ARTICLE
3 September 2024

New Regulation On Direct Sales

EA
Esin Attorney Partnership

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The Regulation Amending the Regulation on the Agreements Concluded Outside the Workplace ("Amendment") published by the Ministry of Trade ("Ministry")...
Turkey Consumer Protection

The Regulation Amending the Regulation on the Agreements Concluded Outside the Workplace ("Amendment") published by the Ministry of Trade ("Ministry") in the Official Gazette dated 23 August 2024 and numbered 32641 has made certain changes to the Regulation on the Agreements Concluded Outside the Workplace ("Regulation") published in the Official Gazette dated 14 January 2015 and numbered 29236. The Amendment will enter into force on 1 January 2025.

The Amendment is available here (in Turkish).

The Ministry stated that additional provisions have been introduced to the Regulation to protect consumers, in line with current needs and issues. Additionally, the Regulation has been updated in light of today's technologies; the use of email or text messages instead of communication tools such as faxes has been stipulated in some articles; and cosmetic changes have been made.

What does the Amendment introduce?

A.Scope of the Regulation

The Amendment excludes the following from the scope of the Regulation: i) sales in shopping centers; ii) cleaning services; iii) services related to betting, raffles, lotteries and similar games of chance; and iv) agreements regarding accommodation, transportation of goods, car rental, provision of food and beverages, and the use of free time for entertainment or recreation purposes, which must be made on a specific date or period.

Furthermore, whereas agreements for sales of goods or services with a value less than TRY 30 (approx. USD 1) were excluded from the scope of the Regulation prior to the Amendment, this limit has been updated to TRY 250 (approx. USD 7). Accordingly, as of 1 January 2025, when the Amendment enters into force, the provisions of the Regulation will not apply to agreements for sales of goods or services with a value not exceeding TRY 250 (approx. USD 7).

It is also stipulated that the aforementioned monetary limit of TRY 250 (approx. USD 7) will be increased every year, effective from the beginning of the calendar year, by the revaluation rate determined and announced in accordance with Tax Procedure Law No. 213.

B.Preliminary information obligation for the sellers or suppliers

In line with the Distance Sales Regulation, the obligation to inform the consumer i) of the period and procedure for exercising the right of withdrawal; ii) of the conditions under which the right of withdrawal will be lost; and iii) that the consumer will not be able to benefit from this right if one of the exceptions to the right of withdrawal set out in Article 14 of the Regulation exists, have been added to the scope of the preliminary information obligation that the sellers or providers must provide to the consumer before entering into an agreement concluded outside the workplace or any offer corresponding thereto.

C.Mandatory content of the agreement

The Amendment stipulates that the following points must be included in the agreements to be concluded within the scope of the Regulation:

  • The email address of the seller enabling the consumer to contact the seller;
  • The province and district where the agreement has been concluded;
  • The email address to which the withdrawal notice will be submitted and the phone number to which the consumer can send a text message;
  • The condition for consumers to apply to a mediator before filing a lawsuit before the consumer courts, which is stipulated as a cause of action under Article 73/A of Consumer Protection Law No. 6502;
  • The sellers or providers must ensure that the consumers write the following statements in their own handwriting on the agreement:
    • For the agreements where the right of withdrawal can be exercised: "I have been informed that I have the right of withdrawal within fourteen days and that I cannot exercise this right verbally. I received a copy of the agreement and the sample withdrawal form by hand."
    • In cases where the right of withdrawal cannot be exercised pursuant to Article 14 of the Regulation: "I am aware that I cannot exercise my right of withdrawal under this agreement."
    • In cases where the right of withdrawal will be lost: "I am aware that I will lose my right of withdrawal if the packaging or protective elements of the goods subject to this agreement are opened."

D.Right of withdrawal

Prior to the Amendment, the right of withdrawal could not be exercised for the agreements concerning i) digital content provided in tangible media if the packaging is opened after the delivery of the goods; and ii) services that have started to be performed upon the approval of the consumer before the expiration of the right of withdrawal period, unless there is an agreement to the contrary by the parties. However, the Amendment excluded such goods and services from Article 14 of the Regulation which sets out the exceptions to the right of withdrawal.

E.Applications for authorization certificates

As of 1 January 2025, in addition to the information and documents previously specified with respect to the applications for authorization certificates to be made by sellers or providers, the following must be submitted:

  • A registry certificate as an alternative to the certificate of activity to be obtained from the chamber of commerce in which the seller or supplier is registered;
  • A business account summary or, if starting a new business, an opening balance sheet and attendance form as an alternative to the most recent balance sheet and income statement approved by a certified public accountant or a sworn public accountant according to the bookkeeping obligation of the seller or supplier;
  • The price list of the goods or services offered for sale.

Provincial Directorates of the Ministry of Trade may request additional information and documents in addition to those listed in Article 20 of the Regulation to protect the health, safety and economic interests of consumers.

Provided that the 2-year validity period has expired before the renewal application is submitted, the validity period of the authorization certificate will be considered extended for a maximum period of 1 month until the application is finalized.

Certificates of authorization for sales outside the workplace whose validity period continues after 1 April 2025 must be renewed until this date.

F.Cancellation of the authorization certificates

Despite the warning as a result of the determination of practices in violation of the Regulation, if such practices are determined again within 1 year from the date of notification of the warning, the authorization certificate of the relevant sellers or providers will be cancelled by the Provincial Directorate.

The sellers or providers whose authorization certificate has been cancelled, and other sellers or providers whose managers, members of the board of directors or partners are authorized to represent them, will not be issued an authorization certificate for a period of 1 year from the date of cancellation.

If the authorization certificate is used except for agreements concluded outside the workplace, the seller's or provider's authorization certificate will be cancelled without warning and the authorization certificate will not be reissued.

Conclusion

Sellers and suppliers engaged in sales outside the workplace should closely examine the Amendment, comply with the conditions set forth for applications for authorization certificates as well as the new obligations imposed, and take the Amendment into consideration in their sales activities.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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