Law on the Amendment of the Law on the Protection of Consumers and Certain Laws

Law on the Amendment of the Law on the Protection of Consumers and Certain Laws No. 7529 (‘Amendment Law’) has been published in the Official Gazette dated 30 October 2024 and numbered 32707. The Amendment Law introduces significant amendments to various laws, in particular the Law on Consumer Protection No. 6502 (‘Law’).

Direct Selling Systems

A direct selling system is defined as “a sales system in which direct sellers, who are created by the direct selling company and who are not employed under an employment contract and who operate under the names of independent representatives, distributors, consultants and similar names in return for benefits such as commissions, premiums, incentives and rewards, market goods or services to consumers” under the Amendment Law.

Accordingly, direct selling companies must be capital companies, the profit structure of the system must not be based on the inclusion of new members and must be based on the sale of goods or services to consumers, and a system must be established to inform consumers and in order for them to communicate their requests and notifications. In addition, within the scope of the direct selling system, consumers have the opportunity to exercise their right of withdrawal within 30 days.

Administrative fines to be imposed for violations of the rules regarding direct selling systems are also regulated separately. Accordingly, the administrative fines that can be imposed are as follows:

▪️ TRY 5,000,000 per violation in case of breach of the rule of being organised as a capital company and not establishing the profit structure on the inclusion of new members;

▪️ TRY 1,000,000 in case the direct selling companies do not establish a system for informing the consumer and in order for them to communicate their requests and notifications;

▪️ TRY 2,200 per transaction if the consumer is prevented from exercising the right of withdrawal within 30 days.

The provisions on direct selling systems explained above, including administrative fines, will enter into force as of 30 July 2025.

Amendments on Consumer Loans and Housing Mortgages

With the amendments made to the Law, it is now possible to conclude consumer loan and housing mortgage agreements by distance contracts, and it is now possible for consumers to submit their requests for loan or housing mortgage accounts in writing, as well as via permanent data storage devices such as short messages and e-mails. These amendments aim to provide more convenience in the protection of consumers' rights and in the monitoring of their transactions.

Increase in Administrative Fines

In the administrative fines section of the Law, the minimum and maximum limits of the fines have been increased and administrative fines imposed by the Advertisement Board have been included in the scope of reconciliation with the Amendment Law. The minimum and maximum limits of the administrative fines that the Advertisement Board may impose are as follows:

▪️ TRY 60,000 – TRY 600,000 in case of unfair commercial practice,

▪️ TRY 600,000 – TRY 6,000,000 in case of unfair commercial practice throughout the country.

The administrative fines to be imposed in case of breach of the Law's rules on commercial advertisements have also been amended as follows:

▪️ TRY 110,000 – TRY 1,000,000 in case of realisation through a local TV channel,

▪️ TRY 2,210,000 – TRY 22,100,000 in case of realisation through TV channels broadcasting nationwide,

▪️ STRY 55,000 – TRY 11,050,000, depending on whether it is local or nationwide if it is realised through a periodical publication,

▪️ YTRY 60,000 – TRY 600,000 in case of realisation through local or satellite broadcasting radio,

▪️ TRY 600,000 – TRY 6,000,000 in case of realisation through radio broadcasting nationwide,

▪️ TRY 600,000 – TRY 6,000,000 in case of realisation via satellite TV or internet,

▪️ TRY 280,000 – TRY 2,800,000 in case of realisation via SMS.

Amendments to the Law on the Regulation of Electronic Commerce

With the Amendment Law, additional provisions have been introduced regarding the deduction of net transaction volumes of electronic commerce intermediary service providers from licence fees at certain rates. In this context, temporary articles specific to the years 2024 and 2025 and additional provisions regarding the calculation of licence fees have also been introduced.

New Regulation Within the Scope of Electronic Commerce Legislation

The Regulation on Market Surveillance and Inspection of Products Placed on the Market through Remote Communication Tools (‘Regulation’), which was also published in the Official Gazette dated 30 October 2024 and numbered 32707, will enter into force on 1 April 2025. The Regulation covers the conditions of placing on the market, the information required to be included in the sales announcements and the obligations of the enterprises that place these products on the market, for products that are placed on the market or kept on the market through remote communication tools (internet, telephone, etc.). In addition, the powers and responsibilities of authorised public institutions in these matters have been determined and the principles regarding the inspection activities to be carried out in order to protect the public interest have been outlined.

The Amendment Law aims to protect consumer rights on a stronger basis through amendments to various laws, particularly the Law on Consumer Protection. In particular, the new regulations on direct sales systems and distance sales aim to prevent consumer grievances while clarifying the standards that businesses operating in such fields must comply with. In addition, more deterrent measures have been introduced to prevent consumers from being deceived with increased administrative fines in the field of electronic commerce and advertising.