Due to the necessity for an alignment between Turkish law and EU Directives and in order to harmonise the old Turkish Consumer Protection Act with the new Turkish Law of Obligations and Turkish Trade Law, a new Consumer Protection Act was enacted on 28 November 2013 and will enter into force on 28 May 2014.

General Regulations

The new Turkish Consumer Protection Act particularly provides basic principles which are to be applied to consumer contracts. For instance, all contracts and pieces of information have to be drafted in a clear, simple and readable manner and form and must be of at least font size 12. A copy of all such documents has to be provided to the consumer either in paper form or by way of lasting digital storage. Furthermore, during the contract term, contracts cannot be changed to the consumer’s disadvantage. Consumers do not have to bear such additional expenses or costs for the fulfilment of the contract which they may justifiably expect to be included in the goods or services purchased.

Under the new Consumer Protection Act, directly enforceable securities of the consumer will be considered simple sureties, irrespective of their form and content. By contrast, directly enforceable securities of the opponent party (for instance of the seller or service provider) intended to safeguard consumer claims are considered a joint suretyship. This principle, however, may be limited by statutory provisions. Under the new law, the use of compound interest for consumer deals is prohibited, also during default.

Moreover, the new Consumer Protection Act has introduced a provision on unsolicited goods or services. If such unsolicited goods or services are provided to the consumer and the consumer does not comment in this regard, his or her silence cannot be regarded as an implied / implicit acceptance which establishes a contractual relationship. In such a case, the consumer does not have the obligation to return the unsolicited goods or services or to preserve or keep them.

Notifications

The new Consumer Protection Act has eliminated the obligation previously imposed on consumers to provide notifications of defective goods or services within 30 days. The previous provision on consumer rights was maintained and newly worded in case defective goods or services are offered. Under the new law, the consumer may then withdraw from the contract, ask for a reduction as well as for an amendment or, if possible, a cure (Nacherfüllung) free of charge. If the consumer chooses a cure, such cure must not incur excessive costs. In addition, the consumer may also claim damages.

Withdrawal Period

The new Consumer Protection Act has introduced a withdrawal period of seven days for hire purchase agreements, whilst the deadline for other consumer contracts was extended from seven to 14 days. This amendment in favour of consumers aims to achieve far-reaching consumer protection by providing consumers with the option to reconsider contract conditions, circumstances and consequences. Under the new law, in the context of hire purchase agreements, consumer credit agreements and residential property finance agreements, suppliers are no longer entitled to send reminders to consumers after seven days (as per the old Consumer Protection Act), but now only after 30 days.

Statute of Limitations

Unless parties agreed on a longer limitation on claims or longer periods are required under law, the limitation period for the enforcement of claims for defective goods or services is now two years, commencing at the time the goods are handed over or the services provided. The limitation period for claims arising from the sale of residential property will be five years, commencing at the time the property is handed over to the customer.

Consumer Credit Agreements and Credit Cards

Furthermore, under the new Consumer Protection Act, banks are prohibited from demanding from consumers subscription or membership fees or any other fees referred to by a different name. The new Consumer Protection Act has also introduced a new policy on interest rates. It will now be prohibited to change to the consumer’s disadvantage interest rates stipulated in a contract. In addition, in case a contract does not contain a contractually stipulated or effective interest rate or no reference to the overall costs of a loan, the new Consumer Protection Act provides for the loan agreement to be regarded as an interest-free agreement.

Long-distance Finance Transactions

The new Consumer Protection Act regulates long-distance finance transactions, i. e. the distribution of financial services by means of distance communications. Financial services include banking transactions, loans, insurances, private pension plans, money investments or payment services. In addition, the new law expressly prohibits pyramid systems. Under the new provisions, the establishment, distribution or recommendation of a pyramid system which promises participants an expected profit in return for their money or assets will now be prohibited.

Advertisement

Companies are now free to design their advertising in such a way that they can compare their products with those of their competitors. The new provisions allow the advertising industry to enter into a new era.

Dr Gökçe Uzar Schüller