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Consumer Protection Act. - No:4077
« on: June 20, 2007, 12:00:50 PM »
ACT NO. 4077 ON CONSUMER PROTECTION
AS AMENDED BY ACT NO. 4822


Law No: 4077
Dated: 23/2/1995
Turkish official gazette date: 08/3/1995
Turkish official gazette no: 22221


PART ONE
Purpose, Scope, Definitions

Purpose
Article 1 – The purpose of this act is to take measures aimed at protecting the health, safety and economic interests of consumers in line with the public good, building consumer awareness, indemnifying losses incurred by consumers and protecting them against environmental hazards; to promote consumer initiatives aimed at protecting consumer interests and to encourage volunteer organizations aimed at devising consumer-related policies.

Scope
Article 2 – This act covers the subjects specified in Article 1 above and all consumer-related practices in goods and services markets to which a consumer is a party.

Definitions
Article 3 – In the implementation of this act;
a) Ministry means the Ministry of Industry and Trade,
b) Minister means the Minister of Industry and Trade,
c) Goods means any movable property, immovable property used for dwelling or vacation purposes, and any software, or other intangible audio or visual goods prepared for use in electronic medium, subject to purchase or sale,
d) Service means any activity, other than the supply of goods, performed for the payment of a fee or consideration,
e) Consumer means a natural or legal person who obtains, uses or benefits from goods or service for purposes outside his trade or profession,
f) Seller means any natural or legal person, including any public legal entity, who provides goods to the consumer for purposes relating to his trade or profession,
g) Supplier means any natural or legal person, including any public legal entity, who provides services to the consumer for purposes relating to his trade or profession,
h) Consumer transaction means any legal transaction concluded between a consumer and seller-supplier in the goods and services markets,
ı) Manufacturer-Producer means the manufacturer, including public legal entities, of goods or services offered to the consumer, or of the raw materials of such goods or services or semi-finished goods thereof, or any person offering such goods for sale by placing his name, trade mark or other distinctive sign on the consumer goods,
j) Importer means a real or legal person, including public legal entities, who import goods or services offered to the consumer, or the raw materials of such goods or services or semi-finished goods thereof, from abroad and offer the same for sale,
k) Creditor means any bank, special financial institution or finance house authorized under the pertaining legislation to grant credit in cash to consumers,
l) Advertiser means any natural or legal person who causes, the advertisements to be prepared in order to promote the goods or services he produces or markets, to increase the sales or create and strengthen the image, and in which advertisements the trademark of his firm's goods or services appears, to be broadcast, distributed or otherwise exhibited,
m) Advertising agency means any natural or legal person who is a commercial communication expert and prepares commercial advertisements and announcements in line with the advertiser’s needs and brokers their broadcast on behalf of the advertiser,
n) Implementing institution  means any natural or legal person who is the owner, operator or lessor of communication channels or means which convey commercial advertisements and announcements to target groups,
o) Technical regulation means any mandatory regulation, including the standards put into effect by the pertinent Ministry after publication in the Official Gazette, and which regulates any one or more of the issues such as the characteristics, processing and production methods, terminology, symbols, packing, marking, labelling relating thereto and assessment of compatibility of a goods or service, including the related administrative provisions,
p) Consumer organizations mean any association, trust or their upper bodies constituted for the protection of consumer.


PART TWO
Protecting and Informing the Consumer
Defective Goods
Article 4 – A product which contains, material, legal or economic deficiencies which influence the quality, or the quantity that affects the quality, specified on the packaging, labelling, presentation or operating instructions, or in the advertisements or notices, or declared by the seller or established in the standards or technical regulations, or decrease or eliminate its value or the benefits expected from such product by the consumer with respect to fitness, shall be deemed defective.
The consumer shall notify the seller of the defect within 30 days following the date of delivery of the product. In such case, the consumer shall be entitled to rescind the contract with a refund, or demand the replacement of the good with a complete one, or a reduction of the price proportional to the defect, or free of charge repair. The seller shall perform the consumer's selection of remedy. In addition to this right of selection, the consumer shall also be entitled to claim indemnity from the manufacturer-producer, in the event that the defective good causes death and/or injury and/or harm to other goods used.
The manufacturer-producer, seller, dealer, agent, importer and creditor who grants credit in accordance with subsection five of Article 10 shall be severally liable for the defective good and the consumer's right of selection provided for in this Article. In the event that more than one person is responsible for the damages caused by the defective good, such persons shall be held severally responsible. Non-cognizance of the defect existing in the good sold shall not eliminate this responsibility.
The statute of limitations for responsibility for the defective good is two years following the delivery of good to the consumer even if the defect appears later, unless those responsible for the defect under this Article have undertaken responsibility for a longer period. The statute of limitations is five years for immovable properties used for dwelling and vacation purposes. Claims which arise from any damages caused by defective goods are subject to a statute of limitations of three years. Such claims cannot be made after the ten-year period following the day on which the good that caused the damage has been launched to the market. If, however, the defect of the good sold has been concealed from the consumer by the seller's gross fault or fraud, the statute of limitations shall not apply.
The aforementioned provisions, other than those pertaining to responsibility for damages caused by defective good, shall not apply to the goods purchased knowing that they were defective.
The manufacturer or seller shall affix a label easily legible by the consumer, bearing the word "defective" to the defective good to be offered for sale, or to its labelling. There is no obligation to affix such labelling at the places where only defective goods are sold, or a storey or department of which has been permanently allocated for the sale of defective goods, in a manner easily noticeable by the consumer. The fact that the good is defective shall be shown on the invoice, receipt or sales document given to the consumer.
Goods which are not safe cannot be supplied to the market even with the label "defective". The provisions of the Law on the Preparation and Application of Technical Legislation Relating to Products, No. 4703 shall apply to such products.
These provisions shall also apply to all consumer transactions relating to the sale of goods.

Defective Services
Article 4/A – A service which contains, material, legal or economic deficiencies that influence the quality or the quantity that affects the quality specified in the advertisements or announcements made by the supplier, or established in the standards or technical regulations, or decrease or eliminate its value or the benefits expected from such service by the consumer with respect to fitness, shall be deemed defective.
The consumer shall notify the supplier of the defect within 30 days following the date of  performance of the service. In such case, the consumer shall be entitled to rescind the contract, or demand the service to be performed again, or a reduction of the price proportional the defect. Where the rescission of the contract by the consumer is not justifiable due to the nature of the transaction, the consumer shall suffice with a reduction of the price. In addition to this right of selection, the consumer shall also be entitled to claim indemnity under the conditions laid down in Article 4. The supplier shall perform the consumer's selection of remedy.
The supplier, dealer, agent and creditor who grants credit in accordance with subsection five of Article 10 shall be severally responsible for the defective service and damages caused by such defective service and the consumer's right of selection provided for in this Article. Non-cognizance of the defect existing in the service provided shall not eliminate this responsibility.
The statute of limitations for responsibility for the claims arising from defective service is two years following the performance of service even if the defect appears later, unless warranty has been granted for a longer period. Claims which arise from any damages caused by defective services are subject to a statute of limitations of three years. If, however, the defect of the service provided has been concealed from the consumer by the supplier's gross fault or fraud the statute of limitations shall not apply.
The aforementioned provisions, other than those pertaining to the responsibility for damages caused by defective service, shall not apply to the services purchased knowing that they were defective.
These provisions shall also apply to all consumer transactions relating to the provision of services.

Obligation to Sell
Article 5 – The seller may not refuse to sell a good displayed on the shop-window, shelves or in a clearly visible place of a trading enterprise, if such good does not have a label on it bearing the words "sample" or "not for sale".
The provision of service cannot be refused unless there is a justifiable reason.
If there is no custom, commercial practice or convention to the contrary, the seller may not make the sale of a good or service conditional to a quantity, number or dimensions specified by the seller itself, or to the purchase of another good or service.
This provision shall also apply to other sales or service contracts.

Unfair Terms in Contracts
Article 6 – A contractual term which has been unilaterally included in the contract by the seller or supplier without it being negotiated with the consumer shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.
Any unfair term included in a contract, which the consumer is a party to, shall not be binding upon the consumer.
A term shall always be regarded as not individually negotiated where it has been drafted in advance and the consumer has therefore not been able to influence the substance of the term, particularly in the context of a standard contract.
The fact that certain aspects of a term or one individual term have been negotiated shall not exclude the application of this Article to the rest of a contract if an overall assessment of the contract indicates that it is nevertheless a standard contract.
Where any seller or supplier claims that a standard term has been individually negotiated, the burden of proof in this respect shall be incumbent on him.
Consumer contracts required to be drawn up in writing under Article s 6/A, 6/B, 6/C, 7, 9, 9/A, 10, 10/A and 11/A shall be drawn up in character size 12 and in bold characters, and the lack of one or more terms in the contract shall not affect the validity of the contract, which lack shall be forthwith removed by the seller or supplier.
The Ministry shall determine the principles and guidelines for the determination of unfair terms existing in standard contracts and their deletion from the contractual text.

Installment Sales
Article 6/A – Instalment sale is a sale where the consideration for sale is paid at least in two instalments and the good or service is delivered or performed at the time the contract is concluded.
Installment sale contract shall be made in writing. The minimum terms to be included in the contract are as follows:
a) names, titles, open addresses and access information, if any, of the consumer and seller or supplier,
b) cash sale price of the good or service in Turkish Lira, inclusive of taxes,
c) total sale price in Turkish Lira, to be paid together with interest based on the maturity,
d) amount of interest, annual rate at which interest is computed, and default interest not exceeding the sum of contractual interest rate plus 30%,
e) amount of down payment,
f) payment plan,
g) legal consequences of the debtor's default.
The seller or supplier is obligated to ensure that the said information is included in the contract and hand over a copy of the contract signed between the parties, to the consumer. If a note having the effect of negotiable instrument is to be drawn up in addition to the contract, such note shall be a separate note for each instalment and made out only to the order. Otherwise the negotiable instrument shall not be valid.
In installment sales, the consumer shall be entitled to prepay the total amount of debt. Moreover, the consumer may prepay one or more instalments, provided that each payment is not less than one instalment amount. In either case, the seller is obligated to make a discount in the interest required depending on the amount prepaid.
If the seller or supplier has reserved the right to declare the rest of the debt accelerated in the event that one or more of the instalments have not been paid, such right can be exercised only if the seller or supplier has performed all its obligations and the consumer has defaulted at least on two consecutive instalments, and the sum of the unpaid instalments has to be equal to at least one tenth of the sales price. However, in order for the seller or supplier to exercise such right he has to give at least a week's notice of acceleration.
The terms of contract cannot be changed to the detriment of the consumer in any way whatsoever.
Time-share Vacations
Article 6/B – Time share contract means any contract or group of contracts concluded at least for a period of three years and during which period, the right relating to the use of one or more immovable properties for a specified or specifiable period of the year, which may not be less than one week, is established or is the subject of a transfer or an undertaking to transfer, and a copy of which contract has to be handed over to the consumer.
The Ministry shall determine the principles and guidelines relating to time-share contracts.

Package Tours
Article 6/C – Package tour contract means a pre-arranged written contract covering the combination of not fewer than two of the transport, accommodation and other tourist services not ancillary thereto sold or undertaken to be sold at an all-inclusive price and which services cover a period of more than twenty-four hours or includes overnight accommodation, and a copy of which contract has to be handed over to the consumer.
The Ministry shall determine the principles and guidelines relating to package tours.

Campaign Sales
Article 7 – Campaign sale is the sale carried out by accepting people to participate in campaigns organized though announcements made to consumers by means of newspaper, radio or television advertisements or similar means and by delivering goods or performing services at a later date.
Campaign sales can be implemented with the Ministry's permission. The Ministry shall determine which sales shall be subject to permission, amounts of down payment and instalments, delivery period, manufacturer's warranty, amount of guarantee to be paid and the principles and guidelines to be conformed to in campaign sales.
In the event that the delivery of the good or performance of the service announced or undertaken has not been effected at all or as it should have been, the seller, supplier, dealer, agent, manufacturer-producer, importer and creditor who grants credit in accordance with subsection five of Article 10 shall be severally responsible.
After the consumer decides to leave the campaign, the organizer of the campaign shall refund the total amount of money paid by the consumer until that date, on the condition that it does not exceed the date of delivery of the good or service to the consumer.
The organizer of the campaign shall give, to the consumer, a copy of the written campaign sales contract which contains, in addition to the information required in the second paragraph of Article 6/A, the "date of termination of the contract" and the "date on and manner in which the good or service will be delivered or performed".
Unless otherwise agreed in the contract, the amount of down payment shall not exceed 40% of the sales price of the goods or service.
The duration of delivery of the goods or performance of the service shall not exceed twelve months in campaign sales. This period is 30 months for dwellings and immovable properties for vacation purposes.
In the case the consumer performs all his obligations relating to payment, the delivery of the goods or performance of the service has to be implemented at the latest within one month following the end of payment.
The provisions of Section 6/A shall also apply to campaign instalment sales.

Door-to-Door Sales
Article 8 – Door-to-door sale means any sale made outside the workplace, or sales places such as exhibitions or fairs.
The Ministry shall determine the qualifications door-to-door salesmen have to possess, and door-to-door sales subject to this Law and those, which are not, as well as the principles and guidelines relating to door-to-door sales.
In this type of sale, the consumer is free to accept the good or return the same to the supplier within a period of seven days of receipt without it being necessary to provide a reason or undertake any obligation. Where a service is being sold, such period shall commence from the date on which the contract has been executed. Until such time expires, the seller or supplier may not require the consumer to make payment for the good or service subject matter of the door-to-door sales transaction, under any name whatsoever, or to issue a written document evidencing indebtedness during the period in which the right of renunciation can be exercised. The seller shall take the good back within twenty days after the notice of renunciation reaches the seller.
The consumer cannot be held liable for the wear and tear caused by the normal use of good.
In addition, Article 6/A shall apply to door-to-door instalment sales and Article 7 shall apply to door-to-door campaign sales.

Obligations of  the seller or supplier in door-to-door sales
Article 9 – In door-to-door sales contracts, in addition to the other elements required to be included in the contract, explanatory information on the quality and quantity of the good or service, the open address where the notice of renunciation can be sent, there shall be inserted the following phrase printed in bold and at least in character size 16:
We acknowledge that the consumer is entitled to refuse the goods or service within seven days following the date on which the goods had been received or the contract had been signed and rescind the contract without assuming any legal or penal responsibility or advancing any grounds for such refusal, and undertake to take the goods back after the date on which the notice of renunciation has reached the seller or supplier.
The consumer shall sign the contract in which the rights conferred to him have been inscribed and write down the date in his own hand writing. The seller or supplier is obligated to ensure that the said information is included in the contract and hand over a copy of the contract signed between the parties, to the consumer.
It is incumbent upon the seller or supplier to prove that the contract drawn up in accordance with the provisions of this Article and the goods have been delivered to the consumer. Otherwise, the consumer is not bound with the seven-day period to exercise his right of renunciation.

Distance Contracts
Article 9/A – Distance contract means any contract concluded using written, visual, telephone or electronic media or other means of communication without coming into contact with the consumer, and which provides for the delivery or supply of goods or services to the consumer at the time when the contract is concluded or thereafter.
The consumer shall be provided with, prior to the conclusion of the distance sales contract, the information the details of which shall be established under the communique issued by the Ministry. Unless the consumer confirms in writing that he has been provided with such information the contract cannot be concluded. Confirmation relating to the contracts made in the electronic medium shall also be made in the electronic medium.
The seller or supplier shall perform its obligation within thirty days following the date on which the consumer's order reaches the seller or supplier. This period can be extended for a maximum of ten days provided that the consumer has been informed in writing in advance.
It is incumbent upon the seller or supplier to prove that the delivery of intangible goods delivered or services provided to the consumer in electronic medium is without defect.
The provisions applying to door-to-door sales, excepting the provisions setting forth that the consumer may not be required to make payment for the good or service subject matter of the contract, under any name whatsoever, or to issue a written document evidencing indebtedness during the period in which the right of renunciation can be exercised, shall also apply to distance contracts.
The seller or supplier shall have to refund any sums he received, or return any negotiable instrument or written document evidencing indebtedness arising from such legal transaction within ten days following that on which he receives the notice of renunciation, and take the good back within twenty days.

Consumer Credits
Article 10 – Consumer credit means any credit received in cash by a consumer from the creditor for the purpose of obtaining a good or service. Consumer credit agreement shall be made in writing, and a copy of which contract shall be given to the consumer. The credit terms specified in the contract made cannot be changed to the detriment of the consumer during the term thereof.
The contract shall contain:
a) the amount of the consumer credit limit,
b) total amount of debt including interest and other items,
c) the annual rate of interest,
d) the repayment plan specifying the repayment dates, principal, interest, fund and other charges separately,
e) the guarantees required,
f) the rate of default interest which shall not exceed the legal interest rate plus 30%,
g) the legal consequences of the debtor's default,
h) the terms for the prepayment of loan,
ı) where the credit has been extended in a foreign currency, the terms governing the selection of the date on which the foreign exchange rate in effect shall be used to compute the amount of repayment instalments and the total amount of credit.
If the creditor has reserved the right to declare the rest of the credit accelerated in the event that one or more of the instalments have not been repaid, such right can be exercised only if the creditor has performed all its obligations and the consumer has defaulted at least on two consecutive instalments. However, in order for the creditor to exercise such right he has to give at least a week's notice of acceleration. Where a personal guarantee is given as collateral for the consumer credit, the creditor may not demand the guarantor to repay the debt without first having recourse to the principal obligor.
The consumer may prepay the total sum indebted to the creditor, as well as one or more instalments not yet due and payable. In either case, the creditor is obligated to make the deduction in interest and fees corresponding to the sum prepaid. The Ministry shall determine the principles and guidelines for the determination of the extent to which the deduction in interest and fees shall be made corresponding to the sum prepaid.
Where the creditor grants the credit on condition that a sales contract is concluded with a specified seller or supplier, or for the purchase of a specified brand of goods or services, in the case the good or service sold has not been delivered or performed in time the creditor shall be liable to the consumer severally with the seller or supplier.
The creditor is banned from linking the payments to a negotiable instrument or taking the credit under guarantee by accepting a negotiable instrument. If the creditor takes a negotiable instrument from the consumer despite such ban, the consumer shall be entitled to ask the creditor to return the negotiable instrument. Furthermore, the creditor shall be liable for any damages suffered by the consumer due to the endorsement of the negotiable instrument.

Credit Cards
Article 10/A – The provisions of section 10 hereunder shall also apply to credits converted to cash credit through the purchase of goods or services on credit card or credits used by drawing cash on credit card. However, the provisions of paragraphs (a), (b), (h) and (ı) of subsection 2, and subsection 4 of Section 10 shall not apply to such credits.
The periodic statements sent by the creditor to the consumer shall have the effect of the payment plan contemplated in paragraph (d) of subsection 2 of Section 10. In the event that the minimum amount specified in the periodic statement has not been paid when due, the consumer cannot be put under any obligation whatsoever other than the default interest set forth in paragraph (f) of Section 10.
The creditor is obligated to notify the consumer of any increase in the rate of interest thirty days in advance. The rate of interest increased by the creditor shall not apply retrospectively. The consumer shall not be affected by the increase in the interest rate if he repays the total amount of credit and terminates the use of credit at the latest within sixty days from the date of notification.
Where the goods or service is purchased on a credit card, the seller or supplier may not require the consumer to pay commission or make any additional payment under any name whatsoever.

Periodicals
Article 11 – Where a second product and/or service has been guaranteed in addition to a periodic publication through tickets, coupons, participation numbers, games, lotteries or suchlike organized by its publishers, no goods or services can be guaranteed or distributed, except the items of culture such as books, periodicals, encyclopedia, banners, flags, posters audio or visual tapes or optical disks which are not inconsistent with the purposes of periodic publication. In the case that a campaign has been organized for this purpose, the campaign period cannot exceed sixty days. The consumer cannot be asked to provide a part of the price of the good or service subject matter of the campaign.
The publisher of a periodical is obligated to announce the program of the delivery or performance dates of the good or service subject matter of the campaign, in Turkey at large, in the advertisements and announcements on the campaign, and to effect the delivery or performance of the good or service subject matter of the campaign within 30 days following the end of campaign.
The price of the periodic publication cannot be increased during the campaign period due to the increase in costs caused by the good or service to be delivered as a second product. The delivery or distribution of the good or service subject matter of campaign cannot be made in parts, nor can the integral or complementary parts of such good or service be made the subject of a separate campaign. For the purposes of this Law, transactions relating to each good or service guaranteed to be given as a second product, is considered an independent campaign.
Campaigns which have not been organized by periodic publishers but have been directly or indirectly linked to a periodic publication shall be subject to these provisions.

Subscription Agreements
Article 11/A – A consumer party to any subscription agreement may unilaterally terminate his subscription provided that he notifies the seller of his wish in writing.
The seller shall abide by the consumer's wish to terminate his subscription at the latest within seven days following the seller’s receipt of written notification.
The termination of the subscription for a periodic publication shall take effect 15 days, one month and three months after the written notification reaches the seller for daily, weekly and monthly publications, respectively. The termination of the subscription of a publication of longer periodicity shall take effect after the subsequent publication following the notification.
The seller is obligated to refund the rest of the subscription fee within 15 days without making any deductions.
Price Labels
Article 12 – Labels indicating the prices, inclusive of all taxes, place of production and distinctive characteristics relating to the product, shall be affixed on the goods offered for retail or on the packages or containers thereof, in an easily visible and legible manner, and where no labelling is possible lists showing the same information shall be displayed in a visible manner.
The lists showing the tariffs and prices of services shall also be prepared and displayed as laid down in the first subsection.
Where there is a difference between the price indicated in the labelling, or price lists or tariffs and the price at the point of sale terminal, the sale shall be implemented at the price that is more beneficial to the consumer.
The goods or service the price of which is fixed by the Council of Ministers, or public corporations or institutions or professional associations having the nature of public corporation may not be sold at a higher price than the fixed price.
The Ministry shall regulate the forms, contents of labels and tariffs and the principles and guidelines relating thereto under an ordinance. The Ministry and municipalities are separately assigned to carry out the duties relating to the execution and observation of the provisions of this Article.

Warranty Certificates
Article 13 – Manufacturers or importers shall issue warranty certificates for the industrial goods they manufacture or import. The responsibility to complete and give, to the consumer, the warranty certificate bearing the date and number of the invoice issued for the good, lies with the seller, dealer or agent. The warranty period shall commence on the date of the delivery of good and last at least for two years. However, the warranty terms of certain goods can be determined by the Ministry with a different unit of measurement due to their specificity.
In the event that a good under warranty breaks down during the warranty period, the seller is obligated to get it repaired without charging any fees such as workmanship, spare part replacement cost or any charge under any name whatsoever.
Where the consumer uses his right of repair, if he cannot continually utilize the good due to frequent breakdown during the warranty period, or the maximum length of period required for its repair has been exceeded, or it has been understood that the good cannot be repaired, the consumer can exercise his other alternative rights granted under Article 4. The Seller may not refuse such request. In the event that this request of the consumer has not been fulfilled, the seller, dealer, agent, manufacturer-producer and importer shall be severally responsible.
The provisions of the second and third paragraphs does not apply to damage or defects caused by improper use of good by the consumer not in compliance with the introductory user guide.
The Ministry is obligated to determine and announce which industrial goods shall be sold under warranty certificate and the minimum amount of time required to repair the defects in these goods, after having received the opinion of the Turkish Institute of Standards.

Introductory and User Guide
Article 14 – The industrial goods produced in Turkey or imported from abroad shall be sold with a guide in the Turkish language containing information on the introduction, use, maintenance and simple repair and, if necessary, with a label containing international symbols and marks.
The Ministry is obligated to determine and announce which industrial goods shall be sold with user guide and labelling, and the minimum amount of information these shall contain, after having received the opinion of the Turkish Institute of Standards.

After-Sales Services
Article 15 – Manufacturers and importers are obligated to provide repair and maintenance services by making available adequate technical staff and spare parts inventories for the industrial goods which they sell, produce or import, during the life of such goods as determined and announced by the Ministry.
The quantity of spare parts inventories to be kept by manufacturers or importers shall be determined by the Ministry.
In the event that the importer terminates his business activities for any reason whatsoever, the new importer of such good shall provide repair and maintenance services during the life of use of the product.
The Ministry is obligated to determine and announce the goods for which service stations shall be set up, as well as the principles and guidelines governing service stations, after having received the opinion of the Turkish Institute of Standards.
In the event that an industrial good sold under warranty certificate breaks down after the warranty period expires it shall be repaired within the maximum time of repair established for such good.

Commercial Advertisement and Notices
Article 16 – It is essential that commercial advertisements and notices conform to the laws, principles adopted by the Board of Advertisement, general morality, public order, personal rights and are true and correct.
No advertisement, notices or implied advertisement deceptive or misleading the consumer, or abusing his lack of experience or knowledge, threatening the life of the consumer and safety of his property, encouraging the acts of violence or inciting to commit crime, endangering public health, or abusing the elderly, children or disabled people shall be allowed.
Advertisement comparing the goods or services offered by a competitor meeting the same needs or intended for the same purpose is allowed.
It is incumbent upon the advertiser to prove the material claims made in the commercial advertisement or announcement.
Advertisers, advertising agencies or media companies have to comply with the provisions of this Article



Board of Advertisement
Article 17 – A Board of Advertisement vested with the power to establish the principles to be complied with in commercial advertisements and notices, to monitor commercial advertisements and notices, and depending on the results of the monitoring activity, to issue precautionary suspension for the advertisements and notices inconsistent with the provisions of Article 16 for a period of three months and/or suspension and/or correction using the same method and/or pecuniary penalty decisions, shall be constituted. The resolutions of the  Board of Advertisement  shall be implemented by the Ministry.
In determining the principles to be complied with in commercial advertisements and notices, the Board of Advertisement shall take account of national conditions as well as universally accepted definitions and rules of the advertising sector.
The Board of Advertisement will be chaired by the relevant General Director assigned for duty by the Minister and shall be composed of 25 members consisting of:
a) a member assigned by the Ministry from among the relevant Deputy General Directors,
b) a member assigned by the Ministry of Justice from among the judges performing administrative duties at the Ministry of Justice,
c) a member having expertise in advertising assigned by the Turkish Radio and Television Corporation,
d) a member selected from among the university academic staff having expertise in advertising and assigned by the Higher Education Council,
e) a physician member assigned by the Central Council of the Turkish Association of Physicians,
f) an attorney at law member assigned by the Turkish Bar Association,
g) four members assigned by the Turkish Union of Chambers and Commodity Exchanges,
h) a member selected by all journalist associations in Turkey from among their members,
i) a member selected by advertising agencies associations or their higher bodies, if any,
j) a member selected by the Consumer Council from among the representatives of consumer associations who adhere to the Council or a member assigned by their higher bodies,
k) a member assigned by the Turkish Union of Chambers of Agriculture,
l) a member assigned by the Confederation of Turkish Tradesmen and Craftsmen,
m) a member from the Turkish Institute of Standards,
n) a member from the Department of Religious Affairs,
o) a member from the Turkish Union of Chambers of Engineers and Architects,
p) a member from the confederations of labour unions,
r) a member from the confederations of civil servant unions,
s) a member assigned by the Turkish Union of the Chambers of Independent Accountant Financial Advisers and Chartered Public Accountants,
t) a member selected by the Metropolitan Municipalities of Ankara, Istanbul and İzmir from among their staff,
u) a member from the Turkish Association of Pharmacists,
v) a member from the Turkish Association of Dentists.
The term of the Board members shall be three years. The members whose term ends may be reassigned or re-elected. When a seat becomes vacant for any reason whatsoever a new member shall be assigned or selected within a month in accordance with subsection three.
The Board shall convene at least once a month or at such times as required by the Chairman.
The Board shall form a quorum when more 14 members, including the Chairman, are present and resolutions shall be passed by the majority of those present at the meeting.
The Board may set up permanent or ad hoc special expertise committees where necessary. Civil servants considered by the Board to be qualified to take duty at such committees shall be assigned by the relevant public entities.
Attendance fees to be paid to Board members or the special expertise commission members who are civil servants shall be determined by the Ministry after having taking the appropriate opinion of the Ministry of Finance.
Secretarial services for the Board shall be carried out by the Ministry.
The resolutions of the Board of Advertisement shall be announced by the Chairman's office for the purpose of informing, elucidating consumers and protecting their economic interests.
The duties and formation of the Board, and the principles and guidelines governing its functioning and how the secretarial services are to be performed shall be established under an ordinance to be issued by the Ministry.

Hazardous and Dangerous Goods and Services
Article 18– Where the goods or services offered for the consumer's use may endanger or harm a person's physical or mental health or the environment, information and warning on this issue shall be added or written, in an easily visible and legible manner, on the goods or in the user's guide included, for the safe usage of such goods.
The Ministry is authorized to determine, together with pertinent ministries and other institutions, which of the goods and services shall contain explanatory information and warnings, and the form and place of such information and warnings, and announce the same.

Supervision of Goods and Services
Article 19 – Goods or services offered to the consumer have to comply with the mandatory technical regulations, including the standards put into mandatory application by the pertinent ministries after being published in the Official Gazette.
The pertinent ministries shall implement or cause to be implemented inspections in accordance with such principles. The principles and guidelines relating to the inspection of goods and services shall be separately established and announced by each pertinent ministry.
Consumer Awareness
Article 20 – The Ministry of National Education shall make the necessary additions to the curriculum of organized and extensive educational establishments to educate the consumer.
The principles and guidelines relating to the presentation of radio and television programs to educate and increase the awareness of consumers shall be established and announced by the Ministry upon the proposal of the Consumer Council.


PART THREE
Consumer Organizations
Consumer Council
Article 21 – A "Consumer Council" shall be set up under the coordination of the Ministry to search the measures necessary to deal with consumer problems, needs and interests, convey the views as to the measures to be taken to solve the problems in line with universal consumer rights, as well as the views as to the measures to be taken concerning the application of this Law, to pertinent authorities so that prompt action can be taken.
The Consumer Council shall be composed of the representatives of the Ministries of Justice, Interior, Finance, National Education, Health, Transport, Agriculture and Rural Affairs, Industry and Trade, Tourism and Environment, and State Planning Organization, Undersecretariat of Treasury, Undersecretariat of Foreign Trade, Turkish Patent Institute, State Institute of Statistics, Turkish Institute Standards, Competition Authority, Higher Board of Radio and Television, Energy Market Regulatory Authority, Telecommunication Authority, Turkish Accreditation Authority, meeting under the chairmanship of the Minister or a staff of the Ministry assigned by the Minister, National Productivity Centre, Department of Religious Affairs, greater city municipalities, Turkish Association of Municipalities, confederation of labour unions, confederation of civil servant unions, Turkish Confederation of Employers Unions, Turkish National Union of Cooperatives, Higher Education Council, Turkish Bar Association, Turkish Union of the Chambers of Independent Accountant Financial Advisers and Chartered Public Accountants, Turkish Union of Chambers of Engineers and Architects, Turkish Association of Pharmacists, Turkish Association of Dentists, Turkish Association of Veterinary Surgeons, Confederation of Turkish Tradesmen and Craftsmen, Turkish Union of Chambers and Commodity Exchanges, Turkish Association of Banks, Turkish Association of Travel Agents, Turkish Association of Hoteliers, Turkish Union of Chambers of Agriculture, Central Union of Consumer Cooperatives, Trust of Guild Research and Culture and consumer organizations.
The Ministry shall determine the numbers and characteristics of the organizations and institutions making up the Consumer Council; the minimum number of members an organization has to have in order to join the Consumer Council; and the number of representatives such organizations shall send to the Consumer Council. However, the number of public sector representatives shall under no circumstances exceed 50% of the total number of members at the Consumer Council. The Consumer Council shall convene at least once a year.
The constitution, working principles and guidelines of consumer problems panel of arbitrators and other related issues shall be regulated under an ordinance issued by the Ministry

Arbitration Committee for Consumer Problems
Article 22– The Ministry is obligated with the duty to constitute at least one arbitration committee for consumer problems at the centers of provinces and counties to resolve the disputes arising from the application of this Act.
The arbitration committee for consumer problems where the chairmanship of which shall be carried out by the Provincial Director of Industry and Trade or a civil servant assigned by him, shall be composed of a member appointed by the mayor from the municipality, a member appointed by the bar association from among its members, a member appointed by the chamber of commerce and industry and the chamber of artisans and craftsmen, and a member elected by consumer organizations, making up a total of five members, including the chairman. The member appointed by the chamber of commerce and industry, or where the two chambers have been set up separately, by the chamber of commerce and the chamber of artisans and craftsmen shall be appointed by the relevant chamber depending on whether the seller party to the dispute is a merchant or tradesman or craftsman.
The chairmanship of the arbitration committee for consumer problems in the provinces or counties where the Ministry's provincial organization does not exist, shall be held by the highest ranking administrative officer or a civil servant assigned by him. In places where there is no consumer organization, consumers shall be represented by consumption cooperatives. Where arbitration committee for consumer problems cannot be constituted, the vacant memberships shall be filled ex officio by municipal councils.
At least one rapporteur shall be assigned for arbitration committee for consumer problems to prepare the files, which shall form the basis for the panel's works and resolutions, and present a report on the dispute at issue.
Filing of the disputes with a value of less than five hundred million Turkish Liras before the arbitration committee for consumer problems is mandatory. The decision made the panel in such disputes shall be binding upon the parties. These decisions shall be enforced pursuant to the provisions of the Code of Enforcement and Bankruptcy relating to the enforcement of court decrees. The parties may appeal within 15 days against such decisions before the consumer court. The appeal shall not stop the enforcement of the decision of the arbitration committee for consumer problems. However, upon request, the judge may suspend the enforcement of the decision of the arbitration committee for consumer problems by way of precautionary judgment. The judgment entered by the consumer court on appeal from the decision of the arbitration committee for consumer problems is final.
The decision of the arbitration committee for consumer problems in disputes with a value of more than five hundred million Turkish Liras or above can be presented to the consumer court as evidentiary submission. The monetary limits determining whether a decision shall be final or considered as evidence shall be increased at the end of October each year at the average annual rate of increase in the Wholesale Price Index announced by the State Institute of Statistics. This shall be announced in the Official Gazette by the Ministry in December each year.
Any dispute other than those linked to penal sanctions laid down in Article 25, are within the jurisdiction of arbitration committee for consumer problems.
The principles and guidelines applying to the payment of attendance fees to the chairman and members and rapporteurs of arbitration committee for consumer problems shall be determined by the Ministry after having obtained the positive opinion of the Ministry of Finance on condition that the amount paid in a month does not exceed the product of 2000 indicator figure multiplied by civil servant monthly coefficient.
The constitution, working principles and guidelines of arbitration committee for consumer problems and other related issues shall be regulated under an ordinance issued by the Ministry.


PART FOUR
Provisions Regarding Legal Proceedings and Penalties
Consumer Courts
Article 23 – Any disputes in connection with the enforcement of this Law shall be heard at consumer courts. The judicial districts of consumer courts shall be determined by the Supreme Board of Judges and Public Prosecutors.

The lawsuits filed by consumers, consumer organizations or the Ministry before consumer courts shall be exempt from any duties and charges. The fees of expert witnesses in the lawsuits filed by consumer organizations shall be paid from the special fund appropriated by the Ministry under Article 29. In the event that the case has been awarded against the defendant, the fees of expert witnesses shall be collected from the defendant pursuant to the provisions of the Act Pertaining to the Procedure for the Collection of Public Receivables, No. 6183 and entered as revenue for the public purse in accordance with the principles laid down in Article 29. The cases heard at consumer courts shall be conducted in accordance with the provisions of Part Seven, Chapter Four of the Code of Civil Procedure.
The cases relating to consumer affairs can also be filed before the court at the district where the consumer is domiciled.
The Ministry or consumer organizations can file lawsuits, before consumer courts, relating to issues which are not considered individual consumer problems but are, in general, concern to consumers, in order to eliminate the situation violating this Law.
Where necessary, consumer courts can issue precautionary injunctions to terminate the violation. Precautionary injunctions deemed appropriate by consumer courts shall be announced forthwith by the Press Announcements Institution in a national newspaper printed in the country at large and, at a local newspaper at the district where the lawsuit has been filed, if any, on condition that the cost of such announcement shall be collected from the party against which the judgment has been entered, which cost shall be entered as revenue for the public purse in accordance with the principles laid down in Article 29.
Consumer court judgments ordering the elimination of the violation of the Act shall be announced in the same manner, at expense of the defendant.

Suspension of Production, Sales and Product Recalls
Article 24 – In the event that a series of goods offered for sale are defective, the Ministry, consumers or consumer organizations can file a lawsuit seeking the production and sale of the defective good to be suspended, and recalled from those who are holding such goods for sale.
In the event that a series of goods offered for sale has been found to be defective by court judgment, the sale of such product shall be temporarily suspended. A warning shall be issued to the manufacturer-producer and/or importer to remove the defect of the good at the latest within three months from the date on which the court's judgment has been served.. Where it is impossible to remove the defect, the good shall be recalled by the producer-manufacturer and/or importer. The recalled goods shall be partially or fully destroyed or caused to be destroyed depending on the risks they involve.
In the event that a series of goods offered for sale has a defect that involves risks endangering the consumer's safety, the provisions of the Act on the Preparation and Application of Technical Legislation Relating to Products, No. 4703 are reserved.
The right of the consumers who purchased defective goods to file lawsuit due to the mental or physical damages they suffered is reserved.
In the event that a series of defective goods subject to the provisions of Paragraph 6 of Article 4 has been offered for sale, the provisions of this Section shall not apply.

Goods That Appear Different Than They Are
Article 24/A – The production, marketing, importation and exportation of goods which appear different than they are because of their form, aroma, appearance, packaging, labelling, volume or size, even though they are not foodstuffs, can be mistaken for foodstuffs and therefore put the health and safety of consumers in jeopardy is forbidden.
If such goods has been launched into the market, the provisions of the Act on the Preparation and Application of Technical Legislation Relating to Products, No. 4703 shall apply.
The right of the consumers, who purchased goods which appear different than they are, to file lawsuit due to the mental or physical damages they suffered is reserved.

Penalty Provisions
Article 25 – A fine of Turkish Lira 50,000,000 shall apply pursuant to paragraph 7 of Article 6 for each contract inconsistent with the principles and guidelines adopted by the Ministry.


A fine of Turkish Lira 100,000,000 shall apply to those who act in violation of the principles and guidelines adopted by the Ministry under paragraph 7 of Article 4, Article 5, paragraph 6 of Article 6, Articles 6/A , 6/B and 6/C; and against the obligations laid down in paragraph 5 of Article 7, Article 9, Article 9/A, Article 10, Article 10/A, paragraph 2 and 4 of Article 11/A, and Article s 12, 13, 14, 15 and 27.
A fine of Turkish Lira 250,000,000 shall apply to those who act in violation of the obligations under paragraph 4 and 6 of Article 7, and Article 8.
A fine of Turkish Lira 500,000,000 shall apply to those who act in violation of the principles and guidelines adopted by the Ministry pursuant to paragraph 2 of Article 20. If the violation is caused by radios or televisions broadcasting in the country at large, ten times the fine shall apply.
A fine of Turkish Lira 1,000,000,000 shall apply to the producer-manufacturers or importers who act in violation of Article 18, and one fifth of this fine shall apply to seller-supplier.
A fine of Turkish Lira 2,000,000,000 shall apply to those who act in violation of paragraph one of Article 19.
A fine of Turkish Lira 5,000,000,000 shall apply to those who act in violation of paragraph one of Article 11. If the violation is caused by a periodic publication published in the country at large, 20 times the fine shall apply. Furthermore, the Ministry shall also demand the periodic publisher to stop the campaign as well as any advertisements and announcements relating to the campaign. If the violation continues despite this demand, a fine of Turkish Lira 100,000,000,000 shall apply for each issue-day, from the date on which the necessity of stopping the advertisements and announcements has arisen. The Ministry shall apply to a consumer court with the request of stopping the campaign and any advertisements and announcements relating to the campaign.
A penalty of up to three months precautionary suspension and/or suspension and/or correction and/or a fine of Turkish Lira 3,500,000,000 shall apply to those who act in violation of Article 16. The Board of Advertisement may issue such penalties together or separately, depending on the nature of the violation. If the violation of Article 16 is carried out through printed, audio, visual or other means publishing or broadcasting in the country at large ten times the fine shall apply.
A fine equalling the invoice price of the good or service subject matter of campaign shall apply to those who act in violation of paragraph 7 and 8 of Article 7. This fine shall not apply if the campaign organizer refunds the money when the consumer leaves the campaign.
A period of one week shall be granted to those acting in violation of paragraph 2 of Article 7 to organize a campaign consistent with the provisions of Article 7. If the violation still continues when such period expires, a fine of Turkish Lira 50,000,000,000 shall apply to those who act in violation of this provision and of the obligations laid down in Articles 24 and 24/A.
The fines specified in the foregoing paragraphs shall apply at twice the amount, if the act is repeated within a year. The fines shall be increased at the beginning of each year in accordance with Additional Article 2 of the Turkish Penal Code, No. 765.
Where fines have been prescribed in other statutes for acts described under this Act, the higher of the fines shall apply.

Authority, Objections and Statute of Limitations in Penalties
Article 26 – The penalties set forth in paragraphs 1, 4, 7, 8, 9 and 10 of Article 26 shall be executed by the Ministry, and the penalties set forth in other paragraphs shall be executed by the highest administrative officer in that location.
All fines specified in this Act are of an administrative nature. An objection may be filed with the competent administrative court regarding such fines, within seven days following the notification of the fine. Such an action shall not cease the enforcement of the penalty payment imposed by the administrative authorities and if not urgent, shall be carried out through the official documents and immediately resolved. The decisions of the administrative courts upon objection, are final
Fines imposed as per Article 25 shall be collected pursuant to the provisions of the Act Pertaining to the Procedure for the Collection of Public Receivables.
The administrative fines specified in this Act shall be subject to a prescription period of one year. Such prescription period shall commence on the date the relevant violation of this Law took place.
In the event of continuous or repeated violations, the prescription period shall commence on the date the violation has come to an end or on the date of its most recent occurrence. Initiation of legal proceedings against the decision to impose a fine shall stop the prescription period.
The organization authorized to impose the fine shall notify the professional association of the relevant party within seven days.


PART FIVE
Miscellaneous Provisions
Supervision
Article 27 – In order to implement this Act, the inspectors and controllers of the Ministry and any other personnel to be designated by the Ministry and by municipalities for this purpose shall be authorized to inspect and supervise and make researches at any place such as factories, shops, offices and warehouses where goods are stored and/or sold or where services are provided.
Officers and organizations who are authorized in matters related to this Act shall be presented true and accurate documents and information, together with the notarized originals.

Laboratory
Article 28 – The Ministry can make use of the laboratories of public and private institutions for the execution purposes of this Act, excepting the analyses of drugs, medicines, cosmetics and foodstuffs.
The tests and examinations of samples taken during the controls carried out by the Ministry may be made at the laboratories of public and private institutions. The costs of tests and examinations shall be paid out from the special appropriation set forth in Article 29. In the event that the tests and examination results have been found incompatible with the pertinent standards or technical regulations, all related costs shall be borne by the producer or importer. The costs shall be collected pursuant to the provisions of Act No. 6183 on the Procedure for the Collection of Public Receivables. The costs of tests and examinations collected shall be entered as special revenue for the public purse in accordance with the principles laid down in Article 29.

Revenues
Article 29 – The costs relating to the constitution and functioning of the Consumer Council, arbitration committee for consumer problems and Board of Advertisement, financial support to be provided to consumer organizations and their upper bodies, the Ministry's expenditure in connection with the protection of consumer and other related expenses, and any additional payment made to the personnel in the amounts determined by the Ministry of Industry and Trade after having received the Ministry of Finance's positive opinion shall be met from:
a) the appropriation earmarked in the Ministry's budget, and
b) the payments equalling one thousandth of the equity capital of newly incorporated joint stock companies or limited liability companies, and in the case of capital increase, of the amount increased.
The revenues specified in paragraph (b) shall be collected in an account opened with the Republic of Turkey's Central Bank or its correspondent T.C. Ziraat Bankası. Sixty percent of the moneys collected in such account shall be transferred to the account of the Directorate of Central Accounting Office at the Ministry of Industry and Trade, and forty percent shall be transferred to the account of the account of the Competition Authority.
The amounts transferred to the account of the Directorate of Central Accounting Office, on the one hand shall be entered as special revenue for the budget, and on the other hand, it shall be entered as special revenue by the Ministry of Finance for the existing or newly opened chapters in the budget of the Ministry of Industry and Trade.
A part of the special revenues entered in the Ministry's budget shall be used to support the projects involving the activities of the consumer organizations which have been active at least for five years and which are independent of any commercial, political and administrative institutions or their upper bodies. No payment shall be made from this account to persons working in the boards of directors or auditing committees of consumer organizations or their upper bodies under the name of attendance fee or salary. The qualifications that the consumer organizations or their upper bodies who will benefit from this account shall be regulated under an ordinance prepared by the Ministry of Industry and Trade and Ministry of Finance together.
The Ministry of Finance is authorized to transfer and enter as special revenue and special appropriation for the next year that portion unspent, during the year, of the amounts earmarked as special appropriation.



Other Provisions
Article 30 – Matters not provided for in this Act shall be subject to the general provisions of the legislation.

Regulations and Arrangements
Article 31 – The regulations specified in this Law shall be issued by the Ministry within one year following the publication hereof, in consultation with the relevant public institutions, professional associations and consumer organizations. The Ministry shall be authorized to take the necessary measures and make the necessary arrangements with regard to the implementation of this Act, subject to the pertinent legislation.

Invalidated Provisions
Article 32 – The Act Pertaining to the Obligation to Sell Without Bargaining, No. 3489; the Act on the Sale of Imported or Locally Manufactured Motor Vehicles, Engines, Machinery, Tools and Equipment with User's Guide, No. 632; the Act on the Control and Determination of the Costs and Prices of Industrial Products, No. 3003 have been repealed.

Provisional Article 1- The High Council of Jurists and Prosecutors shall determine the courts which are authorised to deal with the matters which are within the jurisdiction of the consumers courts until the constitution of the consumer courts.

« Last Edit: June 20, 2007, 12:07:11 PM by admin »
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Re: Consumer Protection Act. - No:4077
« Reply #1 on: June 20, 2007, 12:05:06 PM »
Provisional Article 2 – The credit card debts which have not been paid out due to the debtor's default and have advanced to the stage of enforcement proceedings or for which enforcement proceedings have been initiated before the enactment of this Act, shall be paid in twelve equal instalments after a default interest at the annual rate not exceeding 50% has accrued on the principal at the time of default.
Any enforcement proceedings initiated on credit card debts shall cease upon the payment of the first instalment in accordance with the foregoing provision, and be dismissed with all its effects upon the payment of the last instalment.
The provisions of this Article shall be effective provided that the consumer files an application to the creditor in writing within 30 days following the date of issue of this Act.

Entry into Force
Article 33 – Article 29 and Provisional Article 2 of this Act shall go into effect on the date of issue, and all the other Articles of this Act shall go into effect three months after the date of issue..

Implementation
Article 34 – This Act shall be implemented by the Council of Ministers.
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