Legal services for online sellers of luxury sneakers and collectibles

Selling luxury and collectible items online brings not only business opportunities, but also complex legal obligations under Czech law. In this guide, we explain the risks—from intellectual property protection and GDPR compliance in the Czech Republic to tax matters. You will learn why expert legal advice is essential for the safe operation of an e-shop in the Czech Republic.

Quick summary

• Online sales of luxury goods are subject to strict EU rules, including selective distribution requirements.
• Selling counterfeits and infringing trademarks may lead to significant penalties and, in serious cases, criminal prosecution in the Czech Republic.
• GDPR, the DSA and the GPSR impose obligations, and breaches can result in substantial fines under EU and Czech rules.
• Properly setting up contracts and terms and conditions is key to operating safely.

What has changed in e-commerce in recent years

Online sales are no longer just a side business where it was enough to have a nice website and a good product. In recent years, the European Union and Czech lawmakers have been systematically tightening the rules for e-commerce and consumer protection in the Czech Republic. Supervisory authorities such as the Czech Trade Inspection Authority (Česká obchodní inspekce) or the Czech Telecommunication Office (Český telekomunikační úřad) carry out ongoing inspections.

The key regulations that will affect you as a luxury goods seller include, in particular, the new EU General Product Safety Regulation (GPSR), the Digital Services Act (DSA) and the GDPR.

In practice, the situation is complicated by the fact that the individual regulations build on each other and their interpretation is refined by the case law of courts and regulators. The Czech legal team at ARROWS advokátní kancelář deals with these issues on an ongoing basis and can help you set up a system that will stand up in the future as well.

Related questions on changes in the regulation of online sales

1. Should I be worried about new European rules if I sell only in the Czech Republic?

Yes. Most rules stem from EU regulations or directives, which also apply to domestic sales. In addition, Czech supervisory authorities harmonise their approaches with other EU Member States.

2. What is the most common reason for an inspection of online sellers?

Most often, it involves breaches of consumer rights, issues with complaints/claims and withdrawal from contracts. Inspections in the GDPR area are also common, and more recently compliance with obligations under the Digital Services Act (DSA) and the GPSR.

3. Do I have to worry about a high fine immediately for a first mistake?

A first, less serious breach may end with a request to remedy the issue. However, for serious violations or repeated errors, sanctions can reach millions of CZK or a percentage of turnover.

Luxury brands and selective distribution – what you can and cannot do

One frequent legal topic is which online platforms you are allowed to use to sell luxury goods. Decisions of EU courts have confirmed that manufacturers may restrict the sale of their luxury goods on certain online platforms in order to protect the brand’s image.

If you are an authorised distributor of a luxury brand, you cannot automatically sell the goods via online marketplaces if the distribution network terms prohibit it.

In practice, ARROWS advokátní kancelář also handles situations involving small entrepreneurs who purchase goods and resell them. Here it is necessary to distinguish whether so-called exhaustion of trademark rights has occurred. The attorneys at ARROWS advokátní kancelář can help you assess the risks associated with reselling goods.

Related questions on the distribution of luxury goods

1. Can I sell luxury sneakers via an online marketplace even if I bought them from a store?

If you properly purchased the goods within the EU, you can usually resell them. However, the brand owner may intervene if the method of sale seriously damages the brand’s reputation.

2. What sanctions apply for unauthorised sales?

The brand owner may file for a preliminary injunction, bring an action seeking cessation of the conduct, and claim damages or disgorgement of unjust enrichment. In addition, platforms often remove listings based on a report.

3. How do I know whether I am allowed to sell a particular brand?

The origin of the goods is key. Make sure the goods were lawfully placed on the market in the European Economic Area. If in doubt, we recommend a legal consultation.

Intellectual property, counterfeits and trademarks – the biggest risks

In the luxury sneaker and collectibles segment, trademark infringement is a major risk. The seller’s liability in civil law is strict, so it does not matter whether you knew the item was counterfeit. Selling counterfeits infringes the rights of the owner and may lead not only to civil disputes but, in serious cases, also to criminal prosecution in the Czech Republic for trademark infringement.

A real-life case shows that even an unknowing purchase of high-quality counterfeits can lead to an inspection, seizure of goods and court proceedings. The outcome is often an obligation to compensate the brand owner for damage and the loss of the goods. Trademark registration is the foundation for effective protection against copying if you are building your own brand.

Authenticity checks and their legal consequences

When selling luxury goods, verifying authenticity is crucial. Using authentication services can serve as evidence of your good faith, although it does not fully relieve you of civil liability towards the buyer under Czech law.

The attorneys at ARROWS advokátní kancelář recommend having the verification process contractually covered and keeping documentation on the origin of the goods.

Related questions on intellectual property and protection

1. What happens if I sell a counterfeit without knowing it?

From a civil-law perspective, you are liable for legal and factual defects. The buyer may withdraw from the contract, and the brand owner may seek disgorgement of unjust enrichment and damages.

2. How can I protect myself when purchasing goods from suppliers in third countries?

Request certificates of authenticity, vet suppliers, and agree in the contract on warranties and the supplier’s liability for authenticity. ARROWS advokátní kancelář can prepare such an agreement for you.

3. Do I have to register trademarks for my brand?

It is not mandatory, but it is strongly recommended. Without registration, enforcing rights against competitors who would free-ride on your name is significantly more difficult and more expensive.

GDPR, cookies and personal data protection

Operating an e-shop involves processing personal data, which is subject to strict GDPR rules and the Czech Act on the Processing of Personal Data. The most common shortcomings relate to cookies, information duties and contracts with processors. Cookie banners with pre-ticked consents or access to a website conditional on consent are contrary to the regulations.

You must have a document that clearly and comprehensibly informs data subjects what data you collect, why, and what rights they have. You must also enter into a data processing agreement with each external party that has access to the data.

You must be able to respond to requests for erasure, rectification, or access to data within the statutory deadline. ARROWS, a Prague-based law firm, carries out e-shop audits and prepares documentation to reflect the current practice of the Czech authorities.

Related practical GDPR questions

1. Do I need GDPR consent from every customer?

You do not need consent to process an order because you process data on the basis of performance of a contract. Consent is typically required for sending newsletters or for marketing cookies.

2. What if a customer wants their data erased?

You must comply unless there is another legal basis for retention, such as archiving tax documents under Czech legislation. However, you must delete any data that is not necessary for that purpose.

3. What fine can be imposed for a GDPR breach?

It depends on the severity. In the Czech Republic, fines for small and medium-sized businesses typically range in the tens of thousands, but they may be higher in cases of systematic misuse of data.

GDPR and personal data protection

Risks and sanctions	How ARROWS can help (office@arws.cz)
Missing or vague information duty: The authority may order remedial action and impose a fine.	Tailor-made documentation: ARROWS will prepare Personal Data Processing Policies that are specific and compliant with applicable legislation.
Cookies without valid consent: Implementing a banner that does not meet the requirements is a breach of the law.	Cookie and banner audit: We will review the settings of your cookie solution and propose adjustments in line with GDPR requirements in the Czech Republic.
Ignoring data subject rights: Failure to act on an erasure or access request is a common reason for complaints.	Process setup: We will help you set up internal procedures for timely and correct handling of customer requests.
Missing data processing agreements: The absence of agreements with IT or marketing suppliers is a common mistake.	Review and drafting of agreements: We will ensure your supplier relationships are contractually covered in accordance with GDPR.
Data breach: A security incident requires a rapid response and notification to the authority within 72 hours.	Crisis management: ARROWS provides legal support in handling security incidents and communicating with the Czech supervisory authority.

DSA – the Digital Services Act and content on your website

If you operate an e-shop that allows user-generated content to be posted, obligations under the Digital Services Act (DSA) apply to you. This regulation applies across the entire European Union. You must publish contact details for communication with authorities and users and enable easy reporting of illegal content.

You must also clearly state the rules for content moderation and, if you use automated tools, inform users accordingly. You must handle notices of illegal content without undue delay. You must clearly state the rules for content moderation and, if you use automated decision-making tools, inform users accordingly.

There are certain exemptions for small and micro-enterprises, such as an exemption from the obligation to publish annual transparency reports. However, the basic content reporting mechanisms must still be in place.

Related practical DSA questions

1. What should I do if someone reports a fake review?

You are required to assess the notice. If the content is illegal or breaches your terms, you should remove it and inform both the notifier and the content author of the action taken.

2. Do I have to deal with the DSA even if I do not have reviews?

If the website does not allow any third-party content to be posted, the impact is minimal. However, the obligation to designate a contact point and have transparent terms applies generally.

3. Am I at risk of a fine for breaching the DSA?

Sanctions can be significant and may reach a percentage of annual turnover. The supervisory authority in the Czech Republic is the Czech Telecommunication Office (Český telekomunikační úřad).

Consumer protection, returns, and complaints

When selling to consumers, you must comply with the Czech Civil Code and the Consumer Protection Act. These rules are mandatory and you cannot deviate from them to the detriment of the consumer. Before the contract is concluded, you must inform the consumer about the trader’s identity, the price, and rights arising from defective performance.

The consumer has the right to withdraw from a distance contract within 14 days of receiving the goods without giving any reason. You must refund the money within 14 days of withdrawal, but you may wait until the goods are returned. The consumer may claim a defect that becomes apparent within two years of receipt.

The attorneys at ARROWS, a Prague-based law firm, prepare terms and conditions and complaints procedures so that they comply with Czech law while also protecting the seller.

Related questions on returns and complaints

1. Who pays for shipping when goods are returned within the 14-day period?

The cost of returning the goods is borne by the consumer, but only if you informed them of this obligation in advance. If you did not, you must cover the costs.

2. Can I deduct money for wear and tear of returned goods?

The consumer is liable only for any diminished value of the goods resulting from handling other than what is necessary to establish the nature and characteristics of the goods. If they return destroyed shoes, you may refund a proportionate part of the purchase price.

3. What if a customer complains about a defect they caused themselves?

You may reject the complaint if you prove that the defect was not caused by defective performance on your side. However, in the first year the burden of proof is on you under Czech consumer rules.

GPSR – the new General Product Safety Regulation

As of December 2024, the new General Product Safety Regulation (GPSR) is effective and applies to all non-food products. Your e-shop product listing must include the contact details of the manufacturer and the responsible person. If you sell goods originating from countries outside the EU, a responsible person established in the EU must be designated for each product.

You must also include any safety warnings in the language of the country where you sell. If you find that a product you sell is dangerous, you must inform the supervisory authorities. If you find that a product you sell is dangerous, you must inform the supervisory authorities via the relevant gateway. 

Related questions on GPSR and product safety

1. Am I responsible for safety if I only resell the goods?

As a distributor, you have a duty to verify that the manufacturer is identified and that the product meets labelling requirements. You must not place on the market a product that you know is not safe.

2. What are the risks of selling a dangerous product?

Withdrawal of the product from the market, a fine from the supervisory authority, and liability for any damage to the customer’s health or property.

Taxes, VAT, and One Stop Shop (OSS)

Selling online abroad comes with specific tax considerations. Mandatory VAT registration in the Czech Republic arises once you exceed the statutory turnover threshold, while for sales to the EU the limit is EUR 10,000. Mandatory VAT registration in the Czech Republic arises when turnover exceeds CZK 2 million over 12 consecutive months.

To avoid having to register separately in each EU country, you can use the One Stop Shop (OSS) scheme. When importing goods from third countries, it is then necessary to address customs duties and VAT.

When importing goods, it is necessary to address customs duties and VAT, with goods up to EUR 150 generally exempt from customs duty. Tax advisory is closely linked to the legal structuring of your business and the correct allocation of liability under Czech law.

Related questions on VAT and taxes

1. When do I have to deal with VAT in another EU country?

As soon as your cross-border sales to consumers in the EU exceed EUR 10,000 per year, you must invoice with the VAT of that country or use the OSS scheme.

2. What is a customs debt?

Upon import, a customs debt arises, which includes customs duty and import VAT. Incorrect classification of goods in the customs tariff can lead to additional customs assessments and penalties.

Unfair commercial practices and "Dark Patterns"

Czech and EU legislation prohibits unfair commercial practices and manipulative design known as dark patterns. Prohibited practices include fake discounts, false urgency, gradual price increases, or manipulative buttons. A discount must be calculated from the lowest price at which the goods were sold in the 30 days prior to the discount.

The attorneys at ARROWS advokátní kancelář help clients review the purchasing process to ensure it is legally compliant in the Czech Republic.

Inspections and legal prevention

Risks and sanctions	How ARROWS can help (office@arws.cz)
Inspection by the Czech Trade Inspection Authority (ČOI) – missing mandatory elements in T&Cs: A fine in the range of tens to hundreds of thousands of CZK.	Review of Terms and Conditions (T&Cs): We will ensure your T&Cs include all mandatory legal requirements under Czech consumer law.
Misleading discounts: A fine for breaching the rules for calculating discounts.	Pricing setup: We will advise you on how to communicate discount campaigns correctly.
Sale of a dangerous product (GPSR): Withdrawal from the market and a fine.	Safety consultation: We will help assess obligations for specific product categories under applicable EU and Czech rules.
Court dispute with a customer: Legal costs and reputational risk.	Representation in proceedings: Our attorneys in Prague will represent you before Czech courts and administrative authorities.

Conclusion of the article

Selling luxury sneakers and collectible goods is an attractive but legally demanding segment. European regulation is complex and mistakes can be costly, so it is not enough just to sell—you must comply with a range of obligations.

The Czech legal team at ARROWS advokátní kancelář has extensive e-commerce experience and will help you set up your business so that it is safe and compliant in the Czech Republic.

Do not rely on templates downloaded from the internet, because every e-shop is different. Email office@arws.cz to arrange a non-binding consultation.

Frequently asked questions about legal services

1. How much does legal advice for an e-shop cost?

The price is individual. A basic documentation review starts in the lower tens of thousands of CZK, while a comprehensive audit is more demanding. Contact us for a tailored quote.

2. What should I do if a manufacturer threatens to sue me for selling its goods?

Do not panic, but do not underestimate the situation. It is necessary to analyse whether trademark rights have been exhausted and whether the manufacturer’s claims are justified under Czech and EU law. Legal representation is crucial at this stage.

3. Are Terms and Conditions mandatory even for a small e-shop?

Yes, the statutory duty to provide information to consumers applies regardless of turnover. Without Terms and Conditions, it is practically impossible to sell to consumers online legally in the Czech Republic.

4. What is the deadline for refunding money when a consumer withdraws from a contract?

The seller must refund the money without undue delay, no later than 14 days from withdrawal from the contract. However, the seller may wait until the consumer hands over the goods or proves that they have been sent.

5. How can I defend against fraud and fake reviews?

The foundation is high-quality contractual terms, thorough payment verification, and the use of content moderation tools. In the event of damage to your good name, legal steps can be taken to protect your reputation under Czech law.

Notice: The information contained in this article is of a general informational nature only and is intended for basic guidance on the topic. Although we take maximum care to ensure accuracy, legal regulations and their interpretation evolve over time. To verify the current wording of the regulations and their application to your specific situation, it is therefore necessary to contact ARROWS advokátní kancelář directly (office@arws.cz). We accept no liability for any damages or complications arising from the independent use of the information in this article without our prior individual legal consultation and professional assessment. Each case requires a tailored solution, so please do not hesitate to contact us.

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