Even though the New Civil Code (the “NCC”) and the Business Corporations Act (the “BCA”) came into effect on 1 January 2014, a lot of companies that conduct business on the internet have still not updated their general terms and conditions or have not published mandatory information on their websites.
This can be seen from the outcome of inspections conducted by the Czech Trade Inspections Authority (the “CTIA”) in the third quarter of 2014. Inspecting pre-selected e-shops, the CTIA discovered that 75% of them were in breach of the legal regulations. In addition, during this period the CTIA imposed 191 fines in the total amount of CZK 1,261,000. In the official press release published on 8 December 2014, the CTIA declared that it will continue to focus on e-shops and will impose sanctions on sellers who violate consumers’ rights on the internet.
Besides sanctions from the CTIA, companies that use outdated general terms and conditions and incorrectly set-up contractual processes risk facing claims from the counterparty that some of the provisions of the general terms and conditions are invalid. There is also a risk that without any intention on the company’s side, the contract will be validly concluded based on the other party’s counterproposal.
Companies can be fined by the Commercial Register Court up to CZK 100,000 for violating the legal duty to publish mandatory company information on their website. Want to know the mandatory information that you must publish on the web? Contact us.
E-shops must also comply with the mandatory rules on personal data protection, unsolicited commercial e-mail or using cookies on websites. For example, the Office for Personal Data Protection can impose a fine of up to CZK 10,000,000 for failure to comply with the mandatory registration duty.
Within our E-shops Compliance Package we can:
- check whether your website contains all mandatory information;
- assess the contractual process, including compliance with consumer protection;
- review the general terms and conditions;
- check whether cookies on your company’s website are used in compliance with Czech law and EU regulations;
- perform a complete legal check in the area of personal data protection, i.e. whether and how your company processes personal data, whether new registration in the Office for Personal Data Protection or amendment to existing registration is necessary, and whether the consent of third parties is needed;
- check whether your company sends commercial information to customers which may be classified as unsolicited commercial e- mail.
We provide these services for a fixed price that is guaranteed not to increase. Upon request we can of course only check some of the above-mentioned areas.