Did you go on a tour and instead of sightseeing you looked at the dishes on offer? Or did you get your internet hooked up and installed and only then found out that the cost would be much higher due to hidden fees? Then you may have been the victim of unfair business practices. What are some of the things that fall into this category and what options do you have to defend yourself against unfair commercial practices?
Unfair commercial practices are a serious problem in the area of consumer protection and competition.
In unfair commercial practices, businesses act in a way that is contrary to the requirements of professional care. At the same time, such conduct can significantly influence a consumer’s decision to purchase an offered item when they would not otherwise have done so. However, unfair commercial practices may occur even if the consumer does not ultimately make the purchase.
Unfair commercial practices can be divided into two main categories, namely deceptive commercial practices and aggressive commercial practices.
Misleading commercial practices are conduct in which a trader provides false information or conceals material facts, thereby misleading the consumer. The most common cases include:
False information about a product or service: Imagine you want a new watch, for example. The seller will show it to you and tell you that it is made of real gold and has several certifications, and will give a credible justification for its price. After a few weeks of wearing it, you get a rash on your skin and discover that the watch is not gold, but only an imitation of the precious metal. In addition, you will not get any document with the certifications. In this case, the trader has misled you.
Withholding essential information: Now you want to buy, for example, a smart slow-cooker. In addition, the seller promises that you will get a smart lid for the pot, which will tell you that the food is cooked. But it’s only at home, after unpacking, that you find out that the smart lid doesn’t work without buying the special software that the retailer kept from you. So if you want to use the cooker to its full potential, you have to buy the software back.
Imitation of brands and products: This scandal was once rampant in Asian marketplaces but has now permeated online shopping. Some merchants want to live off the fame of others and therefore choose to imitate goods, often selling them at a much lower price than the original. The aim is to confuse the consumer and offer them their own, usually inferior goods, under the pretext that they are the original. This even leads to entire online shops copying someone else’s e-shop and pretending to be the same brand.
Or has someone used unfair business practices on a person close to you? If you want to defend yourself in court, we can help you prepare a lawsuit and represent you in a lawsuit against the business that committed the conduct.
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Aggressive commercial practices include, in particular, the use of coercion, harassment or other forms of duress to influence consumer purchasing behaviour. The most common cases include:
Psychological pressure on the customer: We have encountered this practice since the glory days of Horst Fuchs, when he used to announce from our screens that if we didn’t buy this amazing blender in 15 minutes, we wouldn’t get a set of handy knives for free! Nowadays, pop-ups on websites announcing that there are only two units left in the store are popular again, so we should hurry up and buy them, lest someone accidentally snatch them up.
Unsolicited offers and nuisance marketing: everyone has probably encountered this at least once in their lifetime. Your phone rings repeatedly and when you answer it, someone on the other end tells you that the call is being recorded and starts offering you something. We presented you with the phone number trading case involving the Chamber of Commerce quite recently. Similarly, various newsletters are constantly arriving in your e-mail inbox with unsolicited offers that you, as a consumer, may not have even shown any interest in.
Extortion or fear-mongering: This practice was used primarily by known “scammers” who took advantage of seniors’ poor judgment. They locked them in a room and forced them to buy the goods presented, telling them that they could not leave the room without buying because they had committed to the purchase by participating in the trip.
In 2018, a company operating a chain of electronics stores was fined for deceptive practices relating to discount promotions. The company quoted high discounts on products, but artificially inflated the original prices before the discount event so that the actual discount was minimal or non-existent. This practice was found to be deceptive because consumers were misled as to the true value of the discount offered. Thanks to an amendment to the Consumer Protection Act 2023, the retailer must state the lowest price of the goods from the last 30 days.
Tip: Will companies be able to buy our phone numbers from the Chamber of Commerce? The recent case has raised many question marks, especially because of the legal aspect and GDPR. Read about how companies could trade our phone numbers.
In 2020, an unnamed telecommunications company was fined for including hidden fees in its contracts with customers. The operator enticed customers with favourable tariffs, but the contract terms included additional charges for services that it did not inform customers about in advance. This practice was found to be misleading because consumers were not fully informed of the total cost of the service.
In the Czech Republic, there have been cases in the past of so-called “scammers” organising demonstration events aimed at the elderly. During these events, seniors were subjected to psychological pressure to buy overpriced and often low-quality products. This practice was described as aggressive because it exploited the vulnerability of a certain group of the population.
In 2019, a network of fraudulent e-shops that offered goods at very low prices was uncovered. However, after ordering and paying, customers never received the goods and communication with the e-shop was impossible. The practice was deemed deceptive as consumers were misled about the existence and delivery of the goods.
As a consumer, you have several defences that you can use if you encounter an unfair commercial practice in practice. The first is to withdraw from the contract. If you find that you have been misled, you have the right to withdraw from the contract within 14 days of entering into the contract or taking delivery of the goods.
You can also make a claim. This is the option customers most often resort to if the goods or service do not match the promised features. In this case, you have the right to request a remedy.
You can also file a complaint with the Czech Trade Inspection Authority. It can investigate the company and, if your allegations prove true, impose a fine.
Finally, of course, there is the option of taking legal action. If you want to sue a company for unfair commercial practices, we will be happy to represent you in court and help you to obtain compensation, for example.
Companies that commit unfair practices then face various consequences. The amount of compensation from the Czech Trade Inspection Authority can be in the millions of crowns, depending on the specific offence. At the same time, they may face litigation from consumers, who may bring a number of individual actions if they are not joined together in a single class action. And worst of all, reputational damage. Negative publicity leads to customer churn and long-term economic losses.
Tip: Goods from Chinese e-shops look very good at first glance, but they are often backed by exploited workers and have big environmental impacts. Find out more in our article.
Unfair commercial practices involve deceptive and aggressive behaviour by traders who try to influence consumer decision-making. This includes providing false information, concealing material facts, coercive sales techniques or hidden charges. Consumers can defend themselves against these practices by withdrawing from the contract, filing a complaint with the Czech Trade Inspection Authority or through the courts. It is important to be cautious and check information carefully before buying.
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Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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