According to the requirements of the European Union (EU) and Lithuanian laws, in the business-to-consumer (B2C) sector, businesses must guarantee the right of consumers to obtain information, to choose the seller or service provider of products or services, to purchase and use products or services, and must ensure that the products and services the consumers choose are safe and of high quality. The businesses are also required to observe fair business practices and to otherwise ensure the protection of consumer rights.
In Lithuania, in the event of a breach of consumer protection legislation, consumers have the right to appeal to consumer dispute resolution bodies or to a court of general jurisdiction, and the public interest of consumers can be protected by the Consumer Rights Protection Authority and other institutions in the cases determined by law. At the request of a consumer, a consumer association or a state or local authority, the Consumer Rights Protection Authority also examines consumer contracts to identify unfair terms, and if it finds that a consumer contract contains an unfair term, it obliges businesses to refrain from applying it and to conclude a new contract and further perform the already concluded consumer contracts.
Failing to comply with consumer protection requirements can result in a legal dispute, administrative and financial costs, and fines of up to 3% of the business’s annual revenue for the previous fiscal year, however not exceeding EUR 100,000, and in the event of a repeated infringement in the same year – up to 6% of the business’s annual revenue for the previous fiscal year, however not exceeding EUR 200,000. For widespread infringements (i.e., affecting consumers in at least three EU Member States) or EU-wide widespread infringements (i.e., harming the collective interests of consumers in at least two-thirds of all EU Member States, accounting, together, for at least two-thirds of the population of the EU), a fine of up to 4% of annual revenue in the Member State concerned, or up to EUR 2 000 000, may be imposed on the business.
The EU consumer rights directives, including the so-called Omnibus directive, have been implemented in Lithuania. Consumer protection is governed by a range of legislation. We have therefore made this checklist to help you evaluate whether your business activities comply with statutory requirements and identify areas for improvement. Check your compliance!
This checklist is not exhaustive and is not (nor could be) deemed as professional legal advice. If you have questions about conformity of your business to consumer protection requirements or are seeking a professional advice, please contact Glimstedt’s Techhnology, Media & Comminications Practice Team or write to us at dokas@glimstedt.lt.
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