AMENDMENTS TO THE CONSUMER PROTECTION LAW

The Law on the Amendment to the Consumer Protection and Certain Laws (in Turkish, “Tüketicinin Korunması Hakkında Kanun ile Bazı Kanunlarda Değişiklik Yapılmasına Dair Kanun”, hereinafter referred to as the “Amending Law”) was published in the Official Gazette dated 30 October 2024 and numbered 32707. With the Amending Law, there have been changes in the field of Consumer Protection Law numbered 6502 (the “Consumer Law”).

Some of the changes that the Amending Law brings to the Consumer Law are as follows:

• Consumer Loan Agreements and housing finance agreements

In accordance with Articles 22 and 32 of the Consumer Law, consumer loan agreements and housing finance agreements may be concluded “in writing” as well as “at a distance” through an electronic communication device which will be designed to verify the consumer’s ID remotely.

• Direct Selling System

The Amending Law has brought the Direct Selling System (in Turkish, “Doğrudan Satış Sistemi”) which was previously governed under “Regulation on the Contracts Executed Outside the Workplaces” published in the Official Gazette numbered 29236 and dated 14 January 2014; it has now been added to Article 47/A of the Consumer Law.

Accordingly, the direct selling system is defined as the selling system in which direct sellers, who are appointed by the direct selling companies and are not employed under an employment agreement but operate as independent representatives, distributors, consultants and hold similar titles in return for benefits such as commissions, premiums, incentives and rewards, market goods or services to consumers.

It is prohibited to receive any payment from the consumers the names of renewal, package, fee, contribution etc. that does not include the goods or services envisaged to be sold to the consumer or any document that bind them in order for them to be included in the system or to remain in the system. If the direct selling system is built on bringing new direct sellers into the system and distributing the benefits which are not based on the sale of goods or services to consumers, an administrative fine of TRY 5,000,000 (approx. EUR 137,000) will be determined for each breach.

The purchase of goods or services in the amount or value stipulated by the direct selling company will not be decisive of the level of the direct seller within the system. Consumers who purchase goods or services within the scope of the direct selling system will be entitled to withdraw from the agreement within thirty (30) days without the reason for any just cause and without having to pay a penalty. This period was previously 14 days in the aforementioned regulation. Notification of the withdrawal is deemed sufficient if it is sent to the direct seller or the direct selling company within the foreseen period. In the event of breach of these provisions, an administrative fine will be determined for each transaction.

The direct selling company is required to set up a system which enables consumers to get informed about the matters specified by the Ministry of Trade and to submit their requests and notifications via such system. Three (3) months will be provided to the companies who breach this obligation to remedy such act. If the breach is not remedied at the end of this period, an administrative fine will be imposed.

• Administrative Fines

The Amending Law reviews the amounts of administrative fines to be imposed for certain breaches contrary to consumer rights through media under the Consumer Law, in brief, such amounts are as follows;

–    Activities may be suspended or ceased for up to three (3) months or administrative fine from TRY 60,000  to TRY 600,000 (approx. EUR 1,600 to EUR 16,500) may be imposed on those who breach the obligations specified in Article 62 of the Consumer Law regarding unfair commercial practices. The Advertisement Board may impose the fines together or separately depending on the nature of the breach. If the breach is made country-wide through satellite broadcast television channels or the internet, the administrative fine may range from TRY 600,000 to TRY 6,000,000 (approx. EUR 16,500 to EUR 165,000);

–    Article 77/A paragraph 2 of the Consumer Law, which foresees that a reconciliation request can be lodged against administrative fines imposed by the Ministry of Trade and governorships, apart from sanctions imposed by the Advertisement Board will be repealed.

• Effective Dates

The amendments regarding direct selling system and administrative fines to be implemented for the breaches of this system will enter into force on 30 July 2025 and other amendments made to the Consumer Law entered into force as of its date of publishing i.e. 30 October 2024.

Our Law Firm remains at your disposal for any further clarifications you may need.

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