Refurbished Products within the Framework of the Law on Consumer Protection

“Consumption, in simple terms, means using something up. Humans have various needs, and all expenditures made to meet these needs are referred to as consumption.”

With the impact of globalization, consumption has increased at an unstoppable rate. However, alongside this surge in consumption, second-hand/used products continue to gain importance for more sustainable consumption practices. Some consumers prefer these products because they are more affordable, while others choose them to minimize their consumption and promote sustainability.

Mobile phones are particularly notable for being frequently bought and changed in today's world. Their shorter lifespan leads to frequent replacements by users, contributing to electronic waste. Nonetheless, mobile phones still hold significant value after their first use and are more environmentally friendly when refurbished than recycled.

Circular economy concepts have also gained attention among companies in recent years. If sustainability is a key factor in an individual's purchasing decisions, the option of buying a refurbished mobile phone may seem more appealing. Companies can increase consumer awareness and knowledge by providing more information about the refurbishment process through marketing and promotional activities, addressing misconceptions about refurbishment, reducing perceived performance risks, and highlighting the environmental benefits. This makes it easier for companies to successfully market and sell refurbished mobile phones.

Given the continuous increase in the usage and price of technological devices like mobile phones and computers, and the growing market for used tech products, it's crucial for consumers to be informed about what to consider when buying or selling used products. This is important because the supply of used products carries certain risks regarding consumer rights protection. Therefore, consumers should choose safe products, be informed about the product's condition, warranty period, and recall information, and check whether the product is hazardous.

This article will discuss the rules that must be followed in Turkey regarding the resale of used products and what to consider for safely purchasing refurbished products.

What is a Refurbished Product?

According to Article 57/A of the Law on Consumer Protection, refurbished products are defined as "used goods that are resold after improvements have been made to their hardware, software, or physical features."

The regulation specifies a limited number of products (numerus clausus) that can be refurbished, initially including only mobile phones and tablets. However, with an amendment on April 18, 2023, smartwatches, computers (laptops and desktops), modems, and gaming consoles were also added to the list of refurbishable products.

Used products are bought by authorized purchasers from consumers and sold by authorized sellers.

Authorized Purchaser: Refers to a natural or legal person authorized by the refurbishment center to buy used goods for refurbishment on their own or the center's behalf.

Authorized Seller: Refers to a natural or legal person, including public legal entities, who sells refurbished products to consumers for commercial or professional purposes, acting on behalf of or on account of the refurbisher, and authorized by the refurbishment center. The authorized seller may not always be a separate entity, as refurbishment centers can also act as authorized sellers.

Responsibilities of the Authorized Purchaser:

• The authorized purchaser checks whether the used goods with electronic identity information are on the "White List" through the Digital Turkey Portal (e-Government).
• They verify warranty certificates, invoices or retail sales receipts, cash register receipts, expense slips, and similar documents, and keep records of these checks.
• They ensure that used goods with electronic identity information have at least one year of data traffic.
• If the used good has the capability to hold personal data, the authorized purchaser obtains the consumer's consent that the data within the device will be destroyed by the refurbishment center without any data processing and that access to this data will no longer be possible, along with a declaration from the consumer that all legal, administrative, and criminal responsibilities related to the good before its delivery to the authorized purchaser belong to the consumer.
• Following the valuation of the used goods, it shall obtion the consumer’s confirmation of acceptance of this valuation and shall make the payment to the consumer within five business days at the latest from the date of receipt of the confirmation. The amount of thos payment shall be reflected as a discount from the consumer’s commitment for the new goods in the event that the consumer purchases a new good, or a discount shall be provided.

Thanks to these provisions, which are made compulsory by the Regulation, consumers are free from threats to the security of their personal data when selling their products to an authorized purchaser, and authorized purchasers are sure that the product is a safe product. When consumers want to buy a new product after the purchase of used products by authorized purchasers, a discount on the price of the new product also encourages consumers to sell used goods for renewal.

Who performs the refurbishment and what does it include?

Refurbishment of used products is carried out by refurbishment centers authorized by the Ministry, and such refurbished products are then put up for sale after certification. Additionally, refurbishment centers can refurbish all products listed in the relevant regulation without needing a separate authorization, provided they have the service location competency certificate according to the relevant standard.

Firstly, the refurbishment center must check from the records of the Information Technologies and Communication Authority whether the used product has at least one year of data traffic; products not meeting this condition cannot be refurbished. The refurbishment process includes:

• Performing all necessary repairs and part replacements,
• Erasing all information, including personal data of the previous user,
• Restoring the product to factory settings,
• Testing to ensure all functions of the product work as required.

Moreover, the refurbishment center must secure the certification of the refurbished used good with a QR code containing the hologram, commercial name, contact information, refurbishment authorization certificate, and details of the refurbishment process, and ensure this certificate is provided with the refurbished product.

Following the amendment on April 18, 2023, it became mandatory for refurbishment centers to replace batteries of used mobile phones with a capacity below 85% before these phones could be sold as refurbished products. This change has contributed to improving the quality and performance of refurbished products, making them more attractive to consumers. Additionally, when refurbished products are sold using remote communication tools, they must be presented in a separate category from unused goods and other used goods, ensuring consumers do not mistake them for new or differently used products. These changes are important for preventing consumer confusion and providing a safe shopping environment.

Responsibilities of the Authorized Seller:

• When offering a refurbished product for sale, the packaging, label, advertisements, and announcements must clearly state that it is a "refurbished product" and include information about the refurbishment center.
• Before the consumer is obligated to make a payment, they must be informed about the procedures performed on the refurbished product and related warranty issues.
• The refurbished product must be sold with a Turkish manual for introduction and use.
• A minimum one-year warranty for the refurbished product must be provided to the consumer.

Informing consumers about refurbished products before purchase and offering a warranty assures the quality, performance, and reliability of the refurbished product, which in turn enhances its purchase performance.

What should consumers pay attention to when using a refurbished product?

Consumers should follow the guidelines provided in the manual for introduction and use prepared by the refurbishment center for the refurbished product. If the refurbished product is used contrary to the instructions in the manual, resulting in malfunctions, the consumer cannot benefit from the refurbished product warranty commitment.

What rights do consumers have if the refurbished product malfunctions within the warranty period?

During the warranty period of the refurbished product, the consumer has the right to request free repair, exchange for a refurbished product without defects, refund of the paid amount, or a discount on the price.

• If the consumer opts for free repair or exchange, this request must be fulfilled by the refurbishment center or authorized seller within a maximum of 20 business days from the date of request.
• If a refund or price reduction is chosen, the full amount paid or the discount amount must be immediately refunded to the consumer.

In conclusion, used goods meeting the specified conditions are considered "refurbished products." Refurbished products hold significant importance for consumers who prioritize savings in consumption, offering both economic and environmental benefits. However, consumers must ensure that the refurbishment centers and refurbished products meet the listed criteria. Particularly, consumers should ensure that refurbished products come with a hologram-certified certificate issued by the Turkish Standards Institution (TSE). The Law on Consumer Protection aims to protect consumers' health and safety, economic interests, compensate for damages, enable informed choices, and specify the authorities to be approached in case of consumer rights violations. Therefore, the sale of refurbished products to consumers must comply with this law, including consumer rights, the obligation to inform, return of defective goods, exchange, price reduction, or free repair. Consumers should research whether the refurbished product complies with these provisions and be well-informed on this topic. In case of any issues with refurbished products, consumers can contact the authorized seller and/or the relevant refurbishment center (even if they are separate legal entities) as they are jointly responsible for the consumer's legal rights related to the refurbished product.

References

[1] Torlak, Ö.(2000). Tüketim: Bireysel Eylemin Toplumsal Dönüşümü, İstanbul: İnkılap Yayınları p.17

[2] https://www.resmigazete.gov.tr/eskiler/2020/08/20200822-6.htm

[3] https://www.resmigazete.gov.tr/eskiler/2023/04/20230418-4.htm

[4] https://www.resmigazete.gov.tr/eskiler/2021/03/20210311-18.htm

[5] https://www.mevzuat.gov.tr/mevzuat?MevzuatNo=6502&MevzuatTur=1&MevzuatTertip=5

[6] https://tuketici.ticaret.gov.tr/yayinlar/tuketici-bilgi-rehberi/yenilenmis-urunler-hakkinda-bilgilendirme