In the last few months, the Czech Trade Inspection Authority (the “CTIA”) has concentrated its interest on the selling and marketing practices of individual entrepreneurs and companies. The main focus of this has been to tackle the aggressive commercial practices at presentation events which have targeted, in particular, retired old people. In case of presentation events, the main problem and violation of law is providing incomplete information to the audience, the affirmation that the consumer will get something for free but in reality this has been conditioned by the purchase of another good, incomplete agreements, etc.
The unfair commercial practices not only represent a problem of these presentation events but they are used in many trade areas. As a current example, a record fine in the amount of CZK 2,000,000 was imposed on the company which mediates the credit supply to consumers. The fine was imposed for misleading consumers, incomplete information, conscious use of unfavorable situation of the consumer and damage in interest to the consumer. All of these are examples of violations which were concluded as the violation of the Act on the Protection of the Consumer.
According to the interim report of the first quarter of 2013, the CTIA detected violations of laws in 80 % of inspected cases, and imposed fines in the amount of CZK 5,400,000. It appears that there is an increasing trend to punish unfair abusive practices exerted by entrepreneurs that take advantage of naivety of consumers and their lack of information.