A Guide to Handling Consumer Claims and Complaints Under Czech Law

Defective goods and dissatisfied customers represent an unpleasant but inevitable reality for every business. However, the claims process does not have to be a nightmare. In this article, you will find a clear and practical guide on how to handle the entire process correctly and efficiently under Czech law. You will learn about your key obligations and rights, the deadlines you must meet, and how to avoid mistakes that lead to significant fines from the Czech Trade Inspection Authority (CTIA). We will guide you through the complexities of accepting a claim, its settlement, and the specifics of selling via e-shops and to international markets.

Article author: ARROWS law firm in Prague (Mgr. Jan Pavlík, office@arws.cz, +420 245 007 740)

Fundamental Pillars of the Complaint Procedure: What You Must Know as a Seller

As an entrepreneur in the Czech Republic, you operate within the framework of two key legal regulations regarding consumer complaints: the Czech Civil Code (Act No. 89/2012 Coll.) and the Consumer Protection Act (Act No. 634/1992 Coll.). While business-to-business (B2B) relationships allow for greater contractual freedom, the rules for business-to-consumer (B2C) sales are strictly defined and cannot be deviated from to the detriment of the customer. In this area, ARROWS provides comprehensive legal services to help you set up your commercial relationships correctly.

It is essential to realize that under Czech law, you as the seller are exclusively liable for defects in goods towards the buyer. The customer addresses their claim to you, not to the manufacturer, importer, or external service center. Furthermore, legislation is constantly evolving. A significant amendment effective from January 2023 further strengthened consumer rights and placed new obligations on entrepreneurs, particularly regarding the burden of proof for the origin of a defect.

For many companies serving both corporate clients and end consumers (including sole traders who may be considered consumers in many cases), the safest and most efficient strategy is to set internal processes according to the stricter consumer rules. This approach minimizes the risk of error and simplifies procedures for your employees.

At ARROWS, we monitor legislative changes for you. For our clients, who include more than 150 joint-stock companies and 250 limited liability companies, our Czech legal team ensures that internal processes and documentation are always in compliance with current Czech legislation.

Accepting a Complaint: The First Step Where You Must Not Fail

Accepting a complaint is your legal obligation under Czech law, which cannot be refused. Even if the customer's claim seems unfounded at first glance, you must accept the complaint and initiate the procedure. This first contact is crucial for the subsequent course of action and your legal protection.

Where and How to Accept a Complaint?

The law stipulates that you are obliged to accept a complaint at any of your business premises where it is possible with regard to the range of goods sold, as well as at your registered office. Throughout business hours, a staff member authorized to handle complaints must be present at the premises. This employee does not have to decide on the complaint immediately but must be able to properly document it with the customer.

What is a Complaint Protocol and Why is it So Important?

When a claim is made, you are obliged to issue a written confirmation to the customer, known as a complaint protocol. This document is not a mere formality, but your key legal shield. It protects you against later disputes regarding what was claimed and when.

The complaint protocol must contain:

• The date the complaint was filed.
• Identification details of both you and the customer.
• An exact description of the claimed goods.
• A detailed description of the alleged defect (how it manifests).
• The method of settlement requested by the customer.

A carefully drafted protocol defines the scope of the dispute. If the customer later claims they also reported another defect, you have evidence of the original content of their claim. Details on conflict resolution can be found in the section dedicated to commercial and court disputes. It is also important to remember that you cannot require the customer to hand over the goods in their original packaging.

The Prague-based law firm ARROWS prepares standardized internal guidelines and model complaint protocols for its clients. By doing so, we ensure that your employees always act consistently and in a legally correct manner, minimizing the risk of human error and future litigation in Czech courts.

Critical Deadlines: How to Calculate Correctly and When to Decide?

Time plays a key role in the complaint procedure under Czech law. The law sets strict deadlines, the failure of which has fatal consequences for the seller. Did you know that similarly strict rules apply to defending against a payment order in commercial disputes in the Czech Republic? It is therefore essential to know them and have a system in place for monitoring them.

How quickly must you decide on a complaint?

Under Czech legislation, you must decide on a complaint immediately, or in complex cases within three working days. This period does not include the time reasonable for a professional assessment of the defect (e.g., time needed for diagnostics in a service center). The myth that you have 30 days for everything is dangerous and can lead to a breach of the law. The thirty-day limit applies to the complete settlement of the claim.

What is the total deadline for settlement?

A complaint, including the removal of the defect, must be settled no later than 30 calendar days from the date it was filed, unless you expressly agree on a longer period with the consumer. The period begins on the day following the filing of the complaint. If its end falls on a weekend or a public holiday in the Czech Republic, it is moved to the next business day.

What are the consequences of missing the deadline?

The futile expiration of the 30-day period is considered a material breach of contract under the Czech Civil Code. In such a case, the customer automatically gains the right to withdraw from the purchase agreement and demand a refund, or request a reasonable discount. It does not matter whether the defect is repairable or whether you missed the deadline by a single day.

Do not forget the information obligation

A key obligation that companies often forget is to actively inform the customer about the settlement of the complaint. It is not enough to have the goods repaired and ready for pickup. You must demonstrably notify the customer (e.g., by e-mail, SMS) that their complaint has been settled and in what manner. If you fail to do so within the 30-day period, the complaint is considered unsettled with all legal consequences.

Our attorneys in Prague help clients implement robust systems for recording and tracking complaints, which automatically monitor key deadlines and prevent them from being missed.

Most common mistakes in the complaint procedure and how to avoid them

Many companies make the same, easily overlooked mistakes that can cost them significant money and reputation. The following table summarizes the most common risks and shows how they can be prevented with professional legal support in the Czech Republic.

Justified or unjustified? When you can reject a complaint

Although you must accept every complaint, it does not mean you must always grant it. Czech law defines clear reasons when you are not liable for a defect. However, it is crucial to know who bears the burden of proof.

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On what basis can a complaint be rejected?

You can legitimately reject a complaint if the defect is caused by:

• Normal wear and tear of the item caused by its standard use.
• Damage caused by the buyer themselves, for example, through incorrect use, mechanical damage, or failure to follow the operating instructions.
• For used goods, liability does not extend to defects corresponding to the level of previous use or wear and tear.
• For goods sold at a discount, a claim cannot be made for the specific defect for which the discount was granted and of which the customer was notified.

Mind the burden of proof

A fundamental change in Czech legislation concerns proving the origin of a defect. If a defect appears in the goods within the first year of receipt, it is presumed under Czech law that the goods were already defective upon receipt. In such a case, it is up to you as the seller to prove otherwise. A mere assertion that the customer caused the defect themselves is insufficient. To refute this legal presumption, an expert opinion or a professional assessment is usually required. The burden of proof only shifts to the customer after the first year has elapsed.

Any rejection of a claim must be issued to the customer in writing and properly justified. Furthermore, you must never charge a customer any fee for diagnostics or for processing a rejected claim. Such a procedure is illegal under the Czech legal system.

In the case of disputed or financially significant claims, ARROWS provides the preparation of professional legal opinions for clients. These opinions, supported by expert reports if necessary, provide a solid foundation for rejecting unjustified claims and significantly strengthen your position in potential litigation in Czech courts.

Specifics of e-shops and international sales: A new dimension of risks

Operating an e-shop and expanding to international markets brings specific legal challenges that differ from traditional brick-and-mortar sales. Knowledge of these nuances is crucial for minimizing risks.

E-shops: Withdrawal from contract vs. warranty claims

E-shop operators must strictly distinguish between two different legal instruments: the right to withdraw from the contract within 14 days and a claim for defective goods. Withdrawal from the contract is the customer's right to return goods purchased remotely without giving a reason. However, this right has exceptions, such as for custom-made goods, unsealed hygiene products, or audio and video recordings.

Cross-border sales within the EU

If you sell goods to customers in other EU member states, you must respect harmonized consumer rights. These include a minimum two-year liability for defects. However, national regulations may differ in detail, such as the length of the period for processing a claim. While in the Czech Republic it is 30 days, other countries may apply a general "reasonable period," which usually ranges between 4 and 6 weeks.

The myth of the "Euro-warranty"

Many entrepreneurs and customers mistakenly believe that there is a statutory "Euro-warranty" that would allow a customer to claim a warranty for goods purchased, for example, in Germany at a Czech branch of the same brand. No such legal entitlement exists by law. A claim must always be filed with the seller from whom the goods were purchased. The possibility of making a claim in another country only exists if the manufacturer or seller voluntarily offers it contractually.

Resolving international disputes is our specialty. Thanks to the ARROWS International network, which we have been building for over ten years, we can effectively handle our clients' legal matters practically across Europe. Whether you are facing a claim from a foreign customer or a dispute with a supplier from another country, our Prague-based attorneys will ensure you have qualified legal representation directly in the relevant jurisdiction.

Cross-border trade and international disputes

Expanding into foreign markets opens new business opportunities but also multiplies legal risks. The following table shows where the greatest dangers lie and how a partner with a strong international background can protect you.

When the process gets complicated: Disputes, sanctions, and the role of the CTIA

Non-compliance with legal obligations is not just a theoretical risk. It can lead to very real and financially painful consequences, whether in the form of sanctions from supervisory authorities or costly litigation in Czech courts.

What role does the Czech Trade Inspection Authority (CTIA) play?

The CTIA (Česká obchodní inspekce) is the primary supervisory body monitoring compliance with the Czech Consumer Protection Act. Every year, it conducts thousands of inspections, often initiated by complaints from dissatisfied customers. Statistics show that errors are found in the vast majority of inspected entities, especially e-shops. Among the most common offenses are insufficient information about warranty terms and deceptive business practices.

What sanctions do you face?

Fines from the CTIA can be liquidating. For violations of obligations in the claims procedure, such as failure to meet the 30-day deadline or failure to issue a protocol, sanctions of up to CZK 3,000,000 may be imposed. In more serious cases handled in administrative proceedings, fines can reach up to CZK 50,000,000.

What to do if a customer disagrees with a rejection?

If a customer disagrees with the rejection of a claim, they can turn to the Alternative Dispute Resolution (ADR) system at the CTIA. This is a mediation process aimed at reaching an agreement. The outcome is not binding on the parties. If an agreement cannot be reached, the next and final instance is the Czech court system.

The moment you receive a summons from the CTIA or a pre-litigation notice from a customer's attorney, it is crucial to react quickly and professionally. ARROWS provides expertise in representing clients before administrative authorities and Czech courts. Our Czech legal team will guide you through the entire process, protect your rights, and strive to minimize any potential damages.

Sanctions and legal disputes

The final costs of a poorly managed claims process far exceed the value of a single returned product. This table shows the financial, legal, and reputational damage your company may face in the Czech Republic.

Prevention is the best strategy: How ARROWS helps you set up a bulletproof claims process

As this article demonstrates, proper claims management is a complex discipline with significant legal and financial implications. Proactive preparation and process setup is incomparably more effective and cheaper than reactive problem-solving and litigation. At ARROWS, we are a partner for companies seeking certainty in this area. Our long-term experience in providing services to a wide portfolio of clients, including more than 51 municipalities and regions in the Czech Republic, allows us to deliver services quickly and with high quality.

Our Prague-based specialists can assist you with a full range of tasks to protect you from risks:

• Drafting of tailor-made internal directives and complaint procedures under Czech law.
• Preparation of comprehensive documentation to protect you from fines (model protocols, forms).
• Legal consultations and audits of your existing processes in the Czech Republic.
• Preparation and review of terms and conditions and contracts according to the Czech Commercial Code.
• Representation in Czech courts and before administrative authorities, such as the Czech Trade Inspection Authority (ČOI).
• Obtaining necessary licenses and permits required under Czech legislation.
• Professional training for your employees and management, including certification.

Furthermore, we enjoy connecting our clients when we see interesting business or investment opportunities, and we are always keen to hear your entrepreneurial ideas.

A correctly set up complaint process protects your finances and your reputation. Do not leave this key area to chance. Contact us and our Prague-based attorneys will help you create a system that provides you with legal certainty. We would be happy to connect with you and discuss how we can assist your business specifically.

Disclaimer: The information contained in this article is for general informative purposes only and serves as a basic guide to the issue. Although we ensure maximum accuracy of the content, legal regulations and their interpretation evolve over time. To verify the current wording of regulations and their application to your specific situation, it is necessary to contact ARROWS law firm in Prague directly (office@arws.cz). We bear no responsibility for any damages or complications arising from the independent use of information from this article without our prior individual legal consultation and professional assessment. Every case requires a tailor-made solution; therefore, do not hesitate to contact us.

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