Financial Crime World

Fines for Violations of Distance and Off-Premises Contracts in Slovakia

The National Bank of Slovakia (NBS) has imposed fines ranging from EUR 100 to EUR 33,000 on companies that have violated distance contracts and off-premises contracts. The fines were determined based on the seriousness, scope, duration, consequences, and nature of the shortcomings identified.

Authority to Impose Fines

According to Section 35a-35k of Act No. 747/2004 Coll. on financial market supervision in the field of financial consumer protection, NBS has the authority to impose fines under both fixed penalty procedure and sanction order procedure.

Fixed Penalty Procedure

  • Fine can amount to EUR 2,500, depending on the severity of the violation

Sanction Order Procedure

  • Fine of up to EUR 5,000 or an injunction to eliminate and rectify the shortcoming

Determining the Amount of the Fine

When determining the amount of the fine, the following factors are taken into consideration:

  • Nature of the unlawful conduct
  • Seriousness of the breach of obligation
  • Method and consequences of the breach
  • There is no distinction in the amount of monetary fines between natural and legal persons.

Court Decisions and Unfair Terms

In cases where a court has made a decision regarding an individual transaction under the Directives, unfair terms in consumer contracts are deemed invalid. According to Section 53a (1) of the Civil Code:

  • If the court determines that a contractual condition is common and affects the content of the contract in a significant way
  • Or that general terms and conditions are invalid due to unacceptability
  • The trader must refrain from using such condition or any condition with the same meaning in contracts with all consumers.

Compensation for Consumers

Only the court can order compensation for consumers who have suffered harm as a result of an infringement. The consumer may join other consumers in the proceedings under Section 75 (1) of the Civil Procedure Code.

Publication of Decisions

Administrative decisions of the Slovak Trade Inspection Authority are published weekly on their website, while courts are obliged to publish their decisions and make them accessible to the public. However, personal data is protected by anonymizing the decisions before publication.

Self-Regulatory Enforcement Systems

In Slovakia, there are self-regulation bodies that deal with aspects of the Directives, including:

  • Associations in different types of business
    • Slovak Association of Travel Agents
    • Advertising Standards Council
    • Slovak Banking Association
  • These associations have codes of ethics for consumer protection.

Out-of-Court Dispute Settlement Bodies

There are out-of-court dispute settlement bodies available in Slovakia, including:

  • Mediation schemes
  • Conciliation schemes
  • Arbitration schemes
  • Ombudsmen
  • These bodies can help resolve disputes between consumers and traders without going to court.