The offer or sale of goods and services must be carried out with due regard for good commercial practices and be fair to the customer.
A commercial practice is an activity, omission, course of conduct or representation, commercial communication, including advertising, or marketing by a trader or service provider that is directly linked to the advertising, offering, sale or supply of goods or services to the consumer.
A commercial practice is considered unfair if it conflicts with the trader’s commercial or professional due diligence requirements and, in relation to a good or service, distorts or is likely to distort the economic behaviour of the average consumer who these goods or services reach or to whom they are directed.
The use of unfair commercial practices is prohibited both before and after the transaction and at the time of the of the transaction. In particular, unfair commercial practices are practices that are misleading or aggressive to consumers.
A misleading commercial practice may be either an activity or an omission.
Misleading commercial practices are commercial practices by which the consumer is provided with false information or provided correct information in a way that is likely to mislead the consumer because it is unclear, incomprehensible or ambiguous. Consumers should also not be deprived of essential information that would help them decide whether or not to make a purchase.
Information is incorrect if it contains false facts regarding, for example:
- the existence, nature, and main characteristics of the goods or services;
- the extent of the trader’s obligations and the consumer’s rights, including the right to claim a replacement or compensation in accordance with the Law of Obligations Act;
- the price or a specific price advantage;
- the need for maintenance, spare parts, replacement or repair.
The Consumer Protection Act outlines misleading and aggressive commercial practices, which are always, under all circumstances, prohibited.
The following shall always be deemed misleading and prohibited:
- bait advertising;
- bait-and-switch;
- a claim that the goods are only available for a limited period of time;
- presenting the rights granted to consumers by legislation as a distinctive feature of the trader's offer;
- a claim that there is a risk of harm to the consumer or their family if the consumer does not purchase the goods or services;
- a claim that the trader is about to cease trading;
- a claim that the goods are able to cure illnesses, dysfunctions or malformations;
- describing the goods with the words ‘without charge’ or ‘free’ if the consumer has to pay anything other than the unavoidable cost of responding to the offer and collecting or delivery of the goods.
In addition, any pyramid schemes, whereby the consumer has to pay money to participate and is promised the opportunity to receive compensation for involving other consumers in the system and similar, are prohibited.
The law also prohibits the use of aggressive commercial practices, including harassment, coercion, undue influence, with which the trader restricts the consumer’s freedom of choice.
For example, it is prohibited to create the impression that the consumer cannot leave until a contract is concluded, to make persistent and unwanted offers by telephone or e-mail, to demand payment for unsolicited goods sent to the consumer, to visit the consumer’s home and refuse to comply with the consumer’s request to leave, to create the impression that the consumer has won or is very likely to win something and similar.
The fact that unfair commercial practices are prohibited does not nullify the transaction. For example, if the trader communicates misleading information about the goods to the consumer, it is a misleading commercial practice which is prohibited, but sales made as a result of such a sale transaction are not considered null and void.
Consumers harmed by unfair commercial practices may file an action with a court and seek redress or assistance from the Consumer Disputes Commission (in Estonian).