CZECH REPUBLIC Law and Practice Contributed by: Irena Lišková, Ladislav Mádl, Eliška Říhová and Adam Vymazal, Randl Partners
the seller, or the consumer’s participation in a market - ing event organised by the seller. General requirements for a consumer contest are: • clear and comprehensive rules in Czech language provided to all entrants must be available for the whole duration of the consumer contest; • the prizes that are advertised must be the same as the prizes given to consumers; and • at least one prize must be always awarded (at least one winner). A consumer contest is never classified gambling under the Gambling Act. Moreover, rules on personal data protection (the GDPR), advertising (the Advertising Regulation Act) and tax (the Income Taxes Act) should also be con - sidered. 7.2 Contests of Skill and Games of Chance In the context of consumer protection law, there is no distinction made between contests of skill and games of chance, as long as the winner is identified at ran - dom. Should the winner be selected solely based on their skill (ie, the best wins), such practice would not be considered a “consumer contest” as defined in 7.1 Sweepstakes and Contests . There is no clear definition of a contest of skill; how - ever, such contests are generally governed by the Civil Code, with the most important rule being that if the prize is not awarded, the winner cannot claim it. How - ever, if the contest of skill requires only manual skill or physical exercise on both sides, the prize can be claimed, and once the prize has been awarded, the losing party cannot reclaim it. A contest of skill may also meet the definition of gam - bling under the Gambling Act – if the outcome depends in whole or in part on a coincidence or chance, it is classified as gambling (provided that the other condi - tions of gambling are also met, such as placing a bet). 7.3 Registration and Approval Requirements There is no registration or filing required for a skill- based contest or chance-based game unless it falls
under the scope of the Gambling Act. As mentioned in 7.2 Contests of Skill and Games of Chance , con - sumer contests are not subject to the Gambling Act. Only organised consumer marketing events intended for a limited number of consumers who have been invited by name or anonymously, during which prod - ucts are sold, services are provided or promoted, or offers are made, are subject to registration with the Czech Trade Office. However, these are not games of chance and/or contests of skill. 7.4 Free and Reduced-Price Offers Under the Consumer Protection Act,products must not be advertised as “free of charge” when their acqui - sition requires additional costs other than the real costs of postage, communication or shipping, where applicable. If other costs apply, a disclaimer must be provided, otherwise using the term “free” is consid - ered a deceptive business practice. It can also be considered a deceptive business prac - tice if a seller offers products or services at a certain price without disclosing any reasons to believe they cannot supply them – either directly or through anoth - er trader – in the advertised quantity or at that price for the stated period (bait advertising). For reduced-price goods (not services), sellers must inform consumers of the lowest price at which the product was previously offered or sold. This obligation does not apply to rebates, unless a discount is pre - sented as a personalised offer but is actually available to the general public. Examples include widely shared discount codes like “20% off everything this weekend with code XYZ”, or offers such as “25% off for loyalty members”, where most customers qualify. 7.5 Automatic Renewal/Continuous Service Offers An entrepreneur providing a publicly available elec - tronic communications service or providing a con - nection to a public communications network shall inform the consumer in writing, at least one month before the expiry of a fixed-term renewable contract, of the imminent termination of the contract and of the options for its extension. If the contract is automati - cally renewed, the consumer has the right to terminate
100 CHAMBERS.COM
Powered by FlippingBook