Amendment against fraudulent business practices

The Ministry of Trade and Industry, together with the Czech Trade Inspection, prepares a complex solution to increase pressure on fraudulent businessmen.

The proposed amendment should prohibit executives or board members of legal bodies, whose trade was abolished in a punitive action, from doing business in the same field by establishing a new legal entity.

In addition to this amendment and based on the forthcoming European directive, the MIT is preparing a base for the application of the Alternative Dispute Resolution (ADR), which is supposed to bring a simple, fast, and locally available procedure without the necessity of payment of any extra fees by consumers.

An additional measure taken in connection with the Inspection Rules that will take effect from January 2014 will be the use of recording equipment by the CTI controllers. In 2012, the methodology, on the basis of which the CTI transmits cases of detected violations of the Law to general trade authorities as a basis for termination of a trade license of those entrepreneur, who commits such fraudulent or aggressive commercial practices, was also completed.

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