Government wants payments in contracts outside the company to be deferred by 14 days

The financial effect of the ban on accepting payments before the 14-day cooling-off period expires, with respect to agreements concluded away from business premises, has been set at the level of capital interest (3.6% p.a.), with respect to the value of the off-premises sales market worth PLN 3.4 billion a year, according to the impact assessment (RIA) to the draft amendment to the Consumer Rights Law.

The draft, which aims to implement EU regulations (the so-called Omnibus Directive), has just been submitted for public consultation.

“The main financial impact on entrepreneurs will be, in the case of off-premises sales, the delay in payment for the product offered until the deadline for withdrawal from the contract expires, estimated at PLN 1.2-1.5 million per year (PLN 15.5 million over 11 years),” - reads the Regulatory Impact Assessment (RIA).

The calculations presented assume that the payment shift is 14 days. [...] The amount of capital interest (3.6% per annum) was assumed as the financial effect (cost of capital), with reference to the value of the off-premises sales market (PLN 3.4 billion per annum) estimated on the basis of PSSB [Polish Direct Sales Association] data, taking into account that 75% of transactions are concluded online and thus will not be covered by the proposed regulation.

“As a result, some entrepreneurs, particularly small entities, will have to obtain external financing to secure payments made through consumers. This may result in an increase in the prices of goods offered, however, the amount of the increase is impossible to estimate due to the diverse offer of traders (products with different price elasticity of demand)” - It was also stated.

It was also pointed out that this solution may affect the salaries of employees employed by the above entities. Since in many cases the remuneration is based on the bonus/commission system, the delay in payment may mean postponing the payment of bonuses to the next month. The magnitude of this shift is not possible to estimate due to the variety of employment forms used in this case, and in particular the sole proprietorship entities.

Benefits for households due to savings resulting from not purchasing unwanted goods and services offered as part of off-premises sales, in particular at shows, are estimated at about PLN 17-18 million per year, i.e. PLN 201.5 million over 11 years.

The ban on accepting payment before the end of the 14-day withdrawal period will not apply and will not apply to contracts concluded during demonstrations organized at the consumer’s place of residence or stay at his/her express invitation.

(money.pl)