Disputes between consumers from outside the Czech Republic and traders established in Czechia

 

In the event of a cross-border dispute between a consumer residing in another EU country and a trader established in the Czech Republic, consumers can use several options to resolve the dispute out of court or through the courts.

European Consumer Centres Network (ECC-Net)

The European Consumer Centre Network (ECC-Net) provides information on consumer rights in the European Common Market and offers free of charge assistance and advice to consumers in their disputes with traders from other EU countries, Norway and Iceland.

Resolving a case through the ECC network is usually the least formalised way of resolving a dispute. The consumer contacts the branch of the ECC network in his/her country of residence. This centre will process the case and, if necessary, forward it to a partner centre in the country where the trader is based for resolution with the trader. The consumer and the trader can thus both communicate in their own language, while the centres share the necessary information on the legislation in their respective countries.

The assistance of the ECC network is based on counselling and mediation. The ECC cannot issue a legally binding decision in a dispute.

For more information or to request assistance with a specific dispute, contact the centre in your country of residence. Contact details can be found on the European Commission’s website.

 

Out-of-court dispute resolution of the Czech Trade Inspection Authority

The Czech Trade Inspection Authority may, at the consumer’s request, initiate an out-of-court dispute resolution procedure with a trader based outside Czechia if the performance of a purchase contract or a contract for the provision of services takes place in the Czech Republic or if the performance of the contract is related to a business activity carried out in the Czech Republic.

Detailed information about the CTIA ADR and the electronic form for filing a petition to initiate an ADR are available on our website and in the Frequently Asked Questions section.

 

Above all, remember that:

  • Out-of-court dispute resolution is an institution based on finding a mutually acceptable agreement between the parties to a dispute. Unlike the courts, the Czech Trade Inspection Authority does not have the power to make a binding decision on the subject of the dispute or to force the parties to reach an agreement. Since the ADR is based on the willingness of the parties to reach an agreement, it can be effective especially in resolving disputes with reputable traders who care about good relations with their customers.
  • The ADR can resolve disputes arising from purchase contracts and service contracts. It is therefore necessary that the consumer is a party to the relevant contract from which the dispute arises and that the consumer has provided or committed to provide the relevant financial performance to the other party under that contract.
  • In order for out-of-court dispute resolution to be effective, the consumer must be able to credibly prove the validity of the claim.
  • ADR is available in Czech, Slovak or English language.
  • There is no charge for ADR.
  • a petition to initiate an ADR submitted electronically must be confirmed by a recognised electronic signature, by post or by a data box.

 

 

Out-of-court dispute resolution (ADR) bodies outside the Czech Republic

If you buy goods or order a service from a trader based in another EU country, you should have access to at least one out-of-court consumer dispute resolution body. In practice, it is usually most effective to go to the out-of-court dispute resolution body to which the trader has subscribed or of which he is a member. This may be, for example, a professional association in the industry or an ADR specialising in a particular issue, such as travel. This information should be available on the trader’s website.

If a trader has not chosen the ADR to which it subscribes, it is usually most efficient for consumers to choose an ADR in the state trader´s domicile. The rights and obligations of ADR bodies vary from state to state. Some ADR bodies can issue legally binding decisions, while others cannot. In some cases, the participation of the trader in out-of-court dispute resolution may be mandatory, in others the trader participates only voluntarily. ADR may be free of charge for consumers or may be subject to a fee.

 

How do I find an out-of-court dispute resolution body abroad?

The list of out-of-court consumer dispute resolution bodies is available on the European Commission’s website.

On this website, you can search for consumer dispute resolution bodies by country and by the subject matter of disputes, they can handle. It is also possible to find out in which language ADR is conducted, whether it is charged and whether the outcome is legally binding. Contact details are also available for each ADR body.

 

Online Dispute Resolution (ODR)

The European Online Dispute Resolution Platform is run by the European Commission in order to contribute to safer and fairer online shopping through access to quality dispute resolution tools.

After completing the online form, the ODR platform will notify the trader of your request for dispute resolution. The platform then allows direct communication between the trader and the consumer and agreement on the choice of a mutually acceptable out-of-court dispute resolution (ADR) body. The platform cannot issue a legally binding decision on the subject matter of the dispute, its purpose is to facilitate communication between the parties to the dispute and the selection of the ADR entity. If the parties do not reach an agreement within 90 days, the ODR is terminated.

 

Resolving the dispute through the courts

If an out-of-court settlement cannot be found, you may go to court.

If you decide to go to court, you must first determine which country’s courts have jurisdiction over the dispute. In cross-border disputes within the EU, the competent court is determined according to the rules of the Brussels I Regulation. The general rule is that the court of the defendant’s domicile has jurisdiction over the dispute. However, there are a number of exceptions to this rule, including in certain consumer disputes. For example, in the case of delivery of goods to consumer’s home, the court at the place where the goods are delivered can usually decide on a dispute arising out of a contract of sale.

In intra-EU disputes, there are simplified forms of cross-border court proceedings – the European order for payment and small claims procedures.

 

Further useful information is available on the European Commission’s e-Justice website.

We recommend consulting with an attorney before filing a lawsuit.

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