The year 2013 will surely be remembered with one of the milestones in the history of the Turkish direct selling industry: The introduction of the new Consumer Protection Act. The law passed with unanimous consent in the National Assembly on November 7.
The previous law on the oher hand, has been in effect since 1995. Below are some highlights from the new legislation:
For the first time, anti-pyramid provisions have been included in the legislation. A specific article in the law defines pyramid schemes and declares that all such schemes are illegal and will be banned when found. The law also states that those who initiate or run a pyramid scheme will be subject to the relevant provisions of the Turkish Criminal Law.
Previously, pyramid schemes have been investigated and prosecuted under various laws but indirectly.
Cooling-off Period in Direct Selling
With the new law, cooling-off period has been increased from seven days to 14 days. Consumer is not to be asked to make any payments during this period. The seller is obliged to prove that the end-consumer has been equipped with all information regarding his/her rights with this respect. If the seller does not fulfill the obligations stated in the law, the cooling-off period extends to one year.
Sales Agreements in Direct Selling
Sales agreements can only be made by the sellers that have been authorized by the Ministry of Customs and Trade and have to be in written to be valid.
Deliveries in Distant Selling
The provider is obliged to deliver any ordered goods within 30 days. Beyond this, consumer is free to cancel the sales agreement.
The defects that arise within six months following the delivery date are to be considered as present at the time of delivery.
It is the seller’s obligation to prove if a good or service has been ordered.
Effective Date of the Law and the Next Steps
This new law will be in effect after six months following its appearance on the Official Gazette. The next step will be preparation of the implementing regulations of the law.
For more information on this new legislation, please contact DS Consultancy here.