Case law

  • Case Details
    • National ID: 7 As 110/2014 - 52
    • Member State: Czechia
    • Common Name:link
    • Decision type: Administrative decision in appeal
    • Decision date: 23/10/2014
    • Court: Supreme Administrative Court
    • Subject:
    • Plaintiff: CENTROPOL ENERGY, a. s. (a legal person, a joint-stock company)
    • Defendant: Energetický regulační úřad (the Energy Regulatory Office)
    • Keywords: abusive behaviour, consumer, consumer rights
  • Directive Articles
    Unfair Commercial Practices Directive, Chapter 2, Article 5, 2. Unfair Commercial Practices Directive, Chapter 2, Article 5, 2., (a) Unfair Commercial Practices Directive, Chapter 2, Article 5, 2., (b) Unfair Commercial Practices Directive, Chapter 2, Section 2, Article 8 Unfair Commercial Practices Directive, Chapter 2, Section 2, Article 9 Unfair Commercial Practices Directive, link
  • Headnote
    In determining whether a commercial practice constitutes an unfair commercial practice (within the meaning of the Act no. 634/1992 Coll., On consumer protection (the "Act"), and the Directive 2005/29 / EC concerning unfair business-to-consumer commercial practices in the internal market (the "Directive")), an administrative authority should first determine whether the commercial practice meets the definition of some of the unfair commercial practices listed in Annex No. 1 and No. 2 of the Act and Annex I of the Directive. If a commercial practice does not fall under the list of unfair commercial practices listed in Annex No. 1 and No. 2 of the Act, the administrative authority examines whether a commercial practice constitutes a misleading or aggressive commercial practice as defined in § 5 and § 5a of the Act (Art. 6-9 of the Directive). Finally, after the administrative authority concludes that there are no misleading or aggressive commercial practices, it proceeds to evaluate whether the commercial practices meets the definition of unfair business practices as defined in § 4 para. 1 of the Act (Art. 5 (2) of the Directive).
  • Facts
    The plaintiff concluded the costumer agreement on bundled supply and consumption of natural gas on 14.02.2011. The customer then terminated the agreement on 16.02.2011. However, on 01.07.2011 the plaintiff began to deliver gas to the customer. The plaintiff stopped this on 31.08.2011 and subsequently demanded the consumer to pay for the gas delivered over the relevant period. The customer refused to pay the amount demanded by the plaintiff. The defendant initiated administrative proceedings for an administrative offence according to the Consumer Protection Act based on the notice.

    During the administrative proceedings, the defendant decided in first instance and on the appeal that the plaintiff had breached the regulations of the Consumer Protection Act. For committing the administrative offence, a fine of CZK 80.000 was imposed on the Plaintiff.

    The plaintiff then appealed to the Regional court, which annulled the defendant's decision. The defendant consequently appealed via a cassation complaint to the court.
  • Legal issue
    The court, citing the findings of the Court of Justice of the European Union, concluded that in determining whether a commercial practice is prohibited under the Consumer Protection Act (the Act"), respectively the Directive, must proceed as follows.

    First it is necessary to assess whether such a commercial practice meets the definition of some of the unfair commercial practices listed in Annex no. 1 and no. 2 of the Act, respectively Annex I of the Directive. For such assessment it is not necessary to take into account the question whether such practice can disrupt the decision of the average consumer about the transaction.

    If the national authority concludes that the commercial practice in question does not meet the criteria for any of the prohibited practices listed in Annex No. 1 and No. 2 of the Act, respectively Annex I of the Directive, it then assesses whether the commercial practice is prohibited by . § 5a of the Act, respectively Art. 8-9 of the Directive, i.e. whether it is an aggressive commercial practice.

    Only after the administrative authority concludes that it is not an aggressive practice, it may consider whether the commercial practice meets the definition of unfair business practices by § 4 para. 1 of the Act, respectively by Art. 5.( 2) of the Directive
  • Decision

    How should an administrative authority proceed in determining whether a commercial practice is prohibited under the Consumer Protection Act or Directive 2005/29 / EC concerning unfair business-to-consumer commercial practices in the internal market ?

    URL: http://www.nssoud.cz/files/SOUDNI_VYKON/2014/0110_7As__1400052_20141114083441_prevedeno.pdf

    Full text: Full text

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  • Result
    The appeal in cassation was accepted. The court repealed the decision of the Regional court and returned the case to that court for further proceedings.