The Draft Law on the Amendment of the Law on Consumer Protection and Certain Laws (“Draft”) was submitted to the Grand National Assembly of Turkey on 18.07.2024. The major amendments to the Law No. 6502 on Consumer Protection (“CPL”) and Law No. 6563 on the Regulation of Electronic Commerce (“E-Commerce Law”) will be summarized below.

I. Regulations Regarding the Administrative Fines Imposed by the Advertisement Board

• As stated in the preamble of the Draft, the current administrative fines for commercial advertisements and unfair commercial practices are often insufficient and have lost their deterrent function. In accordance with this scope, the lower and upper limits of the administrative fines imposed by the Advertisement Board are determined as follows. The Advertisement Board has the discretion to determine the amount, taking into account factors such as the fault and economic status of the violator:
  • From 110 thousand ₺ to 1 million 100 thousand ₺ if it is incurred through a television channel broadcasting at local level,
  • From 2 million 210 thousand ₺ to 22 million 100 thousand ₺ if it is incurred through a television channel broadcasting nationwide,
  • Half of the penalties specified in subparagraphs (a) and (b) if the offence is incurred through periodicals,
  • From 60 thousand ₺ to 600 thousand ₺ if it is incurred through a radio channel broadcasting at local level or via satellite,
  • From 600 thousand ₺ to 6 million ₺ if it is incurred through a radio channel broadcasting nationwide,
  • From 600 thousand ₺ to 6 million ₺ if it is incurred through a television channel broadcasting via satellite or via the internet,
  • From 280 thousand ₺ to 2 million 800 thousand ₺ if it is incurred via text message,
  • From 60 thousand ₺ to 600 thousand ₺ if incurred through other channels.
• The basic administrative fine stipulated for unfair commercial practices is planned to be amended from 60 thousand ₺ to 600 thousand ₺, and from 600 thousand ₺ to 6 million ₺ if it is incurred throughout the country.
• In addition to the administrative fines imposed by the Ministry of Trade or provincial trade offices, administrative fines imposed by the Advertisement Board will now also be eligible for reconciliation.

II.  Regulations Regarding the Consumer and Housing Finance Loans

• In addition to the written requirement for the validity of consumer loan and housing finance agreements, it is also regulated that they may be concluded at a distance.
• In the event that a bank account is opened for the loan pursuant to fixed-term loan and housing finance agreements, the written request that the consumer must submit in order not to close the account upon the payment of the loan can now also be submitted via a permanent data provider.

III. Regulations Regarding the Direct Sales

• The direct selling system, previously regulated by a regulation, is detailed in the Draft.  According to the Draft, the direct sales system is a sales model in which direct sellers, who are not employed by the direct sales company and are not under an employment contract, operate under titles such as independent representatives, distributors, consultants, and similar names. These sellers market goods or services to consumers in return for benefits such as commissions, premiums, incentives, and rewards.
• Direct sales companies must be capital companies and must also fulfil other conditions to be determined by regulation.
• The direct sales system shall not aim to bring new sellers into the system. The profit obtained shall be based on the sale of goods or services to consumers and other principles determined by the regulation shall be complied with.
• Direct sellers will not receive documents from consumers under the names of renewal, package, fee, dues and similar names other than the goods or services subject to sale. Receiving goods or services in the quantity or amount determined by the company will not determine the level of the direct seller within the system.
• The consumer who purchases goods or services through the direct sales system may exercise his/her right of withdrawal within thirty days without giving any reason and without paying any penal clause. Notification of withdrawal may be made either to the direct seller or to the direct sales company.

IV. Regulations Regarding the Amendments to the E-Commerce Law

• Electronic commerce marketplace service providers are already obliged to obtain a license and the calculation of the license fee is planned to be amended. In the Draft, sales made abroad through electronic commerce marketplaces are not included in the calculation and the calculation is as follows:
• Provided that the net transaction volume of the electronic commerce intermediary service provider is not more than twenty percent of the sum of the net transaction volumes of the electronic commerce intermediary service provider and electronic commerce service providers calculated using ETBIS data, performed in the following calendar year;

• • The amount of sales made abroad through the electronic commerce marketplaces of the electronic commerce intermediary service provider and the electronic commerce intermediary service providers with which it is in economic integrity,
  • In accordance with the regulations on supporting investments on a project basis, twice the amount of investment expenditure incurred by obtaining an investment incentive certificate from the Ministry of Industry and Technology is deducted from the net transaction volume for that calendar year.