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Archive for: consumer protection law

Abusive clauses in B2C IT contracts, decision no. RKT-38/2013

February 24th, 2014, Tomasz Rychlicki

According to the provisions of Article 7 of the Act on the Protection of Consumer Rights and Liability for Damage Caused by a Dangerous Product – PRCLL – (in Polish: o ochronie niektórych praw konsumentów oraz o odpowiedzialności za szkodę wyrządzoną przez produkt niebezpieczny) of 2 March 2000, published in Journal of Laws (Dziennik Ustaw), No 22, item 271 with subsequent amendments, the consumer who concluded the so-called “distance contract” may withdraw from it without giving reasons, by way of an appropriate written statement, within the period of ten days from the conclusion of the contract. The “distance contract” or contracts concluded at a distance are defined as contracts concluded without simultaneous presence of both parties, in which one party is deemed as a consumer (a natural person not performing any business activities), by way of a use of means of communication at a distance, in particular order form without the address or addressed, serial letter, press advertising with a printed order form, catalogue, telephone, radio, television, automatic calling machine, videophone, videotext, electronic mail, facsimile machine, provided that the party to the contract with the consumer is the entrepreneur who organised in such a way its business activity.

The Polish Company Decoratum, owner of endo.pl website that sells children clothes, provided the TOS according to which a consumer willing to withdraw from a purchase, has had to return the purchased goods in order to make the withdrawal legally effective. However, such provisions are inconsistent with the PRCLL. The Act does not require the consumer to perform any additional actions, except filing a written statement (declaration of will to withdraw from a contract). The President of the Office of Competition and Consumer Protection initiated proceedings against Decorum and found that the company did not provided its consumers proper written information that they have the right to return purchased products. The President in its decision of 21 November 2013 no. RKT-38/2013 ordered the Company to pay a fine in the amount of 15.084 PLN. The entrepreneur abandoned the use of the challenged practices so it was possible to decrease the financial penalty. The decision is final.

Abusive clauses in B2C IT contracts, case XVII AmA 76/12

January 9th, 2014, Tomasz Rychlicki

Eller Service s.c., the owner of hosting service available at pobieraczek.pl, was sending to its customers misleading information in order to intimidate them and persuade to pay for serviced they did not directly order. The President of the Office of Competition and Consumer Protection decided that the clients of the website pobieraczek.pl received messages suggesting a criminal offence. Meanwhile, only a court issuing the judgment, may determine whether a crime was committed. An entrepreneur can not intimidate its consumers. Even the hypothetical suggestion that there will be filed a complaint or a private suit, is against the law. Entrepreneurs cannot intimidate consumers in order to force them to make their payments, and cannot lead consumers into legal confusion. The President of the OCCP ordered the company to pay a penalty of more than 215 thousand PLN. Eller Service filed a complaint against this decision.

The Court of Competition and Consumer Protection in its judgment of 13 December 2013 case file XVII AmA 76/12 upheld that decision. The judgment is not final.

Consumer protection, case VI ACa 1069/12

March 9th, 2013, Tomasz Rychlicki

The concept of “average consumer” is present in intellectual property law and the law of unfair competition from a long time. Since the Dassonville case (C-8/74), the concept of the average consumer has been developed in the case law of the Court of Justice of the European Union, and appeared in the preamble to Directive 2005/29 on unfair commercial practices. According to the Polish Act of 23 August 2007 on combating unfair commercial practices, the average consumer is understood as a consumer who is adequately informed, attentive and careful. The assessment should be made with account taken of social, cultural, linguistic factors and the belonging of the particular consumer to a specific consumer group, which should be understood as a consumer group that can be unambiguously identified and is particularly receptive to the influence of a commercial practice or the product to which the commercial practice applies, due to its specific characteristics, such as age, physical or mental disability. However, it looks like some Polish courts do not think that an average Polish consumer fits the established rules and standards.

The Appeallate Court in Warsaw in its judgment of 13 January 2013 case file VI ACa 1069/12 held that the average Pole, which is also the average consumer, mainly due to social and cultural backgrounds, has a low legal awareness. This is the view shared by the Polish legal community. The standard of an average Polish consumer cannot in any way related to the standard of the average consumer in Western Europe, which for many decades is subjected to intensive consumer education.

Consumer protection, case XVII Amc 5817/11

August 26th, 2012, Tomasz Rychlicki

The Polish Court of Competition and Consumer Protection in its judgment of 31 May 2012 case file XVII Amc 5817/11 held that an entrepreneur cannot include in its terms of telecommunication services any regulations and provisions which would release it from the liability for any loss due to lack of customer access to the service provided. Activities that intend to misinformation, confusion, misconception or are directed to exploit ignorance or naivety of the customers and consumers, are contrary to good customs.

Civil law, case VI C 143/11

March 24th, 2012, Tomasz Rychlicki

The Polish company InternetQ Poland Sp. z o.o. from Warszawa has sent text messages (SMS) to an unspecified group of people suggesting that they won prize of 20.000 PLN in some competition. The only tricky requirement was to send an empty text message as a reply. One of the recipients sued the company in order to force it to pay the prize. He based his claims on the provisions of Articles 353 and 354 of the Civil Code – CC – (in Polish: Kodeks Cywilny) of 23 April 1964, published in Journal of Laws (Dziennik Ustaw) No. 16, item 93, with subsequent amendments

Article 353. § 1. An obligation shall consist in that the creditor may demand a performance from the debtor, and the debtor is obliged to provide the performance.
§ 2. The performance may consist in act or omission.

Article 353¹. The parties to a contract may arrange the legal relationship as they deem proper on the condition that the contents or the purpose of that contract are not contrary to the nature of the relationship, with statutory law, and with the principles of community life.

Article 354. § 1. The debtor must discharge his obligation in accordance with its contents and in a manner complying with its socioeconomic purpose and the principles of community life, and if there are established customs in that respect, also in a manner complying with those customs.
§ 2. The creditor shall be obliged to co-operate in the discharge of the obligation in the same way.

The Regional Court in Warszawa for Warszawa-Śródmieście in its judgment of 3 November 2011 case file VI C 143/11 held that consumer’s claims are well founded and awarded on his behalf 60.000 PLN. InternetQ filed an appeal.

Collective interests of consumers, case III SK 44/10

May 9th, 2011, Tomasz Rychlicki

Terms of Service of Domeny.pl website contained a clause that allowed Domeny.pl to introduce changes in TOS and it also included a statement that the changes take effect “from the time a new version is available on the website”. The President of the Office of Competition and Consumer Protection decided that this provision violates the collective interests of consumers as they should be always informed about amendments to the terms. Otherwise they would have to constantly check to see if TOS has not been modified. The President ordered the removal of the questioned terms of service. Domeny.pl filed a complaint against this decision. The Supreme Court in its judgment of 12 April 2011 case file III SK 44/10 dismissed the complaint.

Consumer protection, case XVII Ama 118/04

March 24th, 2011, Tomasz Rychlicki

The Court of Competition and Consumer Protection in its judgment of 23 February 2006 case file XVII Ama 118/04 published in the Official Journal of President of the Office of Competition and Consumer Protection of 2006/2 p. 37, held that respect for others is considered as the essence of the concept of good customs in contractual relationships between business and consumers. Such respect should be expressed in proper information how the consumer could exercise its rights. The professionals and entrepreneurs should not to use their privileged position, and they should deal with the consumer as a partner in every agreement. Misinformation, confusion, misconception and the use of consumers’ ignorance or naivete were deemed contrary to good customs.

Readability test of pharmaceutical products’ leaflet

June 2nd, 2010, Tomasz Rychlicki

In the Regulation of the Minster of Health of 26 April 2010 on the leaflet readability test (in Polish: rozporządzenie w sprawie badania czytelności ulotki), Journal of Laws of 18 May 2010, No. 84, item 551, the Polish Minister of Health provided the principles of examination under which the content of the information attached to the pharmaceutical products is understandable.

The readability test of a pharmaceutical product’s leaflet is carried out by the responsible entity (an entrepreneur who applies for or has received the marketing authorization for a medicinal product), or any other person on its behalf, to ensure that a consumer understands the relevant information contained in this leaflet and will be able to correctly apply the medicinal product. The readability test should be conducted with the following minimum requirements:
– a leaflet should be in the version that will be attached to the packaging of a pharmaceutical product, or its color layout design,
– test participants are those who may use the medicinal product, including those who have difficulty understanding written information.

The test is carried out with ten participants. A positive test result means that for each question, 90% of study participants may find the information on a given leaflet, of which 90% may show their understanding and give the correct answer and to proceed with the medicinal product.

Categories: consumer protection law | pharmaceutical law | Polish Act on Pharmaceutical Law | product packaging | regulations.

Abusive clauses in B2C IT contracts, case XVII AmA 192/10

April 9th, 2010, Tomasz Rychlicki

Eller Service s.c., the owner of hosting service available at pobieraczek.pl website advertised its business using slogans suggesting that the hosting and downloading of different files (mostly copyrighted material) is free. Advertising banners displayed “10 days to download for free” and “Yes, I want to test for 10 days”. However, users who wanted to host or to download files had first to register on the site, giving their name, address, date of birth and e-mail. The requirement was also to accept of the Terms of Service. The user registration date was also the first day of consideration of the contract which was concluded even for a year. In addition, the payment was charged from day one, and not, as the advertising slogans suggested after 10 days.

Following numerous complaints, the President of the Office of Competition and Consumer Protection initiated investigation proceedings based on article 4(1) and (2) and article 5(1) of the Polish Act of 23 August 2007 on combating unfair commercial practices – CUCP – (in Polish: ustawa o przeciwdziałaniu nieuczciwym praktykom rynkowym), Journal of Laws (Dziennik Ustaw) No. 171, item 1206.

Article 4
1. A commercial practice used by a trader in relations with consumers shall be unfair whenever it is contrary to good customs and significantly distorts, or may distort, the economic behavior of the average consumer prior to, during or after the conclusion of a product contract.
2. In particular, a commercial practice shall be regarded as unfair whenever it is misleading or aggressive and whenever a code of conduct is used that is contrary to law, if such activities meet the conditions set forth in section 1 above.

Article 5
1. A commercial practice shall be regarded as a misleading action if, in any way, it causes, or may cause, an average consumer to take a transactional decision, which he/she would not have otherwise taken.

The President of the Office of Competition and Consumer Protection, Wrocław Delegacy, in a decision of 31 March 2010, no. RWR 61-23/09/ZK, ruled that Eller Service s.c. was involved in practice infringing collective consumer interests. The President imposed a fine of up to 119.570 PLN paid into the state budget on each of the two partners of a civil partnership who runs the questioned business activity.

Eller Service s.c. filed a complaint against this decision but it was dismissed by the Court of Competition and Consumer Protection in its judgment of 27 February 2012 case file XVII AmA 192/10. The Appeallate Court in Warsaw in its judgment of 27 March 2013 dismissed the appeal.

Polish case law on abusive clauses in B2C IT and IP contracts

July 8th, 2009, Tomasz Rychlicki

Below you will find a list of judgments and decisions on abusive clauses in B2C IT and IP contracts. You can find a more detailed discussion on each judgment or decision under the link provided with the case file. All judgments and decisions are given in chronological order.

– The decision of the President of the Office of Competition and Consumer Protection of 21 November 2013 no. RKT-38/2013.

– The judgment of the Court of Competition and Consumer Protection of 13 December 2013 case file XVII AmA 76/12.

– The judgment of the Court of Competition and Consumer Protection of 27 February 2012 case file XVII AmA 192/10.

– The judgment of the Court of Competition and Consumer Protection of 26 December 2006 case file XVII AmC 170/05.

– The judgment of the Supreme Court of 13 July 2006 case file III SZP 3/06.

Categories: consumer protection law | contract law | Polish Court of Competition and Consumer Protection | Polish Supreme Court.

Polish regulations on prohibited contractual provisions

April 8th, 2009, Tomasz Rychlicki

I. The Law
The main sources of binding laws in the Republic of Poland are the Constitution of 2 April 1997, acts passed by the Parliament, ratified international treaties and regulations issued, for example, by the Prime Minister or the Council of Ministers – Polish government. Regulations are issued for the purpose of implementation of acts.

I.A. Substantive law

Act of 16 April 1993 on Combating Unfair Competition – CUC – (in Polish: ustawa o zwalczaniu nieuczciwej konkurencji), Journal of Laws (Dziennik Ustaw) No. 47, item 211, with later amendments.
Act of the Protection of Certain Consumer Rights and on the Liability for damage caused by a dangerous product – PCCR – (in Polish: ), published in Journal of Laws (Dziennik Ustaw) of 31 March 2000, No. 22 , item 271.
Act on Protection of the Purchasers of the Right to use a building or residential unit for a specified time each year and on amendment to the Civil Code, Code of Minor Offenses,and the Law on Land and Mortgage Registers and Mortgage, published in Journal of Laws (Dziennik Ustaw) of 2000, No. 74, item 855.
Act on Specific Terms and Conditions of Consumer Sale and Amendments to the Civil Code.
Act of 16 February 2007 on competition and consumer protection, Journal of Laws – CCP – (in Polish: Ustawa o ochronie konkurencji i konsumentów), published in Journal of Laws (Dziennik Ustaw) of 2007, No. 50, item 331.
Act of 23 August 2007 on Combating Unfair Commercial Practices – CUCP – (in Polish: ustawa o przeciwdziałaniu nieuczciwym praktykom rynkowym), published in Journal of Laws (Dziennik Ustaw) No. 171, item 1206.

I.B. Case law
See “Polish case law on abusive clauses in B2C IT and IP contracts“.

II. Prohibited contractual provisions
Prohibited contractual provisions or “abusive clauses” are understood as provisions of the contract concluded with the consumer that were not agreed individually and in consequence shape consumer’s rights and obligations in a manner contrary to good customs and grossly violate consumer’s interests. Such provisions are not binding on the consumer, but the parties are bound by other provisions of the contract.

In accordance with the provisions of article 385³ of the Civil Code, if in doubt – it is considered that unlawful contractual provisions are those that, in particular:

exclude or seriously limit the liability to the consumer for failure to perform or improper performance of an obligation,
provide provisions, of which the consumer was unable to get acquaint with before concluding the contract,
impose solely on the consumer an obligation to pay a fixed sum in the case of the resignation from the conclusion or performance of the contract,
impose on the consumer, who has not performed the obligations or departed from the contract, the obligation to pay grossly inflated penalty or smart money,
exclude the jurisdiction of Polish courts or submit the matter to a Polish or foreign arbitration court, or other authority, and impose the adjudication by the court which is not locally relevant according to the Civil Code.

These are couple of examples of the so-called “gray abusive clauses”.

III. Procedure
The District Court in Warsaw, the Court of Competition and Consumer Protection decides if a given provision is prohibited and abusive. Anyone who has been or may be offered a contract containing such a clause, consumer organizations, consumer ombudsmen and the President of the Office of Competition and Consumer Protection may bring an action before the Court. Consumers may obtain assistance from the local consumer ombudsman or one of the state-funded consumer organizations.

The clauses which have been found abusive by a final decision of the Court are entered into the Register of Prohibited Clauses that is available on the website of the President of the Office of Competition and Consumer Protection and as of this moment cannot be used in relations with consumers. The application of such clauses may be regarded as an infringement of collective consumer interests and may result in a fine of up to 10% of the trader’s revenue.

Trade mark law, case III SA/Wr 499/08

January 30th, 2009, Tomasz Rychlicki

The Voivodeship Administrative Court in Wrocław in its judgment of 28 January 2009 case file III SA/Wr 499/08 held that the powers of sanitary authorities include the power to control of foodstuffs also in terms of their marking and labeling. According to article 120 of the Polish Act of 30 June 2000 on Industrial Property Law – IPL – (in Polish: ustawa Prawo własności przemysłowej) of 30 June 2000, published in Journal of Laws (Dziennik Ustaw) of 2001 No 49, item 508, consolidated text of 13 June 2003, Journal of Laws (Dziennik Ustaw) No 119, item 1117, with subsequent amendments, the trade mark is protected as a whole regardless of its composition. So questioning the legality of a trade mark that was made by the State Sanitary Inspection, with the assumption that part of the label of foodstuff is a registered trademark, lead to an unacceptable invasion of the powers reserved by law for the Polish Patent Office. Indeed, such action of SSI would, in fact, “prohibit” the use of a trade mark, while the State Sanitary Inspection cannot encroach on the powers reserved by law for other state authorites.

Article 120
1. Any sign capable of being represented graphically may be considered as trademark, provided that such signs are capable of distinguishing the goods of one undertaking from those of other undertakings.

2. The following, in particular, may be considered as trademarks within the meaning of paragraph (1): words, designs, ornaments, combinations of colours, the three-dimensional shape of goods or of their packaging, as well as melodies or other acoustic signals.

3. Any references in this Act to:
(i ) trademarks shall also mean service marks,
(ii) goods shall mean, in particular, industrial or handicraft goods, agriculture products or natural products, such as, in particular, waters, minerals, raw materials, as well as, subject to Article 174(3), services,
(iii) counterfeit trademarks shall mean identical trademarks illegally used or trademarks which in the course of trade can not be distinguished from the trademarks registered for the goods covered by the right of protection,
(iv) earlier trademarks shall mean the trademarks applied for registration or registered basing on the earlier priority.

A situation where an entrepreneur has advertised tea, using only, image of cannabis-like leaves cannot be considered as advertising of narcotic drugs or psychotropic substances. In this case, it was not a promotion of any other substances prohibited by the law because, there was no name of any specific drug or psychotropic substance. Moreover, this issue goes beyond the competence of the State Sanitary Inspection.

The cassation complaint was rejected by the Supreme Administrative Court in its judgment of 31 May 2010 case file II OSK 832/09.

Product information, case VI SA/Wa 2119/08

January 15th, 2009, Tomasz Rychlicki

The Voivodeship Administrative Court in Warsaw in its judgment case file VI SA/Wa 2119/08 ruled on products information and labelling. The Polish company BIZ from Swiebodzice appealed the decision of the Trade Inspection ordering it to change information placed on products (tiles) that were imported form Spain where all descriptions were only available in Spanish. The Company claimed that it presents its clients with all information needed in Polish language during sales. However, the Court ruled that according to article 3(1) and 6 of the Act of 27 July 2002 on specific terms and conditions of consumer sale and amendments to the Civil Code (in Polish: Ustawa o szczególnych warunkach sprzedazy konsumenckiej oraz o zmianie Kodeksu cywilnego) published in Journal of Laws (Dziennik Ustaw) no 141 item 1176, all information should be provided in given conditions.

1. The seller selling his products in the Republic of Poland shall provide clear, understandable, not misleading information in Polish, necessary for proper and full use of the consumer good sold. In particular, the following information shall be provided: name of the product, description of the manufacturer or importer and country of origin of the product, safety label and kite mark required by separate provisions, information whether the product is approved for general sale in the Republic of Poland, as well as, according to the type of the product, specification of energy consumption and other data mentioned in separate provisions.
(…)
6. The information or documents referred to in paragraphs 1 and 5, should be drawn up in the Polish language, or, if the type of information allows it, in a comprehensible form. The requirement to use the Polish language does not apply to names, trademarks, trade names, indications of origin and customarily used scientific and technical terminology.

The seller is explicitly required to provide information, sufficient for the proper and full use of the goods sold. Such information should be in Polish language or in a comprehensible graphic form and placing a substitute of product’s information in the form of the European standards is not enough, because it will be only legible for oriented, but not the average consumers.

Categories: consumer protection law | Polish courts | Voivodeship Administrative Court.

Polish regulations on unfair commercial practices

December 30th, 2007, Tomasz Rychlicki

The Act of 23 August 2007 on Combating Unfair Commercial Practices – CUCP – (in Polish: ustawa o przeciwdziałaniu nieuczciwym praktykom rynkowym) published in Journal of Laws (Dziennik Ustaw) No. 171, item 1206, came into force on 21 December 2007. It implemented the Directive 2005/29 of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market and amending Council Directive 84/450, Directives 97/7, 98/27 and 2002/65 of the European Parliament and of the Council and Regulation 2006/2004 of the European Parliament and of the Council (“Unfair Commercial Practices Directive”).

Among others things, it defines in article 5(1) misleading commercial practices as actions connected with introduction of products into the market which may lead to mistake as regards to products, its packaging, trade marks, trade names or other signs capable of identifying entrepreneurs, particularly comparative advertising.

The Act also deals with crypto-advertising which is defined as using commentary content in mass-media sources to promote a product where the business/entrepreneur paid for such action but it is not clearly indicated in the content, images or sounds and it is not easily identified by the consumer.

The Act also covers aggressive commercial practices. It defines such actions as (i) onerous processes which are not connected with consumers’ actions or (ii) desisting from acting, i.e. inducing the purchase of products via phone, fax, electronic mail or other means used to communicate in distance.

Collective interests of consumers, case DDK-14/2007

August 3rd, 2007, Tomasz Rychlicki

The President of the Office of Competition and Consumer Protection charged Vision Film Distribution and Warner Bros Poland of practices violating collective interests of consumers and unfair competition delicts. The results of this proceedings are included in decisions no. DDK-14/2007 of 25 May 2007 and decision no. DDK-5/2007 of 31 January 2007. Both companies were accused and fined for providing false information on copyright law on their movie products that were distributed on DVDs.

Consumer protection, case XVII Ama 51/00

January 24th, 2006, Tomasz Rychlicki

The Court of Competition and Consumer Protection in its judgment of 22 listopada 2000 case file XVII Ama 51/00 held that the agreement which is inconsistent with statutory law or is designed to circumvent statutory law is deemed null and void and the party of such agreement is not bound by it.

Categories: Art. 58 CC | consumer protection law | contract law | Polish Civil Code | Polish Court of Competition and Consumer Protection.