Regional Round Table – Development of System of Cons. Protection in BiH Zagreb, March 10th 2010

1. Bosnia and Herzegovina Ministry of Foreign Trade and Economic Relations Department for Market Surveillance, Consumer Protection and Competition Regional Round Table – Development of System of Cons. Protection in BiH Zagreb, March 10th 2010 Presenter: Sabljica Samir, Lawyer

2. Law on Cons. Protection 2002 – it had some disadvantages • In the framework of the EC financed project “Assistance to the establishment of a Single Economic Space in Bosnia and Herzegovina”, which provided technical assistance to the MoFTER, a pluralistic working group has prepared and proposed the new Law on Consumer Protection. • As proposing body, the Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina, has gathered opinions from the competent institutions of Bosnia and Herzegovina. It then clarified the suggestions and remarksitreceived.

3. The Law was adopted by the two parliamentary assemblies of Bosnia and Herzegovina in January 2006.Law on Consumer Protection was published in the Official Gazette of Bosnia and Herzegovina no. 25/2006. It should be stressed that the new Law on Consumer Protection is fully harmonised with primary legislation of the European Union: theTreaty onEuropean Union, final version 2002, Chapter 14, Articles153. and 95.

4. Law on CP • The Law on Consumer Protection is partly harmonised with secondary legislation of the European Union, including: 1. Directive 98/6 of 16 February 1998 on the indication of prices; 2. Directive 84/450/EEC of 10 September 1984 on misleading advertising, as amended by the Directive 97/55/EC of 6 October 1997 on comparative advertising; 3. Directive 85/577/EC of 20 December 1985 on sales concluded away from business premises; 4. Directive 90/314/EEC of 13 June 1990 on package travel; 5. Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts; 6. Directive 94/47/EC of 26 October 1994 on timeshare agreements; 7. Directive 97/7/ EC of 20 May 1997 on distance contracts; 8. Directive 98/27/EC of 19 May 1998 on action for an injunction; 9. Directive 2002/65/EC of 23 September 2002 on the distance marketing of financial services; 10. Directive 87/102/EEC, 90/88/EEC, 98/7/EC of 22. December 1986 for the approximation of the laws, regulations and administrative provisions of the Member State concerning consumer credit

5. Other Laws • Law on General Product Safety («The Official Gazette of BiH» No. 45/2004) • Law on General Product Safety (OG of BiH No 102/09), new law which replaced the LGPS 2004 • The Law on Market Surveillance in Bosnia and Herzegovina (”The Official Gazette of BiH”, No.45/2004) • Law on Tecnical Requirements for Products nad Conformity Assesments («The Official Gazette of BiH» 45/04) • Law on Standardization in BiH («The Official Gazette of BiH» 19/01) • Law on Communications («The Official Gazette of BiH» 31/03) • Law on Health Care (entity level) • Law on Obligations (Law on obligations, SFRJ Official Gazette No. 29/78, 39/85 and 57/89), which came into force in 1978 and was adopted by the both entities • Law on Trade (entity level) • The Law on Food (”The Official Gazette of BiH”, No.50/2004) • There is, also a series of laws and other regulations which directly or indirectly influences on consumer’s law and obligation, and that’s why the above mentioned list could be wider.

6. INSTITUTIONAL FRAMEWORK • Consumer protection holders • The Competent Authorities for consumer protection in Bosnia and Herzegovina are the following: • a) MOFTER of Bosnia and Herzegovina; • b) Bosnia and Herzegovina Consumer Ombudsman;  • c)Bosnia and Herzegovina Consumer Protection Council; • d) Bosnia and Herzegovina Competition Council; • e) Competent bodies of the entities and Brcko District; • f) Competition and Consumer Protection Offices in the Federation of Bosnia and Herzegovina and the Republic of Srpska; • g) Consumer associations; • h)  Educational institutions and the media; • I) Market Inspection and other bodies, according to the law.

7. MOFTER • Within its area of jurisdiction, the Ministry of Foreign Trade and Economic Relations performs activities related to consumer protection, in particular, as follows: • a) coordinates completion of the National Annual Consumer Protection Program; • b) coordinates work and activities related to consumer protection with the competent bodies of the entities and Brcko District, Consumer Protection Council of Bosnia and Herzegovina, Competition Council of Bosnia and Herzegovina and the Entity Competition and Consumer Protection Offices; • c) monitors the situation in consumer protection sphere and proposes to the competent authorities changes in legislation related to consumer protection; • d) cooperates and exchanges information and data with all subjects in charge of consumer protection; • e) keeps records on the public authority allocations to the Union of the Bosnia and Herzegovina Consumer Associations. Department for MS, Cons. Protection and Competition was established on the first May 2007 within MoFTER.

8. The Consumer Ombudsman of Bosnia and Herzegovina • The Consumer Ombudsman of Bosnia and Herzegovina is an independent institution set up in order to promote a good and effective implementation of consumer protection policy in BiH. • The first Consumer Ombudsman was appointed by the Council of Ministers of BiH following a proposal by the Ministry of Foreign Trade and Economic Relations. The first Ombudsman was appointed at the end of 2006. • The Consumer Ombudsman is appointed for a period of five years and may be re-elected for a further period of five years. • The institution of the consumer ombudsman of BiH has a status of a legal person with its headquarters in Mostar. • The by-laws and rules of operation of the institution shall be approved by the Council of Ministers of BiH. • Funding for the Consumer Ombudsman institution shall be secured from the budget of the State institutions of BiH.

9. The Consumer Ombudsman of Bosnia and Herzegovina • The Consumer Ombudsman shall be empowered: • a) to issue instructions to cease and desist from practices contrary to consumer legislation and to enforce such instructions before the courts • b) to mitigate the procedure before the competent courts. • c) to bring cases to the courts to get compensation for damage caused to the collective interests of consumers, in accordance with the provisions of this Law. Decisions of the Consumer Ombudsman may be appealed against only to the extent that this Act or any other related legislation expressly allows such appeal.

10. The Consumer Ombudsman of BiH • The criteria for the alternative resolution of consumer disputes (Official Gazette of BiH No 13/09) • Instructions for handling complaints on the occasion of violation of consumer rights (2008) • Special reports in the field of economic services of general interest (www.ozp.gov.ba)

11. Consumer Protection Council of BiH • The Council of Ministers shall approve members of the Consumer Protection Council of Bosnia and Herzegovina, which includes the following representatives: • a) MOFTER, chairman • b) Competition Council of Bosnia and Herzegovina; member, • c) Veterinary Office of Bosnia and Herzegovina; member, • d) Office for Phyto-Sanitary Protection of Bosnia and Herzegovina; member, • e) Statistics Agency of Bosnia and Herzegovina; member, • f) Institute for standards of Bosnia and Herzegovina; member, • g) Institute for measurements of Bosnia ad Herzegovina ; member • h) Institute for intellectual property of Bosnia and Herzegovina; member, • i) Ministry of Trade of the Federation of BiH; member, • j) Ministry of trade and tourism of the Republic of Srpska; member, • k) Representative of the competent body of Brcko District; member, • l) two representatives of the Union of the Bosnia-Herzegovina Consumer Associations.members, • m) one representative from organization of entity consumer, members.

12. Consumer Protection Council of BiH • Within its area of jurisdiction, the Council performs particularly the following activities: • a) proposes the National Annual Consumer Protection Program for adoption to the Council of Ministers of Bosnia and Herzegovina and monitors its implementation; • b) determines the basics of consumer protection policies; • c) defines the volume of activities to be financed or co-financed from the budget. • The members of Consumer Protection Council were appointed by Decree of the Concil of Ministers of BiH. • The Decree was published in Official Gazette of BiH no. 89/2006, 10/08 and 24/09.

13. THE NATIONAL ANNUAL CONSUMER PROTECTION PROGRAMME • The National Annual Consumer Protection Programme /NACPP contains, in particular, the following: • a) principles and targets of consumer protection policy, • b) priority responsibilities in the implementation of Consumer Protection Policy, which will be executed by the assignment of public authorities to consumer protection associations, • c) framework budget in order to execute activities; • d) framework budget to stimulate the development and work of consumer protection associations. • The NACPP of BiH for 2008 was not adopted by Council of Ministers of BiH. • NACPP of BiH for 2009 was adopted by Council of Ministers of BiH (The Official Gazette of BiH No 95/09. • NACPP of BiH for 2010 has been prepared by MoFTER and Consumer Protection Council of BiH and will be send to Council of Ministers next month.

14. CONSUMER ASSOCIATIONS • Consumer protection activities are performed by consumer associations, which receive the status of legal entities according to the law, by entry into the association’s registry. • Consumer associations are non-profit making and non-governmental organizations and may not engage in economic activities. • Consumer associations may act at the Bosnia and Herzegovina, Entity, Brcko District, Canton, City or Municipal levels. • The consumer associations established the Union of Consumer’s Association of Bosnia and Herzegovina, in order to provide mutual assistance and ensure protection of consumer interests in Bosnia and Herzegovina and at international level. • Individually, associations are limited in their action mainly because of a lack of financial resources, but also in some cases because of a lack of know-how. However, actions are underway, sometimes “behind the scene”, because they do not request much financial resources.

15. COOPERATION BETWEEN GOVERMENT AND NGO SECTOR (CONSUMER ASSOCIATIONS) The Union of Consumer’s Association of Bosnia and Herzegovinahas already appointed two representatives to the state Council for Consumer Protection.Along with the Union, the consumers’ movement is also represented within this Council by one representative of individual associations from each entity. This will allow a total of 4consumers’ representatives to cooperate with 11 officials to the effective implementation of the new law on consumer protection.There is no doubt that such strategy of multiplying the connections between the consumers’ movement and the authorities at all levels will soon prove productive.Through the memebership in Consumer Protection Council of BiH, theConsumer associationswill participate in making ofThe NACPP of BiH.

16. REGIONAL COLABORATION • Stabilization and Association Agreement obliges BiH to collaborate with other Western Balkan countries. • MoFTER => MoELE of Rep.of Croatia • 2 Directives: 2005/29/EC and 2006/114/EC were ceded from MoELE RCroatia to MoFTER of BiH • Specially thanks to Ms. Djema Bartulovic from MoELE

17. Thanks for your atention SAMIR SABLJICA- MoFTER Head of Dep. for Market Surveillance, Cons.Protection and Competition Phone 00387 33 222 281 Fax 00387 33 208 100 E-mail: samir.sabljica@mvteo.gov.ba