Skip links
Shopping cart placed before a computer.

Consumer Protection Law Overhauled: Key Insights from the October 30, 2024 Regulation

On October 30, 2024, Turkey took a significant step in enhancing consumer rights and market regulations with the enactment of Law No. 7529, published in the Official Gazette No. 32707. This comprehensive reform introduces substantial updates to the Consumer Protection Law and related legislation, including pivotal changes to direct sales and e-commerce practices. While certain provisions became effective immediately, others are scheduled for phased implementation.

Major Reforms in Consumer Protection Law

  1. Validation of Remote Consumer Contracts One of the standout changes is the recognition of remotely concluded consumer credit and housing finance agreements. This update reflects the evolving trend of digital transactions, ensuring that these contracts carry the same legal weight as those established in person. This modernization supports consumers’ needs in an increasingly digital financial landscape.
  2. Comprehensive Direct Sales Framework A new provision has been introduced to detail the principles and practices surrounding direct sales. This clause clarifies the roles and responsibilities of all parties involved, creating a transparent framework that balances rights and obligations. Sanctions for violations are also specified, enhancing compliance. This provision is set to come into effect on July 30, 2025.
  3. Revised Advertising Penalties The regulation has increased the stakes for non-compliance with advertising rules. The revised administrative fines now range between 60,000 TL and 22,100,000 TL, depending on the violation’s scope and medium. This ensures that penalties are commensurate with the violation’s impact.
  4. New Guidelines for the Advertising Board When assessing fines, the Advertising Board must now take into account factors such as the nature of the violation, the benefits gained, potential harm caused, and the violator’s fault and financial standing. Notably, the Board’s previous authority to multiply fines up to 10 times for repeat offenses within a year has been eliminated, promoting a more balanced approach.
  5. Reintegration of Reconciliation for Administrative Fines The amendment reintroduces the possibility of seeking reconciliation with the Ministry for administrative fines imposed by the Advertising Board. If violators can demonstrate that the infraction was due to misinterpretation or differing legal interpretations, they can apply for reconciliation, fostering a fairer process for dispute resolution.

Updates to the Electronic Commerce Law

  1. Supporting Domestic E-Commerce Platforms Amendments to the Law on the Regulation of Electronic Commerce aim to protect and bolster domestic e-commerce platforms, making them more competitive against international counterparts. These changes are expected to enhance job creation, boost exports, and encourage more businesses to expand their export activities through revised licensing fee calculations.

 

According to the foregoing, the updated fines and stricter enforcement signal a clear intent from lawmakers to enhance oversight and protect consumers from deceptive practices. These measures aim to reduce consumer exploitation, ensure public trust, and promote market integrity. By reinstating reconciliation for administrative fines, the legislation provides a more efficient pathway for dispute resolution, ultimately reducing litigation costs and expediting outcomes.

These comprehensive changes reflect a proactive approach to adapting consumer protection laws to modern economic and digital realities. The amendments prioritize consumer interests while promoting fair competition and more robust market practices.

Av. Kübra Keskin Ökmen