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The business discussed with the parliamentarians the main precautions in the context of the adoption of draft law No. 6134 on the protection of consumer rights

25/ 04/ 2023
  On April 24th, a meeting between the business community and the leadership of the Verkhovna Rada Committee on Economic Development took place at the European Business Association. The meeting was dedicated to Project Law No. 6134 on consumer rights protection, and it focused on urging the business to address corruption risks before voting for the document in the second reading. During the meeting, representatives of the business community had the opportunity to voice their comments to parliamentarians regarding the new amendments proposed by the Committee for the second reading, which were strongly opposed by businesses. Specifically, the concerns were related to the new provisions regarding the establishment of two highly monopolistic authorized bodies - the public association Association of Consumer Associations and the Commission for out-of-court dispute resolution. These bodies are envisaged to have expanded atypical powers to control business activities and hold them accountable, including conducting additional inspections of businesses, imposing fines, determining compensation amounts, and mandatory paid training for entrepreneurs, among other functions. The EBA has repeatedly drawn the attention of all key stakeholders to the fact that such expanded powers of the newly created organizations not only do not comply with the norms of the legislation of the European Union but also will lead to additional significant burden on entrepreneurs and may result in interference in the internal business activities. The preemptive approach to determining the amount of damages and the cost of training programs, among other issues, is also of concern. We are grateful to the Verkhovna Rada Committee on Economic Development for organizing this discussion and sincerely hope for the swift elimination of corruption risks from the draft law and its subsequent adoption.

On April 24th, a meeting between the business community and the leadership of the Verkhovna Rada Committee on Economic Development took place at the European Business Association. The meeting was dedicated to Project Law No. 6134 on consumer rights protection, and it focused on urging the business to address corruption risks before voting for the document in the second reading.

During the meeting, representatives of the business community had the opportunity to voice their comments to parliamentarians regarding the new amendments proposed by the Committee for the second reading, which were strongly opposed by businesses. Specifically, the concerns were related to the new provisions regarding the establishment of two highly monopolistic authorized bodies – the public association “Association of Consumer Associations” and the Commission for out-of-court dispute resolution. These bodies are envisaged to have expanded atypical powers to control business activities and hold them accountable, including conducting additional inspections of businesses, imposing fines, determining compensation amounts, and mandatory paid training for entrepreneurs, among other functions.

The EBA has repeatedly drawn the attention of all key stakeholders to the fact that such expanded powers of the newly created organizations not only do not comply with the norms of the legislation of the European Union but also will lead to additional significant burden on entrepreneurs and may result in interference in the internal business activities. The preemptive approach to determining the amount of damages and the cost of training programs, among other issues, is also of concern.

We are grateful to the Verkhovna Rada Committee on Economic Development for organizing this discussion and sincerely hope for the swift elimination of corruption risks from the draft law and its subsequent adoption.

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