Turkish Parliament approves law amending consumer protection regulations

The Turkish Parliament has approved a law amending the Consumer Protection Law. This new legislation permits contracts between credit providers and consumers to be conducted through electronic communication devices.

The regulations facilitate the establishment of consumer credit agreements via distance communication tools, allowing related transactions to be completed electronically through permanent data storage devices.

Definition of direct sales system

The law defines direct sales systems as those in which independent representatives, distributors, consultants, and others – who a direct sales company does not employ – sell goods or services to consumers in exchange for commissions, bonuses, incentives, and rewards.

30-day right of withdrawal

Under the new law, direct sales companies must operate as capital companies. The direct sales system must primarily focus on selling goods or services to consumers rather than generating profits by recruiting new direct sellers and distributing associated benefits. It must also comply with other principles established in the relevant regulations.

Consumers will have a 30-day right of withdrawal from the direct sales system. Additionally, direct sellers are prohibited from imposing any fees or obligations – such as renewals, packages, charges or memberships – that are unrelated to the goods or services intended for sale.

Fines ranging from ₺60,000 to ₺600,000

Those who violate obligations specified in the unfair commercial practices clause may face penalties, including a suspension of the unfair practice for up to three months or an administrative fine ranging from ₺60,000 ($1.750) to ₺600,000 ($17.508).

If violations occur on a national scale, fines can reach between ₺600,000 and ₺6 million ($175.087).

To calculate the licensing fee for 2024, the total value of overseas sales made through electronic commerce intermediary service providers on marketplaces, along with investment expenditures incurred with an investment incentive certificate, will be deducted from the net transaction volume at a rate of four times.

For 2025, the same deductions will apply at a rate of three times the amount of such sales and expenditures.