Slovakia
Answer ... Consumer protection is primarily governed by the Consumer Protection Act and the Civil Code. Under Slovak law, the term ‘consumer’ primarily refers to a natural person who does not act within the scope of business activities or the performance of a profession.
In other words, the business-to-business relationship between the franchisor and the franchisee do not fall under the consumer protection regime. However, the franchisee itself, as the direct interface that transacts with consumers, must comply with all consumer protection requirements.
Many of the consumer protection rules stem from EU law. However, as in other areas of civil law and contract law, there are also certain local requirements. Most of the consumer protection rules concern the scope of information that must be provided to consumer with regard to:
- the goods and services;
- the rights of consumers in terms of warranty, complaints, repairs, replacements and refunds of goods and services; and
- other related rights concerning the quality, fitness for purpose and safety of marketed goods and services.
Another significant group of consumer protection rules concern issues such as:
- inadmissible and unfair trading practices;
- false advertising;
- prohibited advertising; and
- bundling of products and services.
Finally, another part of the rules relates to the organisational framework of regulatory supervision and the redress of grievances. In this context, the basic regulatory oversight authority is the Slovak Trade Inspectorate. Specific fields of business may also have sector-specific consumer protection bodies, such as the Slovak Foodstuff and Veterinary Inspectorate and the Office for Healthcare Supervision.
Based on the above, the consumer protection rules apply to the widest scope of goods and services, as long as the customer is a natural person who purchases the goods or services in a personal capacity. Hence, in our experience, the vast majority of businesses run as franchises fall under the consumer protection regulations.
Slovakia
Answer ... We are of the view that because franchisees act in the capacity of entrepreneurs or business entities, they will not be treated as consumers. However, most franchisors and franchisees must ensure that they comply with the relevant consumer protection regulations in relation to their customers who are consumers.