GUIDE
CONSUMER
RIGHTS
FROM THE PERSPECTIVE
OF APPLICABLE REGULATIONS
[Link]
2022
Project supporter
ABOUT THE PLATFORM 1
I. INTRODUCTION
BASIC CONSUMER RIGHTS AND
2
3
PROTECTION MECHANISMS
CONTENT
CONSUMER PROTECTION MECHANISM TOWARDS
MERCHANTS IN CASE OF DEFECTIVE PRODUCTS/SERVICES
4
CONSUMER PROTECTION MECHANISM TOWARDS
MERCHANTS IN CASE OF ONLINE AGREEMENTS
7
(AGREEMENTS CONCLUDED VIA INTERNET)
CONSUMER PROTECTION MECHANISM TOWARDS
MERCHANTS IN CASE OF AGREEMENTS CONCLUDED
8
OFF-PREMISES
CONSUMER RIGHTS RELATED TO PRODUCT WARRANTIES 9
INSTITUTIONAL STRUCTURE OF 9
CONSUMER RIGHTS PROTECTION
ABOUT THE PLATFORM
[Link]
The [Link] platform is a resource and information center on key e-com-
merce aspects for all CEFTA markets (Albania, Bosnia and Herzegovina, N. Macedonia,
Moldova, Montenegro, Serbia, and Kosovo*). The web platform consists of relevant
e-commerce data and resources, including basic e-commerce data, interactive graphs,
and data on CEFTA e-commerce market development, as well as data on key aspects of
doing business in e-commerce.
The data on key aspects of doing business in e-commerce is structured in five modules:
e-commerce data, regulation, payment, delivery, and e-commerce success stories in all
CEFTA markets. Each of these modules will contain relevant market-specific informa-
tion, tutorials, manuals, topic-related documents, and video presentations, except for
the first module “e-commerce data” which is meant to present the state of e-commerce
in all CEFTA markets through statistics and data on the development of the e-com-
merce markets (interactive graphs of the state of e-commerce in each market and com-
parisons of e.g. customers, payment cards, digital skills, UNCTAD B2C e-commerce
readiness index and other relevant Eurostat data). All data will be presented in both the
local language of each of the CEFTA markets and in English.
The platform is supported by the Open Regional Fund for South – East Europe –
Foreign Trade project, implemented by the Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH on behalf of the European Union and the German Feder-
al Ministry for Economic Cooperation and Development (BMZ).
*This designation is without prejudice to positions on status and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence.
1
I.
INTRODUCTION
The Law on Consumer Protection in Bosnia and Herzegovina defines relations between
consumers, manufacturers and merchants within the territory of Bosnia and Herzegovina
(BiH). Although this law has been adopted on a state level, Republika Srpska (RS), as one of
the political and territorial entities, has adopted an entity-level Law on Consumer Protection
in the RS. On the other hand, the other political and territorial entity, i.e. the Federation of
Bosnia and Herzegovina (FBiH) has not regulated this matter.
This section of the Manual provides an overview of basic consumer rights from the
perspective of classic sale of products and services, since BiH has not adopted nor has an
effective regulation prescribing e-commerce. Therein, this section provides an overview of
basic consumer rights related to product and/or service purchase with a special emphasis
on protection mechanisms available to consumers with respect to merchants in case of
violation of their rights. An overview of consumer rights and protection mechanisms rests
on the Law on Consumer Protection in BiH and, where different legal treatment is
prescribed in the entity-level law, we will make a special note of that fact accordingly.
Of note, the said legislative framework regulates legal relations between a consumer (as
defined by law to be any private individual purchasing, acquiring or using products or
services for his/her own needs and for the needs of his/her household), a merchant (as
defined by law to be any entity that, either directly or indirectly, sells products or provides
services to consumers) and a manufacturer (as defined by law to be any private individual
or legal entity operating in Bosnia and Herzegovina that either entirely or partially manufac-
tures products or renders services).
Therefore, from the standpoint of legal protection, the said regulations provide protection
only to private individuals entering into contractual relations with merchants and manufac-
turers for their personal needs or for the needs of their households for the purpose of
purchasing of a product or obtaining a service.
2
I.
BASIC CONSUMER RIGHTS AND
PROTECTION MECHANISMS
Consumer rights are being observed from the aspect of merchant’s duties and responsibili-
ties. Therefore, the law defines series of merchant duties and responsibilities, breach of
which leads to activation of consumer protection measures.
As for consumer rights, they cannot waive their legal rights nor they can be deprived of such
rights. Basic consumer rights are:
Right to access to main goods and services / right to satisfaction of basic needs is a
consumer right to availability of essential products and services, such as food, cloth-
ing, footwear, residential space, water, electricity, health care, education and hygiene;
Right to consumer education dis a consumer right to be apprised of his/her rights
towards merchants when entering in merchant relations;
Right to safety and protection of life and health is a right to protection against goods
and services deemed to pose a threat to health, property or environment, i.e. whose
possession or handling is forbidden;
Right to be informed is a consumer right to have access to accurate information
he/she needs to make a reasonable choice among offered goods and services, i.e. a
right to gain basic knowledge and skills required to make a proper and reliable choice
of goods and services, as well as knowledge of basic rights and obligations of con-
sumers and methods of their fulfillment;
Right to choose is a consumer right to choose between several goods and services
based on affordable prices and quality warranty;
Right to be heard and be represented is a consumer right to demand legal protection
in case his/her rights have been breached, as well as a right to compensation of mate-
rial and immaterial damages caused by a merchant;
Right to damage compensation is a consumer right to receive material and immaterial
compensation in case of any breach of his/her rights;
Right to healthy environment is a consumer right to living and working in an environ-
ment free of any health threats.
3
I.
A consumer cannot waive or be deprived of his/her rights that have been established by the
above said law.
Also, as for the consumer right to be informed, it should be noted that consumers need to
take care of the clauses in an agreement that have not been negotiated by themselves (so
called standard agreements – being prepared by merchants and given to consumers for
signature/acceptance) since they can be analyzed from the aspect of their validity. In other
words, clauses contained in such agreements are null and void if they pose significant
inequality between rights and obligations of contractual parties that go to the detriment of
consumers, if non-fulfillment of contractual obligations would considerably deviate from
realistic expectations of consumers, as well as if they are contrary to the principle of
fairness, conscientious behavior and best business practices. Both laws provide an over-
view of clauses that can be deemed as null and void, so it is important consumers pay atten-
tion to this.
CONSUMER PROTECTION MECHANISM TOWARDS MERCHANTS
IN CASE OF DEFECTIVE PRODUCTS/SERVICES
The said consumer rights are being exercised trough economic relations with merchants
and their fulfillment manner is best seen from the perspective of extrajudicial protection of
consumers. Consumer rights are different depending on the type of product being
purchased and place of product purchase (whether a product is being purchased directly at
a store or online, via e-tools like Internet).
As for direct sale of products, the Law on Consumer Protection in BiH prescribes a require-
ment for merchants to deliver goods/services without specifying a deadline for this. On the
other hand, the Law on Consumer Protection in the RS prescribes a deadline and a conse-
quences for non-observance of such deadline according to which a merchant is required to
deliver a product or service to a consumer without any delay and not later than 30 days upon
having assumed this contractual relationship (if not stated otherwise in an agreement). If a
merchant does not deliver a product within the stated deadline, the agreement shall be
terminated. In exceptional cases, a consumer may extend an agreement if he/she has
provided a written consent for having a subsequent deadline for fulfillment of such agree-
ment. If a merchant fails to meet its contractual obligation by this subsequent deadline, the
agreement shall be terminated. In that case, a merchant is required to make a cash refund
favor of the consumer within 7 days since the agreement termination.
4
I.
A merchant is obliged to sell to a consumer a product that is free of any deficiencies and is
safe for use. In case of product deficiencies that are visible, i.e. readily detectable, a con-
sumer has a right to send (within 8 days upon receipt of a product) a request for elimination
of deficiencies. In case of hidden deficiencies that are subsequently detected, a consumer
has a right to file a request for protection of his/her rights within two months of having
detected a deficiency and not later than two years since receipt of a product. The said dead-
lines are defined by the Law on Consumer Protection in BiH and apply to defective services
(for both state entities). However, as for consumer protection deadlines related to defective
products, RS applies other deadlines, i.e. a consumer shall notify a merchant in written of
any product deficiency within 60 days since having identified any such deficiency and not
later than 2 years since product/service receipt. Therein, a shorter deadline may be deter-
mined for used goods, i.e. one year at shortest. In case of a deficiencies appearing within 6
months since the purchase date, it is presumed that the deficiency existed at the purchase
and a consumer is not required to prove this fact (except if this assumption is not contrary
to the nature of a product or nature of particular deficiency). The said deadlines do no relate
to products under warranty since, in that case, deadlines stated in the warranty sheet apply.
Based on a written request filed by a consumer and denoting product deficiencies, a con-
sumer is entitled to demand the following from a merchant:
replacement of a defective product with an identical new proper/functional product;
or
refund the paid amount and reimburse any actual reasonable costs related to return
of a defective product, or
eliminate product deficiencies at the expense of a merchant, or
lower a product price if such price decrease is acceptable by both contractual
parties (defined by the RS Consumer Protection Law)
As for consumer request concerning improper or partial performance of a service, a con-
sumer shall have a right to demand the following from a merchant (within the above defined
deadlines): (i) to repeat / complete the service (in the RS: within an appropriate timeframe,
but not later than 30 days since the request filing date); or (ii) to reduce the agreed price due
to lower quality.
Of note, a consumer request needs to be accompanied with a bill / invoice for a product
where deficiencies have been detected.
5
I.
Upon receipt of a consumer request, a merchant can choose either to contest it or not. In
case a merchant has not contested a deficiency, it is required to fulfill the consumer request
without any further delay- Therein, the RS Consumer Protection Law prescribes that a mer-
chant is required to make repairs or replace such product within an adequate deadline, but
no longer than within 30 days since the request filing date and also pay for all related
expenses. In case a merchant does contest a request, it shall send a written response to the
buyer within 8 days since the request receipt. If a merchant is contesting a deficiency and a
consumer does not abandon his/her request, a certified court appraiser or a competent
institute in BiH/RS shall provide an expert opinion whether such request is justified or not. If
such expert review proves product or service deficiency, cost of such expert opinion shall be
borne by a merchant.
The above mentioned consumer protection measure refers to deficiencies. So, a consumer
buying a product in a store is given an option of examining such product and detecting any
possible deficiencies. Hence, he/she cannot abandon the purchase without just reason
since it is considered he/she made such purchase of a product in as-is condition. On the
other hand, it is possible that a consumer detects a deficiency only upon arriving home, in
which case he/she can opt to exercise the above explained protection mechanism.
6
I.
CONSUMER PROTECTION MECHANISM TOWARDS MERCHANTS
IN CASE OF ONLINE AGREEMENTS (AGREEMENTS CONCLUDED
VIA INTERNET)
An online sale agreement is any agreement referring to sale of a product or service orga-
nized by a merchant via online sale instruments. In practice, this is most often done by Inter-
net. In an online sale, it is important for a consumer to know when is a merchant required to
deliver particular product and when can he/she file a charge back, i.e. abandon an agree-
ment.
Both consumer protection regulations prescribe that, prior to concluding an online agree-
ment, a merchant is required to apprise a consumer of the entire set if his/her rights and
terms of the agreement, as well as provide him/her with relevant information (Notification
of consumer rights). The said notification is important since, if left out, may lead to exten-
sion of deadlines by which consumers may demand protection of their rights.
As for deliveries, a merchant shall deliver particular product to a consumer within 15 days
since consumer order date. If a merchant fails to meet the delivery due to not having such
goods in stock or not having goods readily available, it shall notify the consumer accordingly
of this situation and refund any sum of money as soon as possible and, in any event, within
15 day since receipt of non-delivery information.
Contrary to direct sale, in an online sale (i.e. sale via Internet), a consumer has a right to
abandon/terminate an agreement within 15 days since product receipt without any further
reasoning on his/her part. As for services, this deadline is calculated since the agreement
conclusion date. In that case, a consumer bears all product return costs. A merchant is
required to make a cash refund to a consumer within 15 days since receiving a consumer
notification of the agreement abandonment. If a merchant did not deliver to a consumer the
Notification of consumer rights, the deadline for product return is three months – since
receipt date of a product by a consumer (for the product) and since agreement conclusion
date (for the service). In addition, if a merchant delivers the Notification of consumer rights
within 3 months, the deadline of 15 days for agreement abandonment is counted since the
receipt date of this written notification.
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I.
CONSUMER PROTECTION MECHANISM TOWARDS MERCHANTS
IN CASE OF AGREEMENTS CONCLUDED OFF-PREMISES
Merchants very often offer their service and products outside their business premises, i.e.
outside their registered seat. A typical example of this is sale via public market stalls or
door-to-door sale where a merchant visits consumers at their home or office for purpose of
product and/or service sale. A merchant concluding such a deal with a consumer needs to
provide proper identification and deliver a written notification of consumer rights so that a
consumer is then entitled to an agreement termination within 15 days since conclusion of
an agreement (thus also stating the name and address of the person to which such termina-
tion refers to).
So, a consumer buying a street product from a merchant (e.g. on a promotional stand) or at
his/her workplace or anywhere else outside merchant’s business premises, has a right to
decline consequences of an agreement in sense that he/she can send a written notification
of this to a merchant within 15 days since the agreement conclusion. In that case, a con-
sumer is not required to state any reason for the agreement termination or pay for any costs
or fees therein. A consumer only bears the product return costs. By delivering the said notifi-
cation to a merchant, a consumer is released from any obligations under the concluded
agreement, except for an obligation of product return. On the other hand, a merchant is
required to make a cash refund to a consumer without any undue delays, i.e. within 15 days
since receipt date of the agreement termination notice.
The RS Law on Consumer Protection defines that if a merchant omits to submit a written
notification to a merchant related to his/her right to unilateral agreement termination within
15 days since agreement conclusion, then this consumer right to agreement termination
has not time restrictions. In addition, in case of a dispute, a merchant is the one required to
prove that a consumer has duly received the notification of his/her right to unilateral agree-
ment termination.
8
I.
CONSUMER RIGHTS RELATED TO PRODUCT WARRANTIES
As for technically complex products, a manufacturer, i.e. supplier, is required to determine
and denote in the technical manual a deadline for repairs (under warranty period), as well as
supply the market with spare parts, tools and other items without which such product
cannot be used according to its intended purpose. A warranty period may not be shorter
than three years for household appliances, i.e. five years for other technically complex prod-
ucts.
In case of technically complex products, a manufacturer is the one issuing a warranty form
according to which it warrants proper functioning of such items during the defined period,
counting from its sale date to a buyer/consumer. In case of improper functioning of an item,
a consumer may demand from both, seller and manufacturer, to repair it within a reasonable
timeframe or provide a fully functional item instead. In that case, a consumer has a right to
demand from a seller and/or manufacturer the following:
Repair or replacement of an item within a warranty period irrespective of the time of
malfunctioning, and
Compensation for any damages caused due to being deprived of the use of particu-
lar item, counting from the repair / replacement request date until fulfillment of such
request.
In case of a minor repair, a warranty period shall be extended by as many days a buyer was
deprived of the use of such item. However, in case of a replacement due to improper func-
tioning of an item or major repairs, the warranty period re-commences from the replacement
date, i.e. return of the repaired item.
INSTITUTIONAL STRUCTURE OF
CONSUMER RIGHTS PROTECTION
Exercising consumer rights towards merchants may be unsuccessful due to various busi-
ness practices and policies of merchants. Therefore, the law defines also institutional
protection of consumer rights in a way that consumers may realize their rights through: the
Ministry of Foreign Trade and Economic Relations of BiH / Republika Srpska Government,
BiH Consumer Protection Ombudsman, BiH Council for Consumer Protection, BiH Competi-
tion Council, FBiH and RS Offices for Competition and Consumer Protection, RS Chamber of
Commerce and RS Crafts Chamber, consumer protection associations, Insurance Ombuds-
man, Banking System Ombudsman, educational institutions and media, inspections, and
other authorities as defined by the law.
Therefore, entities in charge of consumer protection are the above listed institutions/bod-
ies/associations. Therein, we would like to underline the importance of consumer protection
associations that are also authorized to represent consumers in achieving their rights and
to receive consumer complaints, as well as to underline relevance of inspection authorities
performing direct control over implementation of relevant legal regulations.
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Project implementator
Project partners
This publication was produced with the financial support
of the European Union and the German Federal Ministry of Economic Cooperation and Development (BMZ).
Its contents are the sole responsibility of the eCommerce Association in Bosnia and Herzegovina.
and do not necessarily reflect the views of the EU or the Federal Ministry of Economic Cooperation and Development (BMZ).