E-commerce in the Czech Republic

E-commerce in the Czech Republic

E-commerce in the Czech Republic is regulated by a number of legislative acts that cover various aspects of doing business online, from the conclusion of contracts to the use of electronic signatures. The main legislative provisions include the Civil Code, laws on electronic identification and consumer protection, as well as EU regulations.

Topic Description
Commercial contracts In the Czech Republic, the Civil Code regulates commercial contracts concluded at a distance between suppliers and consumers. This includes any transactions concluded through online shops, e-commerce platforms and other means of remote communication.

For financial services, there are special provisions governing distance selling, due to the need for additional protection for consumers in finance.

Electronic signatures and identification Electronic signatures are governed by the Electronic Identification (eIDAS) Regulation ((EU) 910/2014), which is applicable throughout the EU, including the Czech Republic. Under this regulation, an electronic signature is recognised as legally significant and can be used to conclude contracts and other legal documents.

National laws such as Act No. 297/2016 Coll. and Act No. 250/2017 Coll. supplement the European requirements by regulating trust creation services in electronic transactions and electronic identification in the Czech Republic. These laws establish rules for providers of electronic signature creation and verification services, as well as for the electronic identification system.

Provision of electronic services Act No. 480/2004 Coll. as amended regulates the provision of services in the information society and commercial communications. The law regulates online advertising, promotion of goods and services, as well as the rights and obligations of Internet platforms and services towards consumers.

It is also an important part of this law to regulate the sending of commercial communications, including via email and other means of communication, subject to data protection and privacy provisions.

Consumer protection Law No. 634/1992 Coll. on Consumer Protection regulates the relationship between online sellers and consumers, including distance selling. It also implements the provisions of the Consumer Dispute Resolution Directive (2013/11/EU), which simplifies the dispute resolution process between consumers and sellers.

ADR and ODR: The Consumer Protection Act also supports alternative (ADR) and online dispute resolution (ODR), which allows consumers to resolve problems with online purchases faster and cheaper than through the courts.

Lack of specific regulation for online platforms Currently, there are no specific laws in the Czech Republic regulating the relationship between online platforms and merchants using them for marketing or selling goods. This means that these relationships are subject to the general provisions of the Czech Competition Protection Act.

In cases of unfair practices or abuse of dominance by online platforms, merchants can bring proceedings under the Act. This includes cases where an online platform, for example, provides unfair conditions or restricts market access for certain sellers.

Czech e-commerce legislation takes into account European directives and regulations, which ensures adequate protection of consumer and business rights, as well as the possibility of using modern technologies such as electronic signatures and identification.

Advertising in the Czech Republic

Advertising in the Czech Republic is regulated by Act No. 40/1995 Coll. on Advertising, which covers general rules for advertising campaigns and prohibits the use of unfair advertising methods. The Act aims to protect consumer rights and the public interest by ensuring fair and transparent advertising practices.

Basic requirements for advertising

Prohibited types of advertising:

  • Deceptive advertising: Advertising cannot contain false or misleading information.
  • Discriminatory advertising: Any form of discrimination based on race, sex, age, religion or other grounds is prohibited.
  • Advertising contrary to morality: Advertising that violates social norms of morality or contains elements of fear, violence and humiliation of human dignity is prohibited.

Special Restrictions:

  • Separate, stricter rules apply to the advertising of certain products, such as alcohol, tobacco, pharmaceuticals, medical devices and gambling. For example, alcohol advertising must not target minors and must not encourage excessive consumption.

Digital advertising

Regulation of electronic advertising: The Advertising Law includes provisions for digital advertising, including advertising distributed through emails. Basic requirements for digital advertising:

  • The need for consumers to explicitly consent to receive promotional materials (e.g. mailings).
  • Mandatory mention of sponsors and identification of commercial objectives when promoting products or services.

Social media advertising and influencer marketing:

  • Influencer marketing is subject to specific rules that require influencers to clearly indicate the commercial nature of their content. Any undeclared advertising of products through Influencers is considered an unfair business practice.
  • Influencers should consider their target audience, especially if they are targeting minors, and avoid manipulating children’s trust in famous personalities or idols.

Advertising aimed at children

Child protection is one of the priorities of advertising law. Advertising cannot:

  • Exploit children’s trust in influencers or their idols.
  • Include elements that may have a negative psychological or emotional impact on children.
  • Encourage participation in gambling or the use of tobacco and alcohol products.

Rules for individual sectors

Advertising for sectors such as pharmaceuticals, health services, gambling and financial services is regulated in more detail to protect consumers from potential harm. For example:

  • Advertisements for medical products must be clearly labelled and cannot mislead as to the safety or efficacy of the products.
  • Gambling advertising is restricted to minimise risks to vulnerable groups such as minors or people with addictions.

Thus, advertising activities in the Czech Republic must comply with both general and special rules to ensure transparency and protect consumers from unfair practices, especially in relation to vulnerable groups.

Direct marketing in the Czech Republic

Direct marketing in the Czech Republic is strictly regulated by consumer protection and e-commerce legislation, which requires compliance with a number of conditions to protect consumer rights and ensure transparency of commercial activities.

Topic Description
Consumer consent Direct marketing is only possible with the consent of the consumer. This means that consumers must give explicit and voluntary consent to receive commercial communications, whether through email, SMS or other electronic means.

Most often, consent for direct marketing is collected at the time of product purchase, when the consumer voluntarily agrees to receive promotional materials from the company.

Consumers must be able to unsubscribe from the newsletter at any time. This rule applies to each individual commercial communication, which must provide a clear, simple and free of charge option to unsubscribe.

Commercial messages Any message containing direct marketing must be clearly and unambiguously labelled as a commercial message. This means that the recipients must immediately realise that the message is related to the promotion of goods or services.

The letter or message should identify the sender, as well as information on how the consumer can contact the company to unsubscribe from receiving further communications.

Sales incentives and contests Sales promotion activities (e.g. discounts, promotions or contests) must comply with legal requirements for advertising and consumer protection.

Bait-and-switch advertising is prohibited. This applies to situations where a product is promoted as part of a promotion but is not actually available for purchase (e.g. due to deliberately limited stock).

Competitions for consumers are permissible, but they are subject to a number of conditions:

  • The contest must be related to the product or service being promoted.
  • A prize (cash or non-cash) must be given to a randomly selected winner.
  • Consumers can only enter the contest through participation in a marketing event or with a previous purchase of a product or service from a promoter.
Unfair commercial practices Any form of unfair commercial practice, including false advertising or manipulation of customers, is strictly prohibited.

Companies must ensure that advertised goods are available in reasonable quantities and do not mislead consumers about the terms of promotions and special offers.

Data protection As part of personal data protection laws and subject to GDPR regulations, companies are required to obtain consent to process personal data for marketing purposes. This includes consent to use email or telephone numbers to send commercial messages.

Thus, direct marketing in the Czech Republic requires careful attention to consumer protection and legal compliance. Violation of these rules can lead to serious fines and legal consequences for companies.

Data protection in the Czech Republic

Data protection in the Czech Republic is regulated by both national legislation and European Union legal acts, the main one being the General Data Protection Regulation (GDPR) ((EU) 2016/679), which is applicable in all EU countries. In the Czech Republic, the GDPR is supplemented by Act No. 110/2019 Coll. on the Processing of Personal Data, which regulates aspects of data protection left to the discretion of EU Member States.

Topic Description
Key aspects of data protection under the GDPR Consent to data processing: GDPR requires that personal data is only collected and processed if there are legitimate grounds for doing so. One such basis is the data subject’s explicit consent, which must be voluntary, informed and unambiguous.

Rights of Data Subjects: Citizens of the Czech Republic (as well as other EU countries) have broad rights in relation to their personal data, including:

  • Right to access: the right to know what data is collected about them and how it is processed.
  • Right to rectification: the right to request correction of inaccurate or incomplete data.
  • Right to erasure (right to be forgotten): the right to request deletion of data under certain conditions.
  • Right to restriction of processing: the right to temporarily suspend data processing.
  • Right to data portability: the right to receive its data in a structured, machine-readable format and to transmit it to another controller.
  • Right to object: the right to object to the processing of data on certain grounds, e.g. for marketing.

Processing of children’s personal data: the processing of children’s data requires special attention and additional regulations. For example, the consent of parents or legal representatives is required for children under the age of 16.

National peculiarities in Act No. 110/2019 Coll. Scientific and historical research: the law defines the conditions under which data may be processed for scientific and historical research or statistical purposes, balancing data protection and the public interest.

Freedom of speech: the protection of personal data in the Czech Republic must take into account the rights to freedom of speech and information.

Data processing for defence and security: separate rules govern data processing for national security and defence purposes, where the GDPR allows Member States to impose their own requirements.

Criminal proceedings: the law also regulates data processing in criminal proceedings.

International agreements The Czech Republic is a party to the 1981 Strasbourg Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data. The Convention establishes common standards for data protection at the international level and regulates cross-border data transfers.
Product liability In addition to data protection rules, Czech law has also implemented Directive 99/34/EC on liability for defective products into the Civil Code. This law imposes objective liability on manufacturers and importers for damage caused by defective products, including damage to life, health and property. Damages are compensable if they exceed €500.

The manufacturer or importer may be exempted from liability if it can be proven that the defect was not their fault, e.g. if the product was damaged after it was placed on the market.

The statute of limitations for bringing a claim is three years from the date the injured person became aware of the injury and the defendant’s identity, and ten years from the date of issue.

Thus, the Czech Republic has integrated both European and international standards into its system of data protection and product quality, providing high guarantees for the protection of citizens’ and consumers’ rights.

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At the moment, the main services of our company are legal and compliance solutions for FinTech projects. Our offices are located in Vilnius, Prague, and Warsaw. The legal team can assist with legal analysis, project structuring, and legal regulation.

Company in Czech Republic s.r.o.

Registration number: 08620563
Anno: 21.10.2019
Phone: +420 775 524 175
Email:  [email protected]
Address: Na Perštýně 342/1, Staré Město, 110 00 Prague

Company in Lithuania UAB

Registration number: 304377400
Anno: 30.08.2016
Phone: +370 6949 5456
Email: [email protected]
Address: Lvovo g. 25 – 702, 7th floor, Vilnius,
09320, Lithuania

Company in Poland
Sp. z o.o

Registration number: 38421992700000
Anno: 28.08.2019
Email: [email protected]
Address: Twarda 18, 15th floor, Warsaw, 00-824, Poland

Regulated United
Europe OÜ

Registration number: 14153440
Anno: 16.11.2016
Phone: +372 56 966 260
Email:  [email protected]
Address: Laeva 2, Tallinn, 10111, Estonia

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