Recently, amendments to the laws “On the Protection of Economic Competition,” “On the Protection of Consumer Rights,” and “On Trade and Services” were adopted in the second and final reading. These amendments will come into force on August 1 of the current year. Member of the State Commission for the Protection of Economic Competition (SCPEC) Tigran Markosyan explains what innovations they entail and the purpose behind their adoption.
Extensive Amendments to Laws on Competition and Consumer Protection
According to Markosyan, the amendments are directly linked to the implementation of the provisions of the SEPA agreement, which included requirements for the implementation of several directives in its roadmap. Some of these requirements have been addressed through the recently adopted changes.
The main innovation involves the introduction of a new category of offense—actions that violate consumer rights. “The current law already provides for an offense related to unfair competition, which, in essence, also affects consumer interests. However, European experience shows that the priority object of protection should be the consumer. Any behavior that contradicts the principles of fairness and impacts or has the potential to impact consumer interests is, in essence, a violation,” he noted.
The Commission Changes Its Name and Work Focus
Markosyan explained that, from this perspective, violations will include, among other things, the following manifestations: failure to comply with requirements for presenting the price of goods, imposing unfair contract terms, discrepancies between product characteristics and those advertised, and issues arising in the field of advertising. All of this is directly related to the consumer’s right to free choice. Thus, compliance with product characteristic requirements becomes not only a legal obligation but also a key condition for building consumer trust in the market.
In line with the new logic prioritizing the protection of consumer rights, the State Commission for the Protection of Economic Competition (SCPEC) will be renamed the Commission for the Protection of Competition and Consumer Interests. Accordingly, the commission’s functions will also undergo certain changes.
“However, it should be clarified that the Commission will not handle individual disputes between consumers and business entities. Its activities will focus on issues affecting specific groups of consumers,” he emphasized. At the same time, if a specific dispute between a consumer and a business entity is systematic and widespread, it may become a subject for consideration by the commission.
Consumer Assistant: A New Platform for Problem-Solving
The introduction of a new tool—an online platform called “Consumer Assistant”—is planned.
“The essence is as follows: if a consumer encounters issues with a business entity, they can use the platform to address the entity and outline the problem. The entity is then obliged to respond or resolve the issue within a set timeframe. Although, formally, they may choose not to respond. In any case, the Commission will periodically filter incoming applications—determining which fall within its jurisdiction and which should be referred to other state bodies,” Markosyan explained.
Applications not resolved by the business entity may serve as grounds for initiating proceedings within the commission. If an application falls under the competence of another authority, it will be redirected accordingly. In cases where a dispute requires judicial resolution, the consumer will be provided with appropriate clarification.
Soon, Markosyan added, the Commission will issue an official statement inviting non-governmental organizations engaged in consumer rights protection, as well as legal firms, to collaborate with the aim of providing free legal assistance to citizens.