New consumer protection law gives UOKiK greater powers

In mid-December an amendment to the competition and consumer protection law will come into force. Under the new law the president of UOKiK, the body responsible for protecting consumer rights and ensuring fair competition, will have the power to order any company to cease improper practices. "Such a situation may occur in the event of an unfair commercial which misleads customers, or inaccurate information on packaging," explained UOKiK president Cezary Banasinski. The organization will also be empowered to fine companies which do not comply with its orders to cease unfair practices, with penalties ranging from euro 10-euro 1000 per day of delay. However, a company will be allowed to appeal to the court over such a decision. UOKiK agrees that the regulation has one drawback, however, in that it does not specify what constitutes "mass consumer interest", which is the prerequisite for the institution to launch an investigation. "In my opinion, mass interest means harming the interests of more than one consumer," said Banasinski. According to Malgorzata Rothert from a Warsaw consumers' organization, the regulation will provide a useful weapon in the fight against unscrupulous lenders offering so-called "Argentine" loans. (Parkiet, p. 7) M.M.