Consumer Protection Law is available on our website 13.10.2017

LAW ON CONSUMER PROTECTION

 

Law Number                          : 6502

Date of Enactment                : 7/11/2013

Promulgated in the Official Gazette Date : 28/11/2013       Issue: 28835

Type of Promulgation      : Array  : 5 Volume: 54 

 

CHAPTER ONE

Purpose, Scope and Definitions

Purpose

ARTICLE 1- (1) The purpose of this Law is to take measures that protect the health, safety and the economic interests of consumers, to compensate the loss of consumers, to ensure the protection of consumers from environmental hazards, which enlighten and raise the awareness of consumers in accordance with public interest; to promote self-protecting initiatives by consumers and to regulate the issues on the promotion of voluntary organizations for establishing policies on these matters.

Scope

ARTICLE 2- (1) This Law covers all consumer transactions and consumer oriented implementations.

Definitions

ARTICLE 3- In the implementation of this Law;

a) The Minister shall mean the Minister of Customs and Trade,

b) The Ministry shall mean the Ministry of Customs and Trade,

c) Director General shall mean the Director General of Consumer Protection and Market Surveillance,

ç) Directorate General shall mean the Directorate General of Consumer Protection and Market Surveillance,

d) Service shall mean the subject matter of any type of consumer transaction, except for supply or undertaking of supply of goods in return for a fee or interest,

e) Importer shall mean a real person or legal entities including public legal entities that import goods or services or the raw material or the intermediate goods of such goods, for commercial or professional purposes, and launch them through sale, leasing, financial leasing or by similar means,

f) Durable data storage device shall mean all kinds of tools or media such as short messages, e-mail, internet, discs, CD, DVD, memory card and alike, allowing the information sent by or to the consumer, to be recorded and to be copied without alteration, and enabling exact access to the recorded information so as to provide the examination of such information in a reasonable time, in accordance with the purpose of that information,

g) Housing Finance Institute shall mean financial leasing companies or financing companies which have been deemed suitable for engaging in housing finance activities by banks that give direct loans to consumers under the scope of housing finance or provide financial leasing and by the Banking Regulation and Supervision Agency,

ğ) Creditor shall mean a real person or legal entities authorized to give out credits to consumers as per their legislation,

h) Goods shall mean movable goods, immovable goods for dwelling or for vacation, and all kinds of intangible goods such as software, sound, image etc. prepared for use with electronic media that are the subject of dealings,

ı) Supplier shall mean a real person or legal entities including the public legal entities offering services or acting on behalf or on account of those offering services to the consumer for commercial or professional purposes,

i) Seller shall mean a real person or legal entities including the public legal entities offering goods or acting on behalf or on account of those offering goods to the consumer for commercial or professional purposes,

j) Technical regulation shall refer to the definition included in the Law No. 4703 dated 29 June 2001 on Drafting and Implementation of Technical Legislation on Products.

k) Consumer shall mean a real person or legal entity acting for non-commercial or non-professional purposes,

l) Consumer transaction shall mean all kinds of contracts and legal procedures including the contract of work, transport, brokerage, insurance, mandate, banking and similar contracts established between consumers and real persons or legal entities, including the public legal entities, acting for commercial or professional purposes or on behalf or on account of such, in the goods and service markets,

m)  Consumer organizations shall mean associations, foundations, or their supreme organizations established for the protection of consumers,

n) Manufacturer shall mean a real person or legal entities including public legal entities manufacturing the goods or the raw material of such goods or the intermediate goods of such, which have been presented to the consumer, and presenting themselves as the manufacturer by putting its brand, title or any other distinguishing mark on such goods.

 

CHAPTER TWO

General Principles

Basic principles

ARTICLE 4- (1) Contracts and notifications stipulated in this Law to be regulated in writing shall be drafted with at least twelve (12) font size, in a comprehensible language, in a clear, simple, and legible form and a copy of these shall be given out the consumer either on paper or on any other durable data storage device. In the event that one or a few of the conditions that must be included in the contract are lacking, such omission shall not affect the validity of the contract. The party regulating the contract shall remedy such omission immediately.

(2) The conditions set forth in the contract shall not be altered to the detriment of the consumer during the period of the contract.

(3) An additional fee shall not be claimed from the consumer for the acts which the consumer rightly expects within the scope of the good or service presented to the consumer and that are among the legal obligations of the party drafting the contract, and for the expenses made by the party drafting the contract in line with its own benefits. All types of fees, commissions and expenses that will be claimed from the consumer, other than interest, and the principles and procedures related to such for goods or services provided to the consumer by banks, financial institutions offering consumer credits or issuing cards, shall be regulated by the Banking Regulation and Supervision Agency, by receiving the opinion of the Ministry, in line with the spirit of this Law and in a manner that protects the consumer.

(4) It shall be obligatory to give the information regarding all kinds of fees and expenses that will be claimed from the consumer referring to the contracts regulated by this Law, to the consumer in writing on paper as an attachment to the contract. In contracts established through remote communication, such information shall be presented in accordance with the remote communication means used. The proof showing that such information has been submitted to the consumer shall be under the responsibility of the party drafting the contract.

(5) A bill may be drawn, only in the name of the holder and in separate copies for each instalment, as valuable paper for the transactions performed by the consumer. Bills drafted contrary to the provisions of this paragraph shall be invalid for the consumer.

(6) In consumer transactions, the personal guarantees obtained in return for the acts of the consumer shall be deemed as ordinary guarantee, regardless of any name given to them. Personal guarantees given by the other party regarding the receivables of the consumer shall be deemed as joint guarantees, unless otherwise provided in other laws.

(7) Compound interest shall not be applied in consumer transactions, including the case of default.

(8) This Law also covers participation banks in terms of all of its regulations. Implementation shall be done considering profit share.

Unfair terms in consumer contracts

ARTICLE 5- (1) Unfair terms are contractual terms, which are included in the contract without negotiating with the consumer and that create an imbalance against the consumer in a manner contrary to good faith in the rights and obligations of the parties arising from the contract.

(2) Unfair terms included in the contracts signed with the consumer shall be absolutely void. The provisions of the contract other than the unfair terms shall remain valid. In this case, the party drawing up the contract shall not argue that such party would not have engaged in a contract with the other provisions, if it were not for the terms deemed absolutely void.

(3) If, a term of the contract had been prepared previously and it was not able to affect the consumer content since it was included in the standard contract, it shall be deemed that such term of the contract has not been negotiated with the consumer. If the party drawing up the contract argues that a standard term has been negotiated solely, such party shall have the burden of proof. If from the overall evaluation of the contract, it is agreed that it is a standard contract, the negotiation of certain elements of a term or a sole provision in this contract shall not prevent the implementation of this article to the rest of the contract.

(4)  If the contract terms are in writing, a clear and comprehensible language that the consumer can understand should be used. In the event a provision included in the contract is not clear and comprehensible or carries multiple meaning, such provision shall be interpreted for the benefit of the consumer.

(5) The provisions of this article shall also apply to contracts drawn up by people or institutions carrying out their activities with permission granted by the law or authorized bodies, without taking into consideration the nature of such contracts.

(6) The unfairness of a contract term shall be determined while the contract is being drawn up, taking into account the quality of the good or service that is the subject matter of the contract, the existing conditions during the drawing up of the contract, and the other provisions of the contract or the provisions of another contract which the unfair term is related to.

(7) In the event of judgment of the unfairness of the contract terms, an evaluation shall not be made regarding the balance between both the fundamental performance obligations; and the market value of the good or service and the price determined in the contract provided such terms are written in a clear and comprehensible language.

(8) The Ministry shall take the necessary precautions to delete out or prevent the use of unfair terms in contractual texts in the contracts that were drawn up for general use.

(9) The procedures and principles related to the determination and inspection of unfair terms and the contract terms which are considered as unfair terms provided they are not restrictive shall be determined by the regulation.

Sales Avoidance

ARTICLE 6- (1) Unless there is a sign indicating that a good that is on display in a window, on a shelf, on an electronic media or any other place  which is clearly visible is not for sale, its sale shall not be avoided.

(2) Unless it is for a valid reason, providing services shall not be avoided.

(3) Those acting for commercial or professional purposes shall not bind the sale of a good or service to the conditions of amount, number, dimension etc. which have been determined by themselves, or to the purchase of another good or service, if there are no practices, commercial customs to the contrary or a justified reason.

(4) The Ministry and the municipalities shall be in charge of carrying out all work related to the implementation and supervision of the provisions of this article.

Unordered goods or services

ARTICLE 7- (1) No rights against the consumer shall be claimed in the delivery of unordered goods or offering of unordered services. The consumer remaining silent or using the good or service in such cases shall not be deemed as the consumer’s declaration of acceptance regarding the establishment of a contract. The consumer shall not be liable to return or retain the good.

(2) Those claiming that a good or service has been ordered, shall be liable to prove such claim.

 

 CHAPTER THREE

Defective Goods and Services

PART ONE

Defective Goods

Defective goods

ARTICLE 8- (1) A defective good is a good that is contrary to the contract since it does not comply with the sample or model agreed on by the parties or lacks the characteristics it should objectively have, during its delivery to the consumer.

 (2) Goods that do not have one or several of the characteristics included on the package, on the label, the introductory guide and the instructions of use, on the portal or in advertisements and announcements; that are not in conformity with the characteristics notified by the seller or determined in its technical regulation; that do not correspond to the usage purpose of goods that are equal; that have material, legal or economic deficiencies which reduce or remove the benefits the consumer reasonably expects shall also be deemed as defective goods.

(3)  If the good that is the subject matter of the contract is not delivered within the due course set forth in the contract, or the good is not assembled as required in cases where assemblage is made by the seller or under the responsibility of the seller, this shall be evaluated as non-compliant performance. In cases where it is envisaged that the consumer will assemble the good, if the good is assembled incorrectly due to an error or a shortcoming in the assemblage instructions, such shall be identified as non-compliant performance of the contract.

Responsibility for a defective good

ARTICLE 9- (1) The seller shall be liable to deliver the goods to the consumer in conformity with the sale contract.

(2) The seller shall not be bound by the contents of an announcement if he/she proves that he/she was not and could not have been expected to be aware of the announcements made by means of advertisements or that the content of the relevant announcement had been corrected at the time of the conclusion of the sale contract or that the decision to conclude the sale contract does not demonstrate causality with the announcement in question.

Burden of proof

ARTICLE 10- (1) Any defect that becomes apparent within six months as of the date of delivery shall be deemed to have existed at the date of delivery. In this case, the seller shall be obliged to prove that the good was not defective. This presumption shall not apply if it is incompatible with the nature of the good or the defect.

(2) Nonconformity with the contract shall not be mentioned where the consumer was aware of the defect or was expected to be aware of the defect at the date of the conclusion of the contract. The consumer’s right of choice shall be reserved for defects other than these.

(3) The manufacturer, importer or seller shall affix an eligible label on the defective good that will put up for sale or on its package, containing explanatory information regarding the defect of the good that can be easily read by the consumer. It shall be mandatory to give this label to the consumer or to display it clearly on the invoice, receipt or sale document submitted to the consumer. The products those are not suitable for its technical regulation shall not be launched in the market in any way. The “Law on the Drafting and Implementation of Technical Legislation on Products” and the provisions of other relevant legislation shall be implemented for such products.

Consumer’s rights of choice

ARTICLE 11- (1) Where it is understood that the good is defective, the consumer may exercise one of the following rights of choice;

a) Reneging on the contract, notifying that he/she is ready to return the sold good,

b) Requesting a discount from the sale price in proportion to the defect by keeping the sold good,

c) Requesting the free repair of the sold good, with all expenses borne by the seller, if it does not require an extensive expense,

ç) Requesting a replacement of the defective good with another fungible good free from defect, if possible.

The seller shall be liable to fulfil this request chosen by the consumer.

(2) The right to free repair or replacement of the good with another fungible good free from defects may be used against the manufacturer or the importer as well. The seller, the manufacturer and the importer shall be severally responsible in performing the rights in this paragraph. In cases where the manufacturer or the importer proves that the defect happened after the good was launched in the market by them, they shall not be deemed responsible.

(3) In the event that free repair or replacement of the good with another fungible good free from defects brings along disproportional difficulties to the seller, the consumer may exercise one of the rights of reneging on the contract or of discount from the price in proportion to the defect. In determining the disproportion, matters such as the value of the good free from defects, the importance of the defect and whether or not it would create a problem for the consumer to exercise other rights of choice shall be taken into account.

(4) In the event that the consumer chooses to exercise the right of requesting free repair or replacement of the good with another fungible good free from defects, it shall be obligatory to fulfil this request within maximum thirty (30) business days after notifying the seller, manufacturer or importer of such request. However, for goods included in the attached list of the regulation issued in accordance with Article 58 of this Law, the consumer’s free repair request shall be fulfilled in the maximum repair period stated in this regulation. Otherwise, the consumer shall be free to exercise the other rights of choice.

(5) In cases where the consumer chooses to exercise the right to renege on the contract or request a discount from the price in proportion to the defect, the complete amount paid or the amount of the discount made from the price shall be refunded to the consumer immediately.

(6) All expenses arising from the exercise of the rights of choice shall be borne by the party fulfilling the right the consumer chose. The consumer may also demand compensation with one of these rights of choice, in line with the provisions of Turkish Code of Obligations No. 6098 dated 11 January 2011.

Limitation period

ARTICLE 12- (1) Unless a longer period has been stipulated in the laws or the contract between the parties, the responsibility for the defective good shall be subject to a limitation period of two years as of the date of delivery of the goods to the consumer, even if the defect becomes apparent afterwards. This period shall be five years as of the date of delivery of the property, for immovable property intended for housing or for vacation.

(2) Provided that the third paragraph of Article 10 of this Law is reserved, the responsibility of the seller for defective good shall not be less than one year in the sales of second hand goods, and less than three years for immovable property intended for housing or for vacation.

(3) If the defect has been hidden through gross negligence or deceit, the provisions of limitation period shall not be applied.

 

PART TWO

Defective Services

Defective service

ARTICLE 13- (1) Defective service is the service that is contrary to the contract since it does not start in the period set forth in the contract, or which lacks the characteristics that have been agreed on by the parties and which it should objectively contain.

(2) The services which do not have one or several of the characteristics included on the portal or in advertisements and announcements or contains material, legal or economic deficiencies  which reduce or remove the value, for purposes of benefiting from it, or the benefits expected reasonably from it by the consumer are defective services.

Responsibility for defective service

ARTICLE 14- (1) The supplier shall be liable to perform the service in conformity with the contract.

(2) The supplier shall not be bound by the contents of an announcement, if he/she proves that he/she was not and could not have been expected to be aware of the announcements made by means of advertisements or that the content of the relevant announcement had been corrected at the time the of the conclusion of the service contract or that the decision to conclude the service contract does not demonstrate causality with the announcement in question.

Consumer’s rights of choice

ARTICLE 15- (1) In cases where the service was performed defectively, the consumer shall be free to use one of the following rights against the supplier; the re-performance of the service, the free repair of the work resulting from the service performed, discount from the price in proportion to the defect or reneging on the contract. The supplier shall be liable to realize the request preferred by the consumer. All expenses arising from the exercise of rights of choice shall be borne by the supplier. The consumer may also request compensation together with one of these rights of choice, in line with the provisions of the Turkish Code of Obligations.

(2) In the event that free repair or re-performance of the service brings along disproportional difficulties to the supplier, the consumer shall not exercise these rights. In determining the disproportion, matters such as the value of the non-defective service, the importance of the defect and whether it would create a problem for the consumer to exercise the other rights of choice shall be taken into account.

(3) In cases where the consumer chooses to exercise the right to renege on the contract or request a discount from the price in proportion to the defect, the complete amount paid or the amount of the discount made from the price shall be refunded to the consumer immediately.

(4) In cases where free repair or the re-performance of the service rights is chosen, this request shall be fulfilled by the supplier within a reasonable amount of time and in a manner that will not cause significant problems for the consumer, taking into account the characteristics of the service and the consumer’s usage purposes of such service. This period shall under no circumstances exceed thirty business days, as of the submission of the claim to the supplier. Otherwise, the consumer shall be free to exercise the other rights of choice.

Limitation period

ARTICLE 16- (1) Unless a longer period has been stipulated in the laws or the contract between the parties, the responsibility for the defective service shall be subject to a limitation period of two years as of the time of performance of the service, even if the defect becomes apparent afterwards.

 (2) If the defect has been hidden through gross negligence or deceit, the provisions of limitation period shall not be applied.

 

CHAPTER FOUR

Consumer Contracts

PART ONE

Instalment Sales

Instalment Sale Contracts

ARTICLE 17- (1) An instalment sale contract is a contract where the seller or the supplier assumes the delivery of the good or performance of the service and the consumer pays the price in instalments.

(2) Provisions of this part shall also apply to financial leasing contracts where the consumer is obliged to obtain the ownership of a good at the end of the lease period.

(3) An instalment sale contract shall not be valid unless it is drawn up in writing. The seller or supplier that does not make a valid contract shall not claim the invalidity of the contract afterwards, in a manner that is to the detriment of the consumer.

Right of withdrawal

ARTICLE 18- (1) The consumer shall be entitled to withdraw from the instalment sale contract without giving any reason and without paying any penal obligation within seven days.

(2) It is sufficient for the notification regarding the use of the right of withdrawal to be submitted to the seller or supplier in such period of time. The seller or supplier shall be liable to prove that the consumer has been informed of the right of withdrawal.

(3) If the seller has delivered the good to the consumer within the withdrawal period, the consumer may only use the good to the extent required for an ordinary revision; otherwise, the consumer shall not exercise the right of withdrawal. In addition, in service contracts where the performance of the service has commenced upon the approval of the consumer, the consumer shall not exercise the right of withdrawal prior to the expiration of the period granted for the right of withdrawal.

(4) In financial leasing transactions where the consumer reaches the seller, the right of withdrawal shall not be exercised.

Default

ARTICLE 19- (1) In the event that the consumer falls into default in paying the instalments in the instalment sale contracts, and if the seller or the supplier have reserved their right to claim the payment of all the remaining debt; this right may only be exercised where the seller or the supplier has performed all the actions, and the consumer is in default for paying at least two consecutive instalments that constitute at least one tenth of the remaining debt or, an instalment constituting at least one fourth of the remaining debt. In order for the seller or the supplier to exercise this right, they shall be obliged to give at least thirty days to the consumer and to give a warning of maturity.

(2) In the calculation of the matured instalments, interest, commission and similar costs shall not be taken into account.

Early Payment

ARTICLE 20- (1) The consumer may prepay the total amount of debt owed, or pay one or more undue instalments. In both cases, the seller or the supplier shall be liable to give the entire discount in the interest and commission necessary in accordance with the amount paid in cases where interest or commission is received.

Other Issues

ARTICLE 21- (1) Provisions of the Turkish Code of Obligations on prepaid instalment sales shall apply for contracts where the consumer undertakes to pay the price of a movable good in parts beforehand, and the seller undertakes to deliver the sold good to the consumer after the full payment of the price and where the payment period is longer than one year or is indefinite.

(2) The compulsory content of the contract, the rights and obligations of the consumer as well as of the seller and the supplier, the right of withdrawal, the early payment and the procedures and principles related to other issues shall be set forth by regulation.

 

PART TWO

Consumer Credits

Consumer credit contracts

ARTICLE 22- (1) A consumer credit contract means the contract, whereby a creditor grants or undertakes to grant credit to the consumer in return for interest or a similar benefit, as a loan or other similar financing.

(2) Credit card contracts shall be deemed as consumer credit contracts in the event that they offer postponement of payment for three months or longer, or similarly offer payment in instalments, in return for interest or a similar benefit. However, the interest rate that will be applied in such case shall not be more than the amount determined by the credit card contract.

(3) Consumer credit contracts shall not be deemed valid unless drawn up in writing. The creditor that does not make a valid contract shall not claim the invalidity of the contract afterwards in a manner that is to the detriment of the consumer.

Pre-contractual information liability

ARTICLE 23- (1) The creditor, and if any, the credit intermediary shall be obliged to submit the pre-contractual information form that contains the conditions of the credit contract they are offering to the consumer, at a reasonable time prior to the conclusion of the contract.

Right of withdrawal

ARTICLE 24- (1) The consumer shall have the right to withdraw from the consumer credit contract within fourteen days, without showing any reason and without paying any penal obligation.

(2) The creditor shall be liable to prove that the consumer has been informed that he/she has a right of withdrawal. The notification that the right of withdrawal has been used to the creditor within the withdrawal period shall be sufficient.

(3) In cases where the consumer who uses the right to withdrawal benefits from the credit, the consumer shall pay back to the creditor the capital and the interest accrued thereon from the date the credit was drawn until the date the capital was repaid, within 30 days at the latest after the he submitted the notification of the withdrawal to the creditor. If payment is not made within such period, it shall be deemed that the consumer has not withdrawn from the consumer credit. The interest shall be calculated on the basis of the contractual interest rate. The consumer shall not be requested to pay any other price, except for the calculated contractual interest and the charges paid to any public institution or organization, or any third person.

Interest Rate

ARTICLE 25- (1) The interest rate in fixed term consumer credit contracts shall be determined as fixed. This rate that has been determined at the date of conclusion of the contract shall not be changed to the detriment of the consumer.

 (2) If contractual interest, effective annual interest or the total cost of the credit is not included in consumer credit contracts, the credit amount shall be used without interest until the end of the term of the credit agreement. If the effective interest rate was displayed lower than it actually is, the contractual interest rate that will be taken as basis in the calculation of the total cost of credit shall be determined again in compliance with the effective interest rate displayed lower. In such cases, the payment schedule shall be rearranged according to the changes made.

Amendment to the contract

ARTICLE 26- (1) The terms of a fixed term credit contract shall not be changed to the detriment of the consumer.

(2) In the event that the interest rate changes are made in indefinite-termed contracts, it shall be mandatory to notify the consumer of such amendment in writing on paper or on another durable data storage device, thirty days prior to the entry into force of such amendment. This notification shall include details related to the changes in the amount, the number and frequency of the payments that will be made after the new interest rate comes into effect. If the interest rate is increased, the new interest rate shall not be implemented retroactively. In the event that the consumer pays the entire debt and stops using the credit within maximum sixty days as of the notification date, the consumer shall not be affected from the increased interest rate.

Early payment

ARTICLE 27- (1) The consumer shall be entitled to pay one or more undue instalments, as well as to pay the entire credit debt early. In such cases, the creditor shall be liable to make reduction in the total interest and other cost elements necessary according to the amount of early repayment.

Default

ARTICLE 28- (1) In the event that the consumer falls into default in paying the instalments in a fixed term credit contract and if the creditor has reserved the right to claim the payment of all the debt, this right may only be exercised where the creditor has performed all the actions, and the consumer is in default for paying at least two consecutive instalments. In order for the creditor to exercise this right, the creditor shall be obliged to allow a period of at least thirty days to the consumer and to give a warning of maturity.

(2) Interest, commission and similar costs shall not be taken into account in the calculation of the matured instalments.

Having insurance issued

ARTICLE 29- (1) Insurance regarding a credit shall not be issued without explicit request of the consumer either in writing or through a durable data storage device. If the consumer wants to have insurance issued, the creditor shall be obliged to accept the guarantee provided by the insurance company that the consumer preferred. This insurance should comply with the subject matter of the credit, the debt amount remaining in the fixed sum insurance and its term.

Tied Credits

ARTICLE 30- (1) A tied credit contract is a credit contract granted exclusively for the financing of a contract related to the supply of a good or service and in which these two contracts objectively constitute economic unity.

 (2) An economic unity shall be deemed to exist where at least one of the following exists;

a) the seller or supplier  finances the credit for the consumer,

b) if it is financed by a third party, the creditor uses the services of the seller or supplier in connection with the conclusion or drafting of the credit contract,

c) the provision of specific goods or a specific service is explicitly specified in the credit contract.

(3) Where the consumer has withdrawn from a contract for the supply of goods or services and has notified the creditor within the withdrawal period, the tied credit contract shall also be terminated without liability to pay any compensation or penal obligation.

(4) Where the goods or services covered by a tied credit are not supplied at all or as required the seller, supplier and creditor shall be liable severally if the consumer reneges on the contract or exercises the right to discount from the price. In the event that the consumer exercises the right of discount from the price, the tied credit shall also be decreased in this rate and the payment schedule shall be changed accordingly. In the event that the consumer exercises the right of renege on the contract, the seller, supplier and creditor shall be severally liable for reimbursing the consumer for the payments made until then. However, the responsibility of the creditor shall be one year, limited to the amount of the credit used; in cases where the good is not supplied or service is not performed, as of the date of supply of the good and performance of the service stipulated in the sales contract or in the tied credit contract and, in cases where the good is delivered and the service is performed, as of the date of supply of the good or performance of the service.

(5) Credits made available through the creditor paying the price of the good or service determined by the consumer himself/herself, without a contract related to the supply of a certain good or service between the creditor and the seller or the supplier, shall not be deemed as tied credits.

Other issues

ARTICLE 31- (1) If an account has been opened for a fixed term credit contract and transactions related only to the credit are carried out through this account, any fees or expenses shall not be claimed from the consumer related to such account, under any name. This account shall be closed upon the payment of the credit, unless otherwise requested by the consumer in writing.

(2) A credit deposit account contract related to the fixed term credit contract shall not be made, without clear instruction of the consumer.

(3) Card issuing agencies shall be obliged to offer a type of credit card to the consumers where they do not collect fees under the name of annual membership fee or similar fees.

(4) The procedures and principles related to the pre-contract notification liability, the compulsory content of the contract, out of scope contracts, the rights and obligations of the consumer and the creditor, the right of withdrawal, early payment, calculation of effective annual interest, the compulsory content of advertisements related to consumer credits, use of right to terminate, default, transfer of credit, tied credit and other matters shall be determined by regulations.

 

PART THREE

Housing Finance

Housing Finance Agreements

ARTICLE 32- (1) A housing finance agreement is an agreement intended for providing loan facilities to consumers for acquiring a house, leasing of houses to the consumers through financial leasing, extension of loans to consumers secured by the houses that the consumer owns and extension of loans  for refinancing these loans.

(2) A housing finance agreement shall not be valid unless made in writing. Housing finance agencies that have not prepared a valid agreement shall not argue the invalidity of the agreement afterwards, to the detriment of the consumer.

Pre-Contract notification liability

ARTICLE 33- (1) Housing finance agencies shall be obliged to provide the pre-contractual information form to the consumer containing the conditions of the housing finance agreement, a reasonable period prior to the drawing up of the agreement.

Default

ARTICLE 34- (1) In the event that the consumer falls into default in the payment of the instalments, if the housing finance agency has reserved the right to claim the payment of all the remaining debt; this right may only be used in the event that the housing finance agency has performed all its actions, and the consumer is in default for paying at least two consecutive instalments. For the mortgage finance agency to use this right, it should give a period of at least thirty days and give a warning of maturity.

 (2) In the calculation of the due instalments, interest, commission and similar costs shall not be taken into account.

(3) In the event that the consumer does not perform his/her actions within the given time within the scope of the warning of maturity in financial leasing transactions, if the housing finance agency cancels the financial leasing contract in order to receive the remaining credit amount following the expiry of this period, the housing finance agency shall be liable for putting such house up for sale immediately. Before the sale, the housing finance agency shall assign appraisers or appraisal institutions which are authorized by the Capital Market Law No. 6362 dated 6 December 2012, for the house. The appraised value shall be notified to the consumer at least ten business days before the sale. The housing finance agency shall sell the house acting as a prudent merchant, taking into account the appraised value of the house. If the amount obtained through the sale of the house exceeds the remaining debt, the amount exceeding the debt shall be paid to the consumer immediately. Article 33 of the Law No. 6361 dated 21 November 2012 on Financial Leasing, Factoring and Financing Companies shall not be applied to the financial leasing transactions regarding the housing finance.

(4) Following the sale of the house under the scope of the third paragraph of this Article and, if any, the payment of the portion of the obtained price exceeding the remaining debt to the consumer, the consumer, or in the event that the possession has been transferred, third parties holding the right of possession shall be obliged to vacant the house. In the event that the house is not evicted, the owner of the house shall have the right to exercise execution against the consumer or third parties holding the right of possession, in accordance with Articles 26 and 27 of the Execution and Bankruptcy Law No. 2004 dated 9 June 1932.

Tied credits

ARTICLE 35- (1) A tied credit contract is a contract in which housing finance credit is granted exclusively for financing a contract for the purchase of a specific house and these two contracts form, from an objective point of view, an economic unity.

 (2) In tied credits, the seller, and the housing finance institution shall be jointly liable, if the house is not delivered at all or in time, thus, leading the consumer to exercise one of the rights of choice set forth in Article 11 of this Law. However, the liability of the housing finance institution shall be one year, limited to the amount of the credit used, as of the date of delivery of the house set forth in the housing sale contract or in the tied credit contract in the event that the house is not delivered, and as of the date of delivery in the event that the house is delivered.

(3) Even in the event that credits granted by housing finance institutions are transferred to mortgage finance, housing finance funds or mortgage covered security cover pools, the housing finance institution that grants credits shall keep the responsibility. Transferee shall not be held responsible under this article.

(4) Credits made available through the payment of the price of a house determined by the consumer himself/herself by a credit issuing housing finance institution, without a contract related to the provision of a certain house between the housing financing institution and the seller, shall not be deemed tied credits.

Interest rate

ARTICLE 36- (1) The repayment amounts for loans, the portions of the lease payments for leasing agreements that exceed the capital shall be accepted as interest payment.

(2) The interest rates issued for housing finance credits and for financial leasing transactions may be determined as fixed or variable or by considering both methods for the same credit; provided it is mentioned in the contract. If the interest rate is determined as fixed, the rate determined during the drawing up of the contract shall not be changed without the consent of the parties. In cases where the interest rate is decided to be variable, the rate determined initially by the contract may be changed on the basis of the lowest index among those which have been generally accepted and widely used in national or international level, provided that the maximum amount of periodic repayment amount stated initially in the contract will not be exceeded by the periodic repayment amount. If the rates are determined as variable, it shall be obligatory to notify the consumers of the possible effects of this method. Reference interests and indexes that might be used for such purposes shall be determined by the Central Bank of the Republic of Turkey.

Early Payment

ARTICLE 37- (1) The consumer may pay one or more undue instalments, as well as prepay the total sum of the housing finance debt. In such cases, the housing finance institution shall be obliged to make the necessary reductions in all the interests and other cost elements, according to the early paid amount.

(2) In cases where the interest rate is determined to be fixed, on condition that it is stated in the contract, the housing finance institution may demand early payment compensation from the consumer, in the event that one or more payments are made before their due dates. The early payment compensation shall not exceed one percent in loans in which the remaining maturity of the amount calculated by making the necessary interest deductions and paid early to the housing financing institution by the consumer does not exceed thirty-six months; and two percent in loans, in which the remaining maturity of the amount exceeds thirty-six months. In cases where the rates are determined as variable, early payment compensation shall not be demanded from the consumer.

Having insurance issued

ARTICLE 38- (1) Insurance regarding a loan shall not be made without the explicit request of the consumer either in writing or through a durable data storage vehicle. If the consumer wants to have an insurance issued, the guarantee obtained from the insurance company the consumer chooses should be accepted by the housing finance institution. This insurance should comply with the subject matter of the credit, the debt amount remaining in the fixed sum insurance and its term.

Other Issues

ARTICLE 39- If an account has been opened for a housing finance contract, and transactions related only to the credit are carried out in this account, no fees or expenses shall be claimed from the consumer related to such account under any name. This account shall be closed upon the payment of the credit, unless otherwise requested from the consumer in writing.

(2) A credit deposit account contract related to a housing finance contract shall not be made without the explicit instructions of the consumer.

(3) Real person shareholders of housing cooperatives shall also be deemed as consumers in the implementation of the provisions of this part.

(4) Procedures and principles related to the scope of the pre-contract notification, the rights and obligations of the consumer and the housing finance institution, the compulsory content of the contract, the housing finance advertisements, the refinancing, the tied credit, the default, the early payment and the calculation of the annual cost rate and other matters shall be determined by regulations.

 

PART FOUR

Pre-paid House Sale

Pre-paid House Sale Contracts

ARTICLE 40- (1) A prepaid house sale contract is a contract where the consumer undertakes to prepay the cost of an immovable for housing purposes, in cash or in instalments, and where the seller undertakes to transfer or deliver the immovable to the consumer following the full or partial payment of such cost.

(2) It shall be obligatory to give a preliminary information form containing the matters determined by the Ministry, to the consumers at least one day prior to the establishment of the contract.

(3) A prepaid house sale contract shall not be made with consumers before a construction permit is obtained.

Requirement as to Form

ARTICLE 41- (1) It shall be obligatory to register a prepaid house sale with the land registry, and to prepare the preliminary sales contract at a notary public. Otherwise, the seller shall not argue the invalidity of the contract to the detriment of the consumer afterwards.

(2) Unless a valid contract has been drawn up, the seller shall not request the consumer to make payments under any name or ask the consumer to give a document that will burden the consumer with debt.

Guarantee

ARTICLE 42- (1) Prior to commencing the sale of prepaid house for projects over the size that will be determined by the Ministry based on the number of houses in the project or in accordance with the criteria of total price of the project, the seller shall be obliged to obtain the building completion insurance, the scope, conditions and implementation principles of which are determined by the Undersecretariat of the Treasury or to provide the other guarantees and conditions set forth by the Ministry.

 (2) Compensation, guarantee and similar securities provided within the scope of the building completion insurance shall not be included in the desk of bankruptcy or liquidation, they shall not be attached, and an interim injunction or a provisional attachment shall not be imposed on such.

Right of withdrawal

ARTICLE 43- (1) The consumer shall have the right of withdrawal from a prepaid house sale contract, within fourteen days, without stating a reason or having to pay penal obligation. Sending the notification related to the use of the right of withdrawal to the seller within this period is sufficient. The seller shall be liable to prove that the consumer has been informed of the right of withdrawal.

(2) If the immovable is purchased partially or completely by a tied credit, the tied credit contract shall enter into force at the end of the withdrawal period stipulated in this article, in order to be effective on the establishment date of the contract. The housing finance institution shall not claim any expenses from the consumer during the withdrawal period under the name of interest, commission, legal obligation and alike.

(3) The consumer shall return all its deeds within ten days, as of the date the seller returns the amount received and all kinds of documents indebting the consumer.

Delivery of the house

ARTICLE 44- (1) In a prepaid house sale, the transfer or delivery date shall not exceed thirty six months as of the contract date. Handover shall also be deemed as made, in the transfer of possession with the registry of the construction servitude in the land registry under the consumer’s name.

Reneging on the contract

ARTICLE 45- (1) (Amended on 2 January 2017 by Article 8 of the Decree Law No.648) In a prepaid house sale, the consumer shall have the right to renege on the contract without stating any reason, up to twenty-four months as the contract date. In the event of reneging on the contract, the seller may request the payment of the expenses arising from the tax, duty and similar legal obligations related to the sale of the house or the preliminary sales contract and of the contract price and a compensation, of up to two percent of the contract price for a the first three months, up to four percent for a period of three to six months, up to six percent for a period of six to twelve months and up to eight percent for a period of twelve to twenty-four months .

(2) The seller shall not claim any price from the consumer, if the seller does not fulfil its obligations at all or as required. In the event that the contract is reneged on since the consumer dies or becomes unable to make the prepayments due to a constant inability of earning an income, or the seller refuses to accept the replacement of the contract with an instalment sale agreement that will be drafted under usual circumstances; no fees shall be requested from the consumer.

(3) In the event of reneging of the contract, the amount that must be reimbursed to the consumer and all kinds of documents indebting the consumer shall be returned to the consumer within one hundred and eighty days at the latest, as of the date of delivery of the reneging notice to the seller. The seller shall return its deeds within ten days as of the date of reimbursement of the received amount and the return of all kinds of documents indebting the consumer. (1)

Other issues

ARTICLE 46- (1) Procedures and principles related to the pre-contractual notification, the compulsory contents of the contract, the rights and obligations of the consumer and the seller, the right of withdrawal and the reneging of the contract and other implementations shall be determined by regulations.

 

PART FIVE

Other Consumer Contracts

Off-Premises Contract

ARTICLE 47- (1) The contracts concluded between the seller or supplier and the consumer;

a) During the simultaneous physical presence of the parties, outside the business premises, regardless of whether the consumer or the seller or supplier made the proposal,

b) At the business premises of the seller or supplier or through a means of telecommunication, immediately meeting with the consumer outside the business premises in the simultaneous physical presence of the parties,

c) During a visit organized by the seller or supplier for promoting or selling the good or services to the consumer,  

shall be deemed as off-premises contracts.

(2) Off-premises contracts shall be concluded by the seller or supplier that has been authorized by the Ministry.

(3) It shall be obligatory to notify the consumer, in a clear and comprehensible manner, of the matters, the details of which are determined by the regulation, before the consumer is bound by an off-premises contract or by a suggestion corresponding to such. The seller or supplier shall be liable for proving that the consumer has been notified.

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(1) By Article 8 of the Decree Law No. 684 dated 2 January 2017, the clause of "ninety days" in this paragraph was amended as "one hundred and eighty days".

(4) Off-premises contracts shall not be valid unless they are drawn up in writing. The seller or supplier that does not establish a valid contract shall not argue the invalidity of the contract later, to the detriment of the consumer. The seller or supplier shall be liable for ensuring that the consumer will write down the date of the contract in his/her own handwriting and sign the contract and then, for giving a copy of the contract to the consumer and providing the good or service to the consumer. The seller or supplier shall be responsible for proving that the contract has been delivered to the consumer and that good or service has been presented.

(5) The consumer shall have the right to withdraw from the contract without giving any reasons and without paying any penal obligation, within fourteen days. It shall be sufficient to send the notification declaring that the right of withdrawal has been used to the seller or supplier within this period. Within the withdrawal period, the seller or supplier shall not ask the consumer to make a payment under any name or submit a document that will indebt the consumer, in return for the good or service that is the subject matter of the contract. The seller or supplier shall be liable for proving that the consumer has been notified regarding the use of right of withdrawal. The consumer shall not be liable for the changes and deterioration due to the ordinary use of the good during the withdrawal period.

(6) If the seller or supplier acts contrary to the obligations set forth in this article or does not notify the consumer of the right of withdrawal as required, the consumer shall not be bound for a period of fourteen days to exercise the right of withdrawal. In any case, this period shall end one year after the expiration of the withdrawal period.

(7) Procedures and principles related to the compulsory contents of the contract, the out of scope contracts, the direct sales, the rights and obligations of the consumer and the seller and supplier, the right of withdrawal, the obligation of notification, the delivery, the qualifications to be sought in those who will conduct sales and the other implementations shall be determined by regulations.

Distance contracts

ARTICLE 48- (1) Distance contracts are contracts concluded between the seller or supplier and the consumer, without the simultaneous physical presence of the parties, within the framework of a system established for the distant marketing of goods or services until the moment of the conclusion of the contract and including the moment of its conclusion, through the use of a means of telecommunication.

(2) The consumer shall be notified in a clear and eligible manner by the seller or the supplier, prior to accepting the distance contract or any offer corresponding to such on the matters for which details are determined by the regulation and that the consumer will be bound by a payment liability should his/her order be approved. The seller or the supplier shall be liable for proving that the consumer has been notified.

(3) The seller or the supplier shall perform his/her deeds within the promised period, as of the moment the consumer’s order is received. In any case, this period shall not exceed thirty days in the sale of goods. The consumer may cancel the contract if the seller or supplier does not perform his/her deeds within such period.

(4) The consumer shall have the right of withdrawal from the distance contracts within fourteen days without giving any reasons and paying any penal obligation. It shall be sufficient to send the notification declaring the right of withdrawal has been used to the seller or supplier within this period. The seller or supplier shall be liable for proving that the consumer has been notified of the right of withdrawal. If the consumer is not adequately informed of the right of withdrawal, the consumer shall not be bound for a fourteen-day period for the use of such right. In any case, this period shall end a year after the expiry date of the right of withdrawal. The consumer shall not be responsible for the changes and deterioration due to the ordinary use of the good during the period of the right of withdrawal.

(5) Intermediaries acting in the conclusion of distance contracts on behalf of the seller or supplier via distance communication means within the framework of a system they have formed, shall be liable for keeping the records of the transactions with the seller or supplier for the matters in this article and for submitting such to the relevant institution, organization and consumers, if requested. However, those mediating under the scope of this paragraph shall be responsible for the acts contrary to the contract they have made with the seller or supplier.

(6) Procedures and principles related to out of scope contracts, the rights and obligations of the consumer and of the seller and supplier, the right of withdrawal, the obligation of notification, delivery and other implementations shall be determined by regulations in distance contracts.

Distance contracts concerning financial services

ARTICLE 49- (1) Financial services shall mean all kinds of banking services, services concerning credits, insurance, private pension, investment and payment. Distance contracts related to financial services are contracts concluded between the supplier and the consumer within the framework of a system established for distant marketing of financial services, by using distance communication means.

(2) In distance contracts concerning financial services, it shall be mandatory that the consumer be notified accordingly of the right of withdrawal, that the consumer will undertake responsibility once the consumer grants an approval declaration and of other matters, the details of which will be determined by the Ministry, in a clear and eligible manner, in accordance with the used communication tools, prior to the consumer expressing his/her will on the establishment of the contract. It must be comprehensible that such notification is made for commercial purposes, and in cases where audio communication tools are used, the identity of the supplier and the reason for the call request shall be clarified at the beginning of each call. The consumer’s approval declaration for the establishment of a contract shall be recorded or determined on a physical or electronic medium, in accordance with the communication tools used. The supplier shall be liable for taking all the precautions for the notification of the right of withdrawal and for the determination or recordings that will be made on a physical or electronic medium.

(3) The supplier shall be obliged to deliver all the terms of the contract and other matters determined by the Ministry, to the consumer on paper or on a durable data storage device. This liability shall be performed prior to the consumer expressing the will that establishes the contract or upon the request of the consumer, immediately after the establishment of the contract in the event a contract has been concluded through the use of a distance communication means not suitable for a written notification.

(4) The consumer may request a written copy of the contract printed on paper in the period in which the contract relationship continues, without making any payments. Moreover, if it complies with the nature of the financial service, the consumer shall have the right to change the distance communication means used.

(5). The consumer shall be entitled to withdraw from distance contracts concerning financial services within fourteen days, without having to state any reason or incurring any penal obligation. It shall be sufficient to submit the notification regarding the use of the right of withdrawal to the supplier within such time. The supplier shall be liable to prove that the consumer has been notified of the right of withdrawal. In contracts related to insurance agreements and private pension, provisions that are to the benefit of the consumer in the other legislation shall be used regarding the withdrawal period.

(6) It shall be sufficient for the consumer to communicate the request for terminating the contract, in distance contracts concerning financial services via a distance communication means. To terminate a contract, the consumer shall not be forced to use a method that contains heavier conditions than the method used in establishing the contract.

(7) Procedures and principles related to the use of distance communication means, out of scope contracts, payment by card, the right and obligations of the consumer and the supplier, the right of withdrawal and other implementations shall be determined by regulations in distance contracts concerning financial services.

Timeshare vacation and long-term holiday service contracts

ARTICLE 50- (1) Time share vacation contracts are agreements that are established for a period of more than one year and which allow the consumer to have one or more overnight accommodation throughout this time for more than one period.

(2) The fact that the right provided by timeshare vacation contracts is a personal and real right shall not prevent the implementation of this article. A prepaid time share vacation contract shall not be made with consumers before a construction permit is obtained for the land on which the immovable, which is the subject of the time share vacation, will be built.

(3) A long-term holiday service contract is a contract that is established for a period longer than one year, and which allows the consumer to benefit from discounts or other interests related to accommodation, as well as travel and other services along with accommodation.

(4) It shall be obligatory to give the consumers the prior notification form covering matters determined by the Ministry, at least one day before drawing up the following contracts:

a) Time share vacations

b) Long-term holiday service contracts

c) Exchange contracts

ç) Resale agreements where the seller or supplier helps the consumer with buying and selling of a timeshare or long-term holiday service

(5) The seller or supplier shall be liable for having the consumer write down the date of the contract in his/her own handwriting and sign the contract, except for contracts drawn up via the distance sale method. It shall be obligatory to give the consumer a written copy of these contracts established as written or distance contracts, on paper or on a durable data storage device, Law provisions stipulating heavier requirements as to form shall be reserved.

(6) The consumer shall have the right to exercise the right of withdrawal from the contract within fourteen days, without giving any reasons and paying any penal obligation. The seller or supplier shall not request the consumer to make any payments or submit any documents indebting the consumer before the expiry of the withdrawal period, except in contracts granting the timeshare right. Timeshare vacation, long-term holiday services contracts, and resale, exchange agreements and all other relevant contracts that have been drawn up with these contracts shall automatically expire upon the exercise of the right of withdrawal.

(7) If the price to be paid by the consumer is borne completely or partially by a creditor, based on a contract between the seller or supplier and the creditor, in the event the right of withdrawal is exercised and the notification regarding such is also forwarded to the creditor within the withdrawal period, the tied credit contract shall also be automatically terminated without the liability of any compensation or penal obligation.

(8) The seller or supplier shall be obliged to obtain the building completion insurance, the scope, conditions and implementation principles of which are determined by the Undersecretariat of the Treasury or to provide the other guarantees and conditions set forth by the Ministry, prior to commencing the sale of immovable, which is the subject of  the prepaid time share vacation, for projects exceeding the size that will be determined by the Ministry based on the number of time shares in the project or in accordance with the criteria of total cost of the project. Compensation, guarantee and similar securities provided within the scope of the building completion insurance shall not be included in the administration of bankruptcy or liquidation, they shall not be attached, and an interim injunction or a provisional attachment shall not be imposed on such.

(9)In a prepaid sale of the immovable that is the subject matter of the timeshare vacation, the consumer shall have the right to renege on the contract without stating any reason until the transfer or delivery date. In the event of reneging on the contract, the seller may request the payment of a compensation of up to two percent (2%) of the contract price. The seller shall not claim anything from the consumer, if the seller does not fulfil its obligations at all or as required. In the event of reneging on the contract, the amount that must be reimbursed to the consumer and all kinds of documents indebting the consumer shall be returned to the consumer in ninety days at the latest, as of the delivery of the reneging notice to the seller. The seller shall return all the deeds within ten days as of the date of reimbursement of the amount received and all kinds of documents indebting the consumer.

(10) The transfer and delivery period in the pre-paid sale of the immovable that has purposes of timeshare vacation shall not exceed thirty-six months as of the contract date.

(11) Procedures and principles related to timeshare vacations, long-term holiday services, resale, exchange agreements and contents of prior notification, the rights and obligations of the consumer and the seller and supplier, the right of withdrawal, prepaid sales, and other implementations shall be determined by a regulation.

Package tour contracts

ARTICLE 51- (1) Package tour contracts are a combination of at least two of the following, in which all is sold or offered for sale at an inclusive price by package tour organizers or intermediaries, and the service covers a period longer than twenty-four hours or includes an overnight accommodation:

a) Transport

b) Accommodation

c) Other touristic services not ancillary to transport or accommodation services.

(2) The provisions of this article shall also apply where the package tour organizers, intermediaries or the consumer determines the details of the package tour or if the services in the same package tour are invoiced separately.

(3) In the event the package tour organizer does not have a representative in Turkey, the package tour intermediaries shall be held responsible as the package tour organizer.

(4) Prior to the drawing up of the package tour contract, it shall be obligatory to give the consumer a prior notification brochure.

(5) Package tour organizers or their intermediaries shall be obliged to give the consumer a copy of the package tour contracts established in writing or via distance, on paper or on a durable data storage device.

(6)The consumer shall have the right to renege on the agreement as well as accepting a change or an alternative offered by package tour organizer if one of the essential components of the package tour changes or the tour is cancelled prior to its start, due to reasons not originating from the consumer. In case of reneging on the contract, package tour organizers or their intermediaries shall be obliged to reimburse the whole price paid by the consumer immediately without any cuts, as of the date they receive such reneging notification.

(7)  The consumer shall have the right to request a discount in the price for all kinds of deficiencies emerging during the enforcement of the contract. The consumer may renege on the contract if it is determined that the package tour organizer does not or will not fulfil a significant liability, after the start of the tour. In such cases, the right of the package tour organizer or its intermediary to request a price shall be terminated. It shall be obligatory to reimburse the payments received to the consumer immediately as of the date on which the contract is reneged on. However, the package tour organizer may request a suitable amount from the consumer to the extent of the consumer’s use of the service until then, for the performances of the package tour organizer.

(8) Provided that the relevant articles concerning compulsory insurance as per the Law No. 1618 concerning Travel Agencies and the Association of Travel Agencies dated 14 September 1972, the package tour organizer shall be responsible for all the damages incurred by the consumer since the contract has not been performed at all or as required. The consumer may also request a suitable compensation for wasted vacation time.

(9) Persons benefiting from package tour services within the framework of their commercial or professional activities shall also be deemed as consumers.  

(10) Procedures and principles related to prior notification, the content of the contract, the transfer of package tours, terms for amending the contract and the rights of the consumer in such cases, the consequences of the cancellation of package tours, the responsibilities of the package tour organizer and its intermediary, the conditions under which the consumer may claim reimbursement, reneging on the contract and its consequences and other implementations shall be determined by regulations.

Subscription agreements

ARTICLE 52- (1) Subscription agreements are agreements that enable the consumer to obtain a certain good or service continuously or at regular intervals.

(2) It shall be mandatory to deliver to the consumer a copy of these contracts which have been drawn up in writing or via distance, on paper or on a durable data storage device.

(3) Provisions related to time extension for the determined period shall not be included in subscription contracts of definite duration; however, the contract may be extended if the consumer requests or approves it until the expiry date of the contract.

(4)  The consumer shall have the right to cancel the subscription contracts of indefinite duration or contracts that are longer than one year, without presenting any reason and without paying any penal obligation. In subscription contracts of definite duration, with a period of less than one year, the consumer may also cancel the contract if the supplier or seller makes amendments to the contract terms. It shall be sufficient to deliver the cancellation notification to the seller or supplier either on paper or on a durable data storage device. The seller or supplier shall not determine a method containing heavier conditions than the methods enabling the establishment of the contract for the cancellation of the subscription contract.

(5) The seller or supplier shall be liable for fulfilling the consumer's request to terminate the subscription within the periods determined by regulation. In the event the subscription is not terminated within the determined periods, the consumer shall not be asked to make any payment, even if the good or service has been used following the termination of these periods. The seller or supplier shall be liable for reimbursing the remainder of the price paid by the consumer, without any deductions, within fifteen days as of the inurement of the termination notification.

(6) The seller or supplier shall be liable for taking all the necessary measures to perform the transactions related to the notifications and requests concerning the termination of the subscription contract, and to set up a system when necessary and to keep this system on uninterruptedly.

(7) Procedures and principles related to the compulsory content of the contract, the rights and obligations of the consumer and the seller and the supplier and other implementations shall be determined by regulations.

Promotions arranged by periodical publishing organizations

ARTICLE 53- (1) Goods or services other than the cultural goods or services suitable for the purposes of periodical publishing determined by a regulation shall not be provided in the promotion implementations organized by a periodical publishing organization and where a secondary product or service is promised or given other than the periodical, through tickets, coupons, participation number, game, draws and alike for whatever purpose.

(2) The period of promotion implementations requiring the purchase of the periodical more than once and which extends to a certain period shall not exceed seventy-five days for daily periodicals, eighteen weeks for weekly periodicals and twelve months for periodicals spanning a longer time.

(3) The periodical publishing organization shall be obliged to declare its schedule for the delivery and performance of the goods or services subject to such implementation throughout Turkey in advertisements relating to promotion implementations and to deliver and provide the goods or services in a period of forty-five days, following the end of the promotion.

(4). The sale price of the periodical shall not be increased throughout the promotion, due to the cost increase incurred by the good or service promised to be delivered as a second product. The consumer shall not be asked to cover all or part of the good or service cost that is the subject matter of the promotion.

(5) The commitment and distribution of goods or services subject to promotion shall not be divided; the inseparable or complementary parts of this good or service shall neither become the subject matter of a separate campaign. In the enforcement of this Law, the transactions related to each good or service promised to be offered as a secondary product shall be accepted as an independent promotion.

(6) Promotions not organized by periodical publishing organizations, but which are directly or indirectly associated with the periodical shall also be subject to the provisions of this article.

(7) Procedures and principles related to promotions shall be determined by regulation.

 

CHAPTER FIVE

Notification of the consumer and security of benefits

Price tag

ARTICLE 54- (1) It shall be obligatory to place labels indicating the price including all taxes and the unit price that the consumer will pay, the place of production and the distinctive characteristics relating to the product, on the goods offered for retail or on the packages or containers thereof, in an easily visible and legible manner; and where no labelling is possible, and to display the lists showing the same information on appropriate places in a visible manner. The lists showing the tariffs and prices of services shall also be displayed by being prepared as laid down in this article’s provision.

(2) Where there is a difference between the price indicated on the label, price or tariffs list and the price at the cashier, the price that is in favour of the consumer shall be implemented.

(3) The discounted sale price of the good or service subject to discount, the price prior to the discount shall be displayed on tariff and price lists and on labels. The seller or supplier shall be responsible for proving that the good or service subject to discounted sale is offered to sale with a price lower than the price before the discount.

(4) The Ministry, municipalities and the relevant chambers shall be authorized for the implementation and monitoring of the provisions of this article.

(5) Procedures and principles related to labels, tariff and price lists, the term related to discounted sales and other implementations shall be determined by regulations.

Introductory guide and user manual

ARTICLE 55- (1) It shall be obligatory to offer the goods put into service of the consumer to sale, together with Turkish introductory guide and user manual relating to the introduction, usage, installation, maintenance and simple repair of such goods and if necessary, with a label including international symbols and signs.

(2) If the issues related to the safe use of the good are found on the good, it shall be obligatory to place the written and audible expressions in Turkish.

(3) In the event the goods may be harmful or hazardous to the person’s health or to the environment as per their relevant technical regulation, for the safe use of such good, the explanatory information and warnings related to this situation shall be included or written on the good or in the introductory guide and user manual in a visible and legible manner.

(4) The responsibility for the preparation of the Turkish introductory guide and user manual shall be borne by the manufacturer and the importer, and the responsibility to give and to prove that it has been delivered to the consumer shall be borne by the seller.

(5) The goods which are obligatorily sold with an introductory guide and a user manual and a label, and the minimum elements these should include and other implementations shall be determined by regulations.

Certificate of warranty

ARTICLE 56- (1) The manufacturer and importers shall be obliged to issue a warranty certificate for the products manufactured or imported for the consumers, in which the content is determined by the regulation. Consummating and giving this certificate to the consumer shall be under the seller’s responsibility.

(2) The warranty period shall be minimum two years as of the delivery date of the good. However, based on their characteristics, the warranty conditions for certain goods may be determined by the Ministry in another measurement unit.

(3) If the consumer has used the right to repair among his/her rights of choice stipulated in Article 11 of this Law, the consumer may exercise the other rights of choice included in Article 11 in cases where the good breaks down again within the warranty period or the maximum period for repair is exceeded or it is understood that the repair is not possible. The seller shall not reject the consumer’s request. In the non-fulfilment of this request, the seller, the manufacturer and the importer shall be severally responsible.

(4)  The goods which have to be sold with a warranty certificate and the other implementations shall be determined by regulations.

Voluntary warranty

ARTICLE 57- (1) The voluntary warranty shall mean the additional commitment given by the seller, the supplier, the manufacturer or the importer related to the good or service, on matters of change, repair, maintenance, reimbursement and similar issues, provided that the legal rights of the consumer are reserved,.

(2) Expenses shall not be claimed from the consumer, for the exercise of the rights promised, throughout the voluntary warranty commitment.

(3) The promisor shall also be bound by the expressions included in the relevant advertisement and announcements as well as its commitment. It shall be obligatory to include that the legal rights of the consumer are reserved, as well as the conditions for benefiting from the warranty, the duration, the name and contact information of the warrantor in this warranty.

(4) It shall be obligatory to give the voluntary warranty commitment to the consumer in writing or via a durable data storage device.

(5) The voluntary warranty commitment shall bind those making the commitment, even if they do not possess the qualities set forth in this article.

After-sales services

ARTICLE 58- (1) The manufacturers or the importers shall be obliged to provide after-sale maintenance and repair services throughout the lifetime determined by the Ministry for the goods they have manufactured or imported.

(2) The manufacturers or the importers shall be obliged to obtain an after-sale service competence certificate approved by the Ministry, for the goods determined by regulation.

(3) The repair period of a good at service stations shall not exceed the maximum period set forth in the regulation.

(4) The manufacturers or the importers may establish authorized service stations themselves or they may benefit from service stations or service organizations already established, provided that they are responsible for the services provided by such service stations.

(5) Service stations operating without reporting to any manufacturer or importer shall also be accountable to the consumer for the services they provide.

(6) In the event the commercial activity of the importer comes to an end in any way, the seller, the manufacturer or the new importer shall be severally responsible for providing the maintenance and repair services throughout the warranty period. After the expiration of the guarantee period, the manufacturer or the new importer shall be obliged to provide the maintenance and repair services throughout the lifetime.

(7) The establishment, operation, numbers, characteristics of service stations and the other procedures and principles shall be determined by regulations.

Raising the awareness of the consumer

ARTICLE 59- (1) The Ministry of National Education shall make the necessary additions to the curriculum of formal and informal educational institutions to raise the awareness of the consumer, by receiving the view of the Ministry.

(2)  It shall be obligatory for radios and televisions which broadcast across the country, to broadcast programs to raise the awareness of the consumer between 08.00 and 22.00, for a period of not less than fifteen minutes in a month. The list of date, time, duration and content information of the broadcasts shall be regularly delivered to the Supreme Board of Radio and Television each month. Broadcasts made outside these hours shall not be included in the fifteen-minute period per month. The Supreme Board of Radio and Television shall inspect these durations and the Ministry shall be notified of the results.

Consumer awards

ARTICLE 60- (1) Consumer awards are awards given out for the purposes of protecting and raising the awareness of the consumer as well as encouraging them to exercise their legal rights.

(2) It shall be essential that awards granted under the name of consumer awards or alike should be given out without obtaining any benefit and should be based on the previously announced objective criteria.

(3) Procedures and principles related to consumer awards shall be determined by regulations.

 

CHAPTER SIX

Commercial Advertisement and Unfair Commercial Practices

Commercial advertisement

ARTICLE 61- (1) Commercial advertisements are announcements that have the characteristics of marketing communications made through written, visual, audio and similar methods in any medium by the advertisers, in order to provide the sale or lease of a good or service, to inform or convince the target audience in connection with a trade, work, craft or profession.

(2) It shall be essential that commercial advertisements conform to the principles adopted by the Board of Advertisement, public morality, public order and personal rights and are accurate and honest.

(3) Commercial advertisements that deceive the consumer, or abuse the consumer’s lack of experience or knowledge, endanger the safety of life and property of the consumer, encourage the acts of violence or the commission of a crime, derange public health, abuse the sick, elderly, children or disabled people shall not be produced.

(4) Placing trade name or business names, through name, brand, logo or other distinctive symbols or expressions for the goods and services in articles, news, broadcasts or programs without clearly stating that it is an advertisement and presenting such in a promotional manner shall be deemed as covert advertising. Audible, written, or visual covert advertising shall be prohibited in all kinds of communication tools.

(5) Advertisements comparing the goods or services offered by a competitor, meeting the same needs or intended for the same purpose, may be carried out.

(6) Advertisers shall be liable to prove the claims made in their commercial advertisements.

(7) Advertisers, advertising agencies and media companies shall be liable to comply with the provisions of this Article.

(8) The limitations to commercial advertisements and the procedures and principles that should be complied with in these advertisements shall be determined by regulations.

Unfair commercial practices

ARTICLE 62- (1) If a commercial practice does not comply with the requirements of professional care and significantly damages or is highly likely to damage the economic course of conduct of the ordinary consumer or target group it aims, it shall be deemed as unfair. Especially deceitful or aggressive practices and practices included in the annex to the regulation shall be deemed as unfair commercial practices. Unfair commercial practices targeting the consumer shall be forbidden.

(2) In the event a commercial practice is claimed to be unfair, the party engaged in the commercial practice shall be liable to prove that such practice is not an unfair commercial practice.

(3) When unfair commercial practices are performed by means of advertising, provisions of Article 61 of this Law shall apply.

(4) Principles and procedures with regard to detection and control of unfair commercial practices and practices that will in any case be deemed as unfair practice shall be governed by the regulation.

Board of Advertisement

ARTICLE 63- (1)  An Advertisement Board shall be established to set the principles to be complied by in commercial advertisements and to make regulations for the protection of the consumer against unfair commercial practice, to review commercial advertisements within the framework of these issues and to inspect them when necessary, and to suspend or to correct or impose a fine with the same method as a result of the review and inspection or when necessary, to impose a precautionary suspension for up to three months. The Board may transfer its authority of precautionary suspension to the President of the Board of Advertisement. The decisions of the Board of Advertisement shall be implemented by the Ministry.

(2) The Board of Advertisement Board which is presided by the relevant Director General who will be appointed by the Minister shall be composed of nineteen members including the President, as well as:

a) One member to be assigned by the Ministry from among the relevant Deputy Directors General,

b) One member to be assigned by the Ministry of Justice, from among the judges or prosecutors at administrative positions at this Ministry,

c) One member to be assigned by the Ministry of Food, Agriculture and Livestock,

ç) One member to be assigned by the Ministry of Health,

d) One member to be assigned by the Ministry of Culture and Tourism,

e) One member to be assigned by the Supreme Board of Radio and Television,

f) One member from the Turkish Standards Institute,

g) One member that the metropolitan municipalities of Ankara, Istanbul and Izmir will elect from among themselves,

ğ) One member that the Board of Higher Education will assign from among the expert academic members in advertisement/communications department or commercial law department,

h) One member to be appointed by the Union of Chambers and Commodity Exchanges of Turkey, from among the members of the Media and Communication Assembly of Turkey,

ı) One member to be assigned by the Confederation of Turkish Tradesmen and Craftsmen,

i) One member to be elected by the Consumer Council, from among the representatives of consumer organizations participating in the Council,

j) One member to be elected by the Advertisers Associations or if any, by their higher organizations,

k) One member to be elected by the Associations of Advertising Agencies or if any, by their higher organizations,

l)  A member who is a pharmacist to be assigned by the Turkish Pharmacists' Association,

m) A member who is a dentist to be assigned by the Turkish Dental Association,

n) A member who is a doctor to be assigned by the Central Council of the Turkish Medical Association,

o) A member who is a lawyer to be assigned by the Turkish Bar Association.

(3) Board members serve for a period of three years. At the end of their term, they may be re-appointed or re-elected. In the event there is a vacancy for any reason, a new member shall be assigned or an election shall be made for the vacant position within a month, in accordance with the principles of second paragraph. The duty of the member whose membership has been expired shall continue until the new member starts to serve.

(4) The Board shall convene at least once a month or when necessary upon the call of the chairman.

(5) The Board shall convene with the presence of at least eleven members, including the chairman, and decisions shall be made with the absolute majority of those attending the meeting. In case the votes are tied, the party that the chairman votes for shall constitute the majority.

(6) In order to assist the Board in making a decision, specialized commissions shall be established in sectoral fields by the Ministry. Commissions shall be comprised of at least three people and maximum five people, including the chairman.

(7) The daily allowance and attendance fee to be paid to the chairman and members of the Board and of the specialized commission and the procedures and principles related to such shall be determined by the Ministry with the assent of the Ministry of Finance.

(8) The Board shall make its examination over the files involving the relevant documents. The secretariat services of the Board shall be fulfilled by the Directorate General.

(9) If the Board deems necessary, it may receive opinions from expert universities, private law legal entities and real persons for matters requiring expertise.

(10) Decisions of the board shall be declared by the Ministry so as to inform and enlighten the consumers and protect their economic interests.

(11) Principles and procedures with regard to the establishment of the Board of Advertisement and specialized commissions, their duties, working principles and procedures, secretariat services and other matters shall be governed by regulation.

 

CHAPTER SEVEN

Consumer Organizations

PART ONE

Consumer Council and Advertisement Council

Consumer Council

ARTICLE 64- (1) The Consumer Council shall convene at least once a year, under the coordination of the Ministry, to research the measures necessary to determine consumer problems and needs and to secure the benefits of consumers and, to convey to the relevant authorities the views on the measures regarding the implementation of this Law, to be addressed primarily,.

(2) The number of the representatives in the Consumer Council coming from public institutions and organizations shall under no circumstances exceed fifty percent of the total number of the members of the Council.

(3)The members of the Consumer Council and their working principles and procedures and other matters shall be determined by a regulation.

Advertisement Council

ARTICLE 65- (1) The Advertisement Council shall convene at least once a year under the coordination of the Ministry, to follow up the modern communication practices regarding the formation and implementation of advertisement policies, to carry out research and studies for the development of the advertisement sector and the advertisement supervision function, to offer opinions and suggestions in this field and to forward these opinions and suggestions to the relevant authorities.

(2) The number of the representatives in the Advertisement Council coming from public institutions and organizations shall under no circumstances exceed fifty percent of the total number of the members of the Council.

(3) The members of the Advertisement Council and their working principles and procedures and other matters shall be determined by a regulation.

 

PART TWO

Arbitration Committee for Consumer Problems

Establishment and Scope of Duties

ARTICLE 66- (1) The Ministry shall be in charge of the formation of at least one arbitration committee for consumer problems in the centres of provinces, and districts for which adequacy qualifications are determined by a regulation, in order to find solutions to disputes that may arise in consumer transactions and implementations regarding the consumer.

(2) The Arbitration Committee for Consumer Problems, which is presided by the provincial director of trade in provinces and by the district governor or officials to be appointed by such in districts, shall consist of five members including the president, as well as:

a) One member to be appointed by the Mayor from among the expert municipal personnel in the field,

b) One member to be appointed by the Bar, from among its members,

c) One member to be appointed by the chamber of trade and industry in disputes where the seller is a merchant, or by the chamber of commerce where such are organized separately; by the union of chambers of merchants and craftsmen in provinces, and by the merchant and craftsmen chamber which has the highest number of members in districts, where the seller is a merchant and craftsmen,

ç) One member to be elected by the consumer organizations from among themselves. The substitutes for the president and the members possessing the qualities set forth in this paragraph shall also be determined.

(3) In places where the formation of the arbitration committee for consumer problems cannot be achieved, the missing memberships shall be completed by the provincial director of trade in provinces, and by the district governor in districts, from among the state officials possessing the qualities set forth in the regulation.

Rapporteur

ARTICLE 67- (1) Rapporteurs may be employed at the arbitration committees for consumer problems present in the centres of provinces or districts. In provinces where the number of rapporteurs is not sufficient, the provincial director of trade shall appoint adequate number of rapporteurs to be selected from among the personnel of the provincial directorate of trade, and the district governor shall appoint such in districts, from among the state officials.

(2) Rapporteurs of the arbitration committees for consumer problems shall be commissioned to prepare the files that will be the basis of the committees’ works and decisions and to present the report regarding the dispute.

Application (1)

ARTICLE 68- (1) It shall be mandatory to apply to the Arbitration Committees for Consumer Problems in districts for disputes the value of which is under two thousand Turkish Liras (2.000 TL), to the Arbitration Committees for Consumer Problems in provinces for disputes the value of which is three thousand Turkish Liras (3.000 TL), and in provinces that fall under the category of metropolitan municipalities, to the provincial arbitration committees for consumer problems for disputes the value of which is between two thousand Turkish Liras (2.000 TL) and three thousand Turkish Liras (3.000 TL). Applications shall not be made to arbitration committees for consumer problems, for disputes, the value of which exceeds these.

(2)  The Arbitration Committee for Consumer Problems shall be obliged to accept the applications made to them, to do what is necessary.

(3) Applications may be made to the Arbitration Committee for Consumer Problems at the district where the residence area of the consumer is located or where the consumer transactions have been made. In places where there is no Arbitration Committee for Consumer Problems, it shall be determined by a regulation where the applications will be made and which Arbitration Committee for Consumer Problems will decide on these applications.

(4) The monetary limits stated in this article shall be increased at the revaluation rate that has been determined and announced as per the provisions of repeated Article 298 of the Tax Procedural Law No. 213 dated 4 January 1961, for that year, to be valid as of the beginning of the calendar year. The fractions from ten Turkish Liras shall not be taken into account during the calculation of these increases.

(5) This article shall not prevent the consumers from applying to alternative resolution authorities in accordance with the relevant legislation.

Examination

ARTICLE 69- (1) The Arbitration Committee for Consumer Problems may ask for all kinds of information and documents regarding the subject of the dispute from the parties, relevant institutions and organizations.

Decision and Objection

ARTICLE 70- (1) The decisions of the Arbitration Committees for Consumer Problems in provinces and districts shall bind the parties. (Sentence added on 10 September 2014 by Article 140) The Arbitration Committees for Consumer Problems shall not decide on the payment of the attorney’s fee.

(2)  The decisions of the Arbitration Committee for Consumer Problems shall be notified to the parties in accordance with the Notification Law No. 7201 dated 11 February 1959. The decisions of the Arbitration Committee for Consumer Problems shall be executed in accordance with the provisions of the Enforcement and Bankruptcy Law regarding the fulfilment of decisions.

(3)  The parties may object to the decision of the Arbitration Committee for Consumer Problems at the consumer court where the Arbitration Committee for Consumer Problems is located, within fifteen days as of the notification date. The objection shall not stay the execution of the decision of the Arbitration Committee for Consumer Problems. However, provided it has been requested, the judge may stay the execution of the decision of the Arbitration Committee for Consumer Problems by an injunction.

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(1) See the Notice of the Ministry of Customs and Trade numbered 29907 dated 3 December 2016, regarding the implementation of the monetary limits stated in this article as of 1 January 2017.

 

(4) In cases where the objection should be accepted for the erroneous implementation of the law to the case although the decision is in conformity with the law as to essence, or a retrial is required regarding the non-statutory matter, the consumer court may uphold the decision by amending or correcting it on the document. This provision shall also apply to the errors made in the identities, trade names of the parties and to the errors in writing, calculation or other explicit expressions. If the decision is in accordance with the principle and law, but the preamble is not deemed as correct, the preamble shall be upheld by amendment or correction.

(5) The decision to be rendered by the consumer court upon the objection made against the decisions of the Arbitration Committee for Consumer Problems shall be final.

(6) In the actions of objection filed against the decisions of the Arbitration Committee for Consumer Problems in favour of the consumer, it shall be decided that the attorney's fee will be determined to the detriment of the consumer, based on the relative tariff, according to the minimum attorneyship fee tariff if the decision is cancelled.

(7) In decisions rendered by the Arbitration Committee for Consumer Problems regarding the dispute, to the detriment of the consumer, notification and expert fees shall be covered by the Ministry. In the event the dispute is resolved to the benefit of the consumer, the notification and expert fees shall be collected from the other party, pursuant to the provisions of the Law No. 6183 dated 21 July 1953 on the Collection Procedure of Public Receivables, and shall be registered in the budget as revenue.

Daily allowance and attendance fee

ARTICLE 71- (1) The daily allowance and attendance fee to be paid to the president and members of the Arbitration Committee for Consumer Problems, to the other state officials appointed as rapporteurs, and the expert fee, as well as the procedures and principles related to such payments shall be determined by the Ministry, obtaining the assent of the Ministry of Finance.

Other matters

ARTICLE 72- (1) Principles and procedures regarding the formation, working procedures and principles of arbitration committees for consumer problems, the qualities of the rapporteurs, and the institution of expertise and other matters shall be determined by a regulation.

CHAPTER EIGHT

Provisions related to Proceedings, Supervision and Penalty

Consumer courts

ARTICLE 73- (1) Consumer courts shall be authorized in cases related to the disputes that may arise from consumer transactions and implementations regarding the consumer.

(2) Cases filed by the Ministry, consumers and consumer organizations before the consumer courts shall be exempt from the charges regulated by the Law on Fees No. 492 dated 2 July 1964.

(3) The expert’s fee in cases to be filed by the higher agencies of consumer organizations and, the ruled attorney’s fee in cases where the case is concluded against the complainant shall be borne by the Ministry. In the event the case is concluded against the respondent, the experts’ fee shall be collected from the defendant pursuant to the provisions of the Law on the Collection Procedure of Public Receivables, and registered in the budget as revenue.

(4) The cases that will be heard at consumer courts shall be conducted in accordance with the provisions of the Part Six of the Code of Civil Procedure No. 6100 dated 12 January 2011.

(5)  The cases relating to consumer affairs may also be filed before the court at the district where the residence area of the consumer is located.

(6) Except for the provisions of unfair commercial practices and commercial advertisement, in cases that generally concern the consumers and in cases where there is a risk that a situation contrary to Law may arise, consumer organizations, the relevant public institutions and organizations and the Ministry may file a lawsuit in consumer courts to impose an interim injunction to prevent or suspend such, or to detect, prevent or suspend the unlawful situation.

(7)  In cases that generally involve the consumers, the claimant may request the publication of the decisions rendered. If the request is accepted by the court, it shall be announced forthwith in at least three national newspapers printed in the country, provided the defendant pays for the expenses.

(8)  Final decisions rendered by consumer courts shall be notified to the Ministry through the National Judiciary Informatics System. Decisions rendered as a result of the objection to the decisions of the arbitration committees for consumer problems shall be forwarded to the relevant arbitration committee by the deciding court.

Suspension of production or sale and product recall

ARTICLE 74- (1) The Ministry, consumers or consumer organizations may file a lawsuit to detect whether a series of goods offered for sale are defective, to suspend the production or sale of such, to remedy the defect and to recall such from those who are holding such goods for sale.

(2)In the event that a series of goods offered for sale has been found to be defective by a court judgment, the court may decide to temporarily suspend the sale of the good or to remove the defect depending on the nature of such defect. The manufacturer or importer shall be liable to remove the defect of the good at the latest within three months as of the date of notification of the court's judgment. Where it is impossible to remove the defect of the good, the manufacturer or the importer shall recall the good or have it recalled. The recalled goods shall be partially or fully destroyed or ordered to be destroyed, depending on the risks they involve. The rights of action and compensation of the consumer regarding the destroyed good shall be reserved.

(3) If a series of goods offered for sale has a defect that involves risks endangering the consumer's safety, the provisions of the Law on the Drafting and Implementation of Technical Legislation on Products shall be reserved.

Supervision

ARTICLE 75- (1) In the implementation of this Law, the inspectors of the Ministry, customs and trade auditors and the personnel to be designated by the Ministry shall be authorized to conduct supervisions, examinations and researches at any place where goods or services are provided.

(2) It shall be obligatory to show all kinds of information and documents accurately to officers and organizations that are competent and authorized, and to submit the original or approved copy of the documents if requested, on matters falling under the scope of this Law.

Supervision of consumer product and service

ARTICLE 76- (1) Consumer product is all kinds of new, used or improved product designed for the use of the consumers or envisaged to be used by the consumer in reasonable conditions, supplied both through commercial activities and other means or made useable, including those used in the service sector.

(2) Provided the manufacturer or the distributor notifies the consumer clearly, antiques or second hand products that must be first repaired or improved before use, shall not be considered within the scope of the first paragraph.

(3) Services offered to the consumer through consumer products should not harm the safety of life and property, and the environment and should be in accordance with all kinds of administrative and technical regulations.

(4)  The Ministry shall be in charge of market surveillance and supervision for consumer goods it is responsible for, in accordance with the provisions of the Law on the Drafting and Implementation of Technical Legislation on Products.

 Penal Provisions (1)

ARTICLE 77- (1) An administrative fine of two hundred Turkish Liras  shall be imposed for each unlawful action or contract detected, for those acting contrary to the liabilities set forth in Articles 4, 6, 7, 18, 19, 20, 21, 23, 26, 30, 33, 35,48, 49, 51, 52, 54 and 57 of this Law.

(2)  In the event the unfair terms set forth in Article 5 of this Law are used in consumer contracts, if the unfair term is not removed from the contract within the time allowed by the Ministry, an administrative fine of two hundred Turkish Liras shall be imposed for each contract where an unlawful situation is determined.

(3) An administrative fine of one thousand Turkish Liras shall be imposed for each unlawful action or contract detected, for those violating the liabilities set forth in Articles 24, 25, 27, 28, 29, 34, 36, 37, 38, 39, 41, 43, 45, 46, and paragraphs one, two, and four of article 31, paragraph two of article 40, paragraphs three, four, five, seven of article 47, the fourth, fifth, sixth, seventh, ninth and eleventh paragraphs of Article 50 of this Law.

(4) An administrative fine of twenty thousand Turkish Liras shall be imposed for each undelivered house, for those violating the liabilities set forth in Article 44 of this Law; and an administrative fine of one thousand Turkish Liras shall be imposed for each unlawful action or contract detected, for those violating the liabilities set forth in Article 50 paragraph ten of this Law.

(5) An administrative fine of one hundred thousand Turkish Liras shall be imposed for those acting contrary to the liabilities set forth in the third paragraph of Article 40 and the second paragraphs of Articles 47 and 50 of this Law.

(6) An administrative fine of two hundred Turkish Liras shall be imposed for each good that has been supplied to the market by the manufacturer and importer; and sold to the consumer by the seller that acts contrary to the liabilities set forth in Articles 55 and 56 of this Law.

(7) An administrative fine of one hundred Turkish Liras shall be imposed for those granting awards contrary to the issues set forth in Articles 60 of this Law.

(8) A month shall be granted to those acting contrary to the liabilities set forth in the third paragraph of Article 31, Article 42 and the eighth paragraph of Article 50 to remedy such contradiction to law. If this situation is not remedied by the end of the given period, an administrative fine of five million Turkish Liras shall be imposed to institutions issuing cards which act contrary to the third paragraph of Article 31; and an administrative fine of five hundred thousand Turkish Liras shall be imposed to those acting contrary to Article 42 and the eighth paragraph of Article 50 of this Law.

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(1) See the Notice of the Ministry of Customs and Trade numbered 29907 dated 3 December 2016 and the table at the end of the Law, regarding the implementation of the administrative fines stated in this article as of 1 January 2017.

 

(9) An administrative fine of five thousand Turkish Liras shall be imposed on periodical publishing institutions acting contrary to the liabilities set forth in Article 53 of this Law, and an administrative fine of one hundred thousand Turkish Liras shall be imposed if the breach is through a periodical distributed nationwide. The periodical publishing institution shall suspend the campaign and all kinds of advertisements and announcements related to the campaign. Should the situation contrary to law continue, an administrative fine of ten thousand Turkish Liras shall be imposed for each issue/day as of the date on which the obligation to suspend the advertisements and announcements emerges.

(10) An administrative fine of one hundred thousand Turkish Liras shall be imposed on manufacturers and importers acting contrary to Article 58 of this law if they do not obtain an after sale service competence certificate; an administrative fine of ten thousand Turkish Liras shall be imposed for each service station that has not been established; and an administrative fine of one thousand Turkish Liras shall be imposed for each service station for the detected deficiencies and contradictions in service stations.

(11) An administrative fine of ten thousand Turkish Liras shall be imposed for radio and television stations acting contrary to the liabilities set forth in the second paragraph of Article 59 of this Law.

(12) Suspension or correction by the same means or an administrative fine and when necessary, a precautionary suspension for three months shall be imposed, for the advertisers, advertising agencies and media outlets acting contrary to the liabilities stated in Article 61 of this Law. The Board of Advertisement may impose such penalties together or separately depending on the nature of the violation. If the contradiction;

a) has been committed by a television channel broadcasting on local level, an administrative fine of 10,000 TL shall be imposed ;

b) has been committed by a television channel broadcasting nationwide, an administrative fine of 200,000 TL shall be imposed;

c)  has been committed by periodicals, half of the penalties stated in the subparagraphs (a) and (b) shall be imposed,

ç)  has been committed by a radio channel broadcasting on local level, an administrative fine of 5,000 TL shall be imposed;

d) has been committed by a radio channel broadcasting nationwide, an administrative fine of 50,000 TL shall be imposed,

e) has been committed via internet, an administrative fine of 50,000 TL shall be imposed,

f)  has been committed by short message service (SMS), an administrative fine of 25,000 TL shall be imposed,

g) has been committed by other means, an administrative fine of 5,000 TL shall be imposed.

The Board of Advertisement may impose the above administrative fines by increasing them up to ten times, if the infringement subject to administrative act is repeated within a year.

(13) A precautionary suspension sanction for up to three months, or suspension or an administrative fine of 5,000 TL shall be imposed on the unfair commercial practice, for those acting contrary to the liabilities set forth in Article 62 of this Law. The Board may impose these penalties together or separately depending on the nature of the violation. Administrative fine shall be imposed as fifty thousand Turkish Liras (50,000 TL) if the contradiction was nationwide. If it is determined that the infringement was performed by means of advertisement, the provisions of the twelfth paragraph of this Article shall be applied.

(14)  An administrative fine of one hundred thousand Turkish Liras shall be imposed on manufacturers and importers acting contrary to the liabilities set forth in Article 74 of this Law; and an administrative fine of five thousand Turkish Liras shall be imposed on those acting contrary to the liabilities set forth in the first paragraph of Article 79.

(15) Those acting contrary to the liabilities set forth in the second paragraph of Article 75, shall be warned to provide the information and documents appropriately or ensure that an onsite inspection will be made within seven days. In the continuation of the infringement despite the warning, an administrative fine of up to one percent of their annual gross income accumulated at the end of the previous fiscal year prior to the detection of the infringement shall be imposed provided that it is not less than twenty five thousand Turkish Liras (25.000 TL). If the contradictory act is repeated within a year, the administrative fine shall be doubled.

(16) An administrative fine of two hundred Turkish Liras shall be imposed on suppliers providing services contradictory to the obligations set forth in the third paragraph of Article 76 of this Law, for each transaction.

(17) The relevant provisions of the Penal Code of Turkey No. 5237 dated 26 September 2004 shall be applied for those initiating, organizing a pyramid sale system or distributing such through meetings, emails or methods that are suitable for obtaining the participation of many people, or for those supporting the distribution of such a system by another way for commercial purposes, contrary to Article 80 of this Law.

(18) An administrative fine of one thousand Turkish Liras to fifty thousand Turkish Liras shall be imposed on those violating the liabilities that are not listed above but are introduced by this Law, or violating the measures determined by the Ministry through a regulation or a notification.

(19) Excluding the administrative fines in the eighth, ninth, twelfth and thirteenth paragraphs of this Article; in cases where the total administrative fines exceed twenty five thousand Turkish Liras in one calendar year as of the determination date of the infringement; provided it is not less than this amount and does not exceed one hundred million Turkish Liras; the total administrative fine shall not exceed:

a) Five percent of the annual gross revenues accumulated at the end of the previous financial year, prior to the determination of the infringement of the real or legal entity subject to the fine. If the previous year gross revenue did not accumulate, the gross revenue as of the determination date shall be taken into consideration. In cases where the gross revenue is not reported or reported erroneously, the provision of this sub-paragraph shall not be applied.

b) It shall not exceed five per thousand of the equity publicly published in the latest financial tables for banks, financing institutions issuing consumer credits and institutions issuing cards.

(20) Implementation of administrative sanctions as per this Law shall not prevent the actions that will be performed as required by the other laws. The Ministry shall be authorized to eliminate the uncertainties that will arise in the implementation of this article.

Authority and objection in penalties

ARTICLE 78- (1) Administrative sanctions set forth in the second, seventh, eighth, ninth and eleventh paragraphs of Article 77 of this law shall be imposed by the Ministry; the administrative sanctions decided on by the Board of Advertisement as per the twelfth and thirteenth paragraphs shall be imposed by the Ministry. The administrative sanctions in other paragraphs shall be imposed by the governorate where the entity on which the sanctions are imposed has its headquarters.

(2) The administrative remedy under the provisions of the Law No. 2577 dated 6 January 1982 on Procedures of Administrative Justice may be sought for appeal against the administrative sanction decisions made in accordance with the provisions of this Law. However, a case shall be filed at the administrative court within thirty days as of the date following the notification of the transaction. Filing an action of annulment at the administrative court shall not cease the enforcement of the decision.

(3) It shall be obligatory to pay the administrative fines issued in accordance with this Law within a month as of their notification.

 

CHAPTER NINE

Miscellaneous Provisions

Food Imitation Products

ARTICLE 79- (1) The production, marketing, importation and exportation of products, which look different than they are because of their form, smell, colour, appearance, packaging, labelling, volume or size, even though they are not food products, and which can be mistaken for food products by the consumers, especially by children; thus, jeopardizing the health and safety of consumers, shall be prohibited. Products that are not actually food products but are manufactured in the form of food products, as a traditional craft/art and, which are not harmful to health, shall be excluded from this provision, providing there is a warning sign and an inscription on such.

(2) The Ministry shall be authorized to take necessary measures and make arrangements against these products that threaten the health and safety of consumers by appearing different than they really are.

(3) The provisions of the Law on Drafting and Implementation of Technical Legislation on Products shall be applied for the measures that will be taken, if the unreliability of these products that have been presented to the market is determined and in respect of the notification of such measures to the European Commission.

(4)The Ministry shall be in charge of the market surveillance and inspection of the products falling under this scope.

(5) The right of the consumers who have purchased food imitation products for filing a case due to pecuniary or non-pecuniary damages shall be reserved.

Pyramid Selling Schemes

ARTICLE 80- (1) Pyramid sale is a gain expectation system which is unrealistic or difficult to be realized, that gives any opportunity to gain money or assets to its participants, in return for a certain amount of money or assets, provided that the participants find other participants under the same conditions and, which depends the gain of assets completely or partially on other participants' complying with the conditions as well.

(2) Establishing, distributing or suggesting a pyramid selling scheme shall be prohibited.

(3) The Ministry shall be authorized to make the necessary inspections related to pyramid selling schemes and to take the necessary measures in cooperation with its relevant public institutions and corporations, including ceasing the electronic system in our country, if any.

Test, examination and analysis

ARTICLE 81- (1) The Ministry may use the laboratories of public or private institutions for the implementation of this Law. Test and examination expenses shall be covered from the budget of the Ministry.

(2) In the event test and examination results are contrary to the relevant administrative and technical regulations, all expenses related to such shall be collected from the manufacturer or the importer, in accordance with the provisions of the Law on Collection Procedure of Public Receivables. The collected test and examination fees shall be recorded as income in the budget.

Allowance

ARTICLE 82- (1) Expenses related to the activities of the Board of Advertisement, Advertising Council, Consumer Council and Arbitration Committee for Consumer Problems, the Ministry’s expenses incurred for the protection of the consumer and other expenditures shall be covered by the allowance that will be included in the budget of the Ministry.

Other provisions

ARTICLE 83- (1) General provisions shall apply in cases where a provision does not exist in this Law.

(2) The presence of a regulation in other laws regarding the transactions where the consumer is one of the parties, shall not prevent such transaction from being considered as a consumer transaction and shall not hinder the implementation of the provisions of this law related to duty and authority.

Regulations and other regulatory acts

ARTICLE 84- (1) The Ministry shall be authorized to take necessary measures and make arrangements within the framework of the legislation, with regard to the implementation of this Law.

(2) Regulations set forth by this Law shall be issued by the Ministry, within six months as of the date of its entry into force.

(3) Views of relevant public institutions and authorities, professional organizations with public institution status, non-governmental organizations and trade bodies shall be obtained for the secondary regulations that will be issued by the Ministry.

Cadre Formation (1)

ARTICLE 85- (1) The cadres included in the attached list are formed and included in the table numbered (I) annexed to the Decree Law No. 190 dated 13 December 1983 on General Staff and Procedures, in the section that belongs to the Ministry of Customs and Trade.

Abolished provisions

ARTICLE 86- (1) The Law No. 4077 on the Protection of the Consumer dated 23 February 1995 has been abolished. References made to the Law on the Protection of the Consumer in the other legislation shall be deemed to have been made to this law.

Transitory provisions

PROVISIONAL ARTICLE 1- (1) The cases filed before the entry into force of this Law shall continue to be heard in the courts they were filed in.

(2) As a rule, law provisions that were valid at the time when the consumer transactions before the date of entry into force of this Law were carried out shall be applied to the consumer transactions, whether they are binding by law and their consequences. However:

a) The contradictory provisions of the contracts which were established before the date of entry into force of this Law and that are still valid, shall not be implemented after the effective date of this Law.

b) If the final terms and the period of limitations that commenced prior to the date of entry into force of this Law have not expired, the final terms and the period of limitations shall end after the time set forth in this Law passes.

(3) Until the regulations set forth in this Law enter into force, the provisions of the regulations and other legislation issued based on the Law on the Protection of Consumer that are not contradictory to this Law shall be applied.

Entry into Force

ARTICLE 87- (1) This Law shall enter into force six months after the date of its publication.

Enforcement                                                        

ARTICLE 88- (1) The Council of Ministers shall enforce the provisions of this Law.

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(1)See the Official Gazette numbered 28835 dated 28 November 2013, regarding the cadres in this article.

 

TABLE RELATING TO THE AMOUNTS OF ADMINISTRATIVE FINES UNDER ARTICLE 77

OF THE LAW NO. 6502 ON CONSUMER PROTECTION

(The amounts of administrative fines stipulated in Article 77 of the Law No. 6502 on Consumer Protection shall be implemented as follows, as of 1 January 2017, through the Notification of the Notice of the Ministry of Customs and Trade numbered 29907 dated 3 December 2016.)

 

Under Article 77 of the Law No. 6502

1/1/2017-31/12/2017

TL

The amount of the penalty in the first paragraph

240

The amount of the penalty in the second paragraph

240

The amount of the penalty in the third paragraph

1.206

The amount of the penalty in the fourth paragraph

24.140

1.206

The amount of the penalty in the fifth paragraph

120.706

The amount of the penalty in the sixth paragraph

240

The amount of the penalty in the seventh paragraph

120.706

The amount of the penalty in the eighth paragraph

6.035.332

603.532

The amount of the penalty in the ninth paragraph

6.034

120.706

12.070

The amount of the penalty in the tenth paragraph

120.706

12.070

1.206

The amount of the penalty in the eleventh paragraph

12.070

The amount of the penalty in the twelfth paragraph

Subparagraph (a)

12.070

Subparagraph (b)

241.413

Subparagraph (c)

6.034

120.706

Subparagraph (ç)

6.034

Subparagraph (d)

60.353

Subparagraph (e)

60.353

Subparagraph (f)

30.176

Subparagraph (g)

6.034

The amount of the penalty in the thirteenth paragraph

6.034

60.353

The amount of the penalty in the fourteenth paragraph

120.706

6.034

The lower limit of the penalty in the fifteenth paragraph

30.176

The amount of the penalty in the sixteenth paragraph

240

The lower and upper limits of the penalty in the eighteenth  paragraph

1.206 – 60.353

The lower and upper limits of the penalty in the nineteenth paragraph

30.176 – 120.706.671

 

12186-1

LIST SHOWING THE DATE OF ENTRY INTO FORCE

OF THE LAWS ADDING PROVISIONS TO AND AMENDING THE LAW NO. 6502 AND THE PROVISIONS ANNULLED BY THE CONSTITUTIONAL COURT

 

Number of the Amending Law/Decree Law/Notice/Judgment of Annulment of the Constitutional Court

Articles amended or annulled/repealed in the Law No. 6502

Date of Entry into Force

6552

70

11 September 2014

TGM-2014/1

77, Annexed Table

1 January 2015

TGM-2014/2

68

1 January 2015

Notice on the Increase of Monetary Limits under Article 68 of the Law No. 6502 on Consumer Protection and Article 6 of the Regulation Regarding Arbitration Committees For Consumers

68

1 January 2016

Notice on Administrative Fines to be imposed in 2016 under Article 77 of the Law No. 6502 on Consumer Protection

77, Annexed Table

1 January 2016

Notice on the Increase of Monetary Limits under Article 68 of the Law No. 6502 on Consumer Protection and Article 6 of the Regulation Regarding Arbitration Committees For Consumers

68

1January 2017

Notice on Administrative Fines to be imposed in 2017 under Article 77 of the Law No. 6502 on Consumer Protection

77, Annexed Table

1 January 2017

Decree Law/684

45

23 January 2017

Judiciary of Turkey