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Situation of consumer rights protection in Latvia Governmental institutions The Consumer Rights Protection Centre is the main responsible co-ordinating institution that supervises implementation of the consumer protection legislation; it acts under supervision of the Ministry of Economics. The Centre:
Other market surveillance institutions in Latvia include State Food and Veterinary Service, State Sanitary Inspection (cosmetics, household chemicals, etc.), State Pharmacy Inspection and others. Non-governmental organisations The independent movement in Latvia was slow to develop. In early 1990-ies the first consumer NGO - Club for Protection of Consumer Interests - was established in Riga. In the following years further regional consumer NGOs were established with small memberships of devoted, unpaid activists and no financial resources of their own. It was not until mid 1999, ten years after the foundation of the first Consumer Club in Riga, that a national federation was formed - and this was made possible only by a strong influence from the European consumer organisations and a grant from the Nordic Council. The Association (PIAA) is an independent non-government umbrella-organisation, which unites all 11 existing consumer NGOs in Latvia and works nationally to extend and protect consumer rights in Latvia, as well as to co-ordinate the work of local and regional consumer NGOs. 
The system of consumer rights protection in Latvia is gradually becoming stronger and more developed during last years. Regular drafting and acceptance of normative documents streamlining rights and duties as well as relations between consumers and producers, sellers, service providers and other stakeholders is an on-going process. The Ministry of Economics is constantly engaged in drafting new amendments to national legislative acts in order to adopt EU regulations. The law "On Consumer Rights Protection" - one of the basic documents in this field was passed on March 18, 1999 to ensure that consumers can implement and safeguard their legitimate rights. The regulatory base of protection of consumer rights was supplemented by the law "On Advertising" adopted on December 20, 1999, law "On Safety of Goods and Services" (2004) and law "On Liability for Deficiencies of Goods and Services (2000) and other Cabinet of Ministers regulations. Normative base in the area of consumer rights protection is recently supplemented with new Law on Safety of Goods and Services, amendments to the Law on Advertising, amendments to the Law on Liability for Deficiencies of Goods and Services, and several regulations of the Cabinet on Ministers on labelling of various goods (food, air-conditioners, ovens and refrigerators). Also a new procedure of consumer's claim on improper goods or services is adopted. On October 14, 2004, Cabinet of Ministers adopted the Basic Guidelines of Consumer Rights Protection Program in order to define basic principles of consumer policy, goals and main courses of action to ensure high level consumer rights protection. These basic guidelines are developed in accordance with Consumer Policy Strategy 2003-2006 of European Commission. To implement the basic guidelines, Club for Protection of Consumer Interests co-drafted the Consumer Rights Protection Programme for 2005-2007.
The law that regulates consumer-associating process Consumer Rights Protection Law regulates consumer associating. In section 22 it is stated that consumers are entitled to voluntarily unit in public organisations (clubs, societies or associations), the purpose of which is to protect consumer rights and which organisations act in accordance with regulatory enactments and articles of association of the relevant public organisation for consumer rights protection. Section 23 provides rights of the consumer associations.
Latvian regulations that are more advanced than the European ones
Main regulations of consumer protection (focused mainly on financial services)
Full list of the legislative acts can be found at www.ptac.gov.lv. Translations of the regulations can be found at www.ttc.lv.
Mostly consumers complain about undue quality of consumer products and about the fact that sellers do not follow the procedure, which is provided by Cabinet regulation No. 154 "Procedures for Submission of Consumer Claims Regarding Non-conformity of Goods or Services with Contract Provisions and the Organisation of Expert-examination of Goods or Services".
Financial services consumer problems Financial services market is quickly developing in Latvia and an increase in the number of consumer complaints is foreseen during next years. At present consumers mostly complain about unfair contract terms.
Extra judicial systems of conflicts resolution Legislative acts provide that at the first stage consumer shall address to seller and try to resolve the conflict. If it is not possible to reach satisfactory result he shall address to Consumer Rights Protection Centre for resolution of situation. Consumer problems regarding financial services can be addressed to alternative dispute resolution bodies:
Utilisation of ECC-NET and FINNET network European Consumer Centre has been established in Latvia aiming to ensure consumer rights protection wherever they travel and doing cross–border shopping. The Centre is a part of ECC Network represented in all EU countries and works under the Latvian Consumer Rights Protection Centre. Until now, the existing alternative dispute resolution bodies in the financial sector have not joined the FINNET network.
Judicial ways of consumer conflicts resolution There is a certain procedure for consumer conflicts resolution in Latvia. Basically consumer disputes are being solved in accordance to procedure prescribed by regulations of Latvian Cabinet of Ministers "Procedures for Submission of Consumer Claims Regarding Non-conformity of Goods or Services with Contract Provisions and the Organisation of Expert-examination of Goods or Services", but there are also some areas for example transport and social services, in which the resolution procedure for consumer conflicts are provided by specific normative enactments. The consumer has rights to address to the court with his claim and not to use extra judicial conflict solving procedure.
In the circumstances, when the selection of the goods and services offered in the market is very extensive and is constantly increased, the information on the properties of these goods and services and concerning the directions for use has increasingly significant importance. Considering the important role and importance of the information, the rights of consumers on the information are also determined in the legislation. So, according to the Consumer Protection Law, the consumer has the right to truthful information on quality, reliability, price, guarantee certificates and possibility of guarantee repair of an offered product or service, the directions of use, title and address of the manufacturer or seller. The obligation of the seller is to acquaint the consumer with the information about the product or service if it is not specified in the labels, enclosed instruction, technical passport or in other written way. Besides, in the Product and Services Safety Law it is determined that the manufacturer, supplier of service and distributor should give truthful and complete information regarding the product or service (also warnings) in order to make possible the assesment of risks related to the use of the product or utilisation of the service and to take precautionary measures. The Consumer Rights Protection Centre (PTAC), realising the control in places of trade and granting services and checking the availability of the offered information about the products or services and the conformity to the requirements prescribed in normative acts, however, it is necessary to state infringements in this information sphere that is so important for consumers. For the consumer it is important to be sure that the bought product is reliable, i.e., during the use of it any damage for his health or property will not be caused. The information given by the seller about the reliability of products is convincing if the seller can present consumer the testimony or confirmation of the conformity, or, being expressed clearly, the certificate of conformity.
A guarantee is a retailer's, manufacturer's or service provider's affirmation that a good or service will retain its quality, be safe to use and retain its characteristics of usage. It is also the affirmation that the manufacturer, retailer or service provider undertakes additional commitments other than those prescribed by the Consumer Protection Law and other normative statutes. The first part of this definition is more or less understandable to consumers, however, what exactly is meant by additional commitments is at times not even clear to businessmen themselves. To make sense of it, one first needs to be aware that there are commitments that retailers, manufacturers and service providers are obliged to observe by law and that there are commitments that they themselves undertake of their own free will. In the first instance, we are talking about the observation of the law - a warranty - and in the second instance about a guarantee. Warranty is not provided directly by the product or service manufacturer or seller but is stipulated by the law regarding contracts of purchase/sale and other property alienation or service rendering contracts. At present the warranty period in Latvia is two years. |
