Romania: new protection for consumer contracts

From 23 March 2007, banks, utility companies and other service providers must provide more accurate and complete information to customers using their standard non-negotiable agreements, under new rules drawn up by the National Authority for Consumers' Protection. This initiative will also protect consumers by allowing them to terminate agreements unilaterally.

Among other requirements, standard non-negotiable agreements with consumers must:

• Deal with the provision, suspension and termination of the services;
• Provide full details of the services to be provided (for example, leasing, insurance, installation of equipment or delivery of goods)
• Specify the payment terms for the services, and the amount of all fees, interest, discounts, commissions, securities, penalties, etc., payable
• Specify any grace period, where applicable;
• Set out a procedure for notifying and seeking the consumers' approval for any change in the characteristics of products or services to be provided, or the terms of delivery or performance;
• Set out a procedure for notifying consumers of any unilateral change in the terms on which the service is to be provided (e.g. tariffs, interest) and giving them a corresponding right to unilaterally terminate the agreement without any additional costs;
• Impose penalties on service providers in the event of their failure to provide the service as promised or to the required standard;
• Require the service provider to indemnify the consumer for any damages it causes;
• Allow the consumer to unilaterally terminate the agreement on 30 days prior notice, without any additional costs;
• Require the service provider to notify the consumer in writing 15 days before any disruption or termination of the services provided;
• Allow consumers to refuse to let their personal data be processed for marketing purposes or be transferred to third parties;
• Specify a dispute resolution procedure;
• Be written in 10 point or larger type.

Consumers' protection legislation generally provides that any ambiguous wording in the agreement will be construed in favour of the consumer, on the basis that service providers have the financial resources and expertise to ensure their rights and interests are adequately protected, whereas consumers may not.

Service providers whose agreements do not comply with these rules can be fined between RON 2,000 and RON 4,000.

Law: Government Ordinance no. 21/1992 amending consumer protection laws