1. MONTENEGRO Negotiating Team for the Accession of Montenegro to the European Union Working group for Chapter 28 - Consumer and Health Protection Bilateral Screening: Poglavlje 28 PRESENTATION OF MONTENEGRO Brussels, 15-16 April 2013

2. Chapter 28: Consumer and Health Protection Consumer Protection Policy in Montenegro Rada Marković, Deputy Director The Administration for Inspection Affairs rada.markovic@uip.gov.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

3. Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Contents  Relevant acquis of the EU  National legislation  Institutional framework  Administrative capacities  Level of harmonization  Activities in the field of consumer protection (implementation)  Challenges  Planned activities Chapter 28: CONSUMER AND HEALTH PROTECTION

4. Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Relevant acquis of the EU /1 The Treaty on Functioning of the European Union - Chapter II Provisions of General Application, Article 12 “Consumer protection requirements shall be taken into account in defining and implementing other Union policies and activities.“ - Chapter XV Consumer Protection, Article 169 (1) “In order to promote the interests of consumers and to ensure a high level of consumer protection, the Union shall contribute to protecting the health, safety and economic interests of consumers, as well as to promoting their right to information, education and to organise themselves in order to safeguard their interests.” Chapter 28: CONSUMER AND HEALTH PROTECTION

5. Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Relevant acquis of the EU/2 Product safety: -D. 2001/95/EC (General Product Safety), -D. 87/357/EEC (Dangerous imitations), -D. 85/374/EEC (Liability for defective products), -O. 2010/15/EC (Guidelines for the implementation of the RAPEX System) -R. 765/2008/EC, R. 764/2008/EC and D. 768/2008/EC (“New Legislative Framework“) Chapter 28: CONSUMER AND HEALTH PROTECTION

6. Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Relevant acquis of the EU /3 Economic interests of consumers: -D. 2011/83/EC (Consumer rights), -D. 93/13/EEC (Unfair terms in consumer contracts), - D. 90/314/EEC (Travel packages, weekend packages and package tours), - D. 98/6/EC (Indication of prices of offered products), - D. 99/44/EC (Some aspects of the sale of consumer goods and associated guarantees), - D. 2002/65/EC (Distance marketing of financial services), Chapter 28: CONSUMER AND HEALTH PROTECTION

7. Relevant acquis of the EU /4 - D. 2005/29/EC (Unfair commercial practice), - D. 2006/114/EC (Misleading and comparative advertising), - D. 2008/48/EC (Consumer credit agreements), - D. 2008/122/EC (Certain aspects of timeshare, long-term holiday products, resale and exchange contracts), - D. 2009/22/EC (Injuctions for the protection of consumers' interests ), - Commission Recommendation 98/257/EC* and - Commission Recommendation 2001/310/EC* (Out of court settlement of consumer disputes) * New Directive on consumer ADR and Regulation on consumer ODR Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

8. National Legislation / 1 - The Constitution of Montenegro (2007), Article 70: “The state protects consumers. Any action that may harm health, safety and privacy of consumers is prohibited.” -Stabilization and Association Agreement (signed Oct. 2007, entered into force May 1, 2010, Interim SAA Jan. 1, 2008 – 1 May, 2010): - Chapter VI, Article 72 – gradual harmonization of legislation - Article 78: Montenegro accepted the obligations to harmonize consumer protection standards with the European Community standards, i.e. Montenegro shall stimulate and ensure: - active consumer protection policy, - more information and development of NGO sectors, - harmonization of consumer protection legislation, - effective and legal consumer protection in order to improve the quality of goods and services intended for consumers and maintain appropriate safety standards - access to justice in case of consumer disputes, - exchange of information on dangerous products. Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

9. National Legislation /2 The Law on Consumer Protection (2007) By-laws for the implementation of Law on Consumer Protection : Rulebook on the Contents of Keeping Records on Consumer Organizations (2007), Rulebook on the Arbitration Board for the Settlement of Consumer Disputes (2008), Decree on Criteria for Determining Compensation for the Members of Arbitration Board for Extra-Judicial Dispute Settlement(2008), Decree on Criteria for Performing Certain Tasks Established by the National Program for Consumer Protection and Detailed Criteria, Methods and Procedures for Providing Financial Assistance to Consumer Organizations (2008), Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

10. National Legislation / 3 The Law on General Product Safety (2008), The Law on Technical Requirements for Products and Conformity Assessment (2006, 2011) The Law on Metrology (2008...2011)) and other laws on quality infrastructure, The Law on Obligations (2008-2011) The Law on Obligations in Railway Transport (2010) The Law on Obligations and Basics of Property Relations in Air Transport (2011) The Law on Internal Trade (2008), The Law on Tourism (2010-2011) The Law on Electronic Commerce (2004...2011) The Law on Electronic Communications (2008...2013) The Law on Electronic Media (2010...2013) The Law on Central Bank (2010) The Law on Banks (2008-2010) Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

11. National legislation / 4 The Law on Energetics (2010...2013) The Law on Environmental (2008) The Law on Food Safety (2007) The Law on Health Surveillance of groceries and general use products (2007...2010) The Law on the Protection of Patients’ Rights (2010) The Law on Local Self-Government (2003...2012) and other regulations containing consumer protection provisions The Law on Inspection Control (2003…2011) The Law on Market Inspection (2011) The Law on Misdemeanours (2011) The Law on Courts (2002...2011), and other procedural laws Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

12. Strategies National Consumer Protection Program (for three years) and Action Plan for its implementation (for one year) - 2012 Activity Plan for local self-government units for increasing the level of consumer protection - 2011 Market Surveillance Strategy- 2009 National Market Surveillance Program (annual) - 2013 Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

13. Institutional Framework / 1 The Government of Montenegro Other ministries and state administrative bodies Ministry of Economy The Administration for Inspection Affairs Chapter 28: Consumer and Health Protection Agency for Electronic Communications and Postal Services Agency for electronic media Agency for Energetics AGENCIES Central Bank of Montenegro Local self- government units Privredna komora i druga biznis udruženja Nevladine organizacije za zaštitu potrošača Customs Authority Market Surveillance Coordination Body Commission for the implementation of the National Consumer Protection Program Quality Infrastructure Institutions : Metrology, Standardization, Accreditation, Arbitration Board for Out of Court Setlement of Consumer Disputes Banking Ombudsman Ombudsman for Protection of Patients’ Rights COURTS Chamber of Economy and other business associations Consumer Protection NGOs ADR

14. Institutional Framework / 2 Chapter 28: Consumer and Health Protection Suggests regulations Adopts the National Consumer Protection Program Considers and adopts the annual report on the implementation of the National Consumer Protection Program The Government of Montenegro Proposes the National Consumer Protection Program Takes care of the National Consume Protection Program Submits to the government the annual report on the implementation of the National Consumer Protection Programme Performs administrative surveillance (appellate proceedings) in the process of implementing regulations Provides suggestions, prepares draft laws and other regulations and adopts by-laws Cooperates with other bodies, institutions and organisations in the field of consumer protection Ministry of Economy Plans and enforces inspection control of the implementation of regulations (consumers’ economic interests and product safety) Acts upon consumer complaints and initiatives Initiates amendments to regulations Cooperates with other bodies and institutions, business sector, NGOs etc. The Administration for Inspection Affairs Other ministries and state administrative bodies Implement the National Consumer Protection Program within its jurisdiction Provide suggestions, prepare draft laws and other regulations and adopt by-laws Perform administrative surveillance (appellate proceedings) in the process of implementing regulations Cooperate with other bodies and institutions

15. Institutional Framework /3 Chapter 28: Consumer and Health Protection - For electronic communications and postal services - For electronic media - For energetics Resolution of complaints within their jurisdiction The Central Bank of Montenegro Decision on the Uniform Manner of Calculation and Reporting of Effective Interest Rate on Loans and Deposits Decision on Banking Ombudsman Compliance control of loan agreements and their implementation Local self- government units Implementation of consumer policy at the local level inspection control through local inspections within the field of their jurisdiction AGENCIES M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

16. Institutional Framework / 4 Chapter 28: Consumer and Health Protection Support for cooperation and education of the business department in the field of consumer protection and product safety The Chamber of Commerce of Montenegro is administrative and technical support for Arbitration Board for extra-judicial settlement of disputes The Chamber of Commerce of Montenegro and Other business associations Consumer organization activities are prescribed by the Law on Consumer Protection (Art. 121) Non-governmental consumer protection organizations M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

17. Institutional framework / 5 Chapter 28: Consumer and Health Protection Inter-sectoral body (state authorities, agencies, local self-government, NGOs and business department) Established by the Ministry of Economy for a period of duration of the National Consumer Protection Program Monitors the implementation of the National Consumer Protection Program and Action plan and prepares annual reports Provides guidelines for the preparation of the National Consumer Protection Program and Action Plan The Commission for the Implementation of the National Consumer Protection Program Established in 2010 by the decision of the Government of Montenegro Composition (inspections responsible for market surveillance, Customs Body, Ministry of Economy – The Sector for Quality Infrastructure) Tasks: implementation of Market Surveillance Strategy, Market Surveillance Coordination, preparation of Market Surveillance Program, monitoring the implementation of this Program, etc. Activities: The list of jurisdictions sorted by product groups, the National Market Surveillance Program (annual) Market Surveillance Coordination Body M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

18. Institutional Framework /6 Chapter 28: Consumer and Health Protection Law on Consumer Protection (2007), and Rulebook on the Arbitration Board for the Settlement of Consumer Disputes (2008), Decree on Criteria for Determining Compensation for the Members of Arbitration Board for Extra-Judicial Dispute Settlement(2008), Counts 20 members (10 from NOGs and 10 from business sector) First time members were appointed in 2008, second time in 2012 Acting upon individual complaints of the consumers Arbitration Board for Out of Court Setlement of Consumer Disputes M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

19. Institutional Framework /7 Chapter 28: Consumer and Health Protection The Decision of the CBMN on Banking Ombudsman (2009-2012) The Decision of the Parliament on apointment of banking Obmudsman (2010) Banking Ombudsman In accordance with the Law on the Protection of Patients’ Rights Ombudsman for Protection of Patients’ Rights Acting upon individual actions The right to compensation for damage on a product that is to be repaired Compensation for damage caused by the use of defective product Other consumer acctions, in accordance with the law (e.g. Law on Consumner Protection and Law on obligations) Acting upon collective actions Courts M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

20. Administrative Capacities/ 1 Chapter 28: Consumer and Health Protection The Ministry of Economy / Sector for Internal market: The Department for Consumer Protection/2, Infrastructure The Department for Quality Infrastructure/4 The Administration for Inspection Affairs, 28 / 17 inspections, competent for: -Protection of economic interests of consumers, and -Market surveillance

21. Administrative Capacities/ 2 Chapter 28: Consumer and Health Protection Competent inspections within Administration for Inspection Affairs: 1.Market Inspection, 50 2.Healthcare and Sanitary Inspection, 37 3.Tourism Inspection, 21 4.Phytosanitary Inspection, 17 5.Veterinary Inspection, 20 6.Agricultural Inspection, 7 7.Environmental Inspection, 7 8.Inspection for Games on Chance, 4 9.Inspection for services of Information Technology, 1

22. Administrative Capacities/ 2 Chapter 28: Consumer and Health Protection 10. Termoenergetic Inspection, 1 11. Electroenergetic Inspection, 2 12. Mining Inspection, 1 13. Labor Inspection (Inspectors for Safety at Work), 9 14. Inspection of Electronic Communication and Postal Activity, 1 15. Metrological Inspection, 1 16. Construction Inspection, 3 and 17. Home Inspection, 2

23. Administrative Capacities/ 3 Chapter 28: Consumer and Health Protection Inspectors – university degree, different occupations, education Powers, administrative measures, sanctions Education and specialization / for the implementation of national and European legislation that shall be applied directly, when Montenegro becomes a Member State/

24. Level of Harmonization / 1 Consumer Legislation/economic interests of consumers/ is transferred to National Legislation by the following laws: The Consumer Protection Law (2007) - 10 Directives and 2 Recommendations The structure of the Law: - General principles of consumer protection: - Organizational structure of consumer protection - Some contractual relations that consumers enter into. Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

25. Level of Harmonization / 2 The Law on Obligations - 4 Consumer Directives -Subsidiary application: The provisions of the Law on Obligations apply to contractual and legal relations between traders and consumers, unless otherwise provided by the Law on consumer Protection. The Law on Tourism – 1 Consumer Directive The Law on Banks– 1 Consumer Directive The Law on Electronic Media– 1 Consumer Directive Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

26. Level of Harmonization / 3 Analysis of the level of harmonization of existing legislation by Ministry of Economy with the support of the expert team of AIM project (IPA 2009) for the purpose of further harmonization of legislation: *http://www.mek.gov.me/ResourceManager/FileDownload.aspx?rid=126923&rType=2&file=Guidelines%20for%20Harmonisation%20of%20Montenegrin% 20%20CP%20Legislation.pdf 1. High level of harmonization: - D. 85/577/EEC (contracts concluded out of business premises)*- The Law on Consumer Protection - D. 93/13/EEC (unfair provisions in consumer contracts) – The Law on Consumer Protection, The Law on Obligations - D. 94/47/EC (“timeshare”)* - The Law on Consumer Protection - D. 97/7/EC (distance contracts)*- The Law on Consumer Protection - D. 98/27/EC (judicial and administrative prohibitions for consumer interest protection)*- The Law on Consumer Protection - D. 99/44/EC (Some aspects of the sale of consumer goods and associated guarantees) –The Law on Consumer Protection, The Law on Obligations -Commission Recommendation 98/257/EC and -Commission Recommendation 2001/310/EC (out of court settlement of consumer disputes)- The Law on Consumer Protection * Directives which are withdrawn by the adoption of new Directives Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

27. Level of Harmonization / 4 2. Partly harmonized: -D. 87/102/EEC (consumer credits)* - The Law on Consumer Protection, The Law on Obligations, The Law on Banks -D. 98/6/EC (indicating prices of offered products) – The Law on Consumer Protection -D. 90/314/EEC (travel packages, weekend packages and package tours) – The Law on Tourism, The Law on Obligations -D. 2005/29/EC (unfair commercial practice) – The Law on Consumer Protection -D. 2006/114/EC (Misleading and comparative advertising) – The Law on Consumer Protection, The Law on Electronic Media -D. 85/374/EEC (Liability for defective products) – The Law on Obligations, The Law on Consumer Protection 3. Not harmonized: D. 2002/65/EZ (distance sale of financial services) Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

28. Level of Harmonization / 5 Consumer legislation on product safety is transferred to national legislation by the following laws: The Law on General Product Safety– 2008 The Law on Technical Requirements and Conformity Assessment- 2011 The Law on Market Inspection- 2011 1. Fully harmonized: - D. 87/357/EEC (dangerous imitations) – The Law on General Product Safety 2. High level of harmonization: -D. 2001/95/EC (general product safety) – The Law on General Product Safety -R. 93/339/EEC (product control while importing from third countries)* - The Law on General Product Safety 3. Partly harmonized: -R. 765/2008/EC and D. 768/2008/EC (new Package of Measures) - The Law on Market Inspection, The Law on Technical Requirements and Conformity Assessment 4. Not harmonized: R. 764/2008/EC Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

29. Activities...(implementation) / 1 1. Implementation of planned activities (according to Action Plan of the National Consumer Protection Program) 2. Implementation of IPA 2010 project “Market Surveillance and Consumer Protection” Harmonization of legislation Improvement of staff and technical capacities (staff education, preparation of software for the National System for the Exchange of Information on Dangerous Products, preparation of Central Information System for Consumer Complaint Management) Support for Market Surveillance Coordination Body Raising awareness on market surveillance and consumer protection 3. Implementation of the regional project “Cooperation of market surveillance bodies JIE” (financed by the Government of the Federal Republic of Germany, implemented by GIZ ORF) Memorandum of Cooperation between Market Surveillance Bodies is prepared, Information Exchange Network is being prepared. Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

30. Activities...(implementation) / 2 4. Implementation of laws: - Administrative protection - Extra-judicial (out of court) protection - Judicial protection a) Administrative protection -Applies the Law on Consumer Protection, The Law on General product Safety and other sectoral regulations which contain consumer protection provisions (consumers’ economic interests and product safety) -In accordance with the Law on Inspection Control, the Law on Misdemeanors, etc. -Authorities (inspections, agencies) in inspection procedure or appellate procedure -According to inspection plan, consumer complaints, initiatives and announcements of other persons Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

31. Activities...(implementation) / 3 1. Competent inspection bodies (inspection control): - The Administration for Inspection Affairs (inspections: Market Inspection, Health and Sanitary Inspection, Veterinary Inspection, Phytosanitary Inspection, Tourism Inspection, Metrology Inspection, Environmental Inspection, Inspection for Electronic Communication and Postal Services, Inspection for Information Society Services, Electro energetic Inspection, Term energetic Inspection, Mining Inspection, Labor Inspection, Construction Inspection,...) - Ministry of Transport and Maritime Affairs (inspections: for road, railway and sea transport) - Ministry of the Interior (inspection responsible for explosives and pyrotechnics) - Competent local inspections within their jurisdiction - Surveillance planned according to consumer complaints and initiatives of other persons Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

32. Activities...(implementation) / 4 2. Agencies: -For electronic communications and postal services -For electronic media -For energetic *According to consumer complaints and initiatives of other persons Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

33. Activities...(implementation) / 5 Consumer complaints and initiatives have the priority in the inspection control process They can be received by: -The inspector on duty, -Hot line, call centre, -Written complaints, -Oral complaints in an inspection, -e-mail, -web site * Previous address to a trader Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

34. Activities...(implementation) / 6 b) Out of court protection - Arbitration Board (within the Chamber of Commerce of Montenegro) - Banking Ombudsman - Ombudsman for the protection of patients’ rights c) Judicial protection - According to individual consumer complaints - Protection of collective consumer interests Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

35. Challenges Improvement of the resources (employment and education of the staff, Central Information System for Consumer Protection-CISCP) Improvement of consumers’ knowledge about their rights and raising public awareness about the significance of consumer protection Cross-border cooperation in the field of consumer protection Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

36. Planned activities / 1 Full harmonization of national legislation with the EU law Effective protection of consumer rights: - implementation of legislation, - improvement of administrative capacities and cooperation between authorities, - establishment of central information system for the management of consumer complaints - further improvement of cooperation with NGOs - raising public awareness on significance of consumer protection and education - establishment of consumer counseling - cross-border consumer protection Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

37. Planned activities / 2 Full harmonization of consumer legislation (consumers’ economic interests) (2013-2014) with: -D. 85/577/EEC, D. 85/374/EEC, D. 93/13/EEC, D. 97/7/EC, 98/6/EC, D. 99/44/EC, 2002/65/EC, 2005/29/EC, D. 2008/122/EC, D. 2009/22/EC and two Recommendations R.. 98/257/EC and R. 2001/310/EC - The New Law on Consumer Protection /proposal/ -D. 2008/48/EC – The Law on Consumer Credits/proposal/ -D. 2006/114/EC – The Law on Prohibition of Misleading Advertising /draft/ -D. 90/314/EEC – The Law on the Amendments to the Law on Tourism /draft/ -A number of by-laws for the implementation of the above mentioned laws -D. 2011/83/EC - The Law on Amendments to the New Law on Consumer Protection/planned/ -Future inclusion of transposition measures for D. ADR and R. ODR Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

38. Planned activities / 3 Proposal for the New Law on Consumer Protection (contents) On the basis of the Analysis of the level of harmonization of existing Consumer Legislation (IPA 2009) and relevant legislation of the EU, the Ministry of Economy made the following contents for the New Law on Consumer Protection: Eight parts: 1. Basic provisions (the subject of the law, definitions, implementation of other regulations, binding nature, the choice of foreign law) 2. Protection of Consumers’ Protection Interests Chapter I: Basic provisions on circulation of goods -Information on product -Emphasizing prices -Other obligations of merchants -Sale benefits Chapter II: Services of General Interest Chapter III: Compliance with the contract and guarantee Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

39. Planned activities / 4 Proposal for the New Law on Consumer Protection (contents) Chapter IV: Contracts concluded out of business premises Chapter V: Distance contracts Chapter VI: Distance contracts for financial services Chapter VII: Contracts for tourist services (timeshare) Chapter VIII: Unfair provisions in consumer contracts 3. Unfair commercial practice 4. Consumer rights protection Chapter I: Protection of collective consumer interests Chapter II: Property and legal protection - right to compensation - extra-judicial protection Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

40. Planned activities / 5 Proposal for the New Law on Consumer Protection (contents) 5. Implementation of consumer protection Chapter I: The National Consumer Protection Program Chapter II: Consumer Protection System - Consumer protection holders - Consumer protection organization at the state level (Art.157-161) Article 159: Monitoring data on law enforcement “Ministries, other state administrative bodies and local government bodies, as well as other bodies responsible for the enforcement of this and other laws which contain consumer protection provisions, shall keep records on surveillance data, including the records on received consumer complaints and their resolution. The courts competent for resolution of consumer disputes shall keep records on consumer disputes. Bodies and courts from the first and second paragraph of this article shall submit the data on surveillance records, received consumer complaints and their resolution, and data on consumer disputes to the Ministry on a prescribed form. The Ministry prescribes more detailed contents, the way of keeping records and the form for submission of data in the first paragraph of this Article. The Ministry responsible for judiciary prescribes more detailed contents, the way of keeping records and the form for submission of data in the second paragraph of this Article”. Article 160: Consumer Protection Council „The Government establishes the Council so that it could provide proposals for making decisions on professional issues and professional assistance in the procedure of making decisions and preparation of regulations in the field of consumer protection.” Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

41. Planned activities / 6 Proposal for the New Law on Consumer Protection (contents) - Consumer protection at the local level - Consumer organizations (NGOs) Chapter III: Inform and educate consumers 6. Administrative and legal consumer protection (acting upon consumer requests) Article 172 Paragraph 1: “If a merchant does not respond to consumer’s objection within the period from the Article 27 paragraph 1 of this Law, a consumer may submit the request for consumer protection from this Law to the administrative body responsible for inspection control of the enforcement of this Law, which shall undertake measures in accordance with this Law. “ Paragraph 2: “If a merchant rejects the objection, a consumer may submit the request for the protection of rights to the competent inspection body or seek protection in extra-judicial or judicial procedure. “ If an inspection body, upon the request for the protection of rights, may determine that violation of rights occurred, it will order a merchant to act upon the consumer’s complaint, and if it is unable to determine whether violation of rights occurred or not, it will inform the consumer in written form that he can seek the protection of his rights in extra-judicial or judicial procedure. Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

42. Planned activities / 7 Proposal for the New Law on Consumer Protection (contents) 7. Surveillance Article 173 Paragraph 2: “Inspection control of the enforcement of this law is performed by the administrative body responsible for inspection control, state administrative bodies through competent inspections, independent legal persons who are authorised to perform inspection control, as well as competent local government bodies through local inspectors, within the jurisdiction of local self-government.” Paragraph 3: „ Upon the proposal of the Ministry and in accordance with the law which regulates inspection control and special laws, the Government establishes by the special act the list of bodies, from the second paragraph of this article, which are responsible for inspection control of the enforcement of this law and other laws which contain provisions of consumer protection.” Paragraph 4: „the Ministry creates the Report on Cooperation and Acting of Competent Authorities Upon Consumer Complaints and submits it to the European Commission every year”. Note: Implementation is postponed until the accession of Montenegro to the European Union. 8. Penalty provisions Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

43. Planned activities / 8 Proposal for the New Law on Consumer Protection (provisions with postponed implementation) 9. Transitional and final provisions Article 184: Implementation is postponed until the accession of Montenegro to the European Union.: Article 118 paragraph 3: “Consumer organizations from Article 168 paragraph 1 are authorized to initiate the procedure for the protection of collective interests before competent authority of some other EU member state.” Article 129: Active identification of bodies from other EU member states Article 131 paragraph 5: Compensation for the damage caused by the use of defective product (the amount of damage grater than 500€) Article 168 paragraph 6: The list of organizations authorized to file representative actions shall be submitted to the European Commission within 15 days from the day of its identification. Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

44. Planned activities / 9 Full harmonization in the field of product safety: -D.2001/95/EC and D. 87/357/EEC – The New Law on General Product Safety -R. 2008/765 (market surveillance provisions) and R. 2008/764 (Art. 9 and 10 -tasks of “Product Contact Point”), D.2001/95/EC (in the field of product compliance and risk assessment for consumer products) – The Law on Market Surveillance -D. 2010/15/EZC – The New Provision of Information Exchange on products posing a risk -Other by-laws for the implementation of the above mentioned laws Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

45. Planned activities / 10 -Activity plan for the implementation of regulations from the Progress Report of the European Commission (2013) includes: -Harmonization of legislation -Support for consumer organizations in order to develop capacities for the improvement of consumer rights -The first annual report on the implementation of the Activity Plan of the National Consumer Protection Program (2012-2015) -The second annual report of the Activity Plan of the National Consumer Protection Program -Development of the software for the National System for the Exchange of Information on Dangerous Products (RAPEX- Rapid Exchange of Information System) -Establishment of the Central information system for the management of consumer complaints Chapter 28: Consumer and Health Protection M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

46. Thank you for your attention. QUESTIONS