Financial Crime World

Romania Cracks Down on Misleading Commercial Practices

The Romanian government has recently introduced new measures aimed at tackling misleading commercial practices, imposing significant fines and penalties for companies that engage in aggressive or deceptive marketing tactics.

New Legislation

According to recent legislation, traders who use aggressive commercial practices can be fined between RON 2,000 and RON 100,000. Similarly, those who fail to comply with pre-contractual information requirements or contractual liability obligations can face fines ranging from RON 4,000 to RON 20,000.

Sanctions and Penalties

The National Authority for Consumer Protection (NACP) and the Ministry of Public Finances have been empowered to impose these sanctions, which can also include:

  • Suspension of business activities
  • Refunds to consumers
  • Withdrawal of administrative authorizations such as tourism licenses

New Rules for Misleading Advertising

In addition, the government has introduced new rules aimed at curbing misleading advertising and comparative advertising. Traders found guilty of engaging in such practices can be ordered to:

  • Cease their campaigns
  • Publish corrective statements

Broader Effort to Protect Consumers

This move is part of a broader effort to protect Romanian consumers from unfair business practices. The authorities have also been empowered to impose complementary administrative sanctions, including:

  • Requiring companies to rectify contractual clauses that have been breached
  • Refunding amounts collected without a legal basis

Reaction from Consumer Protection Groups

Consumer protection groups welcomed the new measures, saying they would help to level the playing field and ensure fair competition in the market. “These laws are a major step forward in protecting Romanian consumers from aggressive marketing tactics,” said a spokesperson for one such group. “We hope that they will be enforced strictly to prevent companies from taking advantage of vulnerable customers.”