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Proposal for a Draft Law Amendme

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					   Azərbaycanda Milli Koordinasiya Bürosuna (MKB) və
   Tərəfdaşlıq və Əməkdaşliq Sazişinin (TƏS) İcrasına Dəstək

   Support to the National Coordination Unit (NCU) and the Partnership and
   Cooperation Agreement (PCA) Implementation in Azerbaijan




   PROPOSAL FOR A DRAFT LAW/ AMENDMENTS
          OF THE REPUBLIC OF AZERBAIJAN
             ON CONSUMER PROTECTION




                             By

                      Ioannis Inglezakis
                     International Expert




              EuropeAid Project 124289 C/SER/AZ
“Support to the NCU and the PCA implementation in Azerbaijan”

                           Baku
                          May 2009
                                            Table of Contents:

Explanatory Report to the Draft Law/amendme nts ...................................................... 4

CHAPTER I General Provisions
Proposed Amendments to the Law on Consume r Protection ....................................... 6

      Amendment 1 Objective of the Law and consume r rights .................................... 6
      Amendment 2 Key definitions.................................................................................. 7
      Amendment 3 The legislation of the Republic of Azerbaijan on protection of
      consume rs’ rights ...................................................................................................... 7

CHAPTER II Modern Sales Methods
Proposed Amendments to the Law on Consume r Protection ............................... 8

      Amendment 4 Distance Contracts ........................................................................... 8
      Amendment 5 Distance marketing of consumer financial services .................... 11
      Amendment 6 Contracts negotiated away from business premises ................... 17

CHAPTER III Contractual Rights
Proposed Amendments to the Civil Code and Relevant Normative Legal Acts                                               ..... 18
      Amendment 7 Unfair contract terms .................................................................... 18
      Amendment 8 Consume r Sales .............................................................................. 21
      Amendment 9 Indications of prices of products .................................................. 24

CHAPTER IV Product and Services Safety
Proposed Amendments to the Civil Code and Law on Consume r Protection ........ 25

      Amendment 10 Product liability............................................................................ 25
      Amendment 11 Product safety............................................................................... 27
      Amendment 12 Safe services .................................................................................. 31

CHAPTER V Timeshare and Travel
Proposed Amendme nts to the Civil Code, Law on Consume r Protection and Law on
Touris m ................................................................................................... 32

      Amendment 13 Travel package ............................................................................. 32
      Amendment 14 Timeshare ..................................................................................... 37

CHAPTER VI Advertising and Unfair Comme rcial Practices
Proposed Amendments to the Law on Consume r Protection and Law on Advertising
............................................................................................................... 41
      Amendment 15 Misleading and Comparative Advertising................................. 41
      Amendment 16 Unfair comme rcial practices ....................................................... 43
CHAPTER VII Enforce ment of Consume r Rights
Proposed Amendments to the Law on Consume r Protection ............................. 49

     Amendment 17 Protection of consume r’s rights .................................................. 49
     Amendment 18 Consume rs associations ............................................................... 50
     Amendment 19 Out-of-court settlement of consume r disputes .......................... 51




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                  Explanatory Report to the Draft Law/amendme nts

The Draft which follows is drafted by the international expert in an effort to present the
most basic amendments, which are required in order for the Republic of Azerbaijan to
implement the process of the national legal approximation in cooperation fields within
the context of fulfilling commitments laid down by the Partnership and Cooperation
Agreement, the ENP AP and in accordance with the requirements of World Trade
Organization.

The provisions of this draft of amendments correspond to the existing law, i.e. the Law
on Consumer Protection (Law on Protection of Consumer Rights № 1113) of 19.09.1995,
the Civil Code and other laws such as the law on Advertising and on Tourism but attain a
high level of consumer protection for the benefit of the citizens of Azerbaijan. For this
reason, the draft law is based on the acquis communautaire in the field of consumer
protection and takes into account the best practices of EU Member States, particularly
regarding the specific implementation of the provisions of the EU Directives and
Recommendations.

The draft of amendments is divided in seven Chapters. The most important aspects of EU
consumer law are contained in these provisions. In order to conclude which areas should
be covered and which provisions of the existing law should be maintained we took as a
basis the work already done by national and international experts in this and in previous
projects, i.e. the NPLA and the RNA on consumer protection and sanitary-phyto-sanitary
sections. Thus, the present draft law should be read in conjunction with the
aforementioned RNA.

In particular, the Chapter I contains general provisions. The amendment 1 states the
policy objectives and establishes the basic rights of consumers, which are adopted the
United Nations' Assembly. The amendment 2 states basic definitions of terms used in the
law. It should be stressed out that in specific provisions more specific terms are defined,
which refer to specific provisions only. The amendment 3 provides that the law on
Consumer Protection is without prejudice to other laws, which supplement or specify it.

The Chapter II includes provisions referring to modern sales methods, which are not
regulated in the existing draft law. Thus, in the amendment 4 it is regulated a specific
category of distance contracts, that is, the distance marketing of financial services. The
amendment 5 regulates the so-called door-to-door contracts, while distance contracts are
regulated in amendment 6.

The Chapter III contains provisions concerning consumer contracts and rights that arise
from such contracts. The amendment 7 regulates unfair contract terms, in conformity
with Directive 1993/13/EC. This provision corresponds to Article 16 of the existing law,
but includes detailed provisions. The amendment 8 5 of the draft regulates the law of sale
as far as consumer contracts are concerned and does not interfere with the provisions of
the civil code which refer generally to sales. The proposed provisions are based on
Directive 1999/44 and have a different approach than the approach of the existing law in
Azerbaijan. The EU Directive includes the requirement of conformity with the contract.
In particular, it states in Article 2 (1) that the seller must deliver goods to the consumer
which are in conformity with the contract of sale. The existing law in Azerbaijan follows
the approach of the conformity with normative documents, which is not in conformity
with EU law and does not lead to satisfactory results for consumers. Further, the
amendment 9 provides for the indication of prices of products, on the basis of Directive
1998/6.

It should be stressed out that the proposed provisions in Chapter III are based on the
aforementioned Directives and not on the Proposal for a Directive on Consumer Rights,
because this is just a proposal and may undergo many changes before it is adopted or may
even not be adopted at all.

The Chapter IV addresses an extremely important are, the area of product and services
safety. Similar provisions are included in the existing law, i.e. Articles 10, 11, but they
are not clear and comprehensive as the EU Directives that regulate these issues. In
particular, the amendment 10 of the draft regulates the issue of product liability and the
amendment 11 the issue of product safety, which are mentioned in the NPLA. The
amendment 12 provides for services liability, although there is no Directive in this area,
which should also be covered.

Chapter V regulates aspects of touristic services, but only as far as consumer rights are
concerned. These provisions are without prejudice of national provisions in the area of
tourism. They refer to specific tourist services, such as package holidays and timeshare,
which are not regulated in the law of Azerbaijan.

Chapter VI regulates the issue of advertising and unfair commercial practices. The
amendment 15 regulates misleading and comparative advertising and it is without
prejudice to the existing law on advertising. The amendment 16 on unfair commercial
practices is of great importance, as it refers to commercial practices aiming at deceiving
consumers. It is very detailed and provides protection to consumers in view of misleading
and aggressive commercial practices.

Finally, Chapter VII addresses many important aspects of the issue of enforcement of
consumer disputes. The amendment 17 is the legal basis for imposing sanctions on
suppliers and traders and it is much more simplified than the provision of Article 25 in
the existing law. The amendment 18 provides regulations for consumer associations and
The amendment 19 is a proposal for an out-of-court settlement of consumer disputes.

It should be underlined that many provisions of the existing law should be abolished,
since they provide for obligatory certification, e.g., Article 19. Such provisions are not in
conformity with the WTO requirements and the EU law and represent barriers to trade.
Therefore, these provisions are not included in the draft law.




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CHAP TER I
General Provisions


Proposed amendments to the Law on Consumer Protection

It is recommended to add the following general provisions to the Law on Consumer
Protection in order to be included in the law the basic rights of consume r protection
as they have been adopted by the United Nations and to be defined the key
terminology used in harmony with that one of the EU legislation and the
international legal acts.


Amendment 1

Objective of the Law and consumer rights

1. This Law determines the public policy requirements for the protection of consumers in
the Republic of Azerbaijan, which is attained at a high level of protection. The objective
of the Law is to protect the health, safety and economic interests of consumers in the
Republic of the Azerbaijan, as well as to promoting their right to information, education
and to organise themselves in order to safeguard their interests. It essentially complies
with the requirements of the EU acquis communautaire in the field of consumer policy,
taking also into account international agreements and guidelines in the same area.

2. The Republic of Azerbaijan recognises, in particular, the following basic rights of the
consumers, which were adopted on 9 April 1985 by the United Nations' Assembly:

a) The right to safety: To be protected against products, production processes and
services which are hazardous to health or life;

b) The right to be informed: To be given facts needed to make an informed choice, and to
be protected against dishonest or misleading advertising and labelling;

c) The right to choose: To be able to select from a range of products and services, offered
at competitive prices with an assurance of satisfactory quality;

d) The right to be heard: To have consumer interests represented in the making and
execution of government policy, and in the development of products and services;

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e) The right to satisfaction of basic needs: To have access to basic esse ntial goods and
services, adequate food, clothing, shelter, health care, education and sanitation;

f) The right to redress: To receive a fair settlement of just claims, including compensation
for misrepresentation, shoddy goods or unsatisfactory services;

g) The right to consumer education: To acquire knowledge and skills needed to make
informed, confident choices about goods and services while being aware of basic
consumer rights and responsibilities and how to act on them; and

h) The right to a healthy environment: To live and work in an environment which is non-
threatening to the well-being of present and future generations.



Amendment 2

Key definitions
Key definitions used in this law:

(a) “consumer” means any natural person who is acting for purposes which are outside
his trade, business or profession;

(b) “seller” means any natural or legal person who, under a contract, sells consumer
goods in the course of his trade, business or profession;

(c) “producer” means the manufacturer of consumer goods, the importer of consumer
goods into the territory of the Republic of Azerbaijan or any person purporting to be a
producer by placing his name, trade mark or other distinctive sign on the consumer
goods;

(d) “supplier” means any natural or legal person who is acting in his commercial or
professional capacity;

(e) “trader” means any natural or legal person who is acting for purposes relating to his
trade, business, craft or profession and anyone acting in the name of or on behalf of a
trader.


Amendment 3

The legislation of the Republic of Azerbaijan on protection of
consumers’ rights

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The legislation of the Republic of Azerbaijan on protection of consumers‟ rights consists
of this Law and other normative- legal acts adopted pursuant to this law and acts that
supplement it. If the rules determined in this Law are different from those determined in
the international treaties of the Republic of Azerbaijan, rules of international rules shall
prevail.




CHAPTER II
MODERN SALES METHODS

Proposed amendments to the Law on Consumer Protection

It is recommended to add provisions to the Law on Consume r Protection concerning
the distance selling and contracts negotiated away form business pre mises.


Amendment 4

Distance Contracts
1. A 'distance contract` means any contract concerning goods or services concluded
between a supplier and a consumer under an organized distance sales or service-provision
scheme run by the supplier, who, for the purpose of the contract, makes exclusive use of
one or more means of distance communication up to and including the moment at which
the contract is concluded.

Such means are those which, without the simultaneous physical presence of the supplier
and the consumer, may be used for the conclusion of a contract between those parties,
e.g., unaddressed printed matter, addressed printed matter, standard letter, press
advertising with order form, catalogue, telephone with human intervention, telephone
without human intervention (automatic calling machine, audiotext), radio, videophone
(telephone with screen), videotex (microcomputer and television screen) with keyboard
or touch screen, the World Wide Web (e-commerce), electronic mail, facsimile machine
(fax) and television (teleshopping).

2. In good time prior to the conclusion of any distance contract, the consumer must be
provided with the following information: (a) the identity of the supplier and, in the case
of contracts requiring payment in advance, his address; (b) the main characteristics of the
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goods or services; (c) the price of the goods or services including all taxes; (d) delivery
costs, where appropriate; (e) the arrangements for payment, delivery or performance; (f)
the existence of a right of withdrawal, except in the cases referred to in Article 6 (3); (g)
the cost of using the means of distance communication, where it is calculated other than
at the basic rate; (h) the period for which the offer or the price remains valid; (i) where
appropriate, the minimum duration of the contract in the case of contracts for the supply
of products or services to be performed permanently or recurrently. In absence of the
provision of such information, the contract is null and void.

3. The information referred to in the previous paragraph, the commercial purpose of
which must be made clear, is to be provided in a clear and comprehensible manner in any
way appropriate to the means of distance communication used, with due regard, in
particular, to the principles of good faith in commercial transactions, and the principles
governing the protection of those who are unable to give their consent, such as minors.
Moreover, in the case of telephone communications, the identity of the supplier and the
commercial purpose of the call shall be made explicitly clear at the beginning of any
conversation with the consumer.

4. The consumer must receive written confirmation or confirmation in another durable
medium available and accessible to him of the information referred to in Article 4 (1) (a)
to (f), in good time during the performance of the contract, and at the latest at the time of
delivery where goods not for delivery to third parties are concerned, unless the
information has already been given to the consumer prior to conclusion of the contract in
writing or on another durable medium available and accessible to him. In any event, the
following must be provided: a) written information on the conditions and procedures for
exercising the right of withdrawal, within the meaning of Article 6, including the cases
referred to in the first indent of Article 6 (3), b) the geographical address of the place of
business of the supplier to which the consumer may address any complaints, c)
information on after-sales services and guarantees which exist, d) the conclusion for
cancelling the contract, where it is of unspecified duration or a duration exceeding one
year.

5. For any distance contract the consumer has a period of 14 calendar days in which to
withdraw from the contract without penalty and without giving any reason. The only
charge that may be made to the consumer because of the exercise of his right of
withdrawal is the direct cost of returning the goods. The period for exercise of this right
begins, i) in the case of goods, from the day of receipt by the consumer where the
obligations laid down in Article 5 have been fulfilled and ii) in the case of services, from
the day of conclusion of the contract or from the day on which the obligations of the
previous paragraph were fulfilled if they are fulfilled after conclusion of the contract,
provided that this period does not exceed the three- month period referred to in the
following subparagraph.

If the supplier has failed to fulfil the obligations laid down in Article 5, the period is three
months. The period begins, i) in the case of goods, from the day of receipt by the
consumer and ii) in the case of services, from the day of conclusion of the contract. If the

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information referred to in paragraph 4 is supplied within this three- month period, the
seven working day period referred to in the first subparagraph begins as from that
moment.

6. Where the right of withdrawal has been exercised by the consumer pursuant to this
Article, the supplier is obliged to reimburse the sums paid by the consumer free of
charge. The only charge that may be made to the consumer because of the exercise of his
right of withdrawal is the direct cost of returning the goods. Such reimbursement must be
carried out as soon as possible and in any case within 30 days. Unless the parties have
agreed otherwise, the consumer may not exercise the right of withdrawal in respect of
contracts: i) for the provision of services if performance has begun, with the consumer's
agreement, before the end of the seven working day period referred to in paragraph 1, ii)
for the supply of goods or services the price of which is dependent on fluctuations in the
financial market which cannot be controlled by the supplier, iii) for the supply of goods
made to the consumer's specifications or clearly personalized or which, by reason of their
nature, cannot be returned or are liable to deteriorate or expire rapidly, iv) for the supply
of audio or video recordings or computer software which were unsealed by the consumer,
v) for the supply of newspapers, periodicals and magazines, and vi) for gaming and
lottery services.

If the price of goods or services is fully or partly covered by credit granted by the
supplier, or if that price is fully or partly covered by credit granted to the consumer by a
third party on the basis of an agreement between the third party and the supplier, the
credit agreement is cancelled, without any penalty, if the consumer exercises his right to
withdraw from the contract.

7. Unless the parties have agreed otherwise, the supplier must execute the order within a
maximum of 30 days from the day following that on which the consumer forwarded his
order to the supplier. Where a supplier fails to perform his side of the contract on the
grounds that the goods or services ordered are unavailable, the consumer must be
informed of this situation and must be able to obtain a refund of any sums he has paid as
soon as possible and in any case within 30 days. Nevertheless, the supplier may provide
the consumer with goods or services of equivalent quality and price provided that this
possibility was provided for prior to the conclusion of the contract or in the contract. The
consumer should be informed of this possibility in a clear and comprehensible manner.
The cost of returning the goods following exercise of the right of withdrawal shall, in this
case, be borne by the supplier, and the consumer must be informed of this. In such cases
the supply of goods or services may not be deemed to constitute inertia selling within the
meaning of paragraph 9.

8. The consumer has the right to request cancellation of a payment where fraudulent use
has been made of his payment card in connection with distance contracts covered by this
Article. In the event that fraudulent use is made of the credit card, the consumer should
be re-credited with the sums paid or have them returned.



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9. The supply of goods or services to a consumer without their being ordered by the
consumer beforehand, where such supply involves a demand for payment, is prohibited.
The consumer is exempted from the provision of any consideration in cases of unsolicited
supply and the absence of a response does not constitute consent.

10. The use by a supplier of the following means requires the prior consent of the
consumer: a) automated calling system without human intervention (automatic calling
machine), b) facsimile machine (fax) and c) e-mail. Means of distance communication,
other than those, which allow individual communication, may be used only where there is
no clear objection from the consumer.

11. The provisions of this Article do not apply to contracts: a) re lating to financial
services, b) concluded by means of automatic vending machines or automated
commercial premises, c) concluded with telecommunications operators through the use of
public payphones, d) concluded for the construction and sale of immovable property or
relating to other immovable property rights, except for rental, and e) concluded at an
auction.



Amendment 5

Distance marketing of consumer financial services
1. Key definitions used in this Article:

(a) "distance contract" means any contract concerning financial services concluded
between a supplier and a consumer under an organised distance sales or service-provision
scheme run by the supplier, who, for the purpose of that contract, makes exclusive use of
one or more means of distance communication up to and including the time at which the
contract is concluded;

(b) "financial service" means any service of a banking, credit, insurance, personal
pension, investment or payment nature;

(c) "supplier" means any natural or legal person, public or pr ivate, who, acting in his
commercial or professional capacity, is the contractual provider of services subject to
distance contracts;

(d) "consumer" means any natural person who, in distance contracts covered by the
provisions of this Article, is acting for purposes which are outside his trade, business or
profession;

(e) "means of distance communication" refers to any means which, without the
simultaneous physical presence of the supplier and the consumer, may be used for the
distance marketing of a service between those parties;
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(f) "durable medium" means any instrument which enables the consumer to store
information addressed personally to him in a way accessible for future reference for a
period of time adequate for the purposes of the information and which allows the
unchanged reproduction of the information stored;

(g) "operator or supplier of a means of distance communication" means any public or
private, natural or legal person whose trade, business or profession involves making one
or more means of distance communication available to suppliers.

2. In good time before the consumer is bound by any distance contract or offer, he must
be provided with the following information concerning:

        i) the supplier

(a) the identity and the main business of the supplier, the geographical address at which
the supplier is established and any other geographical address relevant for the customer's
relations with the supplier;

(b) the identity of the representative of the supplier established in Azerbaijan and the
geographical address relevant for the customer's relations with the representative, if such
a representative exists;

(c) when the consumer's dealings are with any professional other than the supplier, the
identity of this professional, the capacity in which he is acting vis-à-vis the consumer,
and the geographical address relevant for the customer's relations with this professional;

(d) where the supplier is registered in a trade or similar public register, the trade register
in which the supplier is entered and his registration number or an equivalent means of
identification in that register;

(e) where the supplier's activity is subject to an authorisation scheme, the particulars of
the relevant supervisory authority;

        ii) the financial service

(a) a description of the main characteristics of the financial service;

(b) the total price to be paid by the consumer to the supplier for the financial service,
including all related fees, charges and expenses, and all taxes paid via the supplier or,
when an exact price cannot be indicated, the basis for the calculation of the price enabling
the consumer to verify it;

(c) where relevant notice indicating that the financial service is related to instruments
involving special risks related to their specific features or the opera tions to be executed or
whose price depends on fluctuations in the financial markets outside the supplier's control
and that historical performances are no indicators for future performances;

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(d) notice of the possibility that other taxes and/or costs may exist that are not paid via
the supplier or imposed by him;

(e) any limitations of the period for which the information provided is valid;

(f) the arrangements for payment and for performance;

(g) any specific additional cost for the consumer of using the means of distance
communication, if such additional cost is charged;

        iii) the distance contract

(a) the existence or absence of a right of withdrawal in accordance with Article 6 and,
where the right of withdrawal exists, its duration and the conditions for exercising it,
including information on the amount which the consumer may be required to pay on the
basis of Article 7(1), as well as the consequences of non-exercise of that right;

(b) the minimum duration of the distance contract in the case of financial services to be
performed permanently or recurrently;

(c) information on any rights the parties may have to terminate the contract early or
unilaterally by virtue of the terms of the distance contract, including any penalties
imposed by the contract in such cases;

(d) practical instructions for exercising the right of withdrawal indicating, inter alia, the
address to which the notification of a withdrawal should be sent;

(e) the State or States whose laws are taken by the supplier as a basis for the
establishment of relations with the consumer prior to the conclusion of the distance
contract;

(f) any contractual clause on law applicable to the distance contract and/or on competent
court;

(g) in which language, or languages, the contractual terms and conditions, and the prior
information referred to in this Article are supplied, and furthermore in which language, or
languages, the supplier, with the agreement of the consumer, undertakes to communicate
during the duration of this distance contract;

        iv) redress

(a) whether or not there is an out-of-court complaint and redress mechanism for the
consumer that is party to the distance contract and, if so, the methods for having access to
it;

(b) the existence of guarantee funds or other compensation arrangements.

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The above information, the commercial purpose of which must be made clear, shall be
provided in a clear and comprehensible manner in any way appropriate to the means of
distance communication used, with due regard, in particular, to the principles of good
faith in commercial transactions, and the principles governing the protection of those who
are unable, to give their consent, such as minors.

Particularly, in the case of voice telephony communications the following information
should be provided:

(a) the identity of the supplier and the commercial purpose of the call initiated by the
supplier shall be made explicitly clear at the beginning of any conversation with the
consumer;

(b) subject to the explicit consent of the consumer only the following informat ion needs
to be given:

- the identity of the person in contact with the consumer and his link with the supplier,

- a description of the main characteristics of the financial service,

- the total price to be paid by the consumer to the supplier for the fina ncial service
including all taxes paid via the supplier or, when an exact price cannot be indicated, the
basis for the calculation of the price enabling the consumer to verify it,

- notice of the possibility that other taxes and/or costs may exist that are not paid via the
supplier or imposed by him,

- the existence or absence of a right of withdrawal and, where the right of withdrawal
exists, its duration and the conditions for exercising it, including information on the
amount which the consumer may be required to pay on the basis of paragraph….

The supplier should inform the consumer that other information is available on request
and of what nature this information is. In any case the supplier shall provide the full
information when he fulfils his obligations under Paragraph 3 of this Article.

Information on contractual obligations, to be communicated to the consumer during the
pre-contractual phase, should be in conformity with the contractual obligations which
would result from the law presumed to be applicable to the distance contract if the latter
were concluded.

Where there are provisions in the legislation governing financial services which contain
prior information requirements additional to those referred to above, these requirements
continue to apply.

3. The supplier shall communicate to the consumer all the contractual terms and
conditions and the information referred to above on paper or on another durable medium

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available and accessible to the consumer in good time before the consumer is bound b y
any distance contract or offer. The supplier must fulfil this obligation immediately after
the conclusion of the contract, if the contract has been concluded at the consumer's
request using a means of distance communication which does not enable providing the
contractual terms and conditions and the information. At any time during the contractual
relationship the consumer is entitled, at his request, to receive the contractual terms and
conditions on paper. In addition, the consumer is entitled to change the means of distance
communication used, unless this is incompatible with the contract concluded or the
nature of the financial service provided.

4. The consumer has a period of 14 calendar days to withdraw from the contract without
penalty and without giving any reason. This period extends to 30 calendar days in
distance contracts relating to life insurance and personal pension operations. The period
for withdrawal begins, i) either from the day of the conclusion of the distance contract,
except in respect of the said life assurance, where the time limit will begin from the time
when the consumer is informed that the distance contract has been concluded, or ii) from
the day on which the consumer receives the contractual terms and conditions and the
information, if that is later than the date referred to previously in lit i). The enforceability
of contracts relating to investment services is suspended for the same period.

The right of withdrawal does not apply to: (a) financial services whose price depends o n
fluctuations in the financial market outside the suppliers control, which may occur during
the withdrawal period, such as services related to: foreign exchange, money market
instruments, transferable securities, units in collective investment undertakings, financial-
futures contracts, including equivalent cash-settled instruments, forward interest-rate
agreements (FRAs), interest-rate, currency and equity swaps, options to acquire or
dispose of any instruments referred to in this point including equivalent cash-settled
instruments. This category includes in particular options on currency and on interest
rates; (b) travel and baggage insurance policies or similar short-term insurance policies of
less than one month's duration; (c) contracts whose performance has been fully
completed by both parties at the consumer's express request before the consumer
exercises his right of withdrawal.

The right of withdrawal does not apply to: (a) any credit intended primarily for the
purpose of acquiring or retaining property rights in land or in an existing or projected
building, or for the purpose of renovating or improving a building, or (b) any credit
secured either by mortgage on immovable property or by a right related to immovable
property, or (c) declarations by consumers using the services of an official, provided that
the official confirms that the consumer is guaranteed the rights under paragraph 3.

If the consumer exercises his right of withdrawal he should, before the expiry of the
relevant deadline, notify this following the practical instructions for exercising the right
of withdrawal given to him and indicating, inter alia, the address to which the notification
of a withdrawal should be sent. The deadline is deemed to have been observed if the
notification, if it is on paper or on another durable medium available and accessible to the
recipient, is dispatched before the deadline expires.

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5. When the consumer exercises his right of withdrawal under paragraph 4, he may only
be required to pay, without any undue delay, for the service actually provided by the
supplier in accordance with the contract. The performance of the contract may only begin
after the consumer has given his approval. The amount payable must not exceed an
amount which is in proportion to the extent of the service already provided in comparison
with the full coverage of the contract, and in any case be such that it could be construed
as a penalty.

The supplier may not require the consumer to pay any amount on the basis of the
previous provision, unless he can prove that the consumer was duly informed about the
amount payable. However, in no case may he require such payment if he has commenced
the performance of the contract before the expiry of the withdrawal period provided for in
paragraph 4 without the consumer's prior request.

The supplier should, without any undue delay and no later than within 30 calendar days,
return to the consumer any sums he has received from him in accordance with the
distance contract, except for the amount referred to in subparagraph 1. This period begins
from the day on which the supplier receives the notification of withdrawal.

The consumer should return to the supplier any sums and/or property he has received
from the supplier without any undue delay and no later tha n within 30 calendar days. This
period begins from the day on which the consumer dispatches the notification of
withdrawal.

6. The consumer has the right to request cancellation of a payment where fraudulent use
has been made of his payment card in connection with distance contracts covered by this
Article. In the event that fraudulent use is made of the credit card, the consumer should
be recredited with the sums paid or have them returned.

7. The supply of financial services to a consumer without a prior request on his part,
when this supply includes a request for immediate or deferred payment. The consumer is
exempted from any obligation in the event of unsolicited supplies, the absence of a reply
not constituting consent.

8. The use by a supplier of the following distance communication techniques requires the
consumer's prior consent: (a) automated calling systems without human intervention
(automatic calling machines); (b) fax machines; (c) e- mail. Means of distance
communication other than those referred to above, when they allow individual
communications: (a) shall not be authorised unless the consent of the consumers
concerned has been obtained, or (b) may only be used if the consumer has not expressed
his manifest objection. The measures referred to above must not entail costs for
consumers.

9. The burden of proof in respect of the supplier's obligations to inform the consumer and
the consumer's consent to conclusion of the contract and, where appropriate, its
performance, can be placed on the supplier. Any contractual term or condition providing

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that the burden of proof of the respect by the supplier of all or part of the obligations
incumbent on him pursuant to the provisions of this Amendment should lie with the
consumer is an unfair term within the meaning of Amendment 7 3 of this Draft.



Amendment 6

Contracts negotiated away from business premises
1. In case of contracts under which a trader supplies goods or services to a consumer and
which are concluded during an excursion organized by the trader away from his business
premises, or during a visit by a trader (i) to the consumer's home or to that of another
consumer, (ii) to the consumer's place of work, where the visit does not take place at the
express request of the consumer, traders are required to give consumers written notice of
their right of cancellation, together with the name and address of a person against whom
that right may be exercised. In absence of such a notice, the contract is null and void.

2. In particular, such notice must be dated and state particulars enabling the contract to be
identified, i.e. (a) the identity and full address of the supplier and, in the case of contracts
requiring payment in advance, (b) the main characteristics of the goods or services; (c)
the price of the goods or services including all taxes; (d) delivery costs, where
appropriate; (e) the arrangements for payment, delivery and performance of the contract.

The notice is to be given to the consumer: (a) in the case of Paragraph 1, at the time of
conclusion of the contract; (b) in the case of Paragraph 4a, not later than the time of
conclusion of the contract; (c) in the case of Paragraph 4 b and c, when the offer is made
by the consumer.

3. The consumer has the right to renounce the effects of his undertaking by sending
notice within a period of seven working days from receipt by the consumer of the notice
referred to in Paragraph 1. The notice may be dispatched by means of a letter, fax or e-
mail message.

It is sufficient if the notice is dispatched before the end of such period. The giving of the
notice shall has the effect of releasing the consumer from any obligations under the
cancelled contract. Where the right of withdrawal has been exercised by the consumer
pursuant to this provision, the supplier is obliged to reimburse the sums paid by the
consumer free of charge.

4.a. The provisions of this Article apply to contracts for the supply of goods or services
other than those concerning which the consumer requested the visit of the trader,
provided that when he requested the visit the consumer did not know, or could not
reasonably have known, that the supply of those other goods or services formed part of
the trader's commercial or professional activities.

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b. They also apply to contracts in respect of which an offer was made by the consumer
under conditions similar to those described in paragraph 1 or paragraph 4a although the
consumer was not bound by that offer before its acceptance by the trader.

c. They also apply to offers made contractually by the co nsumer under conditions similar
to those described in paragraph 1 or paragraph 4a where the consumer is bound by his
offer.

5. The provisions of this Article do not apply to: (a) contracts for the construction, sale
and rental of immovable property or contracts concerning other rights relating to
immovable property. Contracts for the supply of goods and for their incorporation in
immovable property or contracts for repairing immovable property shall fall within the
scope of this Article; b) contracts for the supply of foodstuffs or beverages or other goods
intended for current consumption in the household and supplied by regular roundsmen;
(c) contracts for the supply of goods or services, provided that all three of the following
conditions are met: (i) the contract is concluded on the basis of a trader's catalogue which
the consumer has a proper opportunity of reading in the absence of the trader's
representative, (ii) there is intended to be continuity of contact between the trader's
representative and the consumer in relation to that or any subsequent transaction, (iii)
both the catalogue and the contract clearly inform the consumer of his right to return
goods to the supplier within a period of not less than seven days of receipt or otherwise to
cancel the contract within that period without obligation of any kind other than to take
reasonable care of the goods; (d) insurance contracts; (e) contracts for securities.



CHAPTER III
Contractual Rights

Proposed amendments to the Civil Code and relevant
normative legal acts


Amendment 7

Unfair contract terms
1. A contractual term which has not been individually negotiated is regarded as unfair if,
contrary to the requirement of good faith, it causes a significant imbalance in the parties'
rights and obligations arising under the contract, to the detriment of the consumer. A term
is always regarded as not individually negotiated where it has been drafted in advance
and the consumer has therefore not been able to influence the substance of the term,
particularly in the context of a pre-formulated standard contract.

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The fact that certain aspects of a term or one specific term have been individually
negotiated does not exclude the application of this provision to the rest of a contract if an
overall assessment of the contract indicates that it is nevertheless a pre- formulated
standard contract.

Where any seller or supplier claims that a standard term has been individually negotiated,
the burden of proof in this respect is incumbent on him.

2. The unfairness of a contractual term is assessed, taking into account the nature of the
goods or services for which the contract was concluded and by referring, at the time of
conclusion of the contract, to all the circumstances attending the conclusion of the
contract and to all the other terms of the contract or of another contract on which it is
dependent.

Assessment of the unfair nature of the terms relates neither to the definition of the main
subject matter of the contract nor to the adequacy of the price and remuneration, on the
one hand, as against the services or goods supplies in exchange, on the other, in so far as
these terms are in plain intelligible language.

3. In the case of contracts where all or certain terms offered to the consumer are in
writing, these terms must always be drafted in Azeri language and be easily
comprehensible. Where there is doubt about the meaning of a term, the interpretation
most favourable to the consumer shall prevail.

4. Unfair terms used in a contract concluded with a consumer by a se ller or supplier are
not binding on the consumer. The contract continues to bind the parties upon those terms
if it is capable of continuing in existence without the unfair terms.

The choice of the law of third country as the law applicable to the contract is void and
null, if the latter has a close connection with the territory of the Republic of Azerbaijan.

5. In any case, as unfair terms are regarded terms which have the object or effect of:

        (a) excluding or limiting the legal liability of a seller or supplier in the event of
        the death of a consumer or personal injury to the latter resulting from an act or
        omission of that seller or supplier;

        (b) inappropriately excluding or limiting the legal rights of the consumer vis-à-vis
        the seller or supplier or another party in the event of total or partial non-
        performance or inadequate performance by the seller or supplier of any of the
        contractual obligations, including the option of offsetting a debt owed to the seller
        or supplier against any claim which the consumer may have against him;

        (c) making an agreement binding on the consumer whereas provision of services
        by the seller or supplier is subject to a condition whose realization depends on his
        own will alone;

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        (d) permitting the seller or supplier to retain sums paid by the consumer where the
        latter decides not to conclude or perform the contract, without providing for the
        consumer to receive compensation of an equivalent amount from the seller or
        supplier where the latter is the party cancelling the contract;

        (e) requiring any consumer who fails to fulfil his obligation to pay a
        disproportionately high sum in compensation;

        (f) authorizing the seller or supplier to dissolve the contract on a discretionary
        basis where the same facility is not granted to the consumer, or permitting the
        seller or supplier to retain the sums paid for services not yet supplied by him
        where it is the seller or supplier himself who dissolves the contract;

        (g) enabling the seller or supplier to terminate a contract of indetermina te duration
        without reasonable notice except where there are serious grounds for doing so;

        (h) automatically extending a contract of fixed duration where the consumer does
        not indicate otherwise, when the deadline fixed for the consumer to express this
        desire not to extend the contract is unreasonably early;

        (i) irrevocably binding the consumer to terms with which he had no real
        opportunity of becoming acquainted before the conclusion of the contract;

        (j) enabling the seller or supplier to alter the terms of the contract unilaterally
        without a valid reason which is specified in the contract;

        (k) enabling the seller or supplier to alter unilaterally without a valid reason any
        characteristics of the product or service to be provided;

        (l) providing for the price of goods to be determined at the time of delivery or
        allowing a seller of goods or supplier of services to increase their price without in
        both cases giving the consumer the corresponding right to cancel the contract if
        the final price is too high in relation to the price agreed when the contract was
        concluded;

        (m) giving the seller or supplier the right to determine whether the goods or
        services supplied are in conformity with the contract, or giving him the exclusive
        right to interpret any term of the contract;

        (n) limiting the seller's or supplier's obligation to respect commitments undertaken
        by his agents or making his commitments subject to compliance with a particular
        formality;

        (o) obliging the consumer to fulfil all his obligations where the seller or supplier
        does not perform his;


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        (p) giving the seller or supplier the possibility of transferring his rights and
        obligations under the contract, where this may serve to reduce the guarantees for
        the consumer, without the latter's agreement;

        (q) excluding or hindering the consumer's right to take legal action or exercise any
        other legal remedy, particularly by requiring the consumer to take disputes
        exclusively to arbitration not covered by legal provisions, unduly restricting the
        evidence available to him or imposing on him a burden of proof which, according
        to the applicable law, should lie with another party to the contract.




Amendment 8

Consumer Sales
1. The seller is obliged to deliver goods to the consumers, which are in conformity with
the contract of sale. Consumer goods are presumed to be in conformity with the contract
if they:

(a) comply with the description given by the seller and possess the qualities of the goods
which the seller has held out to the consumer as a sample or model;

(b) are fit for any particular purpose for which the consumer requires them and which he
made known to the seller at the time of conclusion of the contract and which the seller
has accepted;

(c) are fit for the purposes for which goods of the same type are normally used;

(d) show the quality and performance which are normal in goods of the same type and
which the consumer can reasonably expect, given the nature of the goods and taking into
account any public statements on the specific characteristics of the goods made about
them by the seller, the producer or his representative, particularly in advertising or on
labelling.

It is deemed not to be a lack of conformity for the purposes of this Article if, at the time
the contract was concluded, the consumer was aware, or could not reasonably be unaware
of, the lack of conformity, or if the lack of conformity has its origin in materials supplied
by the consumer.

The seller is not bound by public statements, as referred to in lit. d if he:

        - shows that he was not, and could not reasonably have been, aware of the
        statement in question,


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        - shows that by the time of conclusion of the contract the statement had been
        corrected, or

        - shows that the decision to buy the consumer goods could not have been
        influenced by the statement.

Any lack of conformity resulting from incorrect installation of the consumer goods shall
be deemed to be equivalent to lack of conformity of the goods if installation forms part of
the contract of sale of the goods and the goods were installed by the seller or under his
responsibility. This shall apply equally if the product, intended to be installed by the
consumer, is installed by the consumer and the incorrect installation is due to a
shortcoming in the installation instructions.

The seller shall be liable to the consumer for any lack of conformity which exists at the
time the goods were delivered.

2. In the case of a lack of conformity, the consumer shall be entitled to have the goods
brought into conformity free of charge by repair or replacement or to have an appropriate
reduction made in the price or the contract rescinded with regard to those goods. In the
first place, the consumer may require the seller to repair the goods or he may require the
seller to replace them, in either case free of charge, unless this is impossible or
disproportionate.

A remedy shall be deemed to be disproportionate if it imposes costs on the seller which,
in comparison with the alternative remedy, are unreasonable, taking into account:

        - the value the goods would have if there were no lack of conformity,

        - the significance of the lack of conformity, and

        - whether the alternative remedy could be completed without significant
        inconvenience to the consumer.

Any repair or replacement shall be completed within a reasonable time and without any
significant inconvenience to the consumer, taking account of the nature of the goods and
the purpose for which the consumer required the goods.

 The terms "free of charge" refer to the necessary costs incurred to bring the goods into
conformity, particularly the cost of postage, labour and materials.

3. The consumer may require an appropriate reduction of the price or have the contract
rescinded:

        - if the consumer is entitled to neither repair nor replacement, or

        - if the seller has not completed the remedy within a reasonable time, or

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        - if the seller has not completed the remedy without significant inconvenience to
        the consumer.

The consumer is not entitled to have the contract rescinded if the lack of conformity is
minor.

4. Where the final seller is liable to the consumer because of a lack of conformity
resulting from an act or omission by the producer, a previous seller in the same chain of
contracts or any other intermediary, the final seller is entitled to pursue remedies against
the person or persons liable in the contractual chain.

5. The seller is held liable under Para. 2 where the lack of conformity becomes apparent
within two years as from delivery of the goods. If the rights laid down are subject to a
limitation period, that period does not expire within a period of two years from the time
of delivery. In order to benefit from his rights, the consumer must inform the seller of the
lack of conformity within a period of two months from the date on which he detected
such lack of conformity.

Unless proved otherwise, any lack of conformity which becomes apparent within six
months of delivery of the goods is presumed to have existed at the time of delivery unless
this presumption is incompatible with the nature of the goods or the nature of the lack of
conformity.

6. A guarantee is legally binding on the offerer under the conditions laid down in the
guarantee statement and the associated advertising. The guarantee must:

        - state that the consumer has legal rights under the law of Azerbaijan and make
        clear that those rights are not affected by the guarantee,

        - set out in plain intelligible language the contents of the guarantee and the
        essential particulars necessary for making claims under the guarantee, notably the
        duration and territorial scope of the guarantee as well as the name and address of
        the guarantor.

On request by the consumer, the guarantee shall be made available in writing or feature in
another durable medium available and accessible to him. The guarantee should be drafted
in Azeri language. Should a guarantee infringe the previous requirements, the validity of
this guarantee shall in no way be affected, and the consumer can still rely on the
guarantee and require that it be honoured.

7. Any contractual terms or agreements concluded with the seller before the lack of
conformity is brought to the seller's attention which directly or indirectly waive or restrict
the rights resulting from this Article, shall not be binding on the consumer.




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Amendment 9

Indications of prices of products
1. The indication of the selling price and the price per unit of measurement of products
offered by traders to consumers shall be provided, in order to improve consumer
information and to facilitate comparison of prices.

 (a) selling price shall mean the final price for a unit of the product, or a given quantity of
the product, including VAT and all other taxes;

(b) unit price shall mean the final price, including VAT and all other taxes, for one
kilogramme, one litre, one metre, one square metre or one cubic metre of the product or a
different single unit of quantity which is widely and customarily used in the marketing of
specific products;

(c) products sold in bulk shall mean products which are not pre-packaged and are
measured in the presence of the consumer;

2. The selling price and the unit price should be indicated for all products referred to in
paragraph 1. The unit price need not be indicated if it is identical to the sales price.

The aforementioned obligation does not to apply to: i) products supplied in the course of
the provision of a service and ii) sales by auction and sales of works of art and antiques.
For products sold in bulk, only the unit price must be indicated.

 Any advertisement which mentions the selling price of products must also indicate the
unit price subject.

3. The selling price and the unit price must be unambiguous, easily identifiable and
clearly legible. The maximum number of prices to be indicated be limited. The unit price
shall refer to a quantity declared in accordance with national provisions.

Where the indication of the net weight and the net drained weight for certain pre-packed
products is required, it is sufficient to indicate the unit price of the net drained weight.

4. If the obligation to indicate the unit price were to constitute an excessive burden for
certain small retail businesses because of the number of products on sale, the sales area,
the nature of the place of sale, specific conditions of sale where the product is not directly
accessible for the consumer or certain forms of business, such as certain types of itinerant
trade.




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CHAPTER IV
PRODUCT AND SERVICES SAFETY

Proposed amendments to the Civil Code and Law on
Consumer P rotection

Amendment 10

Product liability
1. The producer is liable for damage caused by a defect in his product.

2. a. 'Product' means all movables even if incorporated into another movable or into an
immovable. 'Product' includes electricity.

b. 'Producer' means the manufacturer of a finished product, the producer of any r aw
material or the manufacturer of a component part and any person who, by putting his
name, trade mark or other distinguishing feature on the product presents himself as its
producer. Without prejudice to the liability of the producer, any person who imports into
the Republic of Azerbaijan a product for sale, hire, leasing or any form of distribution in
the course of his business shall be deemed to be a producer within the meaning of this
Article and shall be responsible as a producer.

3. Where the producer of the product cannot be identified, each supplier of the product is
regarded as its producer unless he informs the injured person, within a reasonable time, of
the identity of the producer or of the person who supplied him with the product. The
same applies, in the case of an imported product, if this product does not indicate the
identity of the importer referred to in paragraph 2, even if the name of the producer is
indicated.

4. A product is defective when it does not provide the safety which a person is entitled to
expect, taking all circumstances into account, including: (a) the presentation of the
product; (b) the use to which it could reasonably be expected that the product would be
put; (c) the time when the product was put into circulation. A product shall not be
considered defective for the sole reason that a better product is subsequently put into
circulation.

5. Damage in the sense of paragraph 1 includes: (a) damage caused by death or by
personal injuries; (b) damage to, or destruction of, any item of property other than the
defective product itself, with a lower threshold of 500 Manat, provided that the item of
property: (i) is of a type ordinarily intended for private use or consumption, and (ii) was
used by the injured person mainly for his own private use or consumption.


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The injured person is also entitled to compensation for non- material damage.

6. The injured person is required to prove the damage, the defect and the causal
relationship between defect and damage. The producer is not liable as a result of this
provision if he proves:

(a) that he did not put the product into circulation; or

(b) that, having regard to the circumstances, it is probable that the defect which caused
the damage did not exist at the time when the product was put into circulation by him or
that this defect came into being afterwards; or

(c) that the product was neither manufactured by him for sale or any form of distribution
for economic purpose nor manufactured or distributed by him in the course of his
business; or

(d) that the defect is due to compliance of the product with mandatory regulations issued
by the public authorities; or

(e) that the state of scientific and technical knowledge at the time when he put the product
into circulation was not such as to enable the existence of the defect to be discovered; or

(f) in the case of a manufacturer of a component, that the defect is attributable to the
design of the product in which the component has been fitted or to the instructions given
by the manufacturer of the product.

7. The liability of the producer may be reduced or disallowed when, having regard to all
the circumstances, the damage is caused both by a defect in the product and by the fault
of the injured person or any person for whom the injured person is responsible.

8. Where, as a result of the provisions of this article, two or more persons are liable for
the same damage, they are liable jointly and severally, without prejudice to the provisions
of national law concerning the rights of contribution or recourse.

9. The liability of the producer is not reduced when the damage is caused both by a defect
in product and by the act or omission of a third party.

10. The liability of the producer arising from the provisions of this Article may not, in
relation to the injured person, be limited or excluded by a provision limiting his liability
or exempting him from liability.

11. A limitation period of three years applies to proceedings for the recovery of damages
as provided for in this Article. The limitation period begins to run from the day on which
the plaintiff became aware, or should reasonably have become aware, of the damage, the
defect and the identity of the producer.


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12. The rights conferred upon the injured person pursuant to the provisions of this Article
extinguish upon the expiry of a period of 10 years from the date on which the producer
put into circulation the actual product which caused the damage, unless the injured person
has in the meantime instituted proceedings against the producer.



Amendment 11

Product safety

1. Producers are obliged to place only safe products on the market. In the sense of this
Article, "producer" means: (i) the manufacturer of the product, when he is established in
the Republic of Azerbaijan, and any other perso n presenting himself as the manufacturer
by affixing to the product his name, trade mark or other distinctive mark, or the person
who reconditions the product; (ii) the manufacturer's representative, when the
manufacturer is not established in the Republic of Azerbaijan or, if there is no
representative established in Azerbaijan, the importer of the product; (iii) other
professionals in the supply chain, insofar as their activities may affect the safety
properties of a product; Furthermore, "distributor" shall mean any professional in the
supply chain whose activity does not affect the safety properties of a product.

2. "Product" means any product - including in the context of providing a service - which
is intended for consumers or likely, under reasonably foreseeable conditions, to be used
by consumers even if not intended for them, and is supplied or made available, whether
for consideration or not, in the course of a commercial activity, and whether new, used or
reconditioned. This definition shall not apply to second-hand products supplied as
antiques or as products to be repaired or reconditioned prior to being used, provided that
the supplier clearly informs the person to whom he supplies the product to that effect;

3. "Safe product" means any product which, under normal or reasonably foreseeable
conditions of use including duration and, where applicable, putting into service,
installation and maintenance requirements, does not present any risk or only the
minimum risks compatible with the product's use, considered to be acceptable and
consistent with a high level of protection for the safety and health of persons, taking into
account the following points in particular: (i) the characteristics of the product, including
its composition, packaging, instructions for assembly and, where applicable, for
installation and maintenance; (ii) the effect on other products, where it is reasonably
foreseeable that it will be used with other products; (iii) the presentation of the product,
the labelling, any warnings and instructions for its use and disposal and any other
indication or information regarding the product; (iv) the categories of consumers at risk
when using the product, in particular children and the elderly. "Dangerous product"
means any product which does not meet the definition of "safe product"; "Serious risk"
shall mean any serious risk, including those the effects of which are not immediate,
requiring rapid intervention by the public authorities.

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4. The feasibility of obtaining higher levels of safety or the availability of other products
presenting a lesser degree of risk do not constitute grounds for considering a product to
be "dangerous".

5. Producers are obliged to comply with the specific rules of the law of the Republic of
Azerbaijan establishing safety standards. The conformity of a product to the general
safety requirement shall be assessed by taking into account the following elements in
particular, where they exist: (a) voluntary national standards transposing relevant
European and international standards; (b) EU Commission recommendations setting
guidelines on product safety assessment; (c) product safety codes of good practice in
force in the sector concerned; (d) the state of the art and technology; (e) reasonable
consumer expectations concerning safety.

6. Conformity of a product with the criteria designed to ensure the general safety
requirement, in particular the provisions mentioned above, shall not bar the competent
authorities (Market Surveillance Agency) from taking appropriate measures to impose
restrictions on its being placed on the market or to require its withdrawal from the market
or recall where there is evidence that, despite such conformity, it is dangerous. The
procedure of the withdrawal, recall or destructions of the produc ts will be specified by a
legislative act.

7. Within the limits of their respective activities, producers should provide consumers
with the relevant information to enable them to assess the risks inherent in a product
throughout the normal or reasonably foreseeable period of its use, where such risks are
not immediately obvious without adequate warnings, and to take precautions against
those risks. The presence of warnings does not exempt any person from compliance with
the other requirements laid down in this Article.

Within the limits of their respective activities, producers should adopt measures
commensurate with the characteristics of the products which they supply, enabling them
to: (a) be informed of risks which these products might pose; (b) choose to take
appropriate action including, if necessary to avoid these risks, withdrawal from the
market, adequately and effectively warning consumers or recall from consumers. These
measures shall include, for example: (a) an indication, by means of the product or its
packaging, of the identity and details of the producer and the product reference or, where
applicable, the batch of products to which it belongs, except where not to give such
indication is justified and (b) in all cases where appropriate, the carr ying out of sample
testing of marketed products, investigating and, if necessary, keeping a register of
complaints and keeping distributors informed of such monitoring. Recall shall take place
as a last resort, where other measures would not suffice to pre vent the risks involved, in
instances where the producers consider it necessary or where they are obliged to do so
further to a measure taken by the competent authority.

8. Distributors are required to act with due care to help to ensure compliance with t he
applicable safety requirements, in particular by not supplying products which they know
or should have presumed, on the basis of the information in their possession and as

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professionals, do not comply with those requirements. Moreover, within the limits of
their respective activities, they shall participate in monitoring the safety of products
placed on the market, especially by passing on information on product risks, keeping and
providing the documentation necessary for tracing the origin of products, and cooperating
in the action taken by producers and competent authorities to avoid the risks. Within the
limits of their respective activities they shall take measures enabling them to cooperate
efficiently.

9. Where producers and distributors know or ought to know, on the basis of the
information in their possession and as professionals, that a product that they have placed
on the market poses risks to the consumer that are incompatible with the general safety
requirement, they should immediately inform the Market Surveillance Agency thereof,
giving details, in particular, of action taken to prevent risk to the consumer.

10. Producers and distributors should, within the limits of their respective activities,
cooperate with the Market Surveillance Agency, at the request of the latter, on action
taken to avoid the risks posed by products which they supply or have supplied. The
procedures for such cooperation, including procedures for dialogue with the producers
and distributors concerned on issues related to product safety, is to be established by the
competent authorities.

11. The competent authority for the monitoring of the compliance of products with the
general safety requirement is the Market Surveillance Agency.

The Market Surveillance Agency is entitled to take the following measures, where
appropriate:

(a) for any product: (i) to organise, even after its being placed on the market as being
safe, appropriate checks on its safety properties, on an adequate scale, up to the final
stage of use or consumption; (ii) to require all necessary information from the parties
concerned; (iii) to take samples of products and subject them to safety checks;

(b) for any product that could pose risks in certain conditions: (i) to require that it be
marked with suitable, clearly worded and easily comprehensible warnings, in the official
languages of the Republic of Azerbaijan, on the risks it may present; (ii) to make its
marketing subject to prior conditions so as to make it safe;

(c) for any product that could pose risks for certain persons: to order that they be given
warning of the risk in good time and in an appropriate form, including the publication of
special warnings;

(d) for any product that could be dangerous: for the period needed for the various safety
evaluations, checks and controls, temporarily to ban its supply, the offer to supply it or its
display;



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(e) for any dangerous product: to ban its marketing and introduce the accompanying
measures required to ensure the ban is complied with;

(f) for any dangerous product already on the market: (i) to order or organise its actual and
immediate withdrawal, and alert consumers to the risks it presents; (ii) to order or
coordinate or, if appropriate, to organise together with producers and distributors its
recall from consumers and its destruction in suitable conditions.

12. When the Market Surveillance Agency takes measures such as those provided for
above, it implements the measures in a manner proportional to the seriousness of the risk,
and taking due account of the precautionary principle. In this context, they encourage and
promote voluntary action by producers and distributors, including where applicable by
the development of codes of good practice. If necessary, they organise or order the
measures provided for in paragraph 9(f) if the action undertaken by the producers and
distributors in fulfilment of their obligations is unsatisfactory or insufficient. Recall shall
take place as a last resort. It may be effected within the framework of codes of good
practice on the matter concerned, where such codes exist. In particular, the Market
Surveillance Agency has the power to take the necessary action to apply with due
dispatch appropriate measures such as those mentioned in paragraph 11, (b) to (f), in the
case of products posing a serious risk.

13. The measures to be taken by the Market Surveillance Agency under this Article are
addressed, as appropriate, to: (a) the producer; (b) within the limits of their respective
activities, distributors and in particular the party responsible for the first stage of
distribution on the national market; (c) any other person, where necessary, with a view to
cooperation in action taken to avoid risks arising from a product.

14. In order to ensure effective market surveillance, aimed at guaranteeing a high level of
consumer health and safety protection, which entails cooperation between their
competent authorities, the Ministry of Finance adopts approaches employing appropriate
means and procedures, which may include in particular: (a) es tablishment, periodical
updating and implementation of sectoral surveillance programmes by categories of
products or risks and the monitoring of surveillance activities, findings and results; (b)
follow-up and updating of scientific and technical knowledge concerning the safety of
products; (c) periodical review and assessment of the functioning of the control activities
and their effectiveness and, if necessary, revision of the surveillance approach and
organisation put in place.

15. Consumers and other interested parties have the right to submit complaints to the
Market Surveillance Agency.

16. Information available to the authorities of the Republic of Azerbaijan relating to risks
to consumer health and safety posed by products shall in general be available to the
public, in accordance with the requirements of transparency and without prejudice to the
restrictions required for monitoring and investigation activities. In particular the public


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shall have access to information on product identification, the nature of the risk and the
measures taken.

However, the officials and agents are required not to disclose information obtained for
the purposes of the provisions of this Article, which, by its nature, is covered by
professional secrecy in duly justified cases, except for information relating to the safety
properties of products which must be made public if circumstances so require, in order to
protect the health and safety of consumers. Protection of professional secrecy shall not
prevent the dissemination to the Market Surveillance Agency of information relevant for
ensuring the effectiveness of market monitoring and surveillance activities. The authority
receiving information covered by professional secrecy shall ensure its protection.

17. Any measure adopted under the provisions of this Article and involving restrictions
on the placing of a product on the market or requiring its withdrawal or recall must state
the appropriate reasons on which it is based. It shall be notified as soon as possible to the
party concerned and shall indicate the remedies available under the provisions in force in
the Republic of Azerbaijan and the time limits applying to such remedies. The parties
concerned shall, whenever feasible, be given an opportunity to submit their views before
the adoption of the measure. If this has not been done in advance because of the urgency
of the measures to be taken, they shall be given such opportunity in due course after the
measure has been implemented. Measures requiring the withdrawal of a product or its
recall shall take into consideration the need to encourage distributors, users and
consumers to contribute to the implementation of such measures.

18. Any measure taken by the competent authorities involving restrictions on the placing
of a product on the market or requiring its withdrawal or recall can be challenged before
the competent courts. Any decision taken by virtue of this Article and involving
restrictions on the placing of a product on the market or requiring its withdrawal or its
recall shall be without prejudice to assessment of the liability of the party concerned, in
the light of the criminal law applying in the case in question.



Amendment 12

Safe services

1. The service provider is liable for any damage to the consumer caused with an act or
omission during the rendering of services. As a service provider is considered to be
anyone who provides an independent service under the framework of exercising a
profession.

2. Under the meaning of this article, any provision that has as direct and exclusive
purpose the manufacturing of products or transferring of rights or interests of copyright,
is not considered to be a service.

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3. The injured person shall be only required to prove the damage and the causal
relationship between defective services and damage.

4. The services provider is obliged to prove the lack of his liability and illicit behaviour.
For the determining of lack of liability it is taken into account:

(a) the nature and the object of the service, particularly regarding its risks

(b) the presentation and the method of provision of the service;

(c) the time of service rendering;

(d) its value;

(e) the freedom of action on the part of the consumer during the rendering of the service.

2. The fact that more safe services could be provided does not constitute liability of the
service provider.

3. The provisions of Article 10 Paragraphs 7 to 12 apply respectively also as far as the
liability for services is concerned.



CHAPTER V
Timeshare and Travel

Proposed amendments to the Civil Code, Law on Consumer
Protection and Law on Tourism


Amendment 13

Travel package
1. The provisions in this Article regulate travel packages sold or offered for sale in the
Republic of Azerbaijan.

2. Key definitions used in this Article:

i) 'package' means the pre-arranged combination of not fewer than two of the following
when sold or offered for sale at an inclusive price and when the service covers a period of
more than twenty- four hours or includes overnight accommodation: (a) transport; (b)
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accommodation; (c) other tourist services not ancillary to transport or accommodation
and accounting for a significant proportion of the package. The separate billing of various
components of the same package shall not absolve the organizer or retailer from the
obligations under the provisions of this Article;

ii) 'organizer' means the person who, other than occasionally, organizes packages and
sells or offers them for sale, whether directly or through a retailer;

iii) 'retailer' means the person who sells or offers for sale the package put together by the
organizer;

iv) 'consumer' means the person who takes or agrees to take the package ('the principal
contractor'), or any person on whose behalf the principal contractor agrees to purchase the
package ('the other beneficiaries') or any person to whom the principal contractor or any
of the other beneficiaries transfers the package ('the transferee');

v) 'contract' means the agreement linking the consumer to the organizer and/or the
retailer.

3. Any descriptive matter concerning a package and supplied by the organizer or the
retailer to the consumer, the price of the package and any other conditions applying to the
contract must not contain any misleading information. When a brochure is made
available to the consumer, it shall indicate in a legible, comprehensible and accurate
manner both the price and adequate information concerning: (a) the destination and the
means, characteristics and categories of transport used; (b) the type of accommodation,
its location, category or degree of comfort and its main features, its approval and tourist
classification under the rules of the Republic of Azerbaijan; (c) the meal plan; (d) the
itinerary; (e) general information on passport and visa requirements for the citizens of
Azerbaijan and health formalities required for the journey and the stay; (f) either the
monetary amount or the percentage of the price which is to be paid on account, and the
timetable for payment of the balance; (g) whether a minimum number of persons is
required for the package to take place and, if so, the deadline for informing the consumer
in the event of cancellation.

The particulars contained in the brochure are binding on the organizer or retailer, unless
changes in such particulars have been clearly communicated to the consumer before
conclusion of the contract, in which case the brochure shall expressly state so, and/or
changes are made later following an agreement between the parties to the contract.

4. (a) The organizer and/or the retailer shall provide the consumer, in writing or any other
appropriate form, before the contract is concluded, with general information on passport
and visa requirements applicable to nationals of Azerbaijan and in particular on the
periods for obtaining them, as well as with information on the health formalities required
for the journey and the stay;



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(b) The organizer and/or retailer shall also provide the consumer, in writing or any other
appropriate form, with the following information in good time before the start of the
journey: (i) the times and places of intermediate stops and transport connections as well
as details of the place to be occupied by the traveller, e.g. cabin or berth on ship, sleeper
compartment on train; (ii) the name, address and telephone number of the organizer's
and/or retailer's local representative or, failing that, of local agencies on whose assistance
a consumer in difficulty could call. Where no such representatives or agencies exist, the
consumer must in any case be provided with an emergency telephone number or any
other information that will enable him to contract the organizer and/or the retailer; (iii) in
the case of journeys or stays abroad by minors, information enabling direct contact to be
established with the child or the person responsible at the child's place of stay; (iv)
information on the optional conclusion of an insurance policy to cover the cost of
cancellation by the consumer or the cost of assistance, including repatriation, in the event
of accident or illness.

With regard to the contract of travel package the following principles apply:

(i) depending on the particular package, the contract shall contain at least the following
elements: (a) the travel destination(s) and, where periods of stay are involved, the
relevant periods, with dates; (b) the means, characteristics and categories of transport to
be used, the dates, times and points of departure and return; (c) where the package
includes accommodation, its location, its tourist category or degree of comfort, its ma in
features, its compliance with the rules of the host State concerned and the meal plan; (d)
whether a minimum number of persons is required for the package to take place and, if
so, the deadline for informing the consumer in the event of cancellation; (e) the itinerary;
(f) visits, excursions or other services which are included in the total price agreed for the
package; (g) the name and address of the organizer, the retailer and, where appropriate,
the insurer; (h) the price of the package, an indication of the possibility of price revisions
and an indication of any dues, taxes or fees chargeable for certain services (landing,
embarkation or disembarkation fees at ports and airports, tourist taxes) where such costs
are not included in the package; (i) the payment schedule and method of payment; (j)
special requirements which the consumer has communicated to the organizer or retailer
when making the booking, and which both have accepted; (k) periods within which the
consumer must make any complaint concerning failure to perform or improper
performance of the contract.

(ii) all the terms of the contract are set out in writing or such other form as is
comprehensible and accessible to the consumer and must be communicated to him before
the conclusion of the contract; the consumer is given a copy of these terms;

(iii) the provision under (b) shall not preclude the belated conclusion of last-minute
reservations or contracts.

5. Where the consumer is prevented from proceeding with the package, he may transfer
his booking, having first given the organizer or the retailer reasonable notice of his
intention before departure, to a person who satisfies all the conditions applicable to the

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package. The transferor of the package and the transferee shall be jointly and severally
liable to the organizer or retailer party to the contract for payment of the balance due and
for any additional costs arising from such transfer.

6. The prices laid down in the contract shall not be subject to revision unless the contract
expressly provides for the possibility of upward or downward revision and states
precisely how the revised price is to be calculated, and solely to allow for variations in
transportation costs, including the cost of fuel, dues, taxes or fees chargeable for certain
services, such as landing taxes or embarkation or disembarkation fees at ports and
airports, the exchange rates applied to the particular package. During the twenty days
prior to the departure date stipulated, the price stated in the contract shall not be
increased. If the organizer finds that before the departure he is constrained to alter
significantly any of the essential terms, such as the price, he shall notify the consumer as
quickly as possible in order to enable him to take appropriate decisions a nd in particular,
either to withdraw from the contract without penalty, or to accept a rider to the contract
specifying the alterations made and their impact on the price. The consumer shall inform
the organizer or the retailer of his decision as soon as possible.

If the consumer withdraws from the contract, or if, for whatever cause, other than the
fault of the consumer, the organizer cancels the package before the agreed date of
departure, the consumer shall be entitled: (a) either to take a substitute package of
equivalent or higher quality where the organizer and/or retailer is able to offer him such a
substitute. If the replacement package offered is of lower quality, the organizer shall
refund the difference in price to the consumer; (b) or to be repa id as soon as possible all
sums paid by him under the contract. In such a case, he shall be entitled, if appropriate, to
be compensated by either the organizer or the retailer for non-performance of the
contract, except where: (i) cancellation is on the grounds that the number of persons
enrolled for the package is less than the minimum number required and the consumer is
informed of the cancellation, in writing, within the period indicated in the package
description; or (ii) cancellation, excluding overbooking, is for reasons of force majeure,
i.e. unusual and unforeseeable circumstances beyond the control of the party by whom it
is pleaded, the consequences of which could not have been avoided even if all due care
had been exercised.

7. Where, after departure, a significant proportion of the services contracted for is not
provided or the organizer perceives that he will be unable to procure a significant
proportion of the services to be provided, the organizer shall make suitable alternative
arrangements, at no extra cost to the consumer, for the continuation of the package, and
where appropriate compensate the consumer for the difference between the services
offered and those supplied.

If it is impossible to make such arrangements or these are not accepted by the consumer
for good reasons, the organizer shall, where appropriate, provide the consumer, at no
extra cost, with equivalent transport back to the place of departure, or to another return-
point to which the consumer has agreed and shall, where appropriate, compensate the
consumer.

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8. The organizer and/or retailer party to the contract is liable to the consumer for the
proper performance of the obligations arising from the contract, irrespective of whether
such obligations are to be performed by that organizer and/or retailer or by other
suppliers of services without prejudice to the right of the organizer and/or retailer to
pursue those other suppliers of services.

With regard to the damage resulting for the consumer from the failure to perform or t he
improper performance of the contract, the organizer and/or retailer is/are liable and
obliged to compensate the consumer, unless such failure to perform or improper
performance is attributable neither to any fault of theirs nor to that of another supplier of
services, because:

    -   the failures which occur in the performance of the contract are attributable to the
        consumer,
    -   such failures are attributable to a third party unconnected with the provision of the
        services contracted for, and are unforeseeable or unavoidable,
    -   such failures are due to a case of force majeure such as that defined in Article 6
        second subparagraph (a)(ii), or to an event which the organizer and/or retailer or
        the supplier of services, even with all due care, could not foresee or forestall.

In the cases referred to in the second and third indents, the organizer and/or retailer party
to the contract shall be required to give prompt assistance to a consumer in difficulty.

In the matter of damages arising from the non-performance or improper performance of
the services involved in the package, compensation may be limited in accordance with
the international conventions governing such services, where applicable.

Without prejudice to limitations of liability according to international conventions, there
may be no exclusion of liability by means of a contractual clause.

The consumer must communicate any failure in the performance of a contract which he
perceives on the spot to the supplier of the services concerned and to the organizer and/or
retailer in writing or any other appropriate form at the earliest opportunity. This
obligation must be stated clearly and explicitly in the contract.

9. In cases of complaint, the organizer and/or retailer or his local representative, if there is
one, must make prompt efforts to find appropriate solutions. In particular, an alternative
accommodation may be provided to the consumer and/or an alternative means of
transport, of the same quality as the referred to in the contract.

10. The organizer and/or retailer party to the contract shall provide sufficient evidence of
security for the refund of money paid over and for the repatriation of the consumer in the
event of insolvency. For this sake, they should have an insurance policy covering the risk
of insolvency, which should state the procedure followed for the refund of consumers and
their repatriation.


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Amendment 14

Timeshare
1. The provisions in this Article aim at the protection of purchasers in respect of certain
aspects of contracts relating directly or indirectly to the purchase of the right to use one or
more immovable properties on a timeshare basis. The regulations in this Article cover
only those aspects of the above provisions concerning contractual transactions that relate
to information on the constituent parts of a contract and the arrangements for the
communication of that information, and the procedures and arrangements for cancellation
and withdrawal.

2. Key definitions used in this Article:

a) contract relating directly or indirectly to the purchase of the right to use one or more
immovable properties on a timeshare basis`, hereinafter referred to as 'contract`, shall
mean any contract or group of contracts concluded for at least three years under which,
directly or indirectly, on payment of a certain global price, a real property right or any
other right relating to the use of one or more immovable properties for a specified or
specifiable period of the year, which may not be less than one week, is established or is
the subject of a transfer or an undertaking to transfer,

b) 'immovable property` shall mean any building or part of a building for use as
accommodation to which the right which is the subject of the contract relates,

c) 'vendor` shall mean any natural or legal person who, acting in transactions covered by
this provision and in his professional capacity, establishes, transfers or undertakes to
transfer the right which is the subject of the contract,

d) 'purchaser` shall mean any natural person who, acting in transactions covered b y this
provision, for purposes which may be regarded as being out with his professional
capacity, has the right which is the subject of the contract transferred to him or for whom
the right which is the subject of the contract is established.

3. The vendor is required to provide any person requesting information on the immovable
property or properties with a document which, in addition to a general description of the
property or properties, shall provide at least brief and accurate information on the
following particulars and on how further information may be obtained:

       The identities and domiciles of the parties, including specific information on the
        vendor's legal status at the time of the conclusion of the contract and the identity
        and domicile of the owner;
       The exact nature of the right which is the subject of the contract and a clause
        setting out the conditions governing the exercise of that right within the territory
        of Azerbaijan and if those conditions have been fulfilled or, if they have not, what
        conditions remain to be fulfilled;
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       When the property has been determined, an accurate description of that property
        and its location;
       Where the immovable property is under construction: (1) the state of completion;
        (2) a reasonable estimate of the deadline for completion of the immovable
        property; (3) where it concerns a specific immovable property, the number of the
        building permit and the name(s) and full address(es) of the competent authority or
        authorities; (4) the state of completion of the services rendering the immovable
        property fully operational (gas, electricity, water and telephone connections); (5) a
        guarantee regarding completion of the immovable property or a guarantee
        regarding reimbursement of any payment made if the property is not completed
        and, where appropriate, the conditions governing the operation of those
        guarantees.
       The services (lighting, water, maintenance, refuse collection) to which the
        purchaser has or will have access and on what conditions.
       The common facilities, such as swimming pool, sauna, etc., to which the
        purchaser has or may have access, and, where appropriate, on what conditions.
       The principles on the basis of which the maintenance of and repairs to the
        immovable property and its administration and management will be arra nged.
       The price to be paid by the purchaser to exercise the contractual right; an estimate
        of the amount to be paid by the purchaser for the use of common facilities and
        services; the basis for the calculation of the amount of charges relating to
        occupation of the property, the mandatory statutory charges (for example, taxes
        and fees) and the administrative overheads (for example, management,
        maintenance and repairs).
       Information on the right to cancel or withdraw from the contract and indication of
        the person to whom any letter of cancellation or withdrawal should be sent,
        specifying also the arrangements under which such letters may be sent; precise
        indication of the nature and amount of the costs which the purchaser will be
        required to defray, if he exercises his right to withdraw; where appropriate,
        information on the arrangements for the cancellation of the credit agreement
        linked to the contract in the event of cancellation of the contract or withdrawal
        from it.

All the information referred to above, which must be provided in the previous document,
forms an integral part of the contract.

Unless the parties expressly agree otherwise, only changes resulting from circumstances
beyond the vendor's control may be made to the information provided in this document.

Any changes to that information shall be communicated to the purchaser before the
contract is concluded. The contract shall expressly mention any such changes.

4. The contract, which shall be in writing, includes at least the following items:




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(a) The identities and domiciles of the parties, including specific information on the
vendor's legal status at the time of the conclusion of the contract and the identity and
domicile of the owner.

(b) The exact nature of the right which is the subject of the contract and a clause setting
out the conditions governing the exercise of that right within the territory of Azerbaijan
and if those conditions have been fulfilled or, if they have not, what conditions remain to
be fulfilled.

(c) When the property has been determined, an accurate description of that property and
its location.

(d) Where the immovable property is under construction: (1) the state of completion; (2)
a reasonable estimate of the deadline for completion of the immovable property; (3)
where it concerns a specific immovable property, the number of the building permit and
the name(s) and full address(es) of the competent authority or authorities; (4) the state of
completion of the services rendering the immovable property fully operational (gas,
electricity, water and telephone connections); (5) a guarantee regarding completion of the
immovable property or a guarantee regarding reimbursement of any payment made if the
property is not completed and, where appropriate, the conditions governing the operat ion
of those guarantees.

(e) The services (lighting, water, maintenance, refuse collection) to which the purchaser
has or will have access and on what conditions.

(f) The common facilities, such as swimming pool, sauna, etc., to which the purchaser
has or may have access, and, where appropriate, on what conditions.

(g) The principles on the basis of which the maintenance of and repairs to the immovable
property and its administration and management will be arranged.

(h) The exact period within which the right which is the subject of the contract may be
exercised and, if necessary, its duration; the date on which the purchaser may start to
exercise the contractual right.

(i) The price to be paid by the purchaser to excercise the contractual right; an estimate of
the amount to be paid by the purchaser for the use of common facilities and services; the
basis for the calculation of the amount of charges relating to occupation of the property,
the mandatory statutory charges (for example, taxes and fees) and the administrative
overheads (for example, management, maintenance and repairs).

(j) A clause stating that acquisition will not result in costs, charges or obligations other
than those specified in the contract.




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(k) Whether or not is is possible to join a scheme for the exchange or resale of the
contractual rights, and any costs involved should an exchange and/or resale scheme be
organized by the vendor or by a third party designated by him in the contract.

(l) Information on the right to cancel or withdraw from the contract and indication of the
person to whom any letter of cancellation or withdrawal should be sent, specifying also
the arrangements under which such letters may be sent; precise indication of the nature
and amount of the costs which the purchaser will be required to defray, if he exercises his
right to withdraw; where appropriate, information on the arrangements for the
cancellation of the credit agreement linked to the contract in the event of cancellation of
the contract or withdrawal from it.

(m) The date and place of each party's signing of the contract.

The contract and the document referred to above are drawn up in the Azeri language.

5. In addition to the possibilities available to the purchaser to annul the contract, the
purchaser shall have the right:

- to withdraw without giving any reason within 10 calendar days of both parties' signing
the contract or of both parties' signing a binding preliminary contract. If the 10th day is a
public holiday, the period shall be extended to the first working day thereafter,

- if the contract does not include the information referred to in Paragraph 4, at the time of
both parties' signing the contract or of both parties' signing a binding preliminary
contract, to cancel the contract within three months thereof. If the information in question
is provided within those three months, the purchaser's withdrawal period provided for in
the first indent, shall then start,

- if by the end of the three-month period provided for in the second indent the purchaser
has not exercised the right to cancel and the contract does not include the information
referred to above, to the withdrawal period provided for in the first indent from the day
after the end of that three- month period;

If the purchaser intends to exercise the rights provided for in paragraph 1 he shall, before
the expiry of the relevant deadline, notify the person whose name and address appear in
the contract for that purpose by a means which can be proved in accordance with national
law in accordance with the procedures specified in the contract pursuant to paragraph 4
point (l). The deadline shall be deemed to have been observed if the notification, if it is in
writing, is dispatched before the deadline expires;

Where the purchaser exercises the right provided for in the first indent of paragraph 1, he
may be required to defray, where appropriate, only those expenses which, in accordance
with national law, are incurred as a result of the conclusion of and withdrawal from the
contract and which correspond to legal formalities which must be completed before the


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end of the period referred to in the first indent of paragraph 1. Such expenses shall be
expressly mentioned in the contract;

Where the purchaser exercises the right of cancellation, he shall not be required to make
any defrayal.

6. Any advance payments by a purchaser before the end of the period during which he
may exercise the right of withdrawal is prohibited.

7. If the price is fully or partly covered by credit granted by the vendor, or - if the price is
fully or partly covered by credit granted to the purchaser by a third party on the basis of
an agreement between the third party and the vendor, the credit agreement shall be
cancelled, without any penalty, if the purchaser exercises his right to cancel or withdraw
from the contract.

8. Any clause whereby a purchaser renounces the enjoyment of rights under this Article
or whereby a vendor is freed from the responsibilities arising from it, shall not be binding
on the purchaser, but are null and void.

9. The provisions of this Article are applicable in any timeshare agreement, even in the
case where the applicable law is not the law of the Republic of Azerbaijan, so that the
purchaser is not deprived of the protection afforded by this Law, if the immovable
property concerned is situated within the territory of Azerbaijan.




CHAPTER VI
ADVERTISING AND UNFAIR COMMERCIAL PRACTICES

Proposed amendments to the Law on Consumer Protection
and Law on Advertising


Amendment 15

Misleading and Comparative Advertising

1. The purpose of this provision is to protect against misleading advertising and the unfair
consequences thereof and to lay down the conditions under which comparative
advertising is permitted.
Any advertising which is misleading, in the sense of this Article, shall be prohibited.
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2. Key definitions used in this Article:
„advertising‟ means the making of a representation in any form in connection with a
trade, business, craft or profession in order to promote the supply of goods or services,
including immovable property, rights and obligations;
„misleading advertising‟ means any advertising which in any way, including its
presentation, deceives or is likely to deceive the persons to whom it is addressed or whom
it reaches and which, by reason of its deceptive nature, is likely to affect their economic
behaviour or which, for those reasons, injures or is likely to injure a competitor;
„comparative advertising‟ means any advertising which explicitly or by implication
identifies a competitor or goods or services offered by a competitor;
„trader‟ means any natural or legal person who is acting for purposes relating to his trade,
craft, business or profession and any one acting in the name of or on behalf of a trader;
‘code owner’ means any entity, including a trader or group of traders, which is
responsible for the formulation and revision of a code of conduct and/or for monitoring
compliance with the code by those who have undertaken to be bound by it.
3. In determining whether advertising is misleading, account shall be taken of all its
features, and in particular of any information it contains concerning:
(a) the characteristics of goods or services, such as their availability, nature, execution,
composition, method and date of manufacture or provision, fitness for purpose, uses,
quantity, specification, geographical or commercial origin or the results to be expected
from their use, or the results and material features of tests or checks carried out on the
goods or services;
(b) the price or the manner in which the price is calculated, and the conditions on which
the goods are supplied or the services provided;
(c) the nature, attributes and rights of the advertiser, such as his identity and assets, his
qualifications and ownership of industrial, commercial or intellectual property rights or
his awards and distinctions.
4. Comparative advertising shall, as far as the comparison is concerned, be permitted
when the following conditions are met: (a) it is not misleading within the meaning of
paragraph 2 and Article 16; (b) it compares goods or services meeting the same needs or
intended for the same purpose; (c) it objectively compares one or more material, relevant,
verifiable and representative features of those goods and services, which may include
price; (d) it does not discredit or denigrate the trade marks, trade names, other
distinguishing marks, goods, services, activities, or circumstances of a competitor; (e) for
products with designation of origin, it relates in each case to products with the same
designation; (f) it does not take unfair advantage of the reputation of a trade mark, trade
name or other distinguishing marks of a competitor or of the designation of origin of
competing products; (g) it does not present goods or services as imitations or replicas of
goods or services bearing a protected trade mark or trade name; (h) it does not create
confusion among traders, between the advertiser and a competitor or between the
advertiser's trade marks, trade names, other distinguishing marks, goods or services and
those of a competitor.
5. The Market Surveillance Agency has the right: (a) to require the advertiser to furnish
evidence as to the accuracy of factual claims in advertising if, taking into account the
legitimate interest of the advertiser and any other party to the proceedings, such a
requirement appears appropriate on the basis of the circumstances of the particular case

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and in the case of comparative advertising to require the advertiser to furnish such
evidence in a short period of time; and (b) to consider factual claims as inaccurate if the
evidence demanded in accordance with (a) is not furnished or is deemed insufficient.



Amendment 16

Unfair commercial practices
1. Key definitions used in this Article:

(a) "trader" means any natural or legal person who, in commercial practices covered by
the provisions of this Article, is acting for purposes relating to his trade, business, craft or
profession and anyone acting in the name of or on behalf of a trader;

(b) "product" means any goods or service including immovable property, rights and
obligations;

(c) "business-to-consumer commercial practices" (hereinafter also referred to as
commercial practices) means any act, omission, course of conduct or representation,
commercial communication including advertising and marketing, by a trader, directly
connected with the promotion, sale or supply of a product to consumers;

(d) "to materially distort the economic behaviour of consumers" means using a
commercial practice to appreciably impair the consumer's ab ility to make an informed
decision, thereby causing the consumer to take a transactional decision that he would not
have taken otherwise;

(e) "code of conduct" means an agreement or set of rules not imposed by law, regulation
or administrative provision, which defines the behaviour of traders who undertake to be
bound by the code in relation to one or more particular commercial practices or business
sectors;

(f) "code owner" means any entity, including a trader or group of traders, which is
responsible for the formulation and revision of a code of conduct and/or for monitoring
compliance with the code by those who have undertaken to be bound by it;

(g) "professional diligence" means the standard of special skill and care which a trader
may reasonably be expected to exercise towards consumers, commensurate with honest
market practice and/or the general principle of good faith in the trader's field of activity;

(h) "invitation to purchase" means a commercial communication which indicates
characteristics of the product and the price in a way appropriate to the means of the
commercial communication used and thereby enables the consumer to make a purchase;

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(i) "undue influence" means exploiting a position of power in relation to the consumer so
as to apply pressure, even without using or threatening to use physical force, in a way
which significantly limits the consumer's ability to make an informed decision;

(j) "transactional decision" means any decision taken by a consumer concerning whether,
how and on what terms to purchase, make payment in whole or in part for, retain or
dispose of a product or to exercise a contractual right in relation to the product, whether
the consumer decides to act or to refrain from acting;

(k) "regulated profession" means a professional activity or a group of professional
activities, access to which or the pursuit of which, or one of the modes of pursuing which,
is conditional, directly or indirectly, upon possession of specific professional
qualifications, pursuant to laws, regulations or administrative provisions.

2. The provisions of this Article apply to unfair business-to-consumer commercial
practices, as laid down in the next paragraph, before, during and after a commercial
transaction in relation to a product.

The provisions of this Article are without prejudice to rules of this and other laws of the
Republic of Azerbaijan relating to the health and safety aspects of products.

3. Unfair commercial practices shall be prohibited. A commercial practice shall be unfair
if: (a) it is contrary to the requirements of professional diligence, and (b) it materially
distorts or is likely to materially distort the economic behaviour with regard to the
product of the average consumer whom it reaches or to whom it is addressed, or of the
average member of the group when a commercial practice is directed to a particular
group of consumers.

Commercial practices which are likely to materially distort the economic behaviour only
of a clearly identifiable group of consumers who are particularly vulnerable to the
practice or the underlying product because of their mental or physical infirmity, age or
credulity in a way which the trader could reasonably be expected to foresee, shall be
assessed from the perspective of the average member of that group. This is without
prejudice to the common and legitimate advertising practice of making exaggerated
statements or statements which are not meant to be taken literally.

In particular, commercial practices shall be unfair which: (a) are misleading, as set out in
paragraphs 4 and 5 or (b) are aggressive as set out in paragraphs 6 and 7.

4. A commercial practice shall be regarded as misleading if it contains false information
and is therefore untruthful or in any way, including overall presentation, deceives or is
likely to deceive the average consumer, even if the information is factually correct, in
relation to one or more of the following elements, and in either case causes or is likely to
cause him to take a transactional decision that he would not have taken otherwise:

(a) the existence or nature of the product;

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(b) the main characteristics of the product, such as its availability, benefits, risks,
execution, composition, accessories, after-sale customer assistance and complaint
handling, method and date of manufacture or provision, delivery, fitness for purpose,
usage, quantity, specification, geographical or commercial origin or the results to be
expected from its use, or the results and material features of tests or checks carried out on
the product;

(c) the extent of the trader's commitments, the motives for the commercial practice and
the nature of the sales process, any statement or symbol in relation to direct or indirect
sponsorship or approval of the trader or the product;

(d) the price or the manner in which the price is calculated, or the existence of a specific
price advantage;

(e) the need for a service, part, replacement or repair;

(f) the nature, attributes and rights of the trader or his agent, such as his identity and
assets, his qualifications, status, approval, affiliation or connection and ownership of
industrial, commercial or intellectual property rights or his awards and distinctions;

(g) the consumer's rights, including the right to replacement or reimbursement under
Article 5 of this Law, or the risks he may face.

A commercial practice shall also be regarded as misleading if, in its factual context,
taking account of all its features and circumstances, it causes or is likely to cause the
average consumer to take a transactional decision that he would not have taken otherwise,
and it involves:

(a) any marketing of a product, including comparative advertising, which creates
confusion with any products, trade marks, trade names or other distinguishing marks of a
competitor;

(b) non-compliance by the trader with commitments contained in codes of conduct by
which the trader has undertaken to be bound, where: (i) the commitment is not
aspirational but is firm and is capable of being verified, and (ii) the trader indicates in a
commercial practice that he is bound by the code.

5. Misleading omissions

A commercial practice shall be regarded as misleading if, in its factual context, taking
account of all its features and circumstances and the limitations of the communication
medium, it omits material information that the average consumer needs, according to the
context, to take an informed transactional decision and thereby causes or is likely to
cause the average consumer to take a transactional decision that he would not have taken
otherwise. It shall also be regarded as a misleading omission when, taking account of the
matters described above, a trader hides or provides in an unclear, unintelligible,

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ambiguous or untimely manner such material information as referred to in that paragraph
or fails to identify the commercial intent of the commercial practice if not already
apparent from the context, and where, in either case, this causes or is likely to cause the
average consumer to take a transactional decision that he would not have taken otherwise.

Where the medium used to communicate the commercial practice imposes limitations of
space or time, these limitations and any measures taken by the trader to make the
information available to consumers by other means shall be taken into account in
deciding whether information has been omitted.

In the case of an invitation to purchase, the following information shall be regarded as
material, if not already apparent from the context: (a) the main characteristics of the
product, to an extent appropriate to the medium and the product; (b) the geographical
address and the identity of the trader, such as his trading name and, where applicable, the
geographical address and the identity of the trader on whose behalf he is acting; (c) the
price inclusive of taxes, or where the nature of the product means that the price cannot
reasonably be calculated in advance, the manner in which the price is calculated, as well
as, where appropriate, all additional freight, delivery or postal charges or, where these
charges cannot reasonably be calculated in advance, the fact that such additional charges
may be payable; (d) the arrangements for payment, delivery, performance and the
complaint handling policy, if they depart from the requirements of professional diligence;
(e) for products and transactions involving a right of withdrawal or cancellation, the
existence of such a right.

 Information requirements established by this and other law in relation to commercial
communication including advertising or marketing, shall be regarded as material.

6. Commercial practices considered in all cases to be misleading are the following:

                Claiming to be a signatory to a code of conduct when the trader is not.
                Displaying a trust mark, quality mark or equivalent without having
                 obtained the necessary authorisation.
                Claiming that a code of conduct has an endorsement from a public or other
                 body which it does not have.
                Claiming that a trader (including his commercial practices) or a product
                 has been approved, endorsed or authorised by a public or private body
                 when he/it has not or making such a claim without complying with the
                 terms of the approval, endorsement or authorisation.
                Making an invitation to purchase products at a specified price without
                 disclosing the existence of any reasonable grounds the trader may have for
                 believing that he will not be able to offer for supply or to procure another
                 trader to supply, those products or equivalent products at that price for a
                 period that is, and in quantities that are, reasonable having regard to the
                 product, the scale of advertising of the product and the price offered (bait
                 advertising).
                Making an invitation to purchase products at a specified price and then:
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                     o refusing to show the advertised item to consumers; or (b) refusing
                          to take orders for it or deliver it within a reasonable time; or (c)
                          demonstrating a defective sample of it, with the intention of
                          promoting a different product (bait and switch)
                Falsely stating that a product will only be available for a very limited time,
                 or that it will only be available on particular terms for a very limited time,
                 in order to elicit an immediate decision and deprive consumers of
                 sufficient opportunity or time to make an informed choice.
                Undertaking to provide after-sales service to consumers with whom the
                 trader has communicated prior to a transaction in a language which is not
                 an official language of Azerbaijan and then making such service available
                 only in another language without clearly disclosing this to the consumer
                 before the consumer is committed to the transaction.
                Stating or otherwise creating the impression that a product can legally be
                 sold when it cannot.
                Presenting rights given to consumers in law as a distinctive feature of the
                 trader's offer.
                Using editorial content in the media to promote a product where a trader
                 has paid for the promotion without making that clear in the content or by
                 images or sounds clearly identifiable by the consumer (advertorial).
                Making a materially inaccurate claim concerning the nature and extent of
                 the risk to the personal security of the consumer or his family if the
                 consumer does not purchase the product.
                Promoting a product similar to a product made by a particular
                 manufacturer in such a manner as deliberately to mislead the consumer
                 into believing that the product is made by that same manufacturer when it
                 is not.
                Establishing, operating or promoting a pyramid promotional scheme
                 where a consumer gives consideration for the opportunity to receive
                 compensation that is derived primarily from the introduction of other
                 consumers into the scheme rather than from the sale or consumption of
                 products.
                Claiming that the trader is about to cease trading or move premises when
                 he is not.
                Claiming that products are able to facilitate winning in games of chance.
                Falsely claiming that a product is able to cure illnesses, dysfunction or
                 malformations.
                Passing on materially inaccurate information on market conditions or on
                 the possibility of finding the product with the intention of inducing the
                 consumer to acquire the product at conditions less favo urable than normal
                 market conditions.
                Claiming in a commercial practice to offer a competition or prize
                 promotion without awarding the prizes described or a reasonable
                 equivalent.
                Describing a product as "gratis", "free", "without charge" or similar if the
                 consumer has to pay anything other than the unavoidable cost of
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                 responding to the commercial practice and collecting or paying for
                 delivery of the item.
                Including in marketing material an invoice or similar document seeking
                 payment which gives the consumer the impression that he has already
                 ordered the marketed product when he has not.
                Falsely claiming or creating the impression that the trader is not acting for
                 purposes relating to his trade, business, craft or profession, or falsely
                 representing oneself as a consumer.
                Creating the false impression that after-sales service in relation to a
                 product is available in Azerbaijan, where it is not.

7. Aggressive commercial practices

A commercial practice shall be regarded as aggressive if, in its factual context, taking
account of all its features and circumstances, by harassment, coercion, including the use
of physical force, or undue influence, it significantly impairs or is likely to significantly
impair the average consumer's freedom of choice or conduct with regard to the product
and thereby causes him or is likely to cause him to take a transactional decision that he
would not have taken otherwise.

In determining whether a commercial practice uses harassment, coercion, including the
use of physical force, or undue influence, account shall be taken of: (a) its timing,
location, nature or persistence; (b) the use of threatening or abusive language or
behaviour; (c) the exploitation by the trader of any specific misfortune or circumstance of
such gravity as to impair the consumer's judgement, of which the trader is aware, to
influence the consumer's decision with regard to the product; (d) any onerous or
disproportionate non-contractual barriers imposed by the trader where a consumer wishes
to exercise rights under the contract, including rights to terminate a contract or to switch
to another product or another trader;(e) any threat to take any action that cannot legally
be taken.

8. Commercial practices considered in all cases to be aggressive are the following:

       Creating the impression that the consumer cannot leave the premises until a
        contract is formed.
       Conducting personal visits to the consumer's home ignoring the consumer's
        request to leave or not to return except in circumstances and to the extent
        justified, under national law, to enforce a contractual obligation.
       Making persistent and unwanted solicitations by telephone, fax, e-mail or other
        remote media except in circumstances and to the extent justified under national
        law to enforce a contractual obligation.
       Requiring a consumer who wishes to claim on an insurance policy to produce
        documents which could not reasonably be considered relevant as to whether the
        claim was valid, or failing systematically to respond to pertinent correspondence,
        in order to dissuade a consumer from exercising his contractual rights.

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       Including in an advertisement a direct exhortation to children to buy advertised
        products or persuade their parents or other adults to buy advertised products for
        them.
       Demanding immediate or deferred payment for or the return or safekeeping of
        products supplied by the trader, but not solicited by the consumer except where
        the product is a substitute supplied in conformity with Article 8 (7) of this law
        (inertia selling).
       Explicitly informing a consumer that if he does not buy the product or service, the
        trader's job or livelihood will be in jeopardy.
       Creating the false impression that the consumer has already won, will win, or will
        on doing a particular act win, a prize or other equivalent benefit, when in fact
        either there is no prize or other equivalent benefit, or taking any action in relation
        to claiming the prize or other equivalent benefit is subject to the consumer paying
        money or incurring a cost.




CHAPTER VII
ENFORCEMENT OF CONSUMER RIGHTS

Proposed amendments to the Law on Consumer Protection


Amendment 17

Protection of consumer’s rights

1. The relevant state authorities must ensures protection of consumers‟ interests, create
conditions for free selection of commodities (works, services) and guarantees purchase or
other legal obtaining of commodities in order to ensure normal living standards.

2. Consumer complaints against suppliers and traders may be submitted relevant state
authorities, which forwards them to suppliers and traders, which are obliged to answer to
such complaints on a deadline set out by the Agency.

3. Without prejudice to other laws imposing sanctions to suppliers, the Court may decide
on penalties imposed on suppliers that violate the provisions of this law, ranging from
1.500 to 1.000.000 Manat. The Court may also decide the temporary suspension of the
economic activities for 1 to 5 months of the supplier who violates consumer rights
repeatedly. The decisions imposing fines might be published in the press, in case it is
necessary to raise consumer awareness to specific issues.
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4. Suppliers not answering consumer complaints, submitted on the procedure described in
paragraph 1, may be sanctioned with a penalty of 500 to 50.000 Manat.

5. 50% percent of penalties are transferred to the state budget, 15 percent to local
budget, 15 percent to the account of the state authority responsible for protection of
consumers‟ right that imposed the penalty and 20 percent to consumer associations.

6.    Suppliers shall have the right to apply to a court to annul the decision on imposing a
fine or for its alteration. If during consideration of the application by a court a decision on
suspension of the mentioned acts is not made by the court, instructions and decisions on
imposition of penalty shall not be suspended.


Amendment 18

Consumers associations
1.     Citizens of the Republic of Azerbaijan shall have the right to establish public
organizations of consumers (union of consumers) through association on voluntary basis
in order to protect the legal rights and lawful interest of consumers. The union of
consumers is a public organization and acts on the basis of the Law of the Republic of
Azerbaijan “On Public Unions”.
2. The union of consumers is entitled to represent consumers where it is provided for by
law, to inform and consult consumers about their rights and consumer issues, and also to
represent consumers before the courts and commence collective actions.
3. The financial resources of consumer associations are exclusively the subscriptions and
donations of their members, money they collect from events and conferences and from
the selling of books and leaflets, fines imposed in accordance with the previous Article,
state funding or funding by the EU, by international organisa tions and international
consumer associations. It is forbidden to accept funds from commercial entities and
organisations.
4. It is forbidden to consumer associations to advertise suppliers and commercial entities
and organisations.
5. It is forbidden for persons convicted irrevocable for serious offences to participate in
the board of consumer associations.
6. Members of the Board of consumer associations are forbidden to receive fees and
compensations of any kind for their involvement with the association, without prejudice
to expenses occurred.
7. Consumer associations shall have the right to commence proceedings seeking:

a) an order with all due expediency, where appropriate by way of summary procedure,
requiring the cessation or prohibition of any infringement, i.e. any violation of Articles 4
-16 of the present Law and other regulations aiming at protection of consumer interests;




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(b) the publication of the decision, in full or in part, in such form as deemed adequate
and/or the publication of a corrective statement on the part of the defendant with a view
to eliminating the continuing effects of the infringement;

(c) an order against the losing defendant for payments into the public purse, in the event
of failure to comply with the decision within a time- limit specified by the courts or
administrative authorities, of a fixed amount for each day's delay, with a view to ensuring
compliance with the decisions.

(d) compensation for moral damages of consumers caused by the infringement and taking
into account the intensity of the infringement and the economic background of the
infringer (supplier), as well as the necessity for prevention of future infringements in
similar cases.

The awarded amount for moral damages shall be transferred to following recipients: a)
50% to the state, b) 25% to the consumer association that commenced the proceeding and
c) 25% for funding consumer associations.

8. Consumer associations shall not receive any fees or other royalties from consumers for
their support and for initiating an action for injunction.



Amendment 19

Out-of-court settlement of consumer disputes
1. An arbitrator panel for the out-of-court settlement of consumer disputes in the
Republic of Azerbaijan is established with the initiative of the relevant state authorities.

 2. The arbitrator panel for consumer disputes shall consist of three members: a) the
president of the panel, who is a public servant, employed in relevant state authority, b) a
representative of consumer associations and c) a representative from the c hamber of
commerce. The appointment of the members of the panel shall be further described by
Ministerial decree.

3. The members of the arbitration panel: (a) are appointed for a fixed term and shall not
be liable to be relieved from their duties without just cause; (b) have no perceived or
actual conflict of interest with either party; (c) provide information about their
impartiality and competence to both parties prior to the commencement of the procedure.

4. The transparency of the procedure should be guaranteed. Information about the contact
details, functioning and availability of the procedure should be readily available to the
parties in simple terms so that they can access and retain it before submitting a dispute. In
particular, information should be made available on: (a) how the procedure will operate,
the types of disputes that can be dealt by it and any restrictions on its operation; (b) the
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rules governing any preliminary requirements that the parties may have to meet, and
other procedural rules, notably those concerning the operation of the procedure and the
languages in which the procedure will be conducted; (c) the cost, if any, to be borne by
the parties; (d) the timetable applicable to the procedure, particularly with regard to the
type of dispute in question; (e) any substantive rules that may be applicable (legal
provisions, industry best practice, considerations of equity, codes of conduct); (f) the role
of the procedure in bringing about the resolution of a dispute; (g) the status of any agreed
solution for resolving the dispute.

5. Any agreed solution for resolving the dispute by the parties should be recorded in an
archive and clearly state the terms and the grounds on which it is based. That record
should be made available to both parties.

6. Information on the performance of the procedure should be made publicly available,
including: (a) the number and types of complaints it has received and their outcome; (b)
the time taken to resolve complaints; (c) any systematic problems arising fro m
complaints; (d) the compliance record, if known, of agreed solutions.

7. The effectiveness of the procedure should be guaranteed. It should be easily accessible
and available to both parties, for instance by electronic means, irrespective of where the
parties are situated. The procedure should be either free of charge to consumers, or any
necessary costs should be both proportionate to the amount in dispute and moderate.

8. The parties should have access to the procedure without being obliged to use a legal
representative. Nonetheless the parties should not be prevented from being represented or
assisted by a third party at any or all stages of the procedure.

9. Once a dispute has been submitted it should be dealt with in the shortest possible time
commensurate with the nature of the dispute. The arbitration panel should periodically
review its progress to ensure the parties' dispute is being dealt with expeditiously and
appropriately.

10. The conduct of the parties should be reviewed by the arbitration panel to ensure they
are committed to seeking a proper, fair and timely resolution of the dispute. If one party's
conduct is unsatisfactory, both parties should be informed in order to enable them to
consider whether to continue the dispute resolution procedure.

11. The fairness of the procedure should be guaranteed. In particular: (a) the parties
should be informed of their right to refuse to participate or to withdraw from the
procedure at any time and access the legal system or other out-of-court redress
mechanisms at any stage if they are dissatisfied with the performance or operation of the
procedure; (b) both parties should be able to freely and easily submit any arguments,
information or evidence relevant to their case on a confidential basis to the procedure
unless agreement has been given by the parties to pass such information to the other
party. If at any stage, the third party suggests possible solutions for resolving the dispute,
then each party should have the opportunity to present their viewpoint and comment on

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any argument, information or evidence presented by the other party; (c) both parties
should be encouraged to fully cooperate with the procedure, in particular by providing
any information necessary for a fair resolution of the dispute; (d) prior to the parties
agreeing to a suggested solution for resolving the dispute, they should be allowed a
reasonable period of time to consider this solution.

12. The consumer should be informed in clear und understandable language, before
agreeing to a suggested solution, of the following points: (a) he has the choice as to
whether or not to agree to the suggested solution; (b) the suggested solution may be less
favourable than an outcome determined by a court applying legal rules; (c) before
agreeing to or rejecting the suggested solution he has the right to seek independent
advice; (d) use of the procedure does not preclude the option of referring his dispute to
another out-of-court dispute resolution mechanism, or of seeking legal redress through
his own judicial system; (e) the status of an agreed solution.




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