Romania has like all countries become used to implementing EU legislation. One of the main areas in which the ordinary citizen comes into contact with the European Union is in the area of consumer protection. This can be at an individual level or at a business level.
As practicing lawyers in Romania we are always surprised at how little the „man in the street” knows about the European Union and its impact on their lives both at the social and economic level. Some businessmen are aware by reason of subsidies that they receive, and the ordinary person maybe aware by seeing signs that the European Union has provided funds for an infrastructure project. The impact on the ordinary person does go deeper than that. In our discussions with Belgium lawyers and especially European Union lawyers and advisers it is very clear that the rights of the individual consumer are high on the agenda for some officials, although not all.
As an example on 11th June 2014, the Romanian Government issued Emergency Ordinance no. 34/2014 implementing Directive 2001/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, published on 22 November 2011 (the „Directive”). The provisions of the Emergency Ordinance became effective on 13th June and brought Romanian law into line with the Directive.
By implementing the Directive, the Romanian Government Emergency Ordinance rescinded two domestic pieces of legislation. Government Ordinance no. 106/1999 on off-premises contracts and Government Ordinance no. 130/2000 on consumer protection regarding the conclusion and execution of distance contracts. The Emergency ordinance also amended other legislation, such as Government Ordinance no. 21/1992 on consumer protection and Government Ordinance no. 111/2011 on electronic communications.
As the general public is not aware of the immediate impact of the Emergency ordinance we do not anticipate that for Romanian lawyers there will be a major increase of legal advice required. However, over a period of time the lawyers in Romania will be called upon by their clients to interpret the new laws and their impact. Certainly, clients who currently sell over the internet need to review their position under the new law.
The Government Ordinance covers contracts for the supply of goods by the use of electronic communication dedicated to the public (internet) or for the supply of services of access to and connected to networks of electronic communications provided for the public.
In case of termination of a contract due to failure by the trader to deliver the goods in good time, the Government Ordinance provides that the trader must reimburse all payments made by the consumer arising out of the contract within 7 days from the date that the consumer informed the trader of their decision to terminate the contract.
The proper Romanian authority to enforcing the Ordinances provisions are the National Authority for Consumer Protection and the National Authority for Management and Regulation in Communications.
In line with the requirements of the Directive, the Government Ordinance also provides penalties applicable in case of infringements of the new legislation. Those penalties consist in fines ranging from RON 1,000 to RON 5,000 (approx. EUR 200 to EUR 1,100).
New contracts starting after 13 June 2014 will be subject to the new rules and regulations, whilst ongoing contracts executed before that date continue to be governed by the legislation in force at the time of their execution.
The changes brought by the Government ordinance could have an impact on traders, including an impact on costs, whether direct costs (e.g. costs for returning the goods) or indirect costs (e.g. changes in software in order to accommodate the new legal requirements as well as updates of the terms and conditions for online businesses in Romania to address the requirements imposed by the Government Ordinance). Given the now more favorable rules for the return of goods, an increase in the rate of returns may be envisaged, triggering the need for suppliers to adapt their return policies and procedures accordingly.
Whilst in the short term there may be issues for suppliers we believe that consumers and suppliers will slowly understand the position and therefore the use of electronic marketing and selling will increase thereby stimulating further the Romanian economy.
Are you looking for a lawyer?
