Business and government representatives discussed the critical situation in the consumer electronics market

13/ 11/ 2020

Yesterday, November 12, a roundtable was held with the participation of the EBA the Consumer Electronics Committee experts and government officials, namely, Chairman of the Parliamentary Committee on Finance, Tax and Customs Policy – Mr. Danylo Hetmantsev, Deputy Minister of Economy for Digital Development – Mr. Igor Diadiura, Director of the Department for Regulatory Policy and Entrepreneurship of the Ministry of Economy – Mr. Oleksandr Palazov, Director of the Consumer Protection Department of the State Food Safety and Consumer Protection Service – Mr. Oleksiy Kvasnytsky and Head of the Department of Trade Policy and Non-Tariff Regulation of the State Customs Service – Mr. Yuriy Klymyuk. Thus, during the roundtable, the participants discussed the critical situation in connection with the sale of household appliances and electronics in Ukraine, which does not meet the requirements of the legislation on technical regulation, market surveillance, consumer protection, and therefore may pose a serious risk to consumers. The reason for this meeting was the numerous consumer complaints during the year, the essence of which was that they used the websites of price aggregators to search for products of certain brands, received advertising information about such products and stores, and made purchases in the stores referred. At the same time, the source of information about the product came from the advertising on the price aggregator website. It was later found that the goods purchased by these consumers contained significant differences from those listed on the Ukrainian-language versions of the manufacturers websites. There were no such models at all on the official websites of the manufacturers representatives, and similar products had other model names, specifications, warranty, and service conditions. As a result, not only consumers suffered but also the reputation of well-known brands. After all, goods specially designed by the manufacturer for sale in Ukraine provide instructions and warranty card in Ukrainian, labeling of such goods, its packaging also contains information about the manufacturer, importer, model, serial number and date of manufacture in the state language. Products that meet the requirements of current technical regulations are also subject to a declaration of compliance with technical regulations, and such goods are marked with the national mark of compliance with technical regulations. Also, the participants of the roundtable discussed possible ways to solve this problem. According to the business, one of the key elements is the full implementation of laws on fiscalization and opportunities for consumers to receive cash back in case of failure to receive a fiscal check from January 1 next year. Thus, business representatives stressed the inexpediency of postponing the entry into force of the provisions of the cashback, as well as the exclusion of the e-commerce from the list of risky business groups, where it will be necessary to issue fiscal checks from January 1, 2021. After all, it is through the Internet that most of the equipment that does not meet the requirements of Ukrainian legislation is distributed. Therefore, another key task for government agencies should be to create civilized rules for doing business on the Internet, such as the legislative definition of price aggregators and marketplaces. The third key area, according to business, is to bring order to customs. It is abnormal when all control rules apply only to law-abiding and transparent companies, while entire consignments of equipment that do not meet legal requirements and are freely sold on the Internet enter the territory of Ukraine outside customs clearance at all. We hope that the voice of business will be heard, and government agencies will still be able to de-shadow Ukraines economy and create equal and transparent conditions for doing business. Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

Thus, during the roundtable, the participants discussed the critical situation in connection with the sale of household appliances and electronics in Ukraine, which does not meet the requirements of the legislation on technical regulation, market surveillance, consumer protection, and therefore may pose a serious risk to consumers.

The reason for this meeting was the numerous consumer complaints during the year, the essence of which was that they used the websites of price aggregators to search for products of certain brands, received advertising information about such products and stores, and made purchases in the stores referred. At the same time, the source of information about the product came from the advertising on the price aggregator website. It was later found that the goods purchased by these consumers contained significant differences from those listed on the Ukrainian-language versions of the manufacturers’ websites. There were no such models at all on the official websites of the manufacturers’ representatives, and similar products had other model names, specifications, warranty, and service conditions. As a result, not only consumers suffered but also the reputation of well-known brands. After all, goods specially designed by the manufacturer for sale in Ukraine provide instructions and warranty card in Ukrainian, labeling of such goods, its packaging also contains information about the manufacturer, importer, model, serial number and date of manufacture in the state language. Products that meet the requirements of current technical regulations are also subject to a declaration of compliance with technical regulations, and such goods are marked with the national mark of compliance with technical regulations.

Also, the participants of the roundtable discussed possible ways to solve this problem. According to the business, one of the key elements is the full implementation of laws on fiscalization and opportunities for consumers to receive cash back in case of failure to receive a fiscal check from January 1 next year. Thus, business representatives stressed the inexpediency of postponing the entry into force of the provisions of the “cashback”, as well as the exclusion of the e-commerce from the list of risky business groups, where it will be necessary to issue fiscal checks from January 1, 2021. After all, it is through the Internet that most of the equipment that does not meet the requirements of Ukrainian legislation is distributed. Therefore, another key task for government agencies should be to create civilized rules for doing business on the Internet, such as the legislative definition of price aggregators and marketplaces. The third key area, according to business, is to bring order to customs. It is abnormal when all control rules apply only to law-abiding and transparent companies, while entire consignments of equipment that do not meet legal requirements and are freely sold on the Internet enter the territory of Ukraine outside customs clearance at all.

We hope that the voice of business will be heard, and government agencies will still be able to de-shadow Ukraine’s economy and create equal and transparent conditions for doing business.

Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.