New Consumer Protection Act adopted
On 29 September 2022, the National Assembly adopted a new Consumer Protection Act (ZVPot-1). The Act was published in the Official Gazette of the Republic of Slovenia on 11 October 2022, will enter into force on 26 October 2022 and will be applicable from 26 January 2023.
The purpose of the new Act is mainly the implementation of the three EU Directives and update of some of the institutes contained in the former ZVPot. With the aim of improving transparency, the content of the Consumer Protection against Unfair Commercial Practices Act has also been added to ZVPot-1. Consequently, this Act will expire once the new ZVPot-1 enters into force.
The main changes or novelties are:
- A hierarchy of warranty claims by the consumer against the seller for non-conformity of the goods is introduced, including the "right of refusal", which allows the consumer to withdraw from the contract immediately if non-conformity of the goods occurs within 30 days of delivery of the goods.
- Dual quality of goods is banned. Consequently, Slovenian consumers will receive products of the same quality as consumers in other EU countries.
- A longer period (1 year) is introduced, during which the goods are deemed to be non-conforming at the time of delivery. Furthermore, the burden of proof is on the seller.
- The right of recourse for the seller, who will under certain conditions be entitled to assert warranty claims due to non-conformity against the upstream company in the sales chain.
- New rules on discounted price labelling.
- The consumer's right to withdraw from the contract and to claim damages in the event of unfair commercial practices by businesses.
The Act also introduces a number of novelties in the area of digital content, including:
- The contract for the supply of digital content is newly regulated.
- The sales contract provisions will also apply to goods with digital elements, such as smartwatches, smartphones, smart TVs, etc.
- It introduces a mandatory guarantee of compliance for digital content or services and an obligation for companies to provide the necessary updates, including security updates.
- It introduces an obligation for online marketplaces to provide consumers with additional information regarding the ranking of offers (according to which key the information is ranked) and clear information whether or not consumers are entering into a contract with a business through an online marketplace, and the potential consequences.
- Informing about price adjustments based on the consumer profile (purchasing power, past purchases, etc.).
- Hidden advertising and false consumer reviews and recommendations are prohibited.
- The amendment also harmonizes the criteria for fines in EU Member States, by introducing a fine based on a percentage of a company's annual turnover for cross-border infringements, which can be as high as 5% in the case of widespread infringements.
How can EY help?
In EY we follow the changes in tax and law field on a regular basis and we keep you informed. We can help you identify the legal risks that these changes may bring and advise you on the best way to adapt and conduct business accordingly. In case you need additional advice on the changes made in the area of consumer protection, our team of legal experts is at your disposal.
