Legal overviews

  • News
  • Legal overviews
  • Publications
  • Subscribe
Press Center
Send email
  • ENG
  • РУС
  • Services
    • Practice Areas
      • Corporate Law / Mergers and Acquisitions
      • Contract Law
      • Real Estate and Construction
      • Project financing / Public-Private Partnership
      • Bankruptcy
      • Antitrust Law
      • Intellectual Property (IP)
      • Tax Law
      • Customs Law
      • Foreign Currency Regulation
      • Labor and Migration Law
      • Commercial Arbitration and out-of-court dispute resolution
      • Anti-Corruption Law / Compliance
      • Wealth Management
      • Sanctions Compliance
      • Data Protection
      • Criminal Law
      • Banking and Financial Law
    • Industry Sectors
      • Protection of information and trade secrets
      • Health Care and Pharmaceutical Industry
      • Commercial real estate
      • Food industry
      • Natural resources / Energy
      • Advertising / Marketing / Sponsorship
      • Construction
      • Information technology
    • Additional Services
      • Accounting services
      • Professional translations
    • Asian Desk
      • Legal support for business in Eastern Asia
    • Invest Hub
      • Developing your business
      • Current transactions
    • Recommended specialists
      • Recommended specialists
  • Projects
    • Projects by practice area
  • Team
  • Firm
  • Press Сenter
  • Careers
  • Contacts
  • Client Room
  • Firm
  • Press Сenter
  • Careers
  • Contacts
  • Client Room
  • ENG
  • РУС
  • MOSCOW: +7(495) 970-1090
  • ST. PETERSBURG: +7(812) 346-7990
  • Services
    • Practice Areas
      • Corporate Law / Mergers and Acquisitions
      • Contract Law
      • Real Estate and Construction
      • Project financing / Public-Private Partnership
      • Bankruptcy
      • Antitrust Law
      • Intellectual Property (IP)
      • Tax Law
      • Customs Law
      • Foreign Currency Regulation
      • Labor and Migration Law
      • Commercial Arbitration and out-of-court dispute resolution
      • Anti-Corruption Law / Compliance
      • Wealth Management
      • Sanctions Compliance
      • Data Protection
      • Criminal Law
      • Banking and Financial Law
    • Industry Sectors
      • Protection of information and trade secrets
      • Health Care and Pharmaceutical Industry
      • Commercial real estate
      • Food industry
      • Natural resources / Energy
      • Advertising / Marketing / Sponsorship
      • Construction
      • Information technology
    • Additional Services
      • Accounting services
      • Professional translations
    • Asian Desk
      • Legal support for business in Eastern Asia
    • Invest Hub
      • Developing your business
      • Current transactions
    • Recommended specialists
      • Recommended specialists
  • Projects
    • Projects by practice area
  • Team
  • Home
  • Press Сenter
  • Legal overviews
  • How to avoid impairment of consumer rights and penalties. New recommendations of the Russian Supreme Court

Legal overviews

Information and relations

How to avoid impairment of consumer rights and penalties. New recommendations of the Russian Supreme Court

  • Author: Dmitry Churin
  • Services: Health Care and Pharmaceutical Industry, Commercial Arbitration and out-of-court dispute resolution, Contract Law, Corporate Law / Mergers and Acquisitions
  • Date: 05.07.2017

The Russian Supreme Court in Ruling No.24-KG17-7 of May 16, 2017 listed terms and conditions which could be deemed an impairment of consumer rights.

In the court’s opinion, such terms and conditions include those which impose the burden of entrepreneurial risks on consumers.

Within the framework of a case examined by the Russian Supreme Court, the sale and purchase agreements of cars between a company and consumer provided that the seller could unilaterally increase the price of goods in the following events: 

  • Increase of the recommended retail price of goods;
  • Increase of the goods’ prime cost;
  • Increase or introduction of new tax rates, customs or other fees;
  • Increase of transport, business or other expenses of the seller.

In the court’s opinion, such provisions impair consumer rights, as they create aggravating conditions in form of increase of the goods price. The court noted that as the consumer is the weaker party in relations with a business entity and is not able to influence the content of the agreement when concluding it, the terms and conditions of the agreement which lead to the seller’s entrepreneurial risks being imposed on the consumer can be deemed as impairing the consumer rights.1

Due to the foregoing, we recommend to avoid in agreements with consumers any terms and conditions which can be qualified as shifting entrepreneurial risks to the consumer. Otherwise, the company can be held liable for an administrative offence in form of a fine from 10,000 to 20,000 rubles for the company, and from 1,000 to 2,000 rubles for the general director.

Please also note that the Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor) gives the following main terms and conditions2 impairing consumer rights:

  • Inclusion of terms and conditions on mandatory purchase of additional goods in connection with the purchase of other goods in a retail network;
  • Denial of sale at the established price of goods being on sale based on the seller’s terms on a minimum amount of purchase;
  • Imposing services in the course of rendering public food catering services (music accompaniment, additional servicing).

The said terms and conditions are also deemed as impairing consumer rights, and if this is established, an administrative fine can be levied on the company and the general director.

 ----------------------------------

1 Currently, the case is under new examination due to violations in the course of the case examination by the court of cassation.

2 Review of the law enforcement practice of supervisory activity of the Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing for 2016.

-----------------------------------

The article contains photograph www.gozpp32.ru


 

 

 

  Dmitry Churin
  Principal Associate

  St. Petersburg

  Теl.: +7 (812) 346 79 90

  Ekaterina Chernenkova
  Associate

  St. Petersburg

  Теl.: +7 (812) 346 79 90

Additional notes

Should any questions arise in connection with the above or if you need any additional materials, please contact Dmitry Churin or Ekaterina Chernenkova, Office of Capital Legal Services.

This Information letter keeps the clients of Capital Legal Services and other interested parties abreast of information that may, to any extent, affect their activity or cater to their particular interests. The opinions and commentaries expressed in this information letter shall not be deemed as legal opinions and do not cancel the need to obtain legal advice or legal opinion on separate issues. 

www.facebook.com/capitallegalservices

www.linkedin.com/company/1508958


  • News
  • Legal overviews
  • Publications
  • Subscribe
Press Center
Send email
  • Home
  • Services
  • Projects
  • Team
  • Sitemap
© 2023 Capital Legal Services LLC. All rights reserved
Disclaimer