on the basis of a mutual agreement between the
relevant third party and the trader or service provider, such
additional contract is terminated and the consumer does not have
an obligation to cover any other costs, except for the costs
referred to in Paragraphs seven, nine, and eleven of this
Section.
[24 April 2014; 18 June 2015; 9 June 2016]
Section 12.1 Right of
Withdrawal in Relation to Consumer Credit Agreement
(1) A consumer shall have a period of 14 calendar days in
which to withdraw from the consumer credit agreement without
giving any reason. The period of withdrawal shall begin from the
day of concluding a consumer credit agreement, or from the day on
which the consumer receives the information specified in the laws
and regulations regarding a consumer credit agreement,
contractual terms and conditions, if they are received after the
day of concluding the credit agreement.
(2) The consumer shall notify the creditor regarding
exercising of the right of withdrawal in writing in accordance
with the consumer credit agreement. The deadline shall be deemed
to have been met if the consumer sends the creditor a
notification regarding exercising of the right of withdrawal (on
paper or on another durable medium that is available to the
creditor) before the deadline specified in Paragraph one of this
Section expires.
(3) The consumer has a duty to pay to the creditor the amount
of the credit received and for the use of the credit from the day
of receipt of the credit until the day on which it is repaid, the
interest accrued, without any undue delay, not later than 30
calendar days after the despatch by him or her to the creditor of
notification of the withdrawal. The interest shall be calculated
on the basis of the borrowing rate specified in the credit
agreement.
(4) If the consumer exercises the right of withdrawal in
accordance with this Section, the creditor is not entitled to any
other compensation from the consumer, except the compensation for
any non-returnable charges paid by the creditor to any public
person.
(5) If the consumer exercises the right of withdrawal in
accordance with this Section and in relation to the consumer
credit agreement and ancillary contract for a service which is
provided by the creditor or by a third party on the basis of an
agreement concluded by and between the third party and the
creditor has been concluded, the ancillary service contract is
terminated.
(6) If the consumer has the right of withdrawal in accordance
with this Section, the laws and regulations regarding a distance
contract on provision of financial services and the laws and
regulations regarding a contract concluded outside a permanent
location of sale or place for provision of services shall not be
applied in relation to the period of time, procedures and effects
of exercising of the right of withdrawal.
(7) Exercising of the right of withdrawal in accordance with
this Section shall not affect the validity of the contract on
purchase of goods or services, if a consumer credit agreement has
been concluded for the purchase of goods or service.
(8) The requirements of this Section shall not apply:
1) to consumer credit agreements according to which the credit
amount may not exceed or does not exceed EUR 140;
2) to consumer credit agreements in accordance with which a
creditor grants the consumer the overdraft credit which must be
repaid upon request or within a period time which does not exceed
three months;
3) [9 June 2016];
4) to consumer credit agreements in accordance with which a
creditor has agreed through the silence thereof that a consumer
uses funds which exceed the current balance in the consumer's
current account or granted overdraft credit;
5) to consumer credit agreements upon concluding which an item
is to be deposited as security in the creditor's safe-keeping and
according to which the liability of the consumer is limited only
to that pledged item;
6) to consumer credit agreements which have been concluded
between an employer and employee, if the credit is granted
without interest or at annual interest rate lower than those
prevailing on the market and which is not offered to the public
generally and if issuing of credits is not the main activity of
the employer;
7) to consumer credit agreements which are concluded with
investment companies or credit institutions for the purposes of
allowing an investor to carry out a transaction relating to one
or more of the instruments governed in accordance with the laws
and regulations regarding financial instrument market, where the
investment company or credit institution granting the credit is
involved in such transaction;
8) to consumer credit agreements which are the outcome of a
settlement reached in court or another institution specified in
laws and regulations;
9) to consumer credit agreements which are related to covering
of a debt in the way of deferred payments without the paying
interest and any other additional charges;
10) to consumer credit agreements which are related to loans
granted, with a general interest purpose, to a restricted public
in accordance with the procedures laid down in laws and
regulations and at lower interest rates than those prevailing on
the market or without interest, or in accordance with other terms
which are more favourable to the consumer than those prevailing
on the market and at interest rates not higher than those
prevailing on the market;
11) to such hiring or leasing contracts where an obligation to
purchase the object of the contract is not stipulated, if such
obligation is not provided for also in other contracts
concluded;
12) to consumer credit agreements according to which the
credit is granted without interest and any other additional
charges;
13) to consumer credit agreements which provide that the
consumer should repay the credit within a period of time which
does not exceed three months and according to which only
insignificant additional charges are requested for the use of the
credit in comparison with the total amount of the credit and the
time period of the operation of the credit agreement;
14) to consumer credit agreements in which the creditor and
the consumer agree on repayment procedures, if the consumer has
not fulfilled the obligations of the initial credit agreement and
such procedures would be likely to avert the possibility of legal
proceedings concerning non-fulfilment of obligations specified in
the consumer credit agreement and the consumer would not thereby
be subject to terms less favourable than those laid down in the
initial consumer credit agreement.
(9) If a consumer credit agreement for the acquisition of an
immovable property or an agreement the repayment of which is
secured with mortgage on immovable property has been concluded,
the parties to the consumer credit agreement may agree that the
period of exercising the right of withdrawal ends at the moment
when the ownership rights or mortgage has been registered in the
Land Register or the amount of credit has been transferred to the
third party indicated in the consumer credit agreement.
[28 October 2010; 19 September 2013; 9 June 2016]
Chapter
III
Conformity of Goods and Service to Provisions of a Contract
[24 April 2014 / The new
wording of the title of this Chapter shall come into force on 13
June 2014. See Paragraph 22 of Transitional
Provisions]
Section 13. Duty of the Trader or
Service Provider to Ensure the Conformity of Goods with the
Provisions of a Contract
(1) The trader and the service provider have an obligation to
ensure the conformity of goods with the provisions of a
contract.
(2) The trader and the service provider shall be responsible
for any non-conformity of goods with the provisions of a contract
existing on the day when the goods are purchased.
(3) If non-conformity of goods with the provisions of a
contract is discovered within six months after the purchase of
goods, it shall be considered that it existed on the day when the
goods were purchased, except the case when such assumption is in
contradiction with the nature of goods or type of
non-conformity.
[24 April 2014 / The new wording of this Section
shall come into force on 1 January 2016. See Paragraph 23
of Transitional Provisions]
Section 14. Conformity of Goods and
Service with the Provisions of a Contract
(1) Goods shall be considered conforming to the provisions of
a contract, if:
1) they have the inherent characteristics and performance
which normally are inherent in the same type of goods and which a
consumer may justifiably expect taking into account the nature of
the goods and any, especially public notifications provided in
the advertisement or on the labelling of the goods regarding
specific characteristics of the goods;
2) they are fit for the purposes for which goods of similar
name and description are generally used;
3) they are fit for the purposes for which the consumer has
chosen the goods and which he or she has communicated to the
trader or the service provider when concluding contract, except
for cases where the trader or the service provider could not
comprehend such specific purposes at the time of selling and the
consumer had no valid reasons to rely on the competence and
judgement of the trader or the service provider;
4) they conform to the description and characteristics of the
goods provided by the trader or the service provider, which upon
concluding contract or expressing an offer were indicated by the
trader or the service provider, using sample or model goods.
(2) Public notifications referred to in Paragraph one, Clause
1 of this Section shall not be binding on the trader or the
service provider if he or she proves that:
1) he or she did not know and justifiably could not know
regarding the provided notifications;
2) the notification has been changed until the time of
concluding the contract;
3) the notification could not affect a decision of the
consumer to buy the goods.
(3) Goods shall not be considered to be in non-conformity with
the provisions of a contract if upon concluding the contract the
consumer knew or could not be non-informed regarding
non-conformity of the goods to the provisions of the contract or
a reason of non-conformity is materials supplied by the
consumer.
[24 April 2014 / The new wording of this Section
shall come into force on 1 January 2016. See Paragraph 23
of Transitional Provisions]
Section 14.1 Conformity
of Goods and Service with the Provisions of a Contract
(1) It is the duty of the service provider to provide service
in conformity with the provisions of a contract.
(2) A service shall be considered conforming to the provisions
of a contract, if:
1) the content of the service, type of performance and result
conforms to the agreed upon;
2) the service is provided with professional diligence taking
into account the interests of the consumer;
3) the service conforms to the requirements that are
justifiably set out for such services.
(3) A service shall not be considered to be in non-conformity
with the provisions of a contract if upon concluding the contract
the consumer was aware of or could not be uninformed regarding
non-conformity of the service to the provisions of the contract
or a reason of non-conformity is materials supplied by the
consumer.
[24 April 2014 / Section shall come into force on 1
January 2016. See Paragraph 23 of Transitional
Provisions]
Section 15. Exception With Respect
to Offering and Selling of Goods, or Provision of Services, of
Inadequate Quality
[22 November 2001]
Section 16. Guarantee
(1) A guarantee is a free of charge promise by the
manufacturer or trader to repay the amount of money paid for the
goods or articles, to exchange the goods or articles for
conforming goods or articles, to eliminate any non-conformity of
the goods or articles free of charge or perform other activities
if the goods or articles fail to conform to the characteristics
provided for in the advertisement.
(2) The guarantee shall be given in writing and it shall
clearly set out conditions for the submission of a claim with
respect to the guarantee and the period of guarantee - the period
of time to which the guarantee applies, as well as the name (firm
name), or given name, surname and address of the guarantor. It
shall be indicated in the guarantee that the consumer has
specific rights in accordance with laws and regulations, and that
the guarantee does not affect such rights. If the guarantee does
not conform to these provisions, it shall not influence the
validity of the guarantee and the consumer is entitled to request
that the guarantee be fulfilled.
(3) The guarantee shall be binding to the issuer thereof in
conformity with the conditions of the guarantee document and the
information included in the relevant advertisement.
[21 May 2009]
Chapter
IV
Information Regarding Goods and Services
Section 17. Provision of
Information
(1) Before the consumer is bound by a contract or any
corresponding offer, the trader or the service provider shall
provide the consumer with the following information in a clear
and comprehensible manner, if that information is not already
apparent from the context:
1) the main characteristics of the relevant goods or service
to the extent appropriate to the type of provision of the
information and the goods or services;
2) the data of the trader or the service provider, including
his trading name, the address and telephone number;
3) the total price of the goods or services inclusive of taxes
or fees. Where the nature of the goods or services is such that
the price cannot be calculated in advance, the manner in which
the price is to be calculated shall be indicated;
4) where applicable, delivery or postal charges. Where those
charges cannot be calculated in advance, the fact that such
additional charges may be payable shall be notified;
5) where applicable, the arrangements for payment, delivery of
goods or performance of a service, the time by which the goods
shall be delivered or the service performed, and complaint
handling policy;
6) information regarding lawful rights of the consumer, if the
goods or service does not conform to the provisions of the
contract, as well as information regarding guarantee, the
conditions thereof and after-sales services, where
applicable;
7) in the relevant case, the term of the contract or the
conditions for the termination of the contract if the contract
has been concluded for an indefinite period or has been extended
automatically;
8) where applicable, the digital content and use thereof
(functionality), including types of use, technical restrictions
and technical protection measures;
9) where applicable, any relevant interoperability of digital
content with hardware and software (standard hardware and
software environment with which the digital content is
compatible, for example, main features of the hardware, operating
system and versions thereof), if the trader or the service
provider is aware of or can reasonably be expected to have been
aware of.
(2) The consumer has the right to demand that additional
information is also provided orally.
(3) The procedures for indicating the selling price and the
unit measurement price of the goods offered to the consumer, as
well as the procedures for indicating the price of services,
shall be governed by Cabinet regulations.
(4) Paragraph one of this Section shall not apply to:
1) contracts that are related to everyday transactions and are
performed immediately at the moment of concluding it;
2) contracts that are concluded outside permanent location of
economic or professional activity;
3) distance contracts.
[29 April 2004; 24 April 2014; 18 June 2015; 9 June
2016]
Section 18. Information Regarding
Manufacturer
[24 April 2014 / See Paragraph 22 of Transitional
Provisions]
Section 19. Information Regarding
Specific Characteristics of Goods
Technically complicated goods, as well as goods which contain
dangerous substances or the use of which requires specific
skills, shall be supplied by the manufacturer with directions for
use and warning signs or symbols. If the information included in
the directions for use is in a foreign language, a translation of
the information into the official language shall be attached.
Section 19.1 Information
Regarding Out-of-court Settlement of Disputes
(1) The trader or service provider shall inform the consumer
regarding one or several solvers of disputes, who are included in
the list of out-of-court solvers of disputes published on the
website of the Consumer Rights Protection Centre and who solve
disputes in the respective area, indicating also the website
address of the out-of-court solvers of disputes.
(2) The trader or the service provider shall provide the
information referred to in Paragraph one of this Section in
clear, comprehensible and easily accessible way on its website
(if any) or include in the provisions of a contract (if any).
(3) If during examination of a dispute the trader or service
provider refuses to satisfy the claim of the consumer, it shall
provide the information referred to in Paragraph one of this
Section to the consumer in writing or using other durable
medium.
(4) That laid down in this Section shall not concern the
requirements laid down in other laws and regulations for
informing of consumers.
[18 June 2015]
Section 20. General Requirements for
Labelling of Goods
(1) The information provided on the labelling shall be clearly
visible and comprehensible, and it shall objectively reflect the
safety or harmlessness and the quality of the goods. The
information provided on the labelling shall not attribute such
characteristics to the goods as they do not possess, or lead the
purchaser to think that the goods possess certain specific
characteristics, if all goods of the relevant type have such
characteristics.
(2) The labelling shall be indelible. The information provided
on the labelling shall be clear, and other written information,
picture or sticker shall not cover it.
(3) The manufacturer or the trader shall ensure that the
information included in the labelling of goods is provided to the
consumer in compliance with the laws and regulations governing
the use of the official language.
(4) It is prohibited for the trader to offer and sell goods
with such information on their labelling, or with such
presentation of labelling, as fails to meet the requirements of
this Law and other laws and regulations.
(5) The general requirements for the labelling of goods shall
not apply to selling of second-hand goods.
Section 21. Specific Labelling of
Goods
(1) Goods and groups of goods that require specific labelling,
as well as the procedures for labelling of the goods and groups
of goods referred to, shall be determined by the Cabinet.
(2) [22 March 2007]
[22 November 2001; 22 March 2007]
Section 21.1 Sales and
Prices Reductions
[24 April 2014]
Chapter
IV1
Procedures for Organising of Trade and Provision of Services
[21 May 2009]
Section 21.2 Observation
of the Principles of Good Commercial Practice
In organising the selling of goods or provision of services,
professional diligence and honesty with respect to consumers
shall be observed.
Section 21.3 Information
Regarding Trader or Service Provider
The information regarding the trader or the service provider
[name (firm name)] and working hours shall be indicated at the
location of permanent sale or service provision.
Section 21.4 Arrangement
of Location of Provision of Service and Sale
(1) The location of service provision and sale shall be
arranged and prepared so as to identify the service provider or
trader and the goods owned by him or her.
(2) If several traders are trading in the trade territory,
building or room, the manager shall approve the plan, indicating
the following:
1) the layout and number of buildings, premises or locations
of trade to be rented;
2) the trader's name and registration number in the Enterprise
Register or in the taxpayer register of the State Revenue
Service.
Section 21.5 Organising
of Trade at Trade Locations to be Agreed upon with Local
Government
The Cabinet shall issue regulations, by which the types of
trade to be agreed upon with a local government are specified and
the procedures for organising of trade are regulated. The Cabinet
is entitled to authorise in such regulations a local government
council to issue the binding regulations of the local government,
which would regulate certain issues of the procedures for
organising of trade in more detailed way.
[28 October 2010]
Chapter V
Associations for Consumer Rights Protection
[27 October 2005]
Section 22. Formation of
Associations for Consumer Rights Protection
Consumers are entitled to voluntarily unite in associations
the purpose of which is to protect consumer rights and which
organisations act in accordance with laws and regulations and
articles of association of the relevant public organisation for
consumer rights protection.
[27 October 2005]
Section 23. Rights of Associations
for Consumer Rights Protection
Associations for consumer rights protection have the right
to:
1) participate, together with supervisory and control
institutions for consumer rights protection, in inspections
related to conformity with the quality requirements of the goods
to be manufactured and sold and the services to be provided;
2) examine complaints and proposals of consumers, provide
necessary assistance to consumers in cases where their rights
have been violated;
3) submit statements of claim to a court regarding the
protection of consumer rights and interests, and to represent the
interests of consumers in court;
4) purchase goods and order services in order to perform
comparative examinations of goods, services, and manufactured
articles;
5) submit proposals to the Consumer Rights Protection Centre
for the performance of the activities referred to in Section 25,
Paragraph eight of this Law.
[22 November 2001; 27 October 2005]
Chapter
VI
Supervision and Control of Consumer Rights Protection
Section 24. Supervisory and Control
Institutions
(1) The supervision and control of consumer rights protection
determined in this Law and other laws and regulations shall be
implemented by the Consumer Rights Protection Centre, and other
competent and authorised State institutions in co-operation with
local governments and associations for consumer rights
protection.
(2) The supervision and control of conformity with the
requirements referred to in Section 8.1, Paragraphs
six and seven of this Law in relation to creditors which are
participants of the financial and capital market within the
meaning of Section 4 of the Law on the Financial and Capital
Market Commission shall be performed by the Financial and Capital
Market Commission.
[9 June 2016]
Section 25. Consumer Rights
Protection Centre
(1) The Consumer Rights Protection Centre shall be subject to
the control of the Ministry of Economics which shall be
implemented in the form of supervision.
(2) The Director of the Consumer Rights Protection Centre
shall be appointed to and released from office by the Cabinet on
the recommendation of the Minister for Economics.
(3) The purpose of the Consumer Rights Protection Centre shall
be to ensure the effective protection of consumer rights and
interests.
(4) The main functions of the Consumer Rights Protection
Centre shall be the following:
1) to supervise and control the trade of non-food products and
the sector of provision of services, except for the sectors where
in accordance with laws and regulations the market supervision
and control are within the competence of other institutions;
2) to specify the correct determination of the weights and
measures of food and non-food products, as well as the
supervision of correct calculation of payment for purchases;
3) to organise and co-ordinate the co-operation of
non-government organisations for consumer rights protection and
the supervisory and monitoring institutions for consumer rights
protection involved in implementation of the State policy;
4) to provide assistance to consumers in the settlement of
disputes with traders or service providers;
41) to assess submissions and complaints received
regarding infringements of the laws and regulations regarding
consumer rights protection, taking into account the significance
of the possible infringements and potential harm to the
collective interests of consumers;
42) to organise the operation of the Commission for
Settlement of Consumer Disputes (carrying out of the functions of
the secretariat of the commission);
5) to provide legal assistance to consumers regarding issues
of consumer rights protection;
6) to supervise conformity with consumer rights regarding
draft contracts and contracts concluded between consumers and
manufacturers, traders or service providers, also the performance
of activities provided for in laws and regulations in order that
the manufacturer, trader, or service provider make changes in
draft contracts or discontinue performance of the contract terms
if unfair or ambiguous contract provisions are determined in the
draft contract;
61) to supervise unfair commercial practice and
advertising, except the field of medicinal products and
veterinary medicinal products, in order to ensure the observance
of consumer rights and economic interests;
62) to issue a special permit (licence) for the
provision of consumer credit services;
7) to perform functions specified in other laws and regulatory
enactments.
(5) [27 October 2005]
(6) When defending consumer rights and lawful interests, the
Consumer Rights Protection Centre shall have the right to submit
a statement of claim or application to a court or to provide an
opinion on the matter.
(61) Officials of the Consumer Rights Protection
Centre, in performing market supervision and consumer rights
supervision, are entitled at any time (also without prior
notification) to arrive at the manufacturer, trader or service
provider.
(7) The requirements set and instructions given by officials
of the Consumer Rights Protection Centre, within the scope of
their competence as determined by laws and other regulatory
enactments, shall be binding on the manufacturer, trader, and
service provider in each particular case.
(8) If a violation of the consumer rights has been determined,
which affects group consumer interests (collective interests of
consumers) and it may cause losses or harm to consumers, as well
as to a particular consumer, the Consumer Rights Protection
Centre, having evaluated the nature and essence of the violation,
as well as other aspects, is entitled to carry out one or several
following activities:
1) to propose that the manufacturer, trader or service
provider makes a commitment in writing to rectify the violation
within the specified time period;
2) to take a decision, by which the manufacturer, trader or
service provider is required to cease the violation, and to
perform specific activities in order to rectify the impact
thereof and which determine the time period for the
implementation of such activities;
3) to publish the decision taken either fully or partially on
the home page of the Consumer Rights Protection Centre and in the
gazette Latvijas Vēstnesis (the costs associated with the
publication shall be covered by the manufacturer, trader or
service provider).
(81) The Consumer Rights Protection Centre shall
perform the activities abovementioned in Paragraph eight of this
Section:
1) upon its own initiative;
2) on the basis of a submission of the association for
consumer rights protection;
3) on the basis of the information provided by such
institution within the competence of which is the supervision and
control of the relevant sector;
4) on the basis of a submission of such institution of the
European Union Member State which is included in the list
referred to in Article 4(3) of Directive 2009/22/EC of the
European Parliament and of the Council of 23 April 2009 on
injunctions for the protection of consumers' interests.
(82) If a manufacturer, trader or service provider
in accordance with the provisions of Paragraph eight, Clause 1 of
this Section has signed a commitment in writing, it shall be
considered that the manufacturer, trader or service provider has
acknowledged his or her guilt in the determined infringement, and
in such case the Consumer Rights Protection Centre shall not take
the decision referred to in Paragraph eight, Clause 2 of this
Section. If the commitment is not fulfilled, the Consumer Rights
Protection Centre shall take the decision referred to in
Paragraph eight, Clause 2 of this Section and the manufacturer,
trader or service provider shall be held to liability specified
by laws and regulations.
(83) Upon taking the decision abovementioned in
Paragraph eight, Clause 2 of this Section, the Consumer Rights
Protection Centre shall not apply the condition laid down in
Section 6, Paragraph 2.1 of this Law regarding
ambiguous and imprecise interpretation of the terms of the
contract.
(84) Upon receipt of a person's submission
regarding unfair contract provisions or the infringements of
other laws and regulations regarding consumer rights protection,
the Consumer Rights Protection Centre shall evaluate whether an
infringement of consumer rights, which has caused or could have
caused significant harm to collective interests of consumers, has
been committed. If it does not arise from the information
provided for in the submission or the materials attached thereto
that a violation of consumer rights, which has caused or could
have caused significant harm to collective interests of
consumers, has been committed, the Consumer Rights Protection
Centre is entitled not to initiate administrative matter. In such
case the Consumer Rights Protection Centre shall prepare a reply
to this person.
(85) In examining a person's submission regarding
infringements of consumer rights, which apply to or could be
applied to collective interests of consumers, the Consumer Rights
Protection Centre shall perform supervision measures in order of
priority, taking into account the following:
1) the supervision priorities specified in the working plan
for the current year;
2) the utmost efficient use of financial resources granted for
the institution;
3) the number of submissions received regarding a particular
person and particular violation;
4) the possible harm or harm committed to the collective
interests of consumers;
5) the nature and duration of the violation;
6) the particular market sector.
(86) The Consumer Rights Protection Centre shall
compile and analyse the data regarding the complaints and
submissions received and use this information for the development
of subsequent supervision and control programmes. The Consumer
Rights Protection Centre shall inform the higher institution
responsible for the relevant sector regarding current complaints
and the tendencies thereof on regular basis.
(9) The decision referred to in Paragraph eight, Clause 2 of
this Section shall be in effect on the day when the addressee
becomes aware of it. The manufacturer, trader, or service
provider may appeal the abovementioned decision in accordance
with the procedures specified in the Administrative Procedure
Law. The appeal of the decision shall not suspend the operation
thereof.
(10) Before of the end of the specific time period in the
decision referred to in Paragraph eight, Clause 2 of this
Section, the manufacturer, trader, or service provider shall
inform the Consumer Rights Protection Centre regarding the
implementation of the specified activities. If the manufacturer,
trader, or service provider has not implemented the specified
activities by the end of the specified time period, or has not
informed the Consumer Rights Protection Centre regarding the
implementation thereof, the Consumer Rights Protection Centre
shall apply the administrative penalty provided for the relevant
violation according to the procedures specified by law.
(101) The decisions of the Consumer Rights
Protection Centre may be appealed to a court in accordance with
the procedures laid down in the Administrative Procedure Law.
(11) The Consumer Rights Protection Centre, in recovering
expenses in respect of the laboratory or other type of
expert-examination of goods purchased or services used by
consumers, shall be released from the payment of court costs.
(12) The Consumer Rights Protection Centre is entitled to
establish a consultative council, including therein
representatives of State institutions, consumer rights protection
associations, manufacturer, trader, and service provider
organisations, as well as to issue recommendations in respect of
consumer rights protection issues.
[22 November 2001; 29 April 2004; 27 October 2005; 19 June
2008; 21 May 2009; 28 October 2010; 18 June 2015 / The new
wording of Paragraph four, Clause 4 and Clause 4.2
shall come into force on 1 January 2016. See Paragraph 27
of Transitional Provisions]
Section 25.1 Decision of
the Consumer Rights Protection Centre on Interim Measure
(1) If the Consumer Rights Protection Centre has a reason to
believe that a violation of consumer rights has been or may be
committed and it may cause immediate and significant harm to the
economic interests of the particular consumer group, it is
entitled to take as interim measure one or several decisions, by
which:
1) an obligation to terminate the violation immediately is
imposed upon the manufacturer, trader or service provider;
2) prohibits the action of the manufacturer, trader or service
provider, which may cause the violation, if it has not been
committed yet but is likely to be committed.
(2) The decision on interim measure shall be valid from the
time of notification thereof until the time when it is cancelled
or amended by the decision of the Consumer Rights Protection
Centre or when the final decision of the Consumer Rights
Protection Centre comes into effect.
(3) The decision of the Consumer Rights Protection Centre on
the interim measure may be appealed by the manufacturer, trader,
or service provider, in respect of which the interim measure has
been issued, to a district administrative court within 10 days
after the day of entering into effect thereof. The appeal of the
decision shall not suspend the operation thereof.
(4) The court shall adjudicate by written procedure the
application regarding the decision of the Consumer Rights
Protection Centre regarding the interim measure within 14
days.
(5) The decision of the court referred to in Paragraph four of
this Section cannot be appealed and shall come into effect upon
the adoption thereof.
[21 May 2009; 28 October 2010]
Section 26. Examination of
Complaints and Submissions of Consumers and Consulting of
Consumers
(1) Complaints, submissions and information regarding possible
violations of the consumer rights protection laws and regulations
shall be submitted to the institution within the competence of
which is the supervision and control of the relevant sector.
(2) A complaint or a submission of a person regarding possible
administrative violation in the field of consumer rights
protection shall not be considered an application or materials in
an administrative violation matter.
(3) If the Consumer Rights Protection Centre or other
institution, within the competence of which is the supervision
and control of the relevant field, upon examining the received
complaint of the person regarding the violation of the individual
rights thereof, has any reasonable doubts that the submitter of
the complaint is not a consumer within the meaning of this Law
because he or she has acted within the scope of his economic or
occupational activity in the relevant situation, the relevant
institution is entitled to request that he or she provides the
necessary information within the specified period of time (the
data regarding the obligations of the submitter of the complaint
existing in the credit register, the information regarding
transactions performed, etc.), which attests that he or she has
acted as a consumer in the relevant situation. If the submitter
of the complaint has not provided the requested information, the
institution is entitled to terminate examination of the
complaint.
(4) [18 June 2015 / See Paragraph 27 of Transitional
Provisions]
(5) Upon receipt of a submission of the consumer in which
information or consultation is requested regarding the consumer
rights, the Consumer Rights Protection Centre and other
institution, within the competence of which is the supervision
and control of the relevant field, shall prepare a reply
providing the necessary information. If a phone number is
specified in the submission by which it is possible to contact
the consumer, the Consumer Rights Protection Centre and other
institution, within the competence of which is the supervision
and control of the relevant field, are entitled to provide the
information or consultation via phone or to offer the receipt
thereof in person, if the consumer agrees thereto. If an
electronic mail address is specified in the submission by which
it is possible to contact the consumer, the Consumer Rights
Protection Centre and other institution, within the competence of
which is the supervision and control of the relevant field, are
entitled to send a reply only in electronic form, signing it with
a secure electronic signature, unless the consumer has specified
that he or she would like to receive a reply in writing. The
activities referred to in this Section shall be performed within
a month starting from the day of receipt of the submission.
(6) [18 June 2015 / See Paragraph 27 of Transitional
Provisions]
(7) [18 June 2015 / See Paragraph 27 of Transitional
Provisions]
(8) If a consumer has asked information or consultation, for
the provision of which it is necessary to perform additional
activities, the institution shall perform such activities within
four months after the day of receipt of the submission, informing
the submitter regarding receipt of the submission and activities
performed not later than within one month of the day of receipt
of the submission. If it is not possible to observe the time
period of four months, the head of the institution may extend it
up to one year, notifying the submitter thereof.
(9) [18 June 2015 / See Paragraph 27 of Transitional
Provisions]
[28 October 2010; 24 April 2014; 18 June 2015 /
Amendments to Section shall come into force on 1 January
2016. See Paragraph 27 of Transitional Provisions]
Chapter
VI1
Procedures for Settling Disputes between the Consumer and the
Trader or Service Provider
[18 June 2015 / This
Chapter shall come into force on 1 January 2016. See
Paragraph 27 of Transitional Provisions]
Section 26.1 Settlement
of Disputes with the Trader or Service Provider
(1) Any dispute arising between a consumer and the trader or
service provider shall be settled by negotiation, upon the
parties trying to reach an agreement.
(2) If it is not possible to settle a dispute between a
consumer and a trader or service provider by negotiation, the
consumer shall submit a written submission to the trader or
service provider, indicating therein:
1) his or her given name, surname, address of the place of
residence and contact information;
2) the date of submitting the submission;
3) the essence of the dispute, his or her claim and its
justification.
(3) An electronically submitted submission shall not require a
signature.
(4) Copies of documents confirming the transactions, as well
as other documents justifying the submission (if possible) shall
be appended to the submission.
(5) The trader or service provider shall, within 15 working
days from the day of receipt of the submission, provide a written
reply to the consumer to the submission and inform regarding the
potential way of carrying out the claim or solving the dispute,
if an agreement regarding carrying out of the claim or
alternative way of carrying out the claim has not been reached in
the abovementioned time period.
(6) If due to objective reasons it is not possible to provide
a reply to the submission of the consumer within the time period
referred to in Paragraph five of this Section, the trader or
service provider shall inform the consumer thereof in writing
without delay, indicating a reasonable time period, within which
the reply will be provided, as well as shall justify the
necessity for such extension.
(7) If the trader or service provider is of the opinion that
the claim of the submitter is not justified, or is ready to offer
another solution for the dispute to the consumer, it shall inform
the consumer thereof in writing within the time period referred
to in Paragraph five of this Section. The trader or service
provider has an obligation to justify refusal to the claim of the
consumer.
(8) If the consumer is satisfied by the solution offered by
the trader or service provider, the dispute shall be deemed as
solved.
(9) If the trader or service provider does not provide a reply
to the submission of the consumer within the time period
specified in Paragraph five or six of this Section, it shall be
deemed that the trader or service provider refuses to satisfy the
claim of the consumer.
(10) If the trader or service provider refuses to satisfy the
claim of the consumer or the consumer is not satisfied with the
solution offered by the trader or service provider, the consumer
is entitled to turn to:
1) the Consumer Rights Protection Centre in order to receive
assistance in solving the dispute;
2) a out-of-court solver of consumer disputes, if such has
been established in the relevant field;
3) the Commission for Solving the Consumer Disputes, if the
assistance provided by the Consumer Rights Protection Centre in
solving the dispute has not ensured a results and it is possible
to convene the Commission for Solving the Consumer Disputes in
the relevant field for examining a dispute;
4) the court.
Section 26.2 Assistance
of the Consumer Rights Protection Centre in Solving a Dispute
(1) Having received a submission from a customer regarding a
dispute with a trader or service provider, the Consumer Rights
Protection Centre depending on the circumstances referred to in
the submission shall provide assistance to the consumer in
solving the dispute, if necessary, carrying out negotiations with
the trader or service provider.
(2) The Consumer Rights Protection Centre shall examine a
submission of the consumer regarding a dispute with the trader or
service provider, if all of the following conditions are
conformed to:
1) the consumer has turned with the complaint or submission to
the trader or service provider at first and tried to resolve
conflict via reconciliation;
2) the submission of the consumer regarding a dispute with a
trader or service provider is submitted not later than within a
year from the day when the complaint or submission of a consumer
is submitted to the trader or service provider;
3) written materials and other proofs substantiating the
existence of the dispute and subject-matter of the dispute have
been appended to the submission.
Chapter
VI2
Commission for Solving the Consumer Disputes
[18 June 2015 / This
Chapter shall come into force on 1 January 2016. See
Paragraph 27 of Transitional Provisions]
Section 26.3 Commission
for Solving the Consumer Disputes and Its Competence
(1) The Commission for Solving the Consumer Disputes
(hereinafter - the Commission) is an independent collegial
decision-making body, which on the basis of a submission of a
consumer solves a dispute between the consumer and the trader or
service provider. The work of the Commission shall be ensured by
the Consumer Rights Protection Centre.
(2) The Commission is the out-of-court solver of disputes in
accordance with the Law on Out-of-Court Solvers of Consumer
Disputes.
(3) Chairperson and members of the Commission shall be
independent and objective in examining a dispute and taking a
decision and are not subject to order or other influence.
(4) In examining disputes, the Commission shall apply the
procedures laid down in this Law.
(5) The Commission shall not examine a dispute, if:
1) the consumer has not turned to the trader or service
provider in order to solve the dispute by negotiation;
2) the dispute is insignificant or vexatious;
3) the dispute is examined or has been examined by an
out-of-court dispute resolution body, as well as if solving of
the dispute is within the competence of an out-of-court dispute
resolution body;
4) the dispute is regarding goods or service the price of
which does not exceed EUR 20, or regarding goods or service the
price of which exceeds EUR 14 000;
5) solving of the dispute would cause serious disturbances in
efficient operation of the Commission;
6) the dispute is regarding health care services;
7) the dispute is regarding legal services;
8) the dispute is regarding services related to the use of
residential premises;
9) the dispute is regarding losses, payment documents or debt
recovery;
10) insolvency of the trader or service provider has been
declared;
11) the dispute is regarding the insurance service of civil
legal liability of vehicle owners of motor vehicles;
12) since the day when the complaint or submission was
submitted to the trader or service provider, more than a year has
passed.
[9 June 2016]
Section 26.4 Composition
of the Commission
(1) The Commission shall consist of the chairperson and
members of the Commission. Members of the Commission shall be the
representatives and specialists of the consumer rights protection
associations referred to in Section 22 of this Law and
associations of merchants in the field in which the dispute is
examined, or they have corresponding experience in the resolution
of such disputes.
(2) The associations referred to in Paragraph one of this
Section have the right to delegate a representative for
participation in the Commission, informing the Consumer Rights
Protection Centre thereof, which shall draw up and update the
list of members of the Commission.
(3) Upon proposal of the director of the Consumer Rights
Protection Centre the list of chairpersons of the Commission
shall be drawn up and updated by the Minister for Economics.
(4) An employee of the Consumer Rights Protection Centre may
fulfil the duties of a member of the Commission, if he or she is
included in the list referred to in Paragraph two of this Section
and if in the field, in which the dispute is examined, it is not
possible to invite a representative of the consumer rights
protection association in the composition of the Commission.
Section 26.5 Requirements
to be Brought Forward to the Candidates of Chairpersons and
Members of the Commission
(1) The following person may be the chairperson of the
Commission:
1) who has the necessary knowledge and skills in out-of-court
solving of consumer disputes or solving of disputes in the court,
as well as general knowledge regarding law and higher education
in social sciences;
2) who is proficient in the Latvian language;
3) who has good reputation;
4) who has not been punished for intentional criminal offences
or has been rehabilitated, or whose criminal record has been
removed or extinguished;
5) who is not a member of the consumer rights protection
associations referred to in Section 22 of this Law or of
associations of merchants.
(2) The following person may be a member of the
Commission:
1) who has secondary vocational education or higher education
and experience in the represented sector or in the field of
consumer rights protection;
2) who is proficient in the Latvian language;
3) who has not been punished for intentional criminal offences
or has been rehabilitated, or whose criminal record has been
removed or extinguished.
Section 26.6 Expenses
Related to Examination of Disputes and Operation of the
Commission
(1) Solving of disputes at the Commission is free of
charge.
(2) The chairperson of the Commission shall receive
remuneration for participation in the Commission. The amount of
the remuneration for the participation of the chairperson of the
Commission in a meeting of the Commission and the procedures for
disbursing such remuneration shall be determined by the
Cabinet.
(3) The consumer rights protection associations referred to in
Section 22 of this Law may be financed for the participation in
solving of consumer disputes and for the promotion of the use of
mechanisms for out-of-court solving of consumer disputes from the
resources from the State budget assigned for such purpose to the
Consumer Rights Protection Centre in the current year. The
conditions for assigning the financing for participation in
solving of consumer disputes and for the promotion of the use of
mechanisms for out-of-court solving of consumer disputes, as well
as the procedures for supervising the utilisation of such
financing shall be determined by the Cabinet.
(4) Expenses related to the operation of the Commission are
covered from the resources assigned for such purpose in the
budget of the Consumer Rights Protection Centre.
Chapter
VI3
Procedures for Examining Disputes at the Commission for Solving
the Consumer Disputes
[18 June 2015 / This
Chapter shall come into force on 1 January 2016. See
Paragraph 27 of Transitional Provisions]
Section 26.7 Submission
Regarding Examination of a Dispute
(1) A consumer shall submit a submission regarding examination
of a dispute to the Consumer Rights Protection Centre in
writing.
(2) The consumer shall include the following information in
the submission regarding examination of a dispute:
1) his or her given name, surname, address of the place of
residence and contact information;
2) contact information of the trader or service provider (for
a natural person - the given name, surname and address; for a
legal person - the name, registration number and legal
address);
3) the essence of the dispute, his or her claim and its
justification;
4) information confirming that measures have been taken for
solving the dispute, upon agreement with the trader or service
provider.
5) a certification that the dispute regarding the issue
referred to in the submission is not being and has not been
examined with an out-of-court dispute resolution body.
(3) The consumer shall append such documents to the submission
which justify the request, including a copy of the document
confirming the transaction (cheque or another payment
confirmation), as well as a copy of the complaint or submission
submitted to the trader or service provider and of the reply
received (if possible).
(4) An electronic submission shall not require a
signature.
(5) If the submission of the consumer does not conform to the
requirements of Paragraphs two and three of this Section or all
the necessary documents have not been appended thereto, the
consumer shall be informed regarding deficiencies and a time
period for their elimination shall be determined. If deficiencies
are not eliminated within the specified time period, the consumer
shall be informed in writing that the dispute will not be
examined. If the information referred to in Paragraph two and the
documents referred to in Paragraph three of this Section have
already been submitted to the Consumer Rights Protection Centre,
they need not be re-submitted.
(6) If examination of the dispute is not within the competence
of the Commission in accordance with Section 26.3,
Paragraph three of this Law, the consumer shall be informed
thereof not later than within three working days from the day
when a submission of the consumer regarding examination of a
dispute has been received.
[9 June 2016]
Section 26.8 Preparation
for Examination of a Dispute
(1) Upon receipt of a submission for the examination of a
dispute, a copy of the submission shall, without delay, but not
later than within 10 working days, be sent to the trader or
service provider.
(2) The trader or service provider shall, within 15 days from
the day of receipt of the copy of the submission referred to in
Paragraph one of this Section, provide a reply regarding the
information referred to in the submission of the consumer and
inform regarding the potential solution to the dispute (if any)
or provide a justification for refusal of carrying out the
claim.
(3) A copy of the reply of the trader or service provider
shall be, without delay, but not later than within 10 working
days from the day of receipt of the reply, sent to the
consumer.
(4) If the consumer is satisfied by the solution to the
dispute offered by the trader or service provider, the dispute
shall be deemed as solved.
(5) If the consumer is not satisfied by the solution to the
dispute offered by the trader or service provider or if the
trader or service provider has not provided a reply within the
specified time period, the parties to the dispute are informed
regarding transfer of examination of the dispute to the
Commission.
[9 June 2016]
Section 26.9 Inviting of
the Composition of the Commission for Examination of a Particular
Dispute
(1) The Commission, the composition of which shall include the
persons from the list referred to in Section 26.4,
Paragraph two of this Law, shall be established for examination
of a particular dispute (also several equivalent or similar
disputes).
(2) The composition of the Commission for examination of a
particular dispute shall include not less than three persons, one
of whom is the chairperson of the Commission, and representatives
of consumer rights protection associations and associations of
merchants in equal amount.
(3) The chairperson or a member of the Commission shall,
without delay, inform regarding circumstances which affect or may
affect his or her independence or impartiality.
(4) In the case referred to in Paragraph three of this Section
the respective chairperson or member of the Commission is not
included in the composition of the Commission.
Section 26.10 Time Period
for Examination of a Dispute
(1) The Commission shall examine a dispute and take a decision
not later than within 90 days from the day when all the documents
necessary for taking of a decision have been received.
(2) In case of a complex dispute, the chairperson of the
Commission is entitled to extend the abovementioned time period
for up to one year, informing the parties to the dispute of the
reasons for extension and the expected time that will be
necessary to complete the examination of the dispute.
[9 June 2016]
Section 26.11 Examination
of a Dispute
(1) The Commission shall examine a dispute at its meeting
without the presence of parties to the dispute and decide on the
dispute on the basis of information submitted by the parties to
the dispute (written procedure).
(2) If it is not possible to solve the dispute without oral
explanations of the parties or it is more efficient and quicker
to examine it upon the parties to the dispute being present, the
Commission may decide on inviting the parties to the dispute to
its meeting (oral procedure). Parties to the dispute are informed
regarding the meeting of the Commission not later than two weeks
in advance.
(3) Both parties to the dispute have equal rights to become
acquainted with the case materials, express their opinion and
defend their rights.
(4) The parties are entitled to attract specialists during
examination of the dispute or to use representation or assistance
of a third party as they deem necessary and on their own
account.
(5) During examination of a dispute any party to the dispute
may invite an expert for provision of an opinion or propose that
other activities are performed, the purpose of which is to obtain
evidence. If any of the parties to the dispute wish to invite an
expert or to perform other activities, the purpose of which is to
obtain evidence, then this party shall also cover the respective
expenses.
(6) If until the moment when the decision of the Commission is
taken the parties agree on solution to the dispute, the
Commission shall terminate examination of the dispute.
Section 26.12 Decision of
the Commission
(1) After examining the dispute the Commission shall take a
decision in its meeting with a simple majority of votes. The
member of the Commission who has participated in examination of
the dispute is not entitled to refrain from voting.
(11) If the Commission partly satisfies the claim
of the consumer in the decision, it may decide, on the basis of a
conclusion of an expert-examination paid by the consumer, that
the expenses of the expert-examination must be covered by the
trader or the service provider.
(2) The Commission shall take a decision to terminate the
dispute, if it is not possible to solve the dispute due to
objective reasons or because of lack of evidence in the case.
(3) Information regarding the consumer and the trader or
service provider, the essence of the dispute, the decision taken,
its justification and legal norms applied shall be indicated in
the decision of the Commission.
(4) The decision of the Commission shall be sent to the
parties to the dispute within five working days after taking
thereof.
(5) The decision of the Commission shall be of recommendatory
nature, and it shall not be subject to contestation or
appeal.
(6) The decision of the Commission shall enter into effect
upon notification thereof. The decision shall be deemed
notified:
1) on the eighth day, counting the time period from the day
when it was registered as the document to be sent, if the
decision was sent in the form of a simple postal item;
2) on the seventh day after handing it over at the postal
office, if the decision was sent in the form of a registered
postal item;
3) on the second working day after sending thereof, if the
decision was sent by electronic mail.
(7) The decision of the Commission shall be carried out
voluntarily within 30 days after the day of entering into effect
thereof, except the case when a longer time period for carrying
out is specified in the decision of the Commission. If the trader
or service provider is assigned, in the decision of the
Commission, to perform the activities necessary for execution of
the request of the consumer, the consumer shall inform regarding
performance thereof.
(8) The current information regarding decisions of the
Commission not being carried out may be posted on the website of
the Consumer Rights Protection Centre. Upon request of the trader
or service provider information regarding continuation of
examination of a dispute in the court shall be appended to the
information posted on the website.
[9 June 2016]
Chapter
VII
Consumer Claims
[24 April 2014 / The new
wording of the title of the Chapter shall come into force on 13
June 2014. See Paragraph 22 of Transitional
Provisions]
Section 27. Consumer Claims
Regarding Goods and Services not in Conformity with the
Provisions of a Contract
(1) A consumer is entitled to submit a claim to the trader or
service provider in respect of the non-conformity of goods or
service with the provisions of a contract within two years of the
day of purchase of the goods or receipt of the services. The
consumer shall submit a statement of claim to the trader or
service provider within two months from the day when he or she
has discovered the non-conformity of the goods or service with
the provisions of a contract. The date shall be considered as the
date of purchase of the goods when the trader or the service
provider has delivered and the consumer has received the relevant
goods.
(2) If a manufacturer or trader of goods or the service
provider has issued a guarantee for the goods or the services,
the consumer is entitled, after the end of the time period
referred to in Paragraph one of this Section, to submit a claim
with respect to the all of the remaining period of the guarantee
in accordance with the conditions indicated in the guarantee
document. A claim submitted by the consumer shall be examined in
conformity with the conditions laid down in the guarantee
document.
(3) [18 June 2015 / See Paragraph 30 of Transitional
Provisions]
[22 November 2001; 19 June 2008; 24 April 2014; 18 June
2015 / See Paragraph 30 of Transitional
Provisions]
Section 28. Consumer Rights, if
Goods not in Conformity with the Provisions of a Contract Are
Sold or Given for Use to a Consumer
(1) A consumer to whom goods not conforming to the provisions
of a contract are sold or given for use is entitled to require
the performance of one of the following actions by the trader or
service provider:
1) rectification of the non-conformity of the goods with the
provisions of the contract;
2) exchange of the goods for such goods, with which conformity
with the provisions of the contract would be ensured;
3) appropriate reduction of the price of the goods;
4) revocation of the contract and repayment to the consumer of
the amount paid for the goods.
(2) Firstly the consumer is entitled to request that the
trader or service provider rectifies the non-conformity of the
goods with the provisions of the contract free of charge or
exchanges the goods for such with which conformity with the
provisions of the contract is ensured free of charge, except the
case where it is not possible or is disproportionate.
(3) Elimination of the non-conformity of the goods or exchange
thereof shall be considered as disproportionate, if it causes
such costs to the trader or service provider which are not
proportionate to the alternative means referred to in Paragraph
one of this Section taking into account:
1) the value of the goods without non-conformity;
2) the significance of non-conformity;
3) whether the use of alternative means does not cause
significant inconveniences for the consumer.
(4) The goods shall be exchanged or their non-conformity with
the provisions of the contract shall be eliminated free of charge
(including without compensation for the consignment of the goods,
work, materials and other costs) and within a reasonable time
period, without creating inconvenience to the consumer and taking
into account the nature of the goods, as well as the intended
purpose of use thereof.
(5) The consumer is entitled to request that the trader or
service provider reduce the price of the goods or revoke the
contract accordingly and repay the consumer the amount of money
paid for the goods, if the trader or service provider within a
reasonable time period has not rectified the non-conformity of
the goods with the provisions of the contract or has not
exchanged the goods against the goods conforming to the
provisions of the contract or if the abovementioned actions are
performed causing significant inconvenience to the consumer. When
reducing the price or revoking the contract and repaying the
consumer the amount of money paid for the goods, the depreciation
of the goods or benefit acquired by the consumer using the goods
may be taken into account and regarding which the contracting
parties have agreed.
(6) If the non-conformity of the goods with the provisions of
the contract is minor and cannot substantially affect the
possibility of the consumer using the goods, the consumer cannot
require the trader or service provider to revoke the contract and
repay the amount paid for the goods. The non-conformity of the
goods with the provisions of the contract is deemed to be minor
if it does not reduce the quality of the performance of the basic
functions of the goods or characteristics of use, and it can be
rectified without creating changes in the external appearance of
the goods that can be visually determined.
(7) If the goods have become goods not conforming to the
provisions of the contract as a result of incorrect or poor
quality installation, but the installation of the goods has been
performed by the trader or a third person according to the
contract concluded with the trader, as well as if the consumer
has installed the goods according to incorrect (imprecise)
instructions for use or instructions for use not translated into
the official language, then the goods are deemed to be not
conforming to the provisions of the contract and the consumer is
entitled to require fulfilment of the requirements provided for
in this Section from the trader.
(8) Exercising the rights referred to in Paragraph one of this
Section shall not exclude the right of a consumer to demand
compensation for losses or payment of a contractual penalty.
(9) Goods not conforming to the provisions of the contract of
large size and goods weighing more than 10 kilograms shall be
transported for the rectification of deficiencies, exchange, or
revocation of contract by the trader or service provider at his
expense. If the trader or service provider refuses to transport
such goods, the consumer is entitled to transport the goods
himself or herself, or with the assistance of a third person, but
at the expense of the trader or service provider.
(10) If the consumer transports the goods, the trader or
service provider shall, within three working days after receipt
of the document confirming the expenses, compensate for the
expenses incurred by the consumer due to transportation of the
goods.
[24 April 2014 / The new wording of this Section
shall come into force on 1 January 2016. See Paragraph 23
of Transitional Provisions]
Section 29. Consumer Rights if
Service Non-Conforming to the Provisions of a Contract Has Been
Provided
(1) The consumer, for whom a service not conforming to the
provisions of a contract has been provided, is entitled firstly
to request that the service provider rectifies non-conformity
with the provisions of the contract of the provided service free
of charge. If it is not possible, the consumer is entitled to
request that the service provider reduces the price of the
service or repays the amount of money paid for the service
accordingly. In reducing the price or revoking the contract and
repaying the consumer the amount of money paid for the service,
the benefit, which has been acquired by the consumer using the
service and regarding which the contracting parties have agreed,
may be taken into account.
(2) The service provider has an obligation to fulfil such
request referred to in Paragraph one of this Section, which is
appropriate and proportionate taking into account the nature of
the service and non-conformity thereof, as well as not causing
inconvenience for the consumer.
(3) Exercising the rights referred to in Paragraph one of this
Section shall not exclude the right of a consumer to demand
compensation for losses or payment of a contractual penalty.
[24 April 2014 / The new wording of this Section
shall come into force on 1 January 2016. See Paragraph 23
of Transitional Provisions]
Section 30. Consumer Rights if Goods
are not Delivered or Service Is not Provided Within a Specified
Period of Time
(1) Unless the parties have agreed otherwise, the trader or
the service provider shall deliver the goods by transferring them
into possession of the consumer without undue delay, but not
later than 30 days from the conclusion of the contract.
(2) Where the trader or the service provider has failed to
fulfil his or her obligation to deliver the goods within the
specified time period agreed upon with the consumer or within the
time period set out in Paragraph one of this Section, the
consumer shall request the trader or the service provider to make
the delivery of goods within an additional time period
appropriate to the circumstances. If the trader or the service
provider fails to deliver the goods within that additional time
period, the consumer is be entitled to unilaterally withdraw from
the contract.
(3) Paragraph two of this Section shall not be applicable, if
the trader or the service provider has refused to deliver the
goods or if delivery of goods within the period of time agreed by
the contracting parties is essential taking into account all the
circumstances of the conclusion of the contract or if the
consumer informs the trader or the service provider, prior to the
conclusion of the contract, that delivery of goods by or on a
specified date is essential. If the trader or the service
provider fails to deliver the goods at the time agreed upon with
the consumer or within the time period set out in Paragraph one
of this Section, the consumer is entitled to unilaterally
withdraw from the contract immediately.
(4) Unless the contracting parties have agreed otherwise, the
service provider shall provide a service within a reasonable
period of time taking into account the nature and amount of the
service.
(5) If the service provider has failed to fulfil his or her
obligation to provide a service at the specified time agreed upon
with the consumer or within the time period set out in Paragraph
four of this Section or provides the service only partly, the
consumer shall request the service provider to provide the
service within an additional period of time appropriate to the
circumstances. If the service provider fails to provide the
service within that additional time period, the consumer is
entitled to unilaterally withdraw from the contract.
(6) Paragraph five of this Section shall not be applicable if
the service provider has refused to provide the service or if the
provision of the service within the time period agreed by the
contracting parties is essential taking into account all the
circumstances of the conclusion of the contract or if the
consumer informs the service provider, prior to the conclusion of
the contract, that provision of the service by or on a specified
date is essential. If the service provider fails to provide the
service at the time agreed upon with the consumer or within the
time limit set out in Paragraph four of this Section, the
consumer shall be entitled to unilaterally withdraw from the
contract immediately.
(7) If the consumer withdraws unilaterally from a contract in
accordance with that laid down in this Section, the trader or the
service provider shall, without undue delay, reimburse the
consumer all amounts paid by the consumer in accordance with the
contract.
[24 April 2014 / New wording of this Section shall
come into force on 13 June 2014. See Paragraph 22 of
Transitional Provisions]
Section 30.1 Passing of
Risk for Delivery of Goods
(1) When supplying goods to the consumer, the risk of loss of
or damage to the goods shall pass to the consumer when the
consumer or his representative has acquired the physical
possession of the goods.
(2) Where the consumer has selected to assign delivery of the
goods to the carrier and such possibility was not offered by the
trader or the service provider, the risk of loss of or damage to
the goods shall pass to the consumer upon delivery to the
carrier. In such case the consumer is entitled to bring an action
against the carrier in accordance with the procedures laid down
in The Civil Law.
(3) This Section shall not be applied to supply of water, gas
or electricity, except for the cases where water, gas or
electricity are put up for sale in a limited volume or a set
quantity, as well as to contracts for the district heating and
contract for supply of such digital content which is not supplied
in a tangible medium.
[24 April 2014 / Section shall come into force on 13
June 2014. See Paragraph 22 of Transitional
Provisions]
Section 31. Consumer Claims in
Relation to Consumer Credit or Purchase of Services
(1) A consumer is entitled to unilaterally withdraw from the
consumer credit agreement if he or she exercises the right of
withdrawal provided for in Section 12 of this Law and payment for
the goods or the service is to be made, in part or in full, by
means of a consumer credit agreement. In such case, the creditor
may not require the consumer to pay a contractual penalty or
compensation for losses related to revocation of the consumer
credit agreement.
(2) In order to withdraw from a consumer credit agreement in
accordance with the provisions of Paragraph one of this Section,
the consumer shall notify the creditor in writing on the fact
that he or she exercises the right to withdraw from a contract on
purchase of goods or service and regarding return or sending of
the relevant goods or item to the trader or the service provider
fulfilling the duty specified in Section 12, Paragraph five of
this Law and append proofs to a notification regarding return or
sending of the goods or item. The consumer credit agreement shall
be terminated on the day when the creditor has received the
aforementioned notification and proofs of the consumer regarding
return or sending of the goods or item.
(3) Upon termination of a consumer credit agreement the trader
or the service provider respectively shall immediately, not later
than within 30 days from the day of termination of the consumer
credit agreement, repay the amounts of money received in
accordance with the agreement. The consumer has an obligation to
pay the interest and other payments only for the period of time
until the day of termination of the consumer credit
agreement.
(4) If the consumer has the right to exercise the rights
referred to in Section 28, Paragraph one, Clause 4, Section 29,
Paragraph one, and Section 30, Paragraph two and five of this Law
to request repayment of the amount of money paid for the goods or
service, but he or she, performing the activities specified in
laws and regulations, cannot achieve that the trader or the
service provider fulfils lawful requests thereof, the consumer
has the right to bring an action against a creditor within six
months from the day of receipt of the goods or service or the day
when the consumer should have received the goods or service in
accordance with the contract. The creditor has a duty to examine
the consumer's claim within 30 days.
(5) The provisions of this Section shall be applied to such
consumer credit agreements which are intended only for the
financing of the contract, in part or in full, on delivery of
particular goods or provision of a particular service, if both
abovementioned agreements actually form a commercial unit. A
consumer credit agreement and a contract on delivery of
particular goods or provision of a particular service form a
commercial unit in the following cases:
1) the trader or the service provider grants a credit to the
consumer;
2) a third person grants a credit to the consumer and a
creditor uses the services of the trader or the service provider
in relation to concluding or preparation of the credit
agreement;
3) a third person grants a credit to the consumer, and
particular goods or particular service is clearly specified in
the credit agreement.
(6) The provisions of this Section shall not be applied for
consumer credit agreements referred to in Section 12.1
Paragraph eight, Clauses 1, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
and 14 of this Law.
(7) If such hiring or leasing contract is concluded with a
consumer in which the obligations to purchase a contract object
are not provided for and such obligations are not provided for in
other contracts concluded, the consumer, in the case referred to
in Section 30, Paragraph two of this Law in relation to a leasing
object, is entitled to unilaterally withdraw from the hiring or
leasing contract. Upon termination the consumer hiring or leasing
contract, the trader or the service provider respectively and the
creditor shall immediately, not later than within 30 days after
the day of termination of the hiring or leasing contract, repay
the amounts of money received in accordance with the
contract.
[28 October 2010; 24 April 2014; 21 November 2019]
Section 31.1 Rights of a
Consumer if His Payment Card has been Used Illegally
[24 April 2014]
Section 31.2 Additional
Payments
(1) If in relation to the contract concluded the trader or the
service provider ensures a telephone line for the consumer as a
possible means for the communication with it, the consumer is not
bound for the communication with the trader or the service
provider to pay more than the determined basic rate for use of
the telephone communications.
(2) The laid down in Paragraph one of this Section shall not
prohibit electronic communications the service providers to
request the fee for the use of telephone communications.
(3) The trader or the service provider is prohibited from
charging such fee from the customer for the use of means of
payment in settlement of accounts for the offered goods or
service the amount of which exceeds expenses borne by the trader
or the service provider in relation to the use of the relevant
means of payment, except when the payment recipient is prohibited
from requesting a fee for the use of the particular payment
instrument from the payer.
[24 April 2014; 9 June 2016]
Section 32. Determination of
Compensation for Losses
Claims of consumers for compensation for losses and recovery
of penalty shall be settled in the court in accordance with the
Civil Procedure Law, taking into account that the consumer does
not have specific knowledge regarding the characteristics and
description of the goods purchased or the services provided.
[24 April 2014 / The new wording of this Section
shall come into force on 13 June 2014. See Paragraph 22 of
Transitional Provisions]
Section 33. Liability of
Manufacturers, Traders and Service Providers
(1) Civil, administrative or criminal liability shall apply to
violations of consumer rights determined in this Law and other
laws and regulations regarding consumer rights protection.
(2) The trader or the service provider, who has compensated a
consumer for losses caused to the consumer or repaid the amount
of money paid for the goods or services, has a right of
subrogation against the person from whom the goods or materials
were purchased.
(3) If the manufacturer, trader or service provider agrees
with a third person on elimination of the defects of the goods or
the services, such agreement shall not release the manufacturer,
trader or service provider from direct liability towards the
consumer.
(4) If the non-conformity of goods and services to the
provisions of the contract has been caused due to the actions or
inaction of the manufacturer, trader, distributor, or other
person, the trader or the service provider is entitled bring a
subrogation action against the relevant persons.
[22 November 2001]
Section 34. Release of
Manufacturers, Traders or Service Providers from Performance of
Guarantee Obligations and Compensation for Losses
[22 November 2001]
Section 35. Liability for Failure to
Eliminate Defects of Goods or Services within the Specified
Period of Time
If the trader or the service provider has not eliminated the
defects of the goods or the service within 30 days from the day
when the consumer submitted a claim regarding the defects of the
goods or services, or within the time period specified by
appropriately authorised supervisory and monitoring institutions,
it is his duty to compensate all losses caused to the consumer
due to the delay.
[24 April 2014]
Chapter
VIII
Liability of Supervisory and Control Institutions
[24 April 2014]
Section 36. Reimbursement of Losses
Caused by Unreasoned Action of Supervisory and Control
Institutions
[24 April 2014]
Chapter
IX
Administrative Violations in the Field of Consumer Rights
Protection, Trade, and Provision of Services and Competence in
the Process of Administrative Violations
[21 October 2019 / This
Chapter shall come into force on 1 July 2020. See
Paragraph 35 of Transitional Provisions]
Section 37. Administrative Liability
in the Field of Consumer Rights Protection, Trade, and Provision
of Services
(1) For determining incorrect payment for a purchase or
service, or weight or measurement, a warning or a fine from three
to forty-two units of fine shall be imposed on a natural persons,
but a warning or a fine from six to one hundred and forty units
of fine - on a legal person.
(2) For the failure to comply with the requirements laid down
in laws and regulations that are applicable to the consumer
crediting against movable property pledge, a warning or a fine
from forty-two to eight hundred and sixty units of fine shall be
imposed on a legal person.
(3) For the failure to comply with the determined requirements
for working hours in the consumer crediting, a warning or a fine
from forty-two to eight hundred and sixty units of fine shall be
imposed on a legal person.
(4) For trade in prohibited places, a fine up to forty-two
units of fine shall be imposed.
(5) For the failure to provide the written information
specified in laws and regulation regarding the good, service,
manufacturer, trader or service provider or for the placing on
the market, offering or sale of goods without the labelling
specified in laws and regulations or with a labelling providing
such information or presented in such a form which does not
conform to the requirements of laws and regulations, a fine up to
seventy units of fine shall be imposed on a natural person, but a
fine from six to one hundred and forty units of fine - on a legal
person.
(6) For violating the regulations for trade or service
provision, a fine up to seventy units of fine shall be imposed on
a natural person, but a fine from three to two hundred and eighty
units of fine - on a legal person.
(7) For the failure to indicate the price of a good or service
in accordance with the procedures laid down in laws and
regulations, a fine from three to forty-two units of fine shall
be imposed on a natural persons, but a fine from six to one
hundred and forty units of fine - on a legal person.
(8) For the performance of activities of a credit intermediary
or representative of a credit intermediary which offers the
customer such a credit the repayment of which is ensured with an
immovable property mortgage or the purpose of which is to acquire
or retain rights to an immovable property without registering
with the Register of Credit Intermediaries and Representatives of
Credit Intermediaries, a fine from fifty-six to one hundred and
sixty units of fine shall be imposed on a natural person, member
of the board or member of the general partnership, but a fine
from one hundred and twenty to six hundred units of fine - on a
legal person.
(9) For the provision of consumer crediting services without
the special permit (licence) the need for which is determined by
this Law or for continuing to provide the consumer crediting
services after withdrawal or cancelling of the special permit
(licence), a fine from fifty-six to four hundred units of fine
shall be imposed on a natural person or member of the board with
or without the prohibition for the member of the board to take
specific positions in commercial companies, but a fine from five
hundred to fifteen thousand units of fine - on a legal
person.
[21 November 2019 / Section shall come into force on
1 July 2020. See Paragraph 35 of Transitional
Provisions]
Section 38. Competence in the
Process of Administrative Violations
(1) The administrative offence proceedings for the offences
referred to in Section 37, Paragraphs one, two, three, five,
seven, eight and nine of this Law shall be conducted by the
Consumer Rights Protection Centre.
(2) The administrative offence proceedings for the offences
referred to in Section 37, Paragraphs five and six of this Law
shall be conducted by the Health Inspectorate.
(3) The administrative offence proceedings for the offences
referred to in Section 37, Paragraphs two, three and four of this
Law shall be conducted by the State Police.
(4) The administrative offence proceedings for the offences
referred to in Section 37, Paragraphs one, two, three, four and
six of this Law shall be conducted by the municipal police.
(5) Until examination of the administrative offence case, the
administrative offence proceedings for the offences referred to
in Section 37, Paragraph six of this Law shall be conducted also
by the municipal police, but the administrative offence case
shall be examined by the local government administrative
commission or sub-commission.
(6) Until examination of the administrative offence case, the
administrative offence proceedings for the offences referred to
in Section 37, Paragraph nine of this Law shall be conducted also
by the State Police or municipal police, but the administrative
offence case shall be examined by the Consumer Rights Protection
Centre.
[21 November 2019 / Section shall come into force on
1 July 2020. See Paragraph 35 of Transitional
Provisions]
Transitional
Provisions
1. With the coming into force of this Law, the Consumer Rights
Protection Law (Latvijas Republikas Augstākās Padomes un
Valdības Ziņotājs, 1992, No. 46/47/48; Latvijas Republikas
Saeimas un Ministru Kabineta Ziņotājs, 1998, No. 5) is
repealed.
2. Within three months from the day of coming into force of
this Law, the Cabinet shall approve the by-laws of the Consumer
Rights Protection Centre.
3. Within three months from the day of coming into force of
this Law, the Cabinet shall issue regulations that regulate:
1) the conditions of the consumer credit agreements referred
to in Section 8 of this Law;
2) the conditions of contracts concluded outside the permanent
location of sale or provision of services of the undertaking
(company) referred to in Section 9 of this Law;
3) the conditions of distance contracts referred to in Section
10 of this Law;
4) the conditions of contracts regarding obtaining the right
of temporary use to a residential building or a part thereof,
referred to in Section 11 of this Law.
4. The rights regulated by Section 31 of this Law shall apply
only after the Cabinet regulation on consumer credit agreements
has come into force.
5. The right of withdrawal, governed by Section 9 of this Law,
shall apply only after the Cabinet regulation on contracts
concluded outside the permanent location of sale or provision of
services of the undertaking (company) has come into force.
6. The right of withdrawal, regulated by Section 10 of this
Law, shall apply only after the Cabinet regulation on distance
contracts has come into force.
7. The right of withdrawal, regulated by Section 11 of this
Law, shall apply only after the Cabinet regulation on contracts
regarding obtaining the right of temporary use to a residential
building or a part thereof, has come into force.
8. Amendments to Section 27, Paragraph one; Section 28,
Paragraph three; Section 29, Paragraph three and Section 31,
Paragraph two of this Law shall come into force on 1 January
2003. Up to 1 January 2003 a consumer is entitled to submit a
claim to a manufacturer, trader or service provider regarding the
non-conformity of goods or services with the provisions of the
contract within one year after the purchase of the goods or
receipt of the services.
[22 November 2001]
9. The Cabinet shall issue the regulations referred in Section
10, Paragraph four and Section 27, Paragraph three of this Law by
1 June 2002.
[22 November 2001]
10. Until the issue of the Cabinet regulations referred to in
Paragraph 9 of these Transitional Provisions, but not later than
1 June 2002 the following Cabinet Regulations are in force to the
extent that they are not in contradiction to this Law:
1) Regulation No. 299 of 24 August 1999, Procedures for the
Submission of Consumer Claims regarding Inappropriate Quality
Goods or Services and the Conduct of Expert-examination of Goods
or Manufactured Articles;
2) Regulation No. 316 of 7 September 1999, Regulations
regarding Distance Contracts;
3) Regulation No. 29 of 23 January 2001, Regulations on the
Labelling of Household Washing Machines, Clothes Dryers and
Combined Washing and Clothes Drying Machines;
4) Regulation No. 30 of 23 January 2001, Regulations on the
Labelling of Household Refrigerators and Freezers;
5) Regulation No. 31 of 23 January 2001, Regulations on the
Labelling of Household Ovens;
6) Regulation No. 32 of 23 January 2001, Regulations on the
Labelling of Household Dishwashing Machines;
7) Regulation No. 33 of 23 January 2001, Regulations on the
Labelling of Household Light Bulbs.
[22 November 2001]
11. Section 8, Paragraph five of this Law shall come into
force on 10 July 2007.
[17 May 2007]
12. The Cabinet shall by 3 July 2007 issue the regulations
referred to Section 8, Paragraph eight of this Law.
[17 May 2007]
13. The Cabinet shall by 1 September 2008 issue the
regulations referred to in Section 8, Paragraph four of this Law
where the information to be included in the consumer credit
agreement, the methods for calculation of the annual interest
rate, fair reduction of the total cost of credit, as well as
conditions when the requirements of consumer credit agreement
need not be applied shall be provided for. Until the issuance of
these regulations, Cabinet Regulation No. 257 of 13 July 1999,
Regulations Regarding Consumer Credit Agreements, shall be
applied.
[19 June 2008]
14. Until 1 July 2009 the Cabinet Regulation No. 312 of 31
August 1999, Procedures for Organising of Wholesale Trade and
Retail Trade, issued in accordance with Section 14, Paragraph
one, Clause 3 of the Law On the Structure of the Cabinet, shall
be in force.
[21 May 2009]
15. Paragraphs 8.3, 8.4 and
8.5 of Section 25 of this Law shall come into force on
1 July 2009 and these provisions shall be applicable in examining
the complaints received after 30 June 2009.
[21 May 2009]
16. Section 25, Paragraph 10.1 of this Law shall
come into force on 1 July 2009. The decisions of the Consumer
Rights Protection Centre, which have been appealed until 30 June
2009 by submitting a submission to the Ministry of Economics,
shall be examined in accordance with those laws and regulations
which were in force on the day when the Consumer Rights
Protection Centre took the relevant decision.
[21 May 2009]
17. Section 8, Paragraph 1.2 and 1.3 of
this Law shall come into force on 1 March 2011, but Section 8,
Paragraph 1.1 of this Law - on 1 November 2011.
[20 December 2010]
18. The Cabinet shall issue:
1) until 31 December 2010 - the regulation referred to in
Section 8, Paragraph four of this Law which provides for the
content and procedures for the provision of the information to be
provided for concluding a consumer credit agreement, the
requirements to be set for a consumer credit agreement and the
information to be included therein, the method for calculation of
the annual interest rate, informing of a consumer during the term
of operation of a credit agreement, pre-term payment of a credit
and fair reduction of the total cost of credit, the requirements
to be applied for certain types of credit agreements and the
duties of credit intermediaries, as well as the legal regulation
for consumer crediting against movable property pledge;
2) until 28 February 2011 - the provisions abovementioned in
Section 8, Paragraph 1.3 of this Law which provides
the procedures for the issue, re-registration, cancellation,
suspension of the operation of a special permit (licence) for the
provision of a consumer credit service, the requirements with
which a capital company shall comply so that it could receive a
special permit (licence), and also the amount of a State fee and
the payment procedures thereof.
[20 December 2010]
19. The new revision of Section 11 of this Law and deletion of
Section 12, Paragraph two, Clause 3 of this Law shall come into
force on 23 February 2011.
[28 October 2010]
20. The Cabinet shall, by 1 February 2011, issue the
regulation referred to in Section 11, Paragraph thirteen of this
Law, which provides for the time periods and procedures for
exercising the right of withdrawal, the withdrawal form and the
effects of exercising of the right of withdrawal, as well as the
special requirements to be observed upon concluding the contract
on the right of long-term use of a holiday accommodation, a
contract on long-term holiday services, a resale contract on the
right of long-term use of a holiday accommodation or on long-term
holiday services and an exchange contract on the right of
long-term use of a holiday accommodation.
[28 October 2010]
21. Amendments to Section 8, Paragraph 1.3, new
wording of introductory part of Paragraph 4.3,
deletion of Paragraph 4.3, Clause 1 and new wording of
Clause 10, and also Paragraphs 1.4, 4.4,
4.5, 4.6, 10.1,twelve, thirteen
and fourteen of this Law shall come into force from 1 July 2014
and these amendments shall be applicable to the contracts entered
into starting from 1 July 2014.
[24 April 2014; 19 September 2014]
22. Amendments to Section 1, Clause 2, new wording of Clause
4, 5 and 6, Clause 8, new wording of Section 2, Section 4,
Paragraphs four, five and six, Section 4.1 Paragraphs
three, five, six and seven, amendments to Section 5 regarding
deletion of Paragraph two, Clause 4, amendments to Section 6,
Paragraph one, Paragraph one, Paragraph 1.1, Paragraph
2.2, amendments to Paragraph three, Clause 3,
Paragraph three, Clauses 5, 7, 8, 8.1, 9, 11, 12, 13,
14, 15, 16, 17 and 18, Section 6, Paragraphs 3.1,
3.2, 3.3, 3.4, new wording of
Paragraph five, the title of Section 9, new wording of Paragraphs
one and two, deletion of Paragraph three, Paragraph five, new
wording of Sections 10 and 12, new wording of the title of
Chapter III, new wording of Section 17, Paragraph one and
Paragraph four, deletion of Section 18, new wording of the title
of Chapter VII, new wording of Section 27, Paragraph one,
amendment to Paragraph two, new wording of Section 30, Section
30.1, amendment to Section 31, Paragraph four, Section
31.2, new wording of Section 32 of this Law shall come
into force from 13 June 2014, and these amendments shall be
applicable to the contracts entered into from 13 June 2014.
[24 April 2014]
23. Section 4.1, Paragraph four, new wording of
Section 13 and 14, Section 14.1, as well as Section
28, 29 and new wording of Section 31, Paragraph four shall come
into force from 1 January 2016.
[24 April 2014; 18 September 2014; 18 June 2015]
24. Reference to Section 13, 14 and 28 included in Section
4.1, Paragraph five of this Law shall be applicable
starting from 1 January 2015.
[24 April 2014]
25. In order to ensure the application of Section 8, Paragraph
1.3 of this Law, the Cabinet shall, not later than by
1 October 2015, submit amendments to the Saeima to the law
On Taxes and Fees and shall, not later than by 1 November 2015,
make respective amendments to Cabinet Regulation No. 245 of 29
March 2011, Regulations Regarding the Procedures by Which a
Special Permit (Licence) for the Provision of Consumer Credit
Services Shall Be Issued, Re-Registered, Suspended and Cancelled
and the State Fee for the Issue and Re-Registration of a Special
Permit (Licence) Shall Be Paid, as well as the Requirements for a
Capital Company for the Receipt of a Special Permit
(Licence).
[28 May 2015]
25.1 The new wording of Section 8, Paragraph
1.2 of this Law (regarding the State fee to be paid in
order to receive a special permit (licence) for the provision of
a consumer credit service, as well as regarding supervision of
the operation of a provider of credit services) shall come into
force from 1 January 2016.
[18 June 2015]
26. A special permit (licence) for the provision of a consumer
credit service issued to the merchant by 31 December 2015 shall
be valid until expiry of the term of validity thereof.
[28 May 2015]
27. The new wording of Section 25, Paragraph four, Clause 4
and supplementation of this Paragraph with Paragraph
4.2, amendments to Section 26 (regarding rewording of
the title of Section, deletion of Paragraphs four, six, seven,
and nine, regarding replacement of the words in Paragraph eight
"has requested assistance in solving a dispute with the
manufacturer, trader or service provider, or consultation" with
the words "has requested information or consultation"), as well
as Chapters VI.1, VI.2, and VI.3
shall come into force from 1 January 2016.
[18 June 2015]
28. The Consumer Rights Protection Centre shall establish the
Commission for Solving of Consumer Disputes referred to in
Section 26.3 of this Law by 1 March 2016.
[18 June 2015]
29. The Cabinet shall issue the regulations referred to in
Section 26.6, Paragraphs two and three of this Law by
1 February 2016.
[18 June 2015]
30. The deletion of Section 27, Paragraph three of this Law
shall come into force on 1 January 2016.
[18 June 2015]
31. The Cabinet shall, by 31 October 2016, issue the
regulations referred to in Section 8, Paragraph four of this Law.
Until the issuance of these regulations, Cabinet Regulation No.
1219 of 28 December 2010, Regulations On Consumer Credit, shall
be applied.
[9 June 2016]
32. Section 8.2, Paragraph one of this Law shall
come into force on 1 March 2017.
[9 June 2016]
33. Section 8.2, Paragraphs two and three of this
Law shall come into force concurrently with the relevant
amendments to the law On Taxes and Duties, but not later than on
1 January 2017.
[9 June 2016]
34. The new wording of Section 8, Paragraph 2.3 and
Section 8.3 of this Law shall come into force on 1
July 2019.
[4 October 2018]
35. Chapter IX of this Law shall come into force concurrently
with the Law on Administrative Liability.
[21 November 2019]
Informative
Reference to the European Union Directives
[27 October 2005; 19 June 2008;
28 October 2010; 24 April 2014; 18 June 2015; 9 June
2016]
This Law contains legal norms, which arise from:
1) [24 April 2014];
2) Directive 2008/48/EC of the European Parliament and of the
Council of 23 April 2008 on credit agreements for consumers and
repealing Council Directive 87/102/EEC;
3) Council Directive 93/13/EEC of 5 April 1993 on unfair terms
in consumer contracts;
4) [18 June 2015];
5) [24 April 2014];
6) Directive 2009/22/EC of the European Parliament and of the
Council of 23 April 2009 on injunctions for the protection of
consumers' interests;
7) Directive 1999/44/EC of the European Parliament and of the
Council of 25 May 1999 on certain aspects of the sale of consumer
goods and associated guarantees;
8) Directive 2002/65/EC of the European Parliament and of the
Council of 23 September 2002 concerning the distance marketing of
consumer financial services and amending Council Directive
90/619/EEC and Directives 97/7/EC and 98/27/EC;
9) Council Directive 2000/43/EC of 29 June 2000 implementing
the principle of equal treatment between persons irrespective of
racial or ethnic origin;
10) Council Directive 2004/113/EC of 13 December 2004
implementing the principle of equal treatment between men and
women in the access to and supply of goods and services;
11) Directive 2008/122/EC of the European Parliament and of
the Council of 14 January 2009 on the protection of consumers in
respect of certain aspects of timeshare, long-term holiday
product, resale and exchange contracts;
12) Directive 2011/83/EU of the European Parliament and of the
Council of 25 October 2011 on consumer rights, amending Council
Directive 93/13/EEC and Directive 1999/44/EC of the European
Parliament and of the Council and repealing Council Directive
85/577/EEC and Directive 97/7/EC of the European Parliament and
of the Council;
13) Directive 2013/11/EU of the European Parliament and of the
Council of 21 May 2013 on alternative dispute resolution for
consumer disputes and amending Regulation (EC) No 2006/2004 and
Directive 2009/22/EC;
14) Directive 2014/17/EU of the European Parliament and of the
Council of 4 February 2014 on credit agreements for consumers
relating to residential immovable property and amending
Directives 2008/48/EC and 2013/36/EU and Regulation (EU) No
1093/2010.
This Law has been adopted by the Saeima on 18 March
1999.
President G. Ulmanis
Rīga, 1 April 1999
1 The Parliament of the Republic of
Latvia
Translation © 2021 Valsts valodas centrs (State
Language Centre)