The defendant imposed a fine amounting to CZK 100,000 upon the plaintiff for a violation of the Act on the Protection of Consumers, based on the following facts:
- the Plaintiff had billed the purchase of lanolin (Wolin) incorrectly in the amount of CZK 200 instead of CZK 199 (i.e. CZK 1 to the detriment of consumers), by which it violated Section 3(c) of the Act on the Protection of Consumers;
- during promotional events, a sales representative of the plaintiff made a false declaration that the plaintiff would have an interest in making its products available for pensioners for which it obtained funds from the EU whereas in reality the EU does not provide such subsidies;
- the sales representative provided the consumer with a purchase agreement and a form named "Agreement on the agreed visit for the purpose of ordering and delivering goods" which contained a provision that "the consumer hereby acknowledges that a right to withdraw from a consumer agreement pursuant to Section 57 par. 1 of the Civil Code shall not apply", this pursuant to the fact that the consumer itself had requested the visit from the plaintiff (in which case the withdrawal right does not apply). In reality, the agreement was concluded during a promotional event (i.e. outside the commercial premises of the company), hence the plaintiff was not requested by the consumer in advance to visit the consumer.
The plaintiff first challenged defendant's decision to impose a fine before the Municipal Court in Prague ("Municipal Court"). The Municipal Court dismissed the defendant's decision on the grounds that its reasoning about the fine was not reviewable. The defendant subsequently filed a cassation complaint against the decision of the Municipal Court with the Supreme Administrative Court.
The Supreme Administrative Court dismissed the decision of the Municipal Court and returned the case to the Municipal Court for further proceedings.