Consumer Protection in Practice

Basic Legal Framework: What Is Actually Being Addressed

The subject of the investigation is not just the question of whether the goods are defective. It also involves compliance with formal requirements, which is where most companies fail. In practice, this means:

• acceptance of the complaint by an employee authorised to handle it,

• drafting a report with specific requirements,

• a decision to accept or reject the complaint,

• completing the entire process, including remedy, within a strictly defined time limit.

Failure in any of these steps creates legal risks that vary depending on the stage of the proceedings.

When a Seller Can Accept a Complaint and What Happens Next

The seller is obliged to accept a complaint at any of its business premises where it is possible to do so, considering the range of goods sold. An employee authorised to handle complaints must be present at the premises for the entire duration of its opening hours. This is not just a recommendation—non-compliance is an offence punishable by a fine.

As soon as a consumer files a complaint, a complaint acceptance report must be drawn up immediately, stating:

• the date and time the complaint was filed,

• a description of the defect or what is missing,

• the consumer's request (repair, replacement, discount, or withdrawal from the contract),

• the signatures of both parties.

If your company is unsure how to correctly set up its complaint acceptance process, contact us at consultation@arws.cz – we will ensure your compliance with legal requirements.

The Procedural Process: What Is Actually Decided

After the report is accepted, a critical phase begins: deciding whether the complaint is justified.

The seller, or a service centre authorised by them, must decide either:

• immediately (if the decision is obvious), or

• within 3 working days in complex cases.

What is being decided during these days is the fundamental question: does the product have a defect for reasons attributable to the seller, or is it for a reason for which the seller is not responsible?

Under Czech legislation, there are clear scenarios where a seller does not have to accept a defect:

1. The defect already existed before the purchase, and the customer knew or should have known about it,

2. The defect was caused by the consumer's failure to follow the instructions for use,

3. The defect arose during the complaint process (damaged by the seller),

4. The item was sold at a discount, and the discount specifically related to this defect.

However, here lies the first major risk: how do you prove that the defect was caused by a failure to follow instructions? The legal reality is more demanding than it seems. It requires an expert assessment, sometimes an expert opinion, and the burden of proof lies with you.

The Burden of Proof: The Most Important Difference Between the First and Second Year

One of the most complex areas, about which companies often feel insufficiently informed, is the burden of proof over time.

The first 12 months after purchase:

There is a rebuttable presumption that the goods were already defective upon acceptance. This means that if a defect appears within the first 12 months, the SELLER must prove that this is not the case—i.e., that either the defect does not exist or that it was caused by the customer's failure to follow instructions. The consumer is in a more advantageous position.

From the 13th to the 24th month:

The presumption ceases to apply. Now, the CONSUMER must prove that the defect was present at the time of acceptance. This significantly complicates their position but also allows you to defend yourself better.

This change is critical for the content of your report. If you are later taken to court, what you wrote down about the condition of the goods at the very beginning will be decisive.

Your legal team at ARROWS will ensure that your reports contain all relevant data to support your position and will prepare a strategy for dealing with the customer from the initial stage. Write to us at consultation@arws.cz.

Deciding on a Complaint: When a Defect Is Remediable and When It Is Not

The law distinguishes between two types of defects, each leading to different consumer rights and different seller obligations:

Remediable defect (it can be repaired or a missing part can be supplied) – The consumer can choose whether to have the item repaired or to receive a new one. The seller is obliged to remedy the defect free of charge and within a reasonable time.

Irremediable defect (it cannot be repaired) – The consumer has the right to a replacement with a new item. 

Here again lies a lack of clarity: many companies think they decide on the remedy themselves. In fact, the choice of remedy primarily belongs to the consumer. The business can only choose if the selected method is not technically possible or would be disproportionately costly for them compared to the alternative.

In practice, this is noted in the report as: "The consumer has chosen to have the item repaired." If the seller insists on a rejection, they must justify it – and this justification will later be assessed in court.

The Most Common Mistakes and Their Legal Consequences

The Czech Trade Inspection Authority and the courts consistently see the same mistakes in practice. The most important thing is not to determine the actual defect, but whether procedural obligations have been met.

Penalty Statistics

In the first half of 2024, the Czech Trade Inspection Authority (CTIA) inspected 125 e-shops and found violations of legal regulations in 85% of them. The most common offence? Failing to inform consumers about their right to file a complaint – found in 63 cases. In the first 3 months of this year, fines totalling CZK 3.45 million were legally imposed.

Specifically concerning breaches of obligations in the complaint procedure (failure to meet deadlines, failure to issue a report), fines can reach up to CZK 3 million for a single case. In repeated or more serious administrative proceedings, they can reach up to CZK 50 million. The reality is particularly harsh for e-shops. Fines ranging from CZK 10,000 to CZK 200,000 are common.

Want to avoid fines? We provide tailored legal consultations to ensure your process is compliant with the law. Contact consultation@arws.cz and get specific recommendations for your situation.

Out-of-Court Settlement: When a Dispute Is Resolved Without a Court

If the consumer and the seller cannot reach an agreement, the law offers an out-of-court settlement (ADR – Alternative Dispute Resolution). Since 2016, the Czech Trade Inspection Authority (CTIA) has fulfilled this role.

The procedure is simple:

1. The consumer submits a form on the CTIA website (free of charge),

2. The CTIA will invite you to provide a statement – here you must be very careful about what you write,

3. If you do not agree, the CTIA will issue a non-binding reasoned opinion,

4. This opinion can later be used in court proceedings.

This is where the time spent on quality communication in the initial phase pays off. If you wrote inaccuracies in the first report or vaguely justified the rejection, the ADR procedure can become very problematic. The lawyers at ARROWS can re-evaluate your position and prepare a strong statement for the CTIA. Write to us at consultation@arws.cz.

Court Proceedings and Their Costs

If ADR fails, the remaining path is to go to court. This is no longer a simple complaint procedure – it is a legal dispute over financial compensation. The consumer can claim:

• compensation for the defect (repair, replacement, discount),

• compensation for damages incurred as a result of the defective performance (e.g., costs of an expert),

• sometimes even a penalty for a deliberate violation of the law.

Legal proceedings are time-consuming and financially demanding for both parties. Companies that had high-quality procedural documentation and clear justification for their decisions are better prepared.

What Rights Does a Consumer Have Who Is Not Satisfied with the Resolution

If the outcome of the complaint resolution is not satisfactory, the consumer has several options:

1. Request an expert opinion – If they believe a defect exists, but the seller denies it, they can have an expert opinion prepared. If the defect is confirmed, the seller should also cover the costs of the opinion.

2. File a complaint with the CTIA – If they suspect a violation of consumer rights (e.g., failure to meet a deadline).

3. ADR procedure – As described above.

4. Court proceedings – The final solution.

Each of these steps is a challenge for the seller if they do not have a well-documented decision.

Complications a Layperson Doesn't See

Legal literature and the practical experience of lawyers show that the area of consumer protection and complaint procedures contains significantly more nuances than it seems:

• Interpretation of "material breach of contract" – When is a defect "material"? The law defines criteria, but court decisions are not always clear-cut.

• Obligation to maintain the item – How long must a seller maintain a place of business for accepting complaints? If they move, how must they inform customers?

• Connection to other regulations – If it concerns food, medicine, or electrical equipment, specific safety standards apply.

• International element – Do you sell in the EU? ADR rights can be used by consumers from all over the EU, but the resolution can be complicated.

This is precisely why routine mistakes are repeated on a massive scale in the Czech Republic. Companies believe they can manage complaints themselves without consulting a specialist. The result is million-crown fines from the CTIA or court disputes over compensation.

The ARROWS law firm deals with this issue daily. We handle both complex complaint disputes and the preventive setup of your processes. We have experience with more than 150 joint-stock companies, 250 limited liability companies, and dozens of larger firms that hire us specifically for their complaint agenda. Our Prague-based legal team will prepare for you:

• A legal consultation – What are your specific risks in your current practice,

• Preparation of a complaints procedure policy – Which will be in accordance with the law and at the same time protect your position,

• Team training – How to correctly accept complaints and document decisions,

• Representation in ADR and court disputes – If a conflict has already occurred,

• Expert legal opinions – When you are not sure about the correct handling of a specific case.

Thanks to our long-term experience, we can significantly reduce the time needed for resolution and minimise the risk of errors. ARROWS is insured for damages up to CZK 500 million – your matter is therefore in the hands of professionals with a guarantee.

Conclusion: Why It's More Complex Than You Think

In the Czech Republic, consumer protection and complaint procedures are often understood as simple administrative matters. However, the legal reality is considerably more complicated. The Czech legal system dedicates dozens of sections to these processes, each containing specific exceptions, time limits, and evidentiary requirements that interact with each other.

Companies that think they can "just manage" complaints regularly find themselves in conflict with the Czech Trade Inspection Authority or in court. In the first half of 2024, the e-commerce sector alone faced violations in 85 percent of inspected cases – and regardless of whether the mistakes were intentional or not, the penalties are just as high.

The ARROWS law firm has been providing legal support in the field of consumer protection and complaint procedures for many years. In addition to representing clients in individual disputes, we offer:

• preparation of complaint policies and internal procedures that will protect you,

• training for employees so they understand their obligations,

• expert legal consultations for each individual case,

• representation before the CTIA and courts when the situation becomes complicated.

If you don't want to risk million-crown fines, negative reviews, and legal disputes, contact us with confidence. ARROWS will ensure a safe and effective solution for you – consultation@arws.cz.