Reporting obligations regarding out-of-court settlements of consumer disputes – 1 May 2016

Vendors are obliged to provide information in their general business terms and conditions about the method they use to resolve consumer disputes extra judicially no later than by 1 May 2016. This fact stems from the effective date of the amendment to the Consumer Protection Act and from the transitory provisions thereof.

Clients, especially travel agencies and tour operators, are turning to us with questions regarding the obligation of vendors to inform customers about the system they use for settling disputes extra judicially at the Czech Trade Inspection. Despite information that is spreading in the corridors of businesses involved in the tourist trade, vendors are obliged to amend their general business terms and conditions no later than within three months of the amendment of the Consumer Protection Act coming into force. The pertinent parts of the law did not come into force until 1 February 2016; therefore, the decisive date is 1 May 2016, after which the Czech Trade Inspection will be checking that this obligation has been reflected in the general business terms and conditions.