THE ACT REGARDING CONSUMER RIGHTS

"ACT NO: 6502

THE ACT ON CONSUMER PROTECTION

Date of Enactment: November 7, 2013

Date and Number of Official Gazette Issue of Promulgation: November 28, 2013 - Number: 28835

PART ONE

Objective, Scope and Definitions

Objective"

"ARTICLE 1- (1) The objective of this act is to take measures aimed at the protection of the health, safety and economic interests of consumers in line with the public good, the raising of consumer awareness, the indemnification of the losses incurred by consumers and the protection thereof against environmental hazards; to promote consumer initiatives aimed at the protection of consumer interests and to regulate the matters related to the encouragement of volunteer organizations aimed at devising consumer-related policies.

Scope"

"ARTICLE 2 – (1) The scope of this act covers any and all customer transactions and consumer-related practices.

Definitions"

"ARTICLE 3 - (1) The following terms mentioned in this Act shall have the following meanings for the purposes of the enforcement hereof;

a) Minister: means the Minister of Customs and Trade,

b) The Ministry: The Ministry of Customs and Trade,

c) General Director: means the General Director of Consumer Protection and Market Surveillance,

ç) Directorate General: means the General Directorate of Consumer Protection and Market Surveillance,

d) Service: means the subject matter of any consumer transaction but supply of goods, which is conducted or warranted to be conducted in consideration of a price or interest,

e) Importer: means any natural person or legal entity, including public legal entities, who import goods or services offered to the consumer, or the raw materials of such goods or services or semi-finished goods thereof, from abroad for commercial or professional purposes and offer the same to the market by way of sales, lease, financial lease or any similar fashion,

f) Permanent data register: means any means or media such as short text message, electronic mail, internet, disk, CD, DVD, flash disk etc., which enables the data sent by or to the consumer to be recorded in the manner to allow for the review of the same for a reasonable period of time as suitably for the intended purpose of such data, and to be copied without alteration and also allows for access to such data in exact,

g) Housing finance institution: means any bank, which extends loans to or engages in financial leasing toward directly the consumer as a part of housing finance, and any financial leasing company or financing company, which is considered by the Banking Regulation and Supervision Board to be appropriate to engage in housing finance activities,

ğ) Lender: means any natural person or legal entity, who is, under the applicable laws and regulations, authorized to lend loans to consumers,

h) Goods: Any movable commodities, real properties for residential or vacation purposes as well as any software, audio, video and the like intangible goods, which are subject to commercial transaction,

ı) Supplier: means any natural person or legal entity, including public legal entities, who offers services for commercial or professional purposes, or who acts on behalf or account of any such natural person or legal entity,

i) Supplier: means any natural person or legal entity, including public legal entities, who supplies goods or offers services for commercial or professional purposes, or who acts on behalf or account of such natural persons or legal entities,

j) Technical regulation: means the definition provided within the Act No. 4703 on the Preparation and Enforcement of the Technical Regulation Regarding Products, enacted on 29/6/2001,

k) Consumer: means any natural person or legal entity, which acts with non-commercial or non-professional purposes,

l) Consumer transaction: means any contract, including any contract of work, transportation contract, brokerage contract, insurance contract, contract of mandate, agency or attorney contract, banking contract or any other similar contract, or legal transaction that is instituted on any goods or service market between any natural person or legal entity, public legal entities, who acts for commercial or professional purposes or any natural person or legal entity, who acts on behalf or on the account of any such natural person or legal entity, and any consumer,

m) Consumer organizations: means any association, foundation constituted for the protection of consumer, or the upper bodies thereof,

n) Producer: means any natural person or legal entity, including public legal entities, who produces the goods that are offered to the consumer or the raw materials or semi-finished goods of such goods, or presents itself as the producer of the same by way of imprinting its brand, trade name or any distinguishing mark thereof on the same.

PART TWO

General Principles

Guidelines

ARTICLE 4- (1) The contracts and the information, which this Act requires to be issued in writing, shall be drawn up in a comprehensible wording, clearly, simply and legibly in characters at minimum twelve font size, and a copy of each such contract or information shall be delivered to the consumers in printed form or as saved on permanent data storage media. The failure in the satisfaction of any one or more requirements set forth for the contracts shall not affect the effectiveness of the contract. Any such failure shall be immediately remedied by the party, who has issued the contract.

(2) The terms and conditions of the contract may not be amended against the interests of the consumers throughout the duration of the contract.

(3) The consumers may not be claimed any additional charges for the performance of the obligations, which they may expect in just manner to be performed as a part of the delivery of the goods or the rendering of the services offered thereto, and for the expenses, which the party issuing the contract may have incurred for the purpose of the respective interests thereof. In respect of the goods or the services offered to consumers by banks, financial institutions extending consumer loans and card issuing institutions; any other fees, commissions and charges than interest to be charged thereby on the consumer as well as the principles and procedures on the matter shall be determined by the Banking Regulatory and Supervisory Agency, which shall give due consideration to the opinion of the Ministry, in compliance with the spirit of the present Law and in the manner that the interests of the consumers are preserved.

(4) Any fee and expense details to be charged on the consumer on the basis of the contracts governed by this Act should strictly be delivered to the consumers in printed form, which shall constitute an schedule to the contract. In the case of the contracts executed remotely through any means of communication; such details shall be delivered as appropriate by such means of communication. The burden of proof of the delivery to the consumer of such information shall be borne by the party, who has issued the contract.

(5) In respect of the transactions conducted by the consumer, notes payable, which shall be of commercial paper nature and registered, may be issued for each individual installment. Any note issued in breach of the provisions of this paragraph shall be null and void as far as the consumer is concerned.

(6) The personal guarantees obtained for the security of the performance of the consumers’ obligations as part of the transactions conducted by the same shall be considered as ordinary guarantee without regards to the reference of the same. The personal guarantees submitted by the counter party for the security of the receivables of the consumer shall be considered as joint and several guarantee unless provided otherwise by other laws.

(7) Compound interest shall not be applicable for consumer transactions in any case or circumstance, including the events of default.

(8) This Act shall be applicable also for the participation banks for any and all its regulatory purposes. In that case, the provisions hereof shall be applied and enforced with due consideration of dividends.

Unfair terms in consumer contracts"

"ARTICLE 5 - (1) An unfair term is any contractual term, which has been unilaterally included in the contract by the supplier without it being negotiated with the consumer and which, contrary to the requirement of good faith, causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.

(2) Any unfair term included in a contract, to which the consumer is a party, shall conclusively null and void and not be binding upon the consumer. Any and all other terms of the contract than any unfair term shall remain in full force and effect. In that case; the party, who has issued the contract, may not argue that it would not execute the contract with the other terms than the unfair terms had the terms, which are deemed to be conclusively null and void, not been included to the contract.

(3) Any term of the contract shall always be 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 standard contract. In the event the party, who has issued the contract, alleges that any standard term has been individually negotiated, then such party shall be obliged to prove such allegation thereof. In the event it is concluded as a consequence of the review of the contract as a whole that it is a standard contract; the fact that certain aspects of a term or one individual term have been negotiated shall not exclude the application of this Article to the rest of a contract if an overall assessment of the contract indicates that it is nevertheless a standard contract.

(4) In the cases, where the contract terms are issued in writing; they should be written clearly and legibly in order for the consumer to be able to understand the same. In the event any provision of the contract is not clearly and legibly stated or implies multiple meanings, such provision shall be interpreted to serve the best interests of the consumer.

(5) The provisions of this article shall be applicable for any contract, which is issued by any person or entity, who carries out the operations thereof under the authorization granted by the law or the competent authorities, irrespectively of the nature of any such contract.

(6) Whether or not a contract term is unfair shall be determined according to the time of execution of the contract with due consideration of the nature of the goods or service, being the subject matter of the contract, the circumstances prevailing at the time of execution of the contract and the other provisions of the contract or the provisions of any other contract, to which the unfair terms relates.

(7) In the event it is established that any contract term is unfair; on the condition that such term has been written clearly and legibly, any remarks may not be made regarding the balance between the price that is fixed within the contract and both the material obligations of performance that arise out of the contract and the market value of the relevant goods or service.

(8) The Ministry shall take the actions necessary for the removal from the contracts or the usage of any unfair terms, which are included to the contracts that have been drawn up to be used for general purposes.

(9) The terms of any contract, which is established to include unfair terms, including but not limited to the the principles and procedures regarding the determination and supervision of unfair terms, shall be established by a regulation to be enacted on the matter.

Abstention from selling"

"ARTICLE 6- (1) The sales of any goods, which are displayed in showcases, on shelves or electronically or at any visible spot, may not be abstained unless an expression, suggesting that such goods are not offered for sale, is visibly posted.

(2) Any provider may not abstain from the performance of any service without just cause.

(3) Any party acting for commercial or professional purposes may not stipulate any such conditions as the purchase of any goods or service in any quantity, number or size to be determined thereby or the purchase of any other goods or services for the sales of any particular goods or services unless there is any established practice or any commercial custom or tradition or any just cause in place.

(4) It shall be the duty of the Ministry and municipalities to take the actions for the enforcement and the monitoring of enforcement of the provisions of this article.

Goods or services that have not been ordered"

"ARTICLE 7 - (1) In the event of the shipment of any goods or the rendering of any services that have not been ordered, any claims may not be filed against the consumer. In any such case; the fact the consumer has remained silent or made use of the relevant goods or the service may not be construed as a representation by the consumer agreeing to the execution of the contract. The consumer shall not be obliged to ship the goods back or to store the same.

(2) Any party, who alleges that any goods or services have been ordered, shall be obliged to prove such allegation thereof.

PART THREE

Defective Goods and Services

SECTION ONE

Defective Goods

Defective goods"

"ARTICLE 8 - (1) A defective good is a good that is in breach of the contract since it is not in conformity to the sample or model, which was agreed upon by the parties, or fails to have the features and characteristics, which it, objectively, ought to have.

(2) Any good, which contains, material, legal or economic deficiencies which influence the quality, or the quantity that affects the quality, specified on the packaging, labeling, presentation or operating instructions, or in the advertisements or notices, or declared by the supplier or established in the standards or technical regulations, or decrease or eliminate its value or the benefits expected from such product by the consumer with respect to fitness, shall be deemed defective.

(3) The failure in the delivery of the good, being the subject matter of the contract, within the period, which is agreed upon within the contract, or in the cases, where the good is to be installed by or under the responsibility the supplier, the failure in the proper installation of the good shall be considered an action in breach of the contract. In the cases, where any good is, under the contract, to be installed by the consumer, the erroneous installation of the same due to any error or deficiency within the installation instruction shall constitute an action in breach of the contract.

Liability for defective goods"

"ARTICLE 9- (1) The supplier shall be obliged to deliver the good to the consumer in accordance with the relevant sales contract.

(2) The supplier shall not be bound by the contents of the statements, which are presented by way of advertisements that are not attributable thereto, in the event it proves that it is not and cannot be expected to be aware of such statements or that the content of such statements were corrected at the time of execution of the sales contract or the decision of the execution of the sales contract is not in relation of causality with such statements.

Burden of proof"

"ARTICLE 10 - (1) Any defect, which is discovered within a period of six months as of the date of delivery, shall be considered to have existed on the date of delivery. In that case, the burden of proof that the relevant good is not defective shall be incumbent upon the supplier. The foregoing presumption shall not be applicable should it not accord with the nature of the good or the defect.

(2) Any breach of the contract shall not be at issue in the cases, where the consumer was or is expected to be aware of the defect on the date of execution of the contract. The rights of choice of the consumer shall be reserved in respect of any other defect than those mentioned above.

(3) The manufacturer, importer or supplier shall affix a label, which should be easily comprehensible by the consumer and shall bear descriptive information on the defect of the good, to the defective good to be offered for sale, or to the package thereof. Such label should strictly be delivered to the consumer or the descriptive information regarding the defect shall be shown on the invoice, receipt or sales document given to the consumer. On the other hand, any product that is not in compliance with the relevant technical regulation applicable thereto may strictly not be offered to the market in any manner whatsoever. Such products shall be governed by the provisions of the Act on the Preparation and Enforcement of the Technical Regulation Regarding Products and the other relevant applicable regulations.

Rights of choice of consumers"

"ARTICLE 11- (1) In the event it is established that the good is defective, the consumer may exercise one of the following rights of choice thereof;

a) The right to withdraw from the contract, representing that s/he is ready to return the sold good,

b) The right to retain the sold good and claim discount on the sales price proportionately to the extent of the defect,

c) The right to request for the sold good to be repaired free of charge entirely at the supplier's expense in the event such repair work does not necessitate an excessive amount of expense, or

ç) The right to claim for the sold good to be replaced with a defect-free equivalent of the same, if practicable.

In that case, the supplier shall be obliged to satisfy such request or claim of choice of the consumer.

(2) The right to request repair free of charge or the right to claim the good to be replaced with a defect-free equivalent of the same may also be exercised against the manufacturer or producer or the importer. The supplier, the manufacturer and the importer shall be liable jointly and severally for the fulfillment of the rights provided in this paragraph. The manufacturer or the important shall not be held liable should it prove that the defect occurred after the release to the market thereby of the good.

(3) In the event repair free of charge or the replacement of the good with a defect-free equivalent of the same would lead to disproportionate difficulties for the supplier; the consumer may exercise one of the right to withdraw from the contract or the right to claim discount on the sales price proportionately to the extent of the defect. Such matters as the defect-free value of the good, the materiality of the defect and whether or not resorting to the other rights of choice would lead to problems for the consumer shall be taken into consideration in the determination of disproportion.

(4) In the event of the consumer's choosing the right to claim the repair of the good free of charge or the right to claim the replacement of the good with a defect-free equivalent of the same; such claim should strictly be satisfied within not longer than thirty business days as of the date of filing of such claim with the supplier, the manufacturer or the importer or, in the case of housing units or real estates for vacation purposes, within not longer than sixty business days as of such filing. However; any claim of the consumer for the repair free of charge of any good, which is listed within the list that is annexed to the regulation issued pursuant to Article 58 of this Act, shall be fulfilled within such maximum repair period that is provided within such regulation. Otherwise; the consumer shall be free to exercise any other right of choice thereof.

(5) In the cases, where the consumer chooses to withdraw from the contract or to claim discount on the sales price proportionately to the extent of the defect; the entire amount paid thereby or the amount of discount applied shall be immediately refunded to the consumer.

(6) Any and all expenses that are to be incurred on account of the exercise of any right of choice shall be borne by the party, who fulfills the right chosen to be exercised by the consumer. In addition to the exercise of any of such rights of choice, the consumer may also claim indemnification under the provisions of Turkish Code of Obligations No. 6098, enacted on 11/1/2011.

Prescription"

"ARTICLE 12 - (1) Unless any longer period is provided by the laws or the contract between the parties; the liability for defective goods shall be subject to a prescription period of two years as of the date of delivery of the good to the consumer even if the defect is discovered subsequently. The prescription period shall be five years as of the date of delivery of the relevant real estate in the case of housing units or real estates for vacation purposes.

(2) Save for the provisions of the third paragraph of Article 10 of this Act; the period of liability of the supplier for defective goods may not be shorter than one year in respect of second hand sales (resales) and may not be shorter than three years in the case of housing units or real estates for vacation purposes.

(3) The provisions on prescription shall not be applied in the cases, where the defect has been concealed by way of gross fault or fraudulently.

SECTION TWO

Defective Services

Defective service"

"ARTICLE 13 - (1) A defective service is a service, which is in breach of the contract since the performance of the same has not been commence within the period, on which the parties agree upon within the contract, or does not feature the characteristics agreed upon by and between the parties, which such service should objectively feature.

(2) A service which contains, material, legal or economic deficiencies that influence the quality or the quantity that affects the quality specified in the advertisements or announcements made by the supplier, or established in the standards or technical regulations, or decrease or eliminate its value or the benefits expected from such service by the consumer with respect to fitness, shall be deemed defective.

Liability for defective services"

"ARTICLE 14- (1) The provider shall be obliged to perform the service in accordance with the relevant contract.

(2) The provider shall not be bound by the contents of the statements, which are presented by way of advertisements that are not attributable thereto, in the event it proves that it is not and cannot be expected to be aware of such statements or that the content of such statements were corrected on the date of execution of the service contract or the decision of the execution of the service contract is not in relation of causality with such statements.

Rights of choice of consumers"

"ARTICLE 15- (1) In the cases, where any service is performed defectively; the consumer shall be free to exercise the right to claim for the re-performance of the service, the right to claim for the work, which arises out of the service, to be repaired free of charge, the right to claim discount on the price proportionately in the extent of the defect or the right to withdraw from the contract. In that case, the provider shall be obliged to satisfy such request or claim of choice of the consumer. (6) Any and all expenses that are to be incurred on account of the exercise of any right of choice shall be borne by the provider. In addition to the exercise of any of such rights of choice, the consumer may also claim indemnification under the provisions of Turkish Code of Obligations.

(2) In the event repair free of charge or the replacement of the good with a defect-free equivalent of the same would lead to disproportionate difficulties for the supplier; the consumer may not exercise such rights. Such matters as the defect-free value of the service, the materiality of the defect and whether or not resorting to the other rights of choice would lead to problems for the consumer shall be taken into consideration in the determination of disproportion.

(3) In the cases, where the consumer chooses to withdraw from the contract or to claim discount on the sales price proportionately to the extent of the defect; the entire amount paid thereby or the amount of discount applied shall be immediately refunded to the consumer.

(4) In the cases, where the right to claim repair free of charge or the right to claim for the re-performance of the service is chosen; the relevant claim shall be fulfilled by the provider within such period of time that could be considered reasonable with due consideration of the nature of the service and the purpose of benefit from such service of the consumer and in such manner that would not lead to any material problem for the consumer. Such period of time may not, in any case and under any circumstances, exceed thirty business days as of the date of filing of the relevant claim with the provider. Otherwise; the consumer shall be free to exercise any other right of choice thereof.

Prescription"

"ARTICLE 16 - (1) Unless any longer period is provided by the laws or the contract between the parties; the liability for defective service shall be subject to a prescription period of two years as of the date of performance of the service even if the defect is discovered subsequently.

(2) The provisions on prescription shall not be applied in the cases, where the defect has been concealed by way of gross fault or fraudulently.

PART FOUR

Consumer Contracts

SECTION ONE

Installment Sales

Installment sales contracts"

"ARTICLE 17 - (1) An installment sales contract is a contract, under which the supplier or the provider undertakes to deliver the goods or to perform the service and the consumer pays the consideration for the same in portions.

(2) The provisions of this Section shall also be applicable for the financial leasing contracts, under which the consumer is obliged to acquire the property title to a good upon the expiration of the lease term.

(3) An installment sales contract shall not be valid and effective unless it is issued and executed in writing. A supplier or provider, who has not executed a valid contract, may not, subsequently, refer to the invalidity of the contract as an argument against the consumer.

Right of Withdrawal"

"ARTICLE 18 - (1)The consumer shall be entitled to withdraw from contracts of sales on installment without suggesting a just cause and being obliged to pay penal clause within a period of seven days.

(2) Such withdrawal shall only require for the consumer to notify the supplier or the provider of the exercise of such right of withdrawal within the said period of time. The supplier or the provider shall be obliged to prove the information of the consumer on such right of withdrawal.

(3) In the cases, where the supplier may have delivered the goods at issue to the consumer within such period allowed for withdrawal; the consumer may use such goods only for such extent that an ordinary review may require and otherwise s/he shall not be entitled to exercise such right of withdrawal. The consumers may not exercise the right of withdrawal also in the case of such service contracts, under which the performance of service may have been commenced upon the consent of the consumer prior to the expiration of the period allowed for withdrawal.

(4) The right of withdrawal may not be exercised in the cases of financial leasing, where the consumer finds the supplier.

Default"

"ARTICLE 19 - (1) In the event the consumer goes into default in the payment of installments payable within the framework of a contract of sales on installment; if the supplier or the provider has reserved the right thereof to claim the payment of the entire outstanding amount payable, such right may only be exercised on the conditions that the supplier or the provider has fulfilled and performed any and all obligations thereof and the consumer has gone into default in the payment of minimum two consecutive installments, which constitute, at minimum, one tenth of the outstanding amount payable, or one installment, which constitutes, at minimum, one fourth of the outstanding amount payable. The exercise by the supplier or the provider of such right shall strictly require the same to serve the consumer a notice of acceleration at least thirty days beforehand.

(2) Interests, commissions and the like charges and expenses shall not be taken into consideration for the calculation of the installments, which may be had so accelerated.

Early repayment"

"ARTICLE 20 - (1) The consumer may pay the amount payable thereby prior to the maturity of the same, and may effectuate the payment of one or more installments before they become due. In either case, the supplier or the provider shall be obliged to apply interest or commission discount should such be applicable.

Miscellaneous"

"ARTICLE 21 - (1) The contracts, under which the consumer may have agreed and warranted to pay the consideration of a movable good partially in advance and the supplier may have agreed and warranted to deliver such good to the consumer upon the full payment of the consideration at issue, and which provide for the payment term to be longer than one year or indefinite, shall be governed by the provisions regarding sales on installment with advance payment of Turkish Code of Obligations.

(2) The clauses, terms and provisions, which are strictly required to be set forth within the scope, the rights and obligations of the consumer and the supplier, the right of withdrawal, the terms and conditions of early payment and the principles and procedures regarding any other matters shall be established and set forth by a regulation to be enacted on the matter.

SECTION TWO

Consumer Loans

Consumer loan contracts"

"ARTICLE 22 - (1) A consumer loan contract means any a contract, under which the lender extends or undertakes to extend a loan to the consumer through the deferral of repayment, lending or other similar forms of financing in consideration of interest or any other similar gain or benefit.

(2) A credit card contract shall be considered a consumer loan contract in the cases, where the repayment is deferred for any period longer than three months or the possibility to repay in installment in a similar manner is provided in consideration of interest or any other similar gain or benefit. However; the interest rate applicable in that case may not be more than that, which is specified under the credit card contract.

(3) A consumer loan contract shall not be valid and effective unless it is issued and executed in writing. A lender, who has not executed a valid contract, may not, subsequently, refer to the invalidity of the contract as an argument against the consumer.

Obligation to inform prior to contract"

"ARTICLE 23 - (1) It is an obligation for the lender and the loan broker, if any, to furnish the consumer with a pre-contract information form, which includes the terms of the proposed loan contract, a reasonable period of time in advance of the execution of the contract.

Right of Withdrawal"

"ARTICLE 24 - (1) The consumer shall be entitled to withdraw from the consumer loan contract without suggesting a just cause and being obliged to pay penal clause within a period of fourteen days.

(2) The lender shall be obliged to prove the information of the consumer on such right of withdrawal. Such withdrawal shall only require for the consumer to notify the lender of the exercise of such right of withdrawal within the period of time contemplated for the exercise of the right of withdrawal.

(3) In the cases, where the consumer, who exercises the right of withdrawal has already utilized the loan, the consumer shall repay the principal amount as well as the interest, which is accrued for the period between the date of utilization of the loan and the date of repayment of the principal amount, within not longer than thirty days as of the date of its service of notice of withdrawal to the lender. Should such repayment not be effectuated within the said period of time, the consumer shall not considered not to have withdrawn from the consumer loan contract. The interest shall be calculated on the basis of the contractual interest rate. Any other amount than the calculated contractual interest and the expenses paid to any public entity or institution or third parties may not be claimed from the consumer.

Interest rate"

"ARTICLE 25- (1) The interest rate shall be determined to be fixed in the consumer loan contracts of definite duration. Such rate, which shall be determined on the date of execution of the contract, may not be altered against the interests of the consumer.

(2) In the event a consumer loan contract does not provide for the contractual interest, effective annual interest or the total cost of the loan, the loan amount shall be utilized without interest until the date of expiration of the contract duration. In the event the effective interest rate is indicated to be lower than it, in fact, is; the contractual interest rate, on the basis of which the total cost of the loan is to be calculated, shall be re-determined to match such lower effective interest rate. In that case, the repayment schedule shall be re-adjusted to reflect such revisions.

Amendments"

"ARTICLE 26- (1) The terms of a loan contract of definite duration may not be amended against the interests of the consumer.

(2) In the event of any change to the interest rate applicable for a loan contract of indefinite duration; the consumer should strictly be notified of such change in writing in printed form or by way of permanent data register not later than thirty days prior to the date of effectiveness of such change. Such notification shall include such details as the amount of each repayment installment to be effectuated after the effectiveness of the revised interest rate as well as the number of such repayments and the intervals between any two installments. In the event the interest rate is increased, the increased interest rate may not be applied retrospectively. The consumer shall not be affected by the increase in the interest rate should s/he fully repay the loan or cease the utilization of the loan within not longer than sixty days as of the date of such notification.

Early repayment"

"ARTICLE 27 - (1) The consumer may pay any one or several installment(s), which have not yet become due and payable, or entirely repay the loan on an early basis. In that case, the lender shall be obliged to apply discount on all interest and other cost items as necessary with respect to the amount repaid on an early basis.

Default"

"ARTICLE 28 - (1) In the event the consumer goes into default in the payment of installments payable within the framework of a loan contract of definite duration; if the lender has reserved the right thereof to claim the payment of the entire outstanding amount payable, such right may only be exercised on the conditions that the lender has fulfilled and performed any and all obligations thereof and the consumer has gone into default in the payment of minimum two consecutive installments. The exercise by the lender of such right shall strictly require the same to serve the consumer a notice of acceleration at least thirty days beforehand.

(2) Interests, commissions and the like charges and expenses shall not be taken into consideration for the calculation of the installments, which may be had so accelerated.

Insurance"

"ARTICLE 29 - (1) Any insurance may not be arranged in relation to the loan without the explicit request of the consumer, which should be filed in writing or by way of the permanent data register. In the event the consumer demands to arrange insurance, the coverage provided thereby from the insurer, which the consumer selects at her/his discretion, should be agree to by the lender. Such insurance should accord with the the subject matter of the loan, and the amount of the same should accord with the outstanding amount payable and the maturity term of the same.

Tied loans"

"ARTICLE 30 - (1) A tied loan contract is a contract, under which a consumer loan is extended exclusively for the financing of a contract regarding the supply of a specific good or the provision of a specific service and objectively constitutes an economic unity with such contract.

(2) The economic unity is considered to exist in the cases where

a) The supplier or the provider finances the loan for the consumer,

b) the lender utilizes the services of the supplier or the provider in relation to the execution or the preparation of the loan contract if the loan is financed by a third party, or

c) The supply of a specific good or the provision of a specific service is explicitly mentioned within the loan contract.

(3) In the event the consumer withdraws from the contract regarding the supply of goods or the provision of services and the notice on the matter is served also to the lender within the prescribed period of withdrawal, the tied loan contract shall be terminated without indemnity or penal clause liability.

(4) In the event, in the case of a tied loan, the relevant good or service is not delivered or performed at all or properly as required, the supplier or the provider and the lender shall be liable jointly and severally should the consumer exercises her/his right to withdraw from the sales contract or right to claim discount on the relevant price. In the event the consumer exercises her/his right to claim discount on the price, the tied loan shall also be rebated by the percentage of such discount to be applied thereon, and the repayment schedule shall be revised accordingly. In the event the consumer exercises her/his right to withdraw from the contract; the supplier or the provider and the lender shall be liable jointly and severally for the refunding of the amount, which may have been paid by the consumer until the date of such withdrawal. However; the period of liability of the lender shall be one year as of the date of the delivery of the good or the date of performance of the service as provided within the sales contract or the tied loan contract in the cases, where the relevant good is not delivered or the relevant service is not performed, or as of the date date of the delivery of the good or the date of performance of the service in the cases, where the relevant good is delivered or the relevant service is performed, and shall be limited to the amount of the loan utilized in either cases.

(5) Any loan, which is extended by way of the payment by the lender of the consideration of a good or a service, which is determined by the consumer in principal, without the existence of a contract between the lender and the supplier or the provider regarding the supply of a specific good or the provision of a specific service, shall not be considered to be a tied loan.

Miscellaneous"

"ARTICLE 31 - (1) In the event of the opening of an account in relation to a loan contract of definite duration and the conduct of transactions related solely to the loan on and through such account; any fee, charge or expense shall not be claimed from the consumer under any reference or designation whatsoever in relation to such account. Such account shall be closed upon the full repayment of the loan unless the consumer requests otherwise.

(2) An overdraft contract may not be executed in association with a loan contract of a definite duration without the explicit instruction of the consumer.

(3) The card issuing institutions should strictly offer the consumers a credit card type, in respect of which they do not collect annual subscription fee or any other similar fee under any reference or designation whatsoever.

(4) The pre-contract information, the clauses, terms and provisions, which are strictly required to be set forth within the scope and wording of such contracts, the excluded contracts, the rights and the obligations of the consumer and the lender, the right of withdrawal, early payment, the calculation of the effective annual interest, the mandatory content elements of the commercial advertisements about consumer loans, the exercise of the right of termination, default, transfer and assignment of loans, and the principles and procedures regarding any other matters shall be established and set forth by a regulation to be enacted on the matter.

SECTION THREE

Housing Finance

Housing finance contracts"

"ARTICLE 32 - (1) A housing finance contract is a contract, under which consumers are extended loans in order to enable consumers to acquire housing and by way of the leasing of housing units to consumers by way of financial leasing, and against the placement of the housing units, which are owned by consumers, as collateral and also for the purpose of refinancing of such loans.

(2) A housing finance contract shall not be valid and effective unless it is issued and executed in writing. A housing finance institution, which has not executed a valid contract, may not, subsequently, refer to the invalidity of the contract as an argument against the consumer.

Obligation to inform prior to contract"

"ARTICLE 33 - (1) It is an obligation for the housing finance institutions to furnish the consumer with a pre-contract information form, which includes the terms of the proposed housing finance contract, a reasonable period of time in advance of the execution of the contract.

Default"

"ARTICLE 34 - (1) In the event the consumer goes into default in the payment of installments payable within the framework of a housing finance contract; if the housing finance institution has reserved the right thereof to claim the payment of the entire outstanding amount payable, such right may only be exercised on the conditions that the housing finance institution has fulfilled and performed any and all obligations thereof and the consumer has gone into default in the payment of minimum two consecutive installments. The exercise by the housing finance institution of such right shall strictly require the same to serve the consumer a notice of acceleration at least thirty days beforehand.

(2) Interests, commissions and the like charges and expenses shall not be taken into consideration for the calculation of the installments, which may be had so accelerated.

(3) In the event, in a financial leasing transaction, the consumer fails to fulfill and perform its obligations within the period granted within the notice of acceleration, and the housing finance institution terminates the housing finance contract with the intention of the collection of the entire sum of the outstanding amount payable following the expiration of such period; the housing finance institution shall be obliged to immediately put the relevant housing unit out to sales. Prior to such sales, the housing finance institution shall procure the relevant housing unit to be appraised by the persons or institutions, who or which have been authorized to carry out such activity under the Capital Markets Act No. 6362, enacted on 6/12/2012. The value so appraised shall be advised to the consumer at least ten business days in advance of the sales. The housing finance institution shall, then, conduct the sales of the relevant housing unit, acting as a prudent merchant, with due consideration of the value so appraised. In the event the amount of proceeds of the sales of the housing unit exceeds the amount of the outstanding amount payable, the amount of excess shall be paid to the consumer immediately. The provisions of Article 33 of the Act No. 6361 on Financial Leasing, Factoring and Finance Companies, enacted on 21/11/2012, shall not be applicable for the financial leasing transactions for housing finance purposes.

(4) In the cases, where the sales of the housing unit is conducted under the provisions of the third paragraph of this article and the consumer or, where the possession of the housing unit has been conveyed to a third party, such third party shall be obliged to evict the housing unit following the payment to the consumer of such amount of proceeds of sales that exceeds the amount of the outstanding amount payable. In the event the housing unit is not so evicted, the owner of the housing unit may resort to debt enforcement against the consumer or the third party, in whose possession the housing unit is, under the provisions of Article 26 and 27 of the Enforcement and Bankruptcy Code No. 2004, enacted on 9/6/1932.

Tied loans"

"ARTICLE 35 - (1) A tied loan contract is a contract, under which a consumer loan is extended exclusively for the financing of a contract in the case of the purchase of a specific housing unit and objectively constitutes an economic unity with such contract.

(2) In the event, in the case of a tied loan, the relevant housing unit is not delivered at all or properly as required, on which account the consumer exercises any one of the rights of choice thereof as provided within Article 11 of this Act, the supplier and the housing finance institution shall be liable jointly and severally. However; the period of liability of the lender shall be one year as of the date of the delivery of the housing unit as provided within the housing unit sales contract or the tied loan contract in the cases, where the relevant housing unit is not delivered, or as of the date of the delivery of the relevant housing unit in the cases, where the relevant housing unit is delivered, and shall be limited to the amount of the loan utilized in either cases.

(3) Even in the event any loan extended by a housing finance institution is transferred to a mortgage financing institution, a housing finance fund or a mortgage-backed securities collateral pools, the liability of the lending housing finance institution shall remain in force and effect. The institution, to which the loan is transferred, shall not be liable under the provisions of the present article.

(4) Any loan, which is extended by way of the payment by the housing finance institution of the consideration of a good or a service, which is determined by the consumer in principal, without the existence of a contract between the housing finance institution and the supplier regarding the supply of a specific housing unit, shall not be considered to be a tied loan.

Interest rate"

"ARTICLE 36 - (1) The amount to be repaid that exceeds the principal amount in the case of loans and that exceeds amount of the rent in the case of financial leasing transactions shall be considered interest under the provisions of the present article.

(2) The interest rate in respect of the loans extended for housing finance purposes or in respect of financial leasing transactions may be determined as a fixed or a variable rate or as a both fixed and variable rate for the same rate by way of the provision of the same within the relevant contract. In the event the interest rate is determined as a fixed rate, the rate that is determined on the date of execution of the contract may not be revised without the consent of the parties. On the other hand, in the event the interest rate is determined as a variable rate, the rate that is initially determined within the contract may be revised on the condition that the amount of interest payable should not exceed the maximum periodical amount to be paid as initially agreed upon within the contract and on the basis of the lowest of the indices, which should be determined within the contract and be generally accepted and commonly used at home or in abroad. In the event the interest rate is determined as a variable rate, the consumer should strictly be informed on the potential impacts of such method. The reference interest rates and indices, which may be employed for the said purposes, shall be determined and identified by the Central Bank of the Republic of Turkey.

Early repayment"

"ARTICLE 37 - (1) The consumer may pay any one or several installment(s), which have not yet become due and payable, or entirely repay the housing finance amount payable on an early basis. In that case, the housing finance institution shall be obliged to apply discount on all interest and other cost items as necessary with respect to the amount repaid on an early basis.

(2) In the cases, where the interest rate is determined as a fixed rate, in the event one repayment installment or several of the same is or are paid on an early basis, the housing finance institution may claim early repayment (break) compensation from the consumer, which matter should be provided within the relevant contract. The amount of the early repayment (break) compensation may not exceed one hundredth of the amount, which is to be calculated by way of the application of the required interest rebate and is repaid by the housing finance institution on an early basis, in the cases where the remaining maturity term is not longer than thirty six months, and may not exceed two hundredths of the same in the cases where such remaining maturity term is longer than thirty six months. In the event the interest rate is determined as a variable rate, any early repayment (break) compensation may not be claimed from the consumer.

Insurance"

"ARTICLE 38 - (1) Any insurance may not be arranged in relation to the loan without the explicit request of the consumer, which should be filed in writing or by way of the permanent data register. In the event the consumer demands to arrange insurance, the coverage provided thereby from the insurer, which the consumer selects at her/his discretion, should be agree to by the housing finance institution. Such insurance should accord with the the subject matter of the loan, and the amount of the same should accord with the outstanding amount payable and the maturity term of the same.

Miscellaneous"

"ARTICLE 39 - (1) In the event of the opening of an account in relation to a housing finance contract and the conduct of transactions related solely to the loan on and through such account; any fee, charge or expense shall not be claimed from the consumer under any reference or designation whatsoever in relation to such account. Such account shall be closed upon the full repayment of the loan unless the consumer requests otherwise.

(2) An overdraft contract may not be executed in association with a housing finance contract of a definite duration without the explicit instruction of the consumer.

(3) For the purpose of the enforcement of the provisions of the present Section, the natural person shareholders of the cooperative housing societies shall also be considered as consumers.

(4) The principles and procedures regarding the pre-contract information,the rights and obligations of the consumer and the housing finance institution, the matters, which are strictly required to be set forth within the scope and wording of such contracts, the advertisements about housing finance, refinancing, tied loan, default, early repayment and the calculation of the annual cost rate as well as any other matters shall be determined and identified by a regulation to be enacted on the matter.

SECTION FOUR

Prepaid House Sales

Prepaid house sales contracts"

"ARTICLE 40 - (1) A prepaid house sales contract is a contract, under which the consumer undertakes to pay the consideration of a real estate, being a housing unit, in cash or in installments in advance, and the supplier undertakes to hand over and deliver the relevant real estate to the consumer upon the payment of the entirety or a certain portion of such consideration.

(2) The consumer should be furnished with the pre-contract information form, which should contain the matters that are identified by the Ministry, at least one day in advance of the execution of such a contract.

(3) Prepaid house sales contracts may not be executed with consumers before the acquirement of construction permit. Formal requirements

"ARTICLE 41 - (1) Any prepaid house sales should strictly be had registered to the land registry, and any preliminary contract of sale should strictly be issued and executed at the counters of a notary public. Otherwise, the supplier may not, subsequently, refer to the invalidity of the contract as an argument against the consumer.

(2) The supplier may not claim for the consumer to effectuate any payments under any reference or designation whatsoever or request the consumer to submit any documents, which would burden the consumer with any debt, unless a valid contract has not been executed.

Collateral"

"ARTICLE 42 - (1) In respect of the projects, the size of which is larger than that, which is to be determined by the Ministry with respect to the number of housing units or the total amount of consideration of the project; the supplier should strictly arrange building completion insurance, the coverage, the terms and the code of implementation of which shall be determined by the Undersecretariat of Treasury, or provide other collateral and terms, which may be determined by the Ministry, prior to the commencement of prepaid house sales.

(2) The indemnity, collateral and other similar security guarantees, which are provided within the scope of the building completion insurance, may not be incorporated into any bankruptcy or liquidation estate, be seized or any injunctive relief or precautionary attachment may not be created on the same.

Right of Withdrawal"

"ARTICLE 43 - (1) The consumer shall be entitled to withdraw from the prepaid house sales contract without suggesting a just cause and being obliged to pay penal clause within a period of fourteen days. Such withdrawal shall only require for the consumer to notify the supplier of the exercise of such right of withdrawal within the said period of time. The supplier shall be obliged to prove the information of the consumer on such right of withdrawal.

(2) In the cases, where the real estate is purchased by way of the utilization of a tied loan, either entirely or partially, the tied loan contract shall come into force upon the expiration of the period of withdrawal as provided herein to become effective as of the date of execution of the contract. The housing finance institution may not claim any expenses from the consumer under any reference or designation whatsoever such as interests, commission, legal liability and the like.

(3) The consumer shall return her/his acquisitions within a period of ten days as of the date of refunding by the supplier of the amount, which may have been collected thereby, and returning of any document, which may have been submitted by the consumer and burdens her/him with debt, by the supplier.

Delivery of the house"

"ARTICLE 44 - (1) In the case of any prepaid house sales, the period of hand-over or delivery may not exceed thirty six months as of the date of execution of the contract. The relevant housing unit shall be considered to have been handed over and delivered also in the event of hand-over of the possession following the registration of the construction servitude to the land registry.

Right of withdrawal"

"ARTICLE 45 - (1) In the case of any prepaid house sales, the consumer shall have the right of withdrawal from the contract without the statement of a reason until the date of hand-over or delivery. In the event of withdrawal from the contract; the supplier may claim for the payment of such expenses that may have arisen out of taxes, fees and other similar legal obligations, which may have arisen out of the sales of the housing unit or the preliminary contract of sale, and indemnity in such amount that could be up to two hundredths of the contract price.

(2) The supplier may not claim any amounts to be paid by the consumer should it not fulfill its obligations at all or properly as required. In the event the the consumer dies or becomes unable to effectuate the preliminary payments on account of forfeiting her/his ability to gain regular income or withdraws from the contract on account of the supplier's rejection of the consumer's proposal to substitute the contract with an installment sales contract, which could be executed under ordinary terms; any amount may not be claimed from the consumer.

(3) In the event of withdrawal from the contract; the amount, which may have been collected from and should be refunded to the consumer, shall be refunded to and any document, which may have been submitted by the consumer and burdens her/him with debt, shall be returned to the consumer within not later than ninety days as of the date of receipt by the supplier of the notice of withdrawal. The consumer shall return her/his acquisitions within a period of ten days as of the date of refunding by the supplier of the amount, which may have been collected thereby, and returning of any document, which may have been submitted by the consumer and burdens her/him with debt, by the supplier.

Miscellaneous"

"ARTICLE 56 - (1) The principles and procedures on pre-contract information, the matters, which are strictly required to be set forth within the scope and wording of the contracts, the the rights and obligations of the consumer and the supplier, the right of withdrawal, and any other matters shall be determined by a regulation to be enacted on the matter.

SECTION FIVE

Other Consumer Contracts

Contracts executed outside the workplace"

"ARTICLE 47 - (1) Any contract executed between the supplier or the provider and the consumer;

a) In the physical presence at the same time of the parties outside the workplace irrespectivey of whether the proposal is made by the consumer or the supplier or the provider,

b) Immediately after a meeting held outside the workplace with the consumer in the physical presence at the same time of the parties, at the workplace of the supplier or the provider or through any remote communication facility, or

c) During a trip held by the supplier or the provider for the purpose of the introduction or sales to the consumer of the relevant goods or services, shall be considered a contract executed outside the workplace.

(2) Any contract executed outside the workplace shall be issued and executed by such suppliers or providers, who have been authorized by the Ministry.

(3) Prior to the consumer's being bound by any contract executed outside the workplace or any corresponding proposal; the consumer should strictly be informed clearly and legibly on such matters, the details of which are provided within the regulation. The burden of proof for the information of the consumer shall be incumbent upon and borne by the supplier or the provider.

(4) Any contract executed outside the workplace shall not be valid and effective unless it is issued and executed in writing. A supplier or provider, who has not executed a valid contract, may not, subsequently, refer to the invalidity of the contract as an argument against the consumer. The supplier or the provider shall be obliged to ensure that the consumer manually writes the date of contract and signs the same, to deliver one counterpart of the contract to the consumer, and to deliver the relevant goods or service to the consumer. The burden of proof for the delivery of the contract as well as the relevant goods or service to the consumer shall be incumbent upon and borne by the supplier or the provider.

(5) The consumer shall be entitled to withdraw from contract without suggesting a just cause and being obliged to pay penal clause within a period of fourteen days. Such withdrawal shall only require for the consumer to notify the supplier or the provider of the exercise of such right of withdrawal within the said period of time. The supplier or the provider may not claim for the consumer to effectuate any payments under any reference or designation whatsoever in consideration of the goods or service, being the subject matter of the contract, or request the consumer to submit any documents, which would burden the consumer with any debt, within the period of withdrawal. The supplier or the provider shall be obliged to prove the information of the consumer on such right of withdrawal. The consumer shall not be liable for any alterations and deteriorations of the goods, which may have emerged due to the ordinary utilization of the goods throughout the withdrawal period.

(6) In the event the supplier or the provider acts in breach of the respective obligations thereof as provided within the present article or fails to properly inform the consumer as required about the right of withdrawal, the fourteen day period of withdrawal shall not be binding on the consumer to exercise her/his right of withdrawal. In any case, such period of time shall expire one year after the expiration of the period of time allowed for withdrawal.

(7) The matters of the clauses, terms and provisions, which are strictly required to be set forth within the scope and wording of the contracts, the excluded contracts, the direct sales, the rights and obligations of the consumer and the supplier or the provider, the right of withdrawal, the obligation of information, the delivery, the qualification requirements applicable for the persons, who shall be authorized to conduct sales activities, and any other principles and procedures of enforcement shall be established and set forth by a regulation to be enacted on the matter.

Distance contracts"

"ARTICLE 48 - (1) A distance contract is a contract executed without the concurrent physical presence of the supplier or provider and the consumer within the framework of a system developed for the purpose of the remoter marketing of goods or services through the utilization of the means of remote communication until and including the moment of the actual execution of the contract between the parties.

(2) The consumer shall be informed by the supplier or the provider clearly and legibly on the matters detailed by the applicable regulation in advance of the agreement thereby with the distance contract or any offer corresponding thereto and on the matter that the consumer shall become obliged to pay the claimed consideration should the order placed be confirmed by the same. The burden of proof for the information of the consumer shall be incumbent upon and borne by the supplier or the provider.

(3) The supplier or the provider shall fulfill its contractual obligations within the warranted period of time as of the receipt by the same of the order placed by the consumer. Such period may not exceed thirty days under any circumstances whatsoever in the case of the sales of goods. In the event the supplier or the provider fails to perform such contractual obligations within the said period of time, the consumer may terminate the contract.

(4) The consumer shall be entitled to withdraw from contract without suggesting a just cause and being obliged to pay penal clause within a period of fourteen days. Such withdrawal shall only require for the consumer to notify the supplier or the provider of the exercise of such right of withdrawal within the said period of time. The supplier or the provider shall be obliged to prove the information of the consumer on such right of withdrawal. Such notification period shall not be binding on the consumer for the exercise of the right of withdrawal unless the consumer is duly informed as appropriate on the right of withdrawal. In any case, such period of time shall expire one year after the expiration of the period of time allowed for withdrawal. The consumer shall not be liable for any alterations and deteriorations of the goods, which may have emerged due to the ordinary utilization of the goods throughout the withdrawal period.

(5) The parties, who act as intermediary for the supplier or provider for the purpose of the execution of distance contracts through the utilization of the means of remote communication or through making the same available to the concerned within the framework of a system developed by such parties, shall be obliged to keep records of the transactions conducted with the supplier or the provider due to the matters provided within the present article and to submit the same to the concerned entities, institutions, organizations and consumers upon request. However; the parties, who act as intermediary hereunder, shall be liable toward the supplier or provider for any acts or actions thereof that are in breach of the contract executed thereby with the supplier or the provider.

(6) The contracts, which are excluded from the scope of distance contracts, the rights and obligations of the consumer and the supplier and the provider, the right of withdrawal, the obligation to inform, the terms and conditions of delivery and any other principles and procedures of enforcement shall be established and set forth by a regulation to be enacted on the matter.

Distance contracts regarding financial services"

"ARTICLE 49 - (1) Financial services mean any banking service as well as the services related to loans, insurance, private pension, investment and payment. A distance contract regarding financial services is a contract, which is issued and executed between the provider and the consumer through remote communication facilities within the framework of a system that has been established for the purpose of remote marketing of financial services.

(2) In respect of a distance contract for the financial services; the consumer should strictly be properly informed about the right of withdrawal, the fact that the consumer would enter into obligation should s/he declare her/his agreement, and the details of such obligation as well as the other matters, the details of which are determined by the Ministry, clearly, legibly and in such fashion that is suitable for the communication facilities employed prior to her/his declaration of her/his will for the execution of the consumer. It should be clearly understandable that such information is made for commercial purposes and, in the cases where audible communication facilities are employed, the identity and the reason for contact of the provider should be stated at the beginning of each contact. The declaration of the consumer's agreement for the execution of the contract shall be established or recorded physically or electronically as suitable for the communication facilities employed. The provider shall be obliged to take the measures necessary for the communication of the exercise of the right of withdrawal and the matters to be established and recorded physically or electronically.

(3) The provider should strictly deliver and communicate any and all terms of the contract as well as the other matters, which are determined by the Ministry, in printed form or through a permanent data register. The foregoing obligation shall be fulfilled prior to the consumer's declaration of her/his will for the execution of the contract or, in the cases where the contract is, upon the consumer's request, executed through such a remote communication facility that is not suitable for information in writing, immediately after the execution of the contract.

(4) The consumer may, throughout the effectiveness of the contractual relation, request to be furnished with a printed written copy of the contract without being obliged to pay any charge. Furthermore; the consumer shall be entitled to change the remote communication facility employed should it accord with the nature of the relevant financial service.

(5) The consumer shall be entitled to withdraw from a distance contract regarding financial services without suggesting a just cause and being obliged to pay penal clause within a period of fourteen days. Such withdrawal shall only require for the consumer to notify the provider of the exercise of such right of withdrawal within the said period of time (seven days). The provider shall be obliged to prove the information of the consumer on such right of withdrawal. On the other hand; in respect of insurance contracts and the contracts regarding private pension, the period of withdrawal shall be governed by the provisions, which serve the best interests of the consumer, of the other applicable legislations.

(6) In respect of the distance contracts regarding financial services; it shall be sufficient for the consumer to remotely communicate her/his request for the termination of the contract through a communication facility. The consumer may not be required to employ a method, which poses more stringent conditions than those that may have enabled the execution of the contract, in order to terminate the contract.

(6) The contracts, which are excluded from the scope of distance contracts regarding financial services, the employment of remote communication facilities, payment by way of cards, the rights and obligations of the consumer and the provider, the right of withdrawal, and any other any other principles and procedures of enforcement shall be established and set forth by a regulation to be enacted on the matter.

Time-share vacation and long-term vacation service contracts"

"ARTICLE 50 - (1) A time-share vacation contract is a contract, which is executed for a duration that is longer than one year and entitles the consumer to stay at the relevant facility for one night or multiple nights for multiple terms throughout such duration.

(2) The fact that the right provided under a time-share vacation contract is whether a personal or a real right shall not preclude the enforcement of the provisions of this article. Time-share vacation contracts may not be executed with consumers before the acquirement of construction permit for the land, on which the real estate, being the facility for the time-share vacation, is to be constructed.

(3) A long-term vacation service contract is a contract, which is issued and executed for a duration that is longer than one year, and the consumer is entitled to benefit from discounts or other benefits in relation to accommodation or cases, in which accommodation is offered in combination with travel or other services, throughout such duration.

(4) The consumer should strictly be furnished with the pre-contract information form, which should contain the matters that are identified by the Ministry, at least one day in advance of the execution of any of the following contracts:

a) Time-share vacation contracts

b) Long-term vacation service contracts

c) Exchange contracts

ç) Resale contracts, under which the supplier or the provider provides the consumer with assistance in the purchase and sales of time-share vacation or long-term vacation services.

(5) Except for the cases, where the contract is issued and executed by way of distance sales; the supplier or the provider shall be obliged to ensure that the consumer manually writes the date of contract and signs the same. The supplier or the provider should strictly deliver to the consumer a counterpart of such contract, which is issued and executed in writing or in the form of distance contract, in printed form or through a permanent data register. The legal provisions, which contemplate more stringent terms, shall be reserved.

(6) The consumer shall be entitled to withdraw from contract without suggesting a just cause and being obliged to pay penal clause within a period of fourteen days. Except for the contracts, which grant the consumer time-share rights; the supplier or the provider may not claim for the consumer to effectuate any payments under any reference or designation whatsoever, or request the consumer to submit any documents, which would burden the consumer with any debt, prior to the expiration of the period of withdrawal. Any time-share vacation or long-term vacation service contract as well as any resale, exchange and any and all other relevant contracts, which may have been issued and executed along with such contracts, shall be terminated automatically upon the exercise of the right of withdrawal.

(7) In the event the amount payable by the consumer is funded, either partially or entirely, by a lender on the basis of an agreement between the supplier or the provider and the lender, and in the event the consumer withdraws from the contract and the notice on the matter is served also to the lender within the prescribed period of withdrawal, the tied loan contract shall also be terminated without indemnity or penal clause liability.

(8) In respect of the projects, the size of which is larger than that, which is to be determined by the Ministry with respect to the number of housing units or the total amount of consideration of the project; the supplier or the provider should strictly arrange building completion insurance, the coverage, the terms and the code of implementation of which shall be determined by the Undersecretariat of Treasury, or provide other collateral and terms, which may be determined by the Ministry, prior to the commencement of sales of the real estate, being the subject matter of the prepaid time-share vacation. The indemnity, collateral and other similar security guarantees, which are provided within the scope of the building completion insurance, may not be incorporated into any bankruptcy or liquidation estate, be seized or any injunctive relief or precautionary attachment may not be created on the same.

(9) In the case of any prepaid sales of the real estate, being the subject matter of the time-share vacation, the consumer shall have the right of withdrawal from the contract without the statement of a reason until the date of hand-over or delivery. In the event of withdrawal from the contract, the supplier may claim indemnity in such amount that is equal to up to two hundredths of the contract price. The supplier may not claim any amounts to be paid by the consumer should it not fulfill its obligations at all or properly as required. In the event of withdrawal from the contract; the amount, which may have been collected from and should be refunded to the consumer, shall be refunded to and any document, which may have been submitted by the consumer and burdens her/him with debt, shall be returned to the consumer within not later than ninety days as of the date of receipt by the supplier of the notice of withdrawal. The consumer shall return her/his acquisitions within a period of ten days as of the date of refunding by the supplier of the amount, which may have been collected thereby, and returning of any document, which may have been submitted by the consumer and burdens her/him with debt, by the supplier.

(10) In the case of any prepaid sales of the real estate, being the subject matter of the time-share vacation;, the period of hand-over and delivery may not exceed thirty six months as of the date of execution of the contract.

(11) The contents of the time-share vacation, long-term vacation service, resale and exchange contracts as well as preliminary information forms, the rights and obligations of the consumer and the supplier and the provider, the right of withdrawal, the prepaid sales and any other principles and procedures of enforcement shall be established and set forth by a regulation to be enacted on the matter.

Package tour contracts"

"ARTICLE 51 - (1) A package tour contract is a contract, under which at least two of the following services are offered for sales or are promised to be sold in consideration of an all-inclusive price by package tour organizers or the agents thereof, and the duration of such services cover a period that is longer than twenty four hours or such services involve overnight stay:

a) Transportation

b) Accommodation

c) Other tourism services, which are not associated to transportation and accommodation services.

(2) The provisions of the present article shall also be applicable in the cases, where the details of the tour have been determined by the package tour organizer, the agent thereof or the consumer or where each individual service contained within the same package tour is billed separately.

(3) In the cases where the package tour organizer does not have a representative in Turkey, the package tour agent shall be liable as if it is the package tour organizer.

(4) It is mandatory for an information brochure to be delivered to the consumer prior to the execution of the package tour contract.

(5) The package tour organizers or the agents thereof should strictly deliver to the consumer a counterpart of the package tour contract, which is issued and executed in writing or in the form of distance contract, in printed form or through a permanent data register.

(6) In the event of the any change to any material element of the package tour contract or the cancellation of the same prior to the commencement of the tour on account of such reasons that are not attributable to the consumer; the consumer may either agree to such change or accept an alternate tour, which may be offered by the package tour organizer, and shall also be entitled to withdraw from the contract. In the event of withdrawal from the contract; the package tour organizer or the agent thereof should strictly refund any and all amounts, which may have been paid thereto by the consumer, to the consumer without any deduction immediately upon its receipt of the notice of withdrawal.

(7) The consumer shall be entitled to claim reduction in the contract price on account of any defect or deficiency, which could arise through the course of the performance of the contract. In the event it is established after the commencement of the tour that the package tour organizer has not or cannot fulfill any material obligation thereof, the consumer may withdraw from the contract. In that case, the package tour organizer or the agent thereof shall forfeit its entitlement to claim consideration. Any and all amounts, which may have been paid, should strictly be refunded to the consumer immediately following the date of withdrawal from the contract. However; the package tour organizer may, in respect of the services performed thereby until such date, claim consideration from the consumer in an appropriate amount proportionately to the extent of the consumer's benefit from the service.

(8) Without prejudice to the provisions regarding compulsory insurance of the Act No. 1618 on Travel Agencies and the Union of Travel Agencies, enacted on 14/9/1972; the package tour organizer shall be liable for any losses and damages, which the consumer may have sustained on account of the non-performance or failure in the proper performance as required of the contract. The consumer may also claim appropriate indemnity for the vacation time that may have been wasted.

(9) Any person, who benefits from the package tour service as a part of commercial or professional activities, shall also be considered as a consumer.

(10) The preliminary information, the content of the contract, the transfer of the package tour, the terms and conditions of any amendment to the contract and the rights of the consumer in such cases, the consequences of the cancellation of the package tour, the liabilities of the package tour organizer and the agent thereof, the cases, in which the consumer may claim indemnity, the withdrawal from the contract and the consequences of the same, and any other principles and procedures of enforcement shall be established and set forth by a regulation to be enacted on the matter.

Subscription contracts"

"ARTICLE 52- (1) A subscription contract is a contract, under which a specific good is received or a specific service is procured on a constant basis or in regular intervals.

(2) The supplier or the provider should strictly deliver to the consumer a counterpart of such contract, which is issued and executed in writing or in the form of distance contract, in printed form or through a permanent data register.

(3) Any provision regarding the length of extension of the contract duration may not be incorporated into a subscription contract of definite duration; however, after the execution of the subscription contract, such subscription contract may be extended upon the request or subject to the consent of the consumer before the scheduled date of expiration of the contract.

(4) The consumer shall be entitled to any subscription contract, which is a contract of indefinite duration or a contract of definite duration, which is longer than one year, at an time without suggesting a just cause and without being obliged to pay penal clause. In respect of a subscription contract of definite duration, the duration of which is shorter than one year; the consumer may terminate such contract in the event the supplier or the provider amends the terms of the contract. Such termination shall only require for the consumer to deliver the supplier or the provider the notice of termination in printed form or through a permanent data register. The consumer may not be required by the supplier or the provider to employ a method, which poses more stringent conditions than those that may have enabled the execution of the contract, in order to terminate the contract.

(5) The supplier or the provider shall be obliged to satisfy the consumer's request for the termination of the subscription within such periods of time that are specified by the relevant regulation. In the cases, where the subscription is not terminated within the specified periods of time; any charge may not be claimed from the consumer even if the consumer has utilized the relevant goods or service as of the expiration of such periods of time. The supplier or the provider shall be obliged to refund the consumer the remaining amount of the price, which may have been paid by the consumer, without any deduction within a period of fifteen days as of the date, on which the notice of termination becomes effective.

(6) The supplier or the provider shall be obliged to take the actions as necessary to perform the operations relate to the notices and requests for the termination of the subscription contract and, where necessary, to set up an appropriate system and to maintain such system in active condition uninterruptedly.

(7) The clauses, terms and provisions, which are strictly required to be set forth within the scope and wording of the contracts, as well as the rights and obligations of the consumer and the supplier or the provider, and any other principles and procedures of enforcement shall be established and set forth by a regulation to be enacted on the matter.

Promotion activities carried out by periodicals"

"ARTICLE 53 - (1) Through any promotion, which is organized by the periodical publication organization and in which a second good or service is warranted to be delivered or is actually delivered in addition to the periodical publication by way of tickets, coupons, participation numbers, games, lotteries or any other similar means; any other good or service than cultural goods or services, which are suitable for the purposes of periodical publication activities as provided within the relevant regulation, may not be delivered.

(2) The duration of any promotion, which requires the periodical to be purchased for multiple times and is spread over a certain period of time, may not be longer than seventy five days in the case of daily periodical publications,eighteen weeks in the case of weekly periodicals and twelve months in the case of periodicals with longer publication frequencies.

(3) The periodical publication organization should strictly announce its schedule regarding the dates of delivery of the goods or the dates of performance of the services, being the subject matter of the promotion, nationwide in Turkey within the advertisements related to the promotion activity, and delver such goods or perform such services within a period of forty five days as of the date, on which the promotion activity ends.

(4) The sales price of the periodical may not be increased due to the cost increase caused by the good or the service, which is warranted to be delivered or performed as the second product, throughout the duration of the promotion activity. The consumer may not be required to pay the entirety or any portion of the price of the good or the service, which is the subject matter of the promotion activity.

(5) The good or the service, which is the subject matter of the promotion activity, may not be warranted and delivered by way of division, and any integral or complementary parts of such good or service may not be made the subject matters of a separate promotion activity. For the purpose of the enforcement of this Act; the activities related to each good or service, which is warranted to be delivered or performed as the second product, shall be considered an independent promotion activity.

(6) Any promotion activity, which is not organized by a periodical publication organization but is associated to the periodical directly or indirectly, shall also be governed by the provisions of the present article.

The procedures and principles regarding the promotion activities shall be established and set forth by a regulation to be enacted on the matter.

PART FIVE

Information of Consumers and Protection of Their Interests

Price tag"

"ARTICLE 54 - (1) The goods offered for sales on retail basis or the packages or the containers thereof should strictly be affixed a tag, which indicates the sales price and unit price payable by the consumer, including any and all taxes and levies, and bears the place of manufacturing and the distinctive properties of the good, in a conveniently visible and comprehensible manner; or, in the cases where the affixation of such a tag is not practicable, lists containing the same details should be visibly posted at appropriate spots. The lists showing the tariff and prices of the services shall also be issued and posted as appropriate in accordance with the provisions of the present article.

(2) In the event of any inconsistencies between the prices on the tags, tariffs and price lists and the price applied at the cash register, the price, whichever serves to the advantage of the consumer, shall be applicable.

(3) The discounted sales price and the price before the discount of the goods or services offered for discounted sales shall be indicated within the tariffs, price lists and the price tags. The burden of proof of the fact that the good or service subject to discounted sale is indeed and actually offered for sales at a lower price than that before the discount shall be incumbent upon and borne by the supplier or the provider.

(4) It shall be the duty of the Ministry, municipalities and the relevant chambers to take the actions for the enforcement and the monitoring of enforcement of the provisions of this article.

(5) The matters regarding tags, tariffs and price lists, periods for discounted sales as well as any other procedures and principles of enforcement shall be established and set forth by a regulation to be enacted on the matter.

Introductory guides and user’s manuals"

"ARTICLE 55 - (1) The goods offered for the benefit of the consumers should strictly be offered for sales along with the introductory guides and and user's manuals in Turkish regarding the introduction of as well as the guidelines for the use, installation, maintenance and simple repair of the good and, where required, a tag bearing the internationally recognized symbols and markings.

(2) The written and audible expressions of safety matters related to the safe use of the goods, which shall be borne thereon, should be in Turkish.

(3) In the cases, where the goods are harmful for or hazardous in relation to the concerned person’s health or the environment on account of the technical nature of the same; it is strictly and essentially required that explanatory information and cautionary warnings on the matter should be inserted or imprinted clearly and legibly on or within the introductory or the user's manual of the goods in order to ensure that such goods are utilized safely.

(4) The responsibility for the preparation of the introductory and user’s manuals in Turkish shall be borne by the manufacturer and the importer, while the responsibility for the delivery of the same to the consumer and the burden of proof for such delivery shall be borne by the supplier.

(5) The goods, which shall strictly be offered for sales along with introductory and user’s manuals and tags, and the minimum requirements to be featured thereby as well as the other principles and procedures of enforcement shall be established and set forth by a regulation to be enacted on the matter.

Warranty certificate"

"ARTICLE 56 - (1) The manufacturers and the importers should strictly issue a warranty certificate for the goods manufactured or imported thereby, the content of which certificate shall be governed by a regulation to be enacted on the matter. The responsibility for the consummation and delivery to the consumer of such certificate shall be assumed by the supplier.

(2) The minimum warranty period shall be two years effective as of the date of delivery of the good. However; the warranty terms of certain types of goods may be identified on the basis of other units by the Ministry due to the specific nature of such goods.

(3) In the cases where, the consumer exercises the right to claim repair amongst the rights of choice granted and recognized thereto under Article 11 of this Act, and in the event the good breaks down again throughout the warranty period or the maximum period allowed for the repair of the same is exceeded or it is established that the good cannot practicably be repaired, then the consumer may well exercise other rights of choice available under Article 11. In that case, the supplier may not refuse to meet the consumer’s claim. Unless such claim is not satisfied; the supplier, the manufacturer and the importer shall be liable jointly and severally.

(4) The goods, which should strictly be offered for sales along with warranty certificates, as well as the other principles and procedures of enforcement shall be established and set forth by a regulation to be enacted on the matter.

Discretionary warranty"

"ARTICLE 57 - (1) Discretionary warranty means the supplemental warranty by the supplier, provider, manufacturer or the importer on the replacement, repair, maintenance, price refund of and the like matter related to the good or the service, saving any legal rights of the consumer.

(2) Throughout the period of discretionary warranty, any charge may not be claimed from the consumer on account of the exercise of the rights warranted.

(3) The warranting party shall be bound not only by the warranty thereof but also by the expressions within the wording of the commercial advertisements and announcements released thereby. The wording of such warranty should strictly include the expression that the legal rights of the consumer are reserved as well the terms and conditions of the warranty, the warranty period as well as the name and the contact details of the warranting party.

(4) The discretionary warranty should strictly be submitted to the consumer either in writing or by means of a permanent data storage device.

(5) The discretionary warranty shall be binding on the warranting party even if it does not entirely meet the requirements set forth within the present article.

After-sales services"

"ARTICLE 58 - (1) Manufacturers or importers should strictly offer after-sales maintenance and repair services in respect of the goods manufactured or imported thereby throughout the economic life of the same as fixed by the Ministry.

(2) The manufacturers or importers should strictly obtain the after-sales service adequacy certificate to be certified by the Ministry for the goods identified by the applicable regulation.

(3) The repair period at authorized and approved service stations of a good may not exceed the maximum period provided by the applicable regulation.

(4) The manufacturers or importers may either establish their own authorized service stations or outsource the same to established service stations or service organizations on the condition that they shall be responsible for the services provided by such contracted stations or organizations.

(5) The service stations, which operate without any affiliations with any manufacturer or importer, shall also be responsible to the consumers for the services rendered thereby.

(6) In the event the business operations of the importer cease in any manner whatsoever, the supplier, the manufacturer and the new importer shall be responsible jointly and severally for the provision of the maintenance and repair services throughout the warranty period. Once the warranty period expires, the manufacturer or the new importer should continue offering maintenance and repair services throughout the rest of the economic life.

(7) The establishment, operation, number and required characteristics of service stations as well as the other principles and procedures of enforcement shall be established and set forth by a regulation to be enacted on the matter.

Raising the awareness of consumers"

"ARTICLE 59 - (1) The Ministry of National Education shall, obtaining the opinion of the Ministry, make the necessary additions to the curriculum of formal and non-formal educational institutions in order for the raising of the consumers' awareness.

(2) Each national radio and television company should strictly air broadcasts, the duration of which should not be shorter than fifteen minutes per month, between the hours of 08:00 and 22:00. A list of the dates, hours, durations and content details of the broadcasts aired shall be submitted to the Radio and Television Supreme Council regularly each month. The duration of any broadcast, which is aired before or after the said hours, shall not be included to the minimum required monthly duration of fifteen minutes. The satisfaction of the said duration requirements shall be supervised by the Radio and Television Supreme Council, the results of which supervision shall be reported to the Ministry.

Consumer rewards"

"ARTICLE 60 - (1) Consumer rewards are such rewards offered in order for the protection of and raising the awareness of the consumers and the encouragement of the same to exercise the legal rights thereof.

(2) The consumer rewards or the rewards, which are awarded under other similar references or designations, should, as a principle, be offered without gaining any interests and be based on objective criteria, which may have been declared in advance.

(3) The principles and procedures regarding the offering of consumer rewards shall be established and set forth by a regulation to be enacted on the matter.

PART SIX

Commercial Advertisements and Unfair Trade Practices

Commercial advertisement"

"ARTICLE 61 - (1) A commercial advertisement is any advertisement of marketing communication nature, which are released by the advertisers in writing, visually, audibly or through similar means by any channel with a view to promote the sales or leasing of any goods or services or to inform or persuade the individuals within the related target audience, in connection with business, trade, vocation or profession.

(2) The commercial advertisements should, as a principle, be compliance with the requirements specified by the Board of Advertisement, the general ethics, the public order, be respectful to personal rights and fair, true and aboveboard.

(3) Any commercial advertisement, which may be misleading for the consumers, are of abusive nature in respect of the lack of experience and knowledge of the consumers, jeopardize the security of life and property of the same, which encourage the acts of violence and criminal actions, deteriorate the public health, and may abuse the sick, the aged individuals, the children and the disabled, may not be released.

(4) The placement into or presentation in introductory manner within articles, news shows, broadcasts and programs of the names, brands, logos and the like distinctive figures and expressions as well as trade names or the names of businesses for advertisement purposes without the explicit declaration of commercial advertisement shall be considered as implicit advertisements. Audible, written or visual implicit advertisement through any means of communication shall be prohibited.

(5) Goods or services may be advertised by comparison of the same with peer and rival goods and services, which address the same needs or are devoted to the same purpose.

(6) Advertisers shall be obliged to prove the accuracy of the matters alleged within the commercial advertisements released thereby.

(7) Advertisers, advertisement agencies and channel placement entities shall be obliged to comply with the provisions hereof.

(8) The limitations to be applied to commercial advertisements as well as the principles and procedures, which should be followed in respect of such commercial advertisements, shall be established and set forth by a regulation to be enacted on the matter.

Unfair trade practices"

"ARTICLE 62 - (1) Any trade practice shall be considered unfair should it not comply with the requirements of professional diligence or deteriorate the economic behavioral pattern of an average consumer, to whom it may address, or an average member of the respective target audience in respect of the goods or services at issue or pose significant likelihood of causing such deterioration. Particularly, the practices of misleading or aggressive nature as well as the practices set forth as per the schedule to the regulation shall be deemed as unfair trade practices. Unfair trade practices toward the consumers are hereby prohibited.

(2) In the event any trade practice is alleged to be unfair; then, the party performing such practice shall be obliged to prove that the same is not of unfair nature.

(3) In the cases, where an unfair trade practice is implemented through advertisement; the provisions of Article 61 of this Act shall be applicable.

(4) The principles and procedures regarding the determination and supervision of unfair trade practices as well as the practices, which shall be considered unfair in any case and under any circumstances, shall be established and set forth by a regulation to be enacted on the matter.

Board of Advertisement"

"ARTICLE 63 - (1) A Board of Advertisement vested with the power to establish the principles to be complied with in commercial advertisements and to issue and enact regulations for the protection of consumers from unfair trade practices, to carry out inspections, examinations and, where necessary, monitoring activities with regards to such matters, and depending on the results of such inspections, examinations and monitoring activities, to impose the penalty of suspension or the penalty of correction by way of the same method or administrative fines or, where it is deemed necessary, the penalty of precautionary suspension for up to three months, shall be constituted. The Board may delegate its power to adopt the resolution for the imposition of the penalty of precautionary suspension to the Chairman of the Board of Advertisement. The resolutions of the Board shall be enforced by the Ministry.

(2) The Board of Advertisement, which shall be chaired by the relevant General Directors, who shall be appointed by the Minister, shall be comprised of nineteen members, including the Chairman as well as the following the members;

a) a member to be appointed by the Ministry among the relevant Deputy General Directors,

b) a member to be appointed by the Ministry of Justice among the judges, who perform administrative duties within the organization of the said the Ministry,

c) a member to be appointed by the Ministry of Food, Agriculture and Livestock,

ç) a member to be appointed by the Ministry of Health,

d) a member to be appointed by the Ministry of Culture and Tourism,

e) a member to be appointed by the Radio and Television Supreme Council,

f) a member from Turkish Standards Institution,

g) a member, who shall be elected jointly by the metropolitan municipalities of Ankara, Istanbul and Izmir internally among the same,

ğ) a member, who shall be appointed by the Council of Higher Education among the faculty members, who specialize in advertising, communication or commercial law,

h) a member, who shall be appointed by the Union of Chambers and Commodity Exchanges of Turkey among the members of the Media and Communication Assembly of Turkey,

ı) a member to be appointed by the Confederation of Turkish Tradesmen and Craftsmen,

i) a member, who shall be appointed by the Consumer Council among the representatives of the consumer organizations, which participate in the Council,

j) a member to be appointed by the associations of advertisers or, if any, the supreme organizations thereof,

k) a member to be appointed by the associations of advertising agents or, if any, the supreme organizations thereof,

l) a pharmacist member to be appointed by Turkish Pharmacists' Association,

m) a dentist member to be appointed by Turkish Dental Association,

n) a medical doctor member to be appointed by the Central Council of Turkish Medical Association,

o) member, who is an attorney-at-law, to be appointed by the Union of Turkish Bar Associations,

(3) The term of office of each member of the Board shall be three years. Any member, whose term of office expires, shall be eligible to be re-appointed or re-elected. In the event any seat on the Board becomes vacant for any reason whatsoever, another member shall be appointed or elected to hold such seat in accordance with the provisions of the second paragraph within a period of one month. Any member, whose term of office expires, shall remain in office until the new member takes office.

(4) The Board shall convene for at least once a month or at any time that could be deemed necessary upon the Chairman's summoning.

(5) The minimum meeting quorum for the meetings of the Board shall be eleven members, including the Chairman, and the Board shall adopt resolutions with the affirmative votes of the simple majority of the members, who are present at the relevant meeting. In the event of the equality of votes, the vote of the Chairman shall be determinant.

(6) The Ministry shall institute specialized commissions for specific sectors in order to assist the Board through the course of the adoption of its resolutions. Each commission shall be comprised of at least three and at most five members, including the chairman.

(7) The remuneration payable to the Chairman and the members of the Board as well as the chairmen and the members of the specialized commissions, and the principles and procedures regarding the same shall be established by the Ministry, which shall obtain the affirmative opinion on the matter of the Ministry of Finance.

(8) The Board shall conduct its examinations on the file, which contains the relevant documents. The secretariat services for the Board shall be performed by the General Directorate.

(9) The Board may, where it deems so necessary, refer to the opinions of universities, which specialize in specific fields, the private legal entities, and natural persons in relation to such matters that require specialization.

(10) The resolutions of the Board shall be declared by the Ministry in order for the information of the consumers, provision of the consumers with clarifications on the relevant matters and the protection of the economic interests thereof.

(11) The constitution of the Board of Advertisement and the specialized commissions, the duties of the same as well as the principles and procedures regarding the activities and the secretariat services of the same shall be established by a regulation to be enacted on the matter.

PART SEVEN

Consumer Organizations

SECTION ONE

Consumer Council and Advertisement Council

Consumer Council"

"ARTICLE 64 - (1) A Consumer Council shall be set up and shall convene for at least once a year under the coordination of the Ministry to search the measures necessary to address the problems and needs of consumers and to convey the views as to the measures to be taken in respect of the enforcement of this Act to pertinent authorities so that prompt action can be taken.

(2) The number of the representatives of public entities and organizations, who hold seats on the Consumer Council, may strictly not be more than the fifty percent of the total number of members of the Council.

(3) The members of the Consumer Council and the principles and procedures regarding the activities thereof as well as the other relevant matters shall be established by a regulation to be enacted on the matter.

Advertisement Council"

"ARTICLE 65 - (1) An Advertisement Council shall be set up and shall convene for at least once a year under the coordination of the Ministry with a view to keep track with the contemporary communication practices in relation to the development and implementation of advertisement policies, to conduct research and endeavors for the improvement of the advertisement industry and the advertisement monitoring function, to state opinions and recommendations in the said field and to convey such opinions and recommendations to the pertinent authorities.

(2) The number of the representatives of public entities and organizations, who hold seats on the Advertisement Council, may strictly not be more than the fifty percent of the total number of members of the Council.

(3) The members of the Advertisement Council and the principles and procedures regarding the activities thereof as well as the other relevant matters shall be established by a regulation to be enacted on the matter.

SECTION TWO

Arbitration Committee for Consumer Problems

Organization and jurisdiction"

"ARTICLE 66 - (1) It shall be the duty of the Ministry to constitute at least one arbitration committee for consumer problems in the central district of each province and also in each district, the eligibility requirements for which are established by the relevant regulation, to resolve the disputes that could arise out of consumer transactions and the practices toward the consumers.

(2) The arbitration committee for consumer problems, which shall be chaired by the provincial director of trade in provinces and by the district governor in districts or a civil servant, who may be appointed by the foregoing, shall be comprised of five members, including the chairman as well as the following the members;

a) a member to be appointed by the mayor among the municipal staff members, who shall enjoy specialization on the relevant matter,

b) a member to be appointed by the Bar Association among the members thereof,

c) a member to be appointed by the chamber of commerce and industry or, in locations where the chamber of commerce and the chamber of industry are two separate organizations, by the chamber of commerce in the cases of disputes, where the supplier is a merchant, or by the association of chambers of tradesmen and craftsmen in the provinces or by the chamber of the tradesmen and craftsmen with the largest number of members in districts in the cases of disputes, where the supplier is a tradesman or a craftsman,

ç) a member to be jointly elected by the consumer organizations internally among the respective members thereof.

Also, a substitute chairman as well as a substitute member for each member, who shall have the same qualifications as those that are provided within the present paragraph, shall be identified.

(3) In the locations, where arbitration committee for consumer problems cannot be constituted due to vacant seats; members to such vacant seats shall be appointed by such Public servants, who meet the qualification requirements established and set forth by the relevant regulation, by the provincial director of trade in provinces and by the district governor in districts.

Rapporteur"

"ARTICLE 67 - (1) Rapporteurs may be employed at the arbitration committees for consumer problems constituted in the central districts of provinces and in the districts. In the cases, where the number of rapporteurs is inadequate; the provincial director of trade shall appoint sufficient number of rapporteurs among the staff members of the provincial directorate of trade in the provinces, and the district governor shall appoint sufficient number of rapporteurs among the Public servants, who officiate in the district.

(2) The duties of the rapporteurs of arbitration committees for consumer problems shall be to prepare the files, which shall lay the basis for the the endeavors and the decisions of the committees, and to submit the committee reports regarding the disputes.

Application"

"ARTICLE 68 - (1) It shall be compulsory to apply to the district arbitration committees for consumer problems in respect of any dispute, the amount of which is less than two thousand Turkish Liras, and to the provincial arbitration committees for consumer problems in respect of any disputer, the amount of which is less than three thousand Turkish Liras, and to the provincial arbitration committees for consumer problems in respect of any dispute, the amount of which is equal to or more than two thousand Turkish Liras and equal to or less than three thousand Turkish Liras, in such provinces that enjoy the status of metropolis. An application may not be filed with the arbitration committees for consumer problems in respect of any dispute, the amount of which is more than the foregoing amounts.

(*) In respect of the monetary amounts provided within the first paragraph of Article 68; the upper limits of monetary amounts have been established to be as provided below to be effective as of 1.1.2015 pursuant to the Communique, which was promulgated within the issue No. 29218, dated 27.12.2014, of the Official Gazette;

a) The upper limit of monetary amount for application to a district arbitration committee for consumer problems has been established to be 2,200 Turkish Liras,

b) The limit range of monetary amount for application to a provincial arbitration committee for consumer problems in provinces, which enjoy the status of metropolis, has been established to be between 2,200 Turkish Liras and 3,300 Turkish Liras,

c) The upper limit of monetary amount for application to a provincial arbitration committee for consumer problems in provinces, which do not enjoy the status of metropolis, has been established to be 3,300 Turkish Liras, and

d) The limit range of monetary amount for application to a provincial arbitration committee for consumer problems in the districts of provinces, which do not enjoy the status of metropolis, has been established to be between 2,200 Turkish Liras and 3,300 Turkish Liras.

_____

(2) Arbitration committees for consumer problems shall be obliged to uphold any application filed thereby to take the further action as appropriate.

(3) Applications may be filed with the arbitration committee for consumer problems that is seated at the place, where the consumer is located or where the consumer transactions has been conducted. The entity or authority, where applications should be filed at such locations, where there is not an arbitration committee for consumer problems, and the arbitration committee for consumer problems, which should, in that case, resolve the disputes, being the subject matters of any such application, shall be established by a regulation to be enacted on the matter.

(4) The limits of monetary amounts provided within the present article shall be increased by the revaluation ratios as fixed and announced for such year pursuant to the provisions of Article 298 bis. of the Code of Tax Procedure No. 213, enacted on 4/1/1961 to be effective as of the beginning of each calendar year. The fractions of ten Turkish Liras shall not be taken into account for the purpose of the calculation of such increases.

(5) The provisions of the present article shall not preclude the consumer's filing applications for alternate dispute resolution bodies and authorities in accordance with the applicable legislations.

Review"

"ARTICLE 69 - (1) Arbitration committees for consumer problems may request and summon any information and document related to the subject matter of the disputes from the parties as well as the concerned entities or organizations.

Decision and contestation"

"ARTICLE 70 - (1) The decisions instituted by the provincial and district arbitration committees for consumer problems shall be binding on the parties. (Supplemental sentence: 6552 - 10.9.2014 / Article 140) “The arbitration committees for consumer problems may not adjudicate for the payment of attorney's fee.”

(2) Any decision instituted by an arbitration committee for consumer problems shall be served to the parties in accordance with the provisions of the Notification Act No. 7201, enacted on 11/2/1959. The decisions of arbitration committees for consumer problems shall be enforced in accordance with the provisions regarding the enforcement of judgments of the Enforcement and Bankruptcy Act.

(3) Either party may contest the decision of an arbitration committee for consumer problems before the consumer court seated at the location, where such arbitration committee for consumer problems is seated, within a period of fifteen days as of the date of service of the decision. Any such contest shall not cease the enforcement of the contested decision of the arbitration committee for consumer problems. However, should it be claimed, the judge may stay the enforcement of the decision of the arbitration committee for consumer problems by way of the imposition of a cautionary judgment.

(4) In the event it is established that the contested decision is lawful in material aspect but that the contest should be upheld due to the committal of an error in the enforcement of the relevant law to the case or that the matter that is unlawful does not invoke retrial; the consumer court may institute a judgment for the ratification of the decision by way of the revision or correction of the same. The foregoing provision shall also be applicable for any errors in respect of the identities or trade names of the parties as well as typographical errors, calculation errors or other clear erroneous statements. In the event it is established that the decision is in compliance with the applicable procedures and is lawful but that the suggested reasoning for the decision is inappropriate; the decision shall be ratified by way of the revision or correction of the reasoning.

(5) The judgments that consumer courts may institute upon the filing of contests against the decisions of arbitration committees for consumer problems shall be of final and conclusive nature.

(6) In the event a judgment is instituted for the nullity of judgment in an action of objection field against a decision instituted by an arbitration committee for consumer problems for the favor of the consumer; the consumer shall be adjudicated to pay attorney's fee on the basis of the proportional tariff according to the minimum attorney's fee tariff.

(7) In respect of the decisions instituted against consumers by arbitration committees for consumer problems in relation to disputes, the costs of service and experts shall be borne by the Ministry. On the other hand; in the event the dispute is concluded for the favor of consumers, the costs of service and experts shall be collected from the counter party and be entered as revenue to the budget in accordance with the applicable provisions of the Code No. 6183 on the Procedure for the Collection of Public Receivables, enacted on 21/7/1953.

Remunerations"

"ARTICLE 71 - (1) The remuneration payable to the chairmen and the members of arbitration committees for consumer problems as well as the other public staff members, who are appointed as rapporteurs, the expert's fee and the principles and procedures regarding the same shall be established by the Ministry, which shall obtain the affirmative opinion on the matter of the Ministry of Finance.

Miscellaneous"

"ARTICLE 72 - (1) The principles and procedures as well as the other matters regarding the constitution and the principles and procedures of operation of arbitration committees for consumer problems, the required qualifications, which rapporteurs should have, and the experts shall be established by a regulation to be enacted on the matter.

PART EIGHT

Provisions Regarding Legal Proceedings, Supervision and Penalties

Consumer courts"

"ARTICLE 73 - (1) The legal actions pertaining to the disputes that could arise out of consumer transactions and the practices addressed at consumers shall be subject to the competent jurisdiction of consumer courts.

(2) Any legal action that is filed with consumer courts by the Ministry, the consumers and the consumer organizations shall be exempt from the fees, which are provided by the Act No. 492 of Fees, enacted on 2/7/1964.

(3) In the cases of legal actions, which may be filed by the supreme organizations of consumer organizations; the expert's fee and, in the event the case is concluded against the plaintiff, the attorney's fee adjudicated to be paid by the plaintiff shall be borne by the Ministry. On the other hand; in the event the case is concluded against the respondent, the expert's fee shall be collected from the plaintiff and be entered as revenue to the budget in accordance with the applicable provisions of the Code on the Procedure for the Collection of Public Receivables.

(4) Any legal case, which is to be heard by a consumer court, shall be heard and tried in accordance with the provisions of the Sixth Part of the Code of Civil Procedure No. 6100, enacted on 12/1/2011.

(5) Consumer legal actions may also be filed with the consumer court that is seated at the place, where the consumer is located

(6) Consumer organizations, the relevant public entities and organizations and the Ministry may file legal actions with consumer courts in such cases, which generally concern consumers and pose the threat of the emergence of a situation in breach of this Act, except for the provisions regarding unfair trade practices and commercial advertisements, with a view to ensure the institution of injunctive relief for the prevention or cessation of such a situation or the establishment, prevention or cessation of unlawfulness.

(7) In the case of legal actions that concern consumers generally, the plaintiff may claim for the judgment instituted to be published. Should such claim be upheld by the court, such judgment shall be immediately announced and published within at least three newspapers disseminated nationwide, the expenses of which shall be collected from the respondent.

(8) The judgments, which are instituted by consumer courts and become final, shall be communicated to the Ministry through the National Judiciary Informatics System. Any judgment, which is instituted as a consequence of a contest filed against the decision of an arbitration committee for consumer problems, shall be forwarded to the relevant arbitration committee for consumer problems by the court, which has instituted such judgment.

Cessation of production or sales and recalling of goods"

"ARTICLE 74 - (1) The Ministry, consumers or consumer organizations may file legal actions with a view to ensure that it is established that a staple merchandise (good), which is offered for sales, are defective, that the production or sales of such goods is ceased, that the defect is remedied and eliminated and the relevant goods are recalled from those, who keep the same in their possession for sales purposes.

(2) In the event it is established through a court judgment that the staple merchandise (good), which is offered for sales, is defective; the court may adjudicate for the suspension of the sales of the same temporarily or for the defect to be remedied and eliminated, depending on the nature of the defect. The manufacturer or the importer shall be obliged to remedy and eliminate the defect of the good within not later than three months as of the date of service of the court's judgment. In the cases, where it is impracticable for the defect of the goods to be remedied and eliminated; the goods shall be recalled or had recalled by the manufacturer or the importer. The goods so recalled shall be destroyed or had destroyed, partially or entirely, depending on the risks posed thereby. The rights of action and indemnity of consumers in relation of the destroyed goods shall be reserved.

(3) In the cases, where a staple merchandise (good), which is offered for sales, bears a defect that jeopardizes the safety of consumers; the provisions of the Act on the Preparation and Enforcement of the Technical Regulation Regarding Products shall be reserved.

Supervision"

"ARTICLE 75 - (1) For the purpose of the enforcement of this Act, the inspectors of the Ministry, the customs and trade examiners and the staff members, who may be commissioned by the Ministry, shall be empowered to conduct supervision, audits, examinations and investigations at any place, where goods or services are offered.

(2) In respect of any and all matters, to which this Act is applicable; it shall be mandatory to present any and all information and documents to the appointed and authorized persons or entities or to furnish the same with the original or certified duplicate copies of the relevant documents.

Supervision of consumer products and services"

"ARTICLE 76 - (1) A consumer product is any new, used or improved product, including the products that are employed in the service industry, which has been designed to be used by consumers or are reasonably contemplated to be used by consumers, are supplied or rendered usable either as a result of commercial activities or through other means.

(2) Provided that the manufacturer or the distributer clearly informs the consumer on the matter; any second hand product that is of antique nature or is required to be repaired or improved prior to being used shall not be considered to fall into the scope of applicability of the first paragraph.

(3) Consumer products and the services offered to consumers should not harm life safety and safety of property as well as the environment, and should be in compliance with any and all administrative and technical regulations, which are mandatory to be enforced.

(4) It shall be the duty of the Ministry to conduct the market surveillance and supervision of the consumer products, for which it is responsible, in accordance with the provisions of the Act on the Preparation and Enforcement of the Technical Regulation Regarding Products.

Penalties"

"ARTICLE 77 - (1) Any party, who acts in breach of the obligations provided within Article 4, 6, 7, 18, 19, 20, 21, 23, 26, 30, 33, 35, 48, 49, 51, 52, 54 and 57 of this Act, shall be imposed an administrative fine in the amount of ""220"" Turkish Liras (*) for each transaction or contract, in respect of which such a breach is established.

(2) In the event any unfair term as established under Article 5 of this Act is provided within a consumer contract and such unfair term is not removed from the wording of the contract within the period of time, which may be granted by the Ministry; an administrative fine in the amount of ""220"" Turkish Liras (*) shall be imposed for each contact, in respect of which such a breach is established.

(3) Any party, who acts in breach of the obligations provided within Article 24, 25, 27, 28, 29, 34, 36, 37, 38, 39, 41, 43, 45 and 46 and the first, the second and the fourth paragraphs of Article 31, the second paragraph of Article 40, the third, the fourth, the fifth and the seventh paragraphs of Article 47, and the fourth, the fifth, the sixth, the seventh, the ninth and the eleventh paragraphs of Article 50 of this Act, shall be imposed an administrative fine in the amount of ""1,101"" Turkish Liras (*) for each transaction or contract, in respect of which such a breach is established.

(4) Any party, who acts in breach of the obligations provided within Article 44, shall be imposed an administrative fine in the amount of ""22,022"" Turkish Liras (*) for each housing unit not delivered; and any party, who acts in breach of the obligations provided within the tenth paragraph of Article 50, shall be imposed an administrative fine in the amount of ""1,101"" Turkish Liras (*) for each transaction or contract, in respect of which such a breach is established.

(5) Any party, who acts in breach of the obligations provided within the third paragraph of Article 40 and the second paragraph of each of Article 47 and Article 50 of this Act, shall be imposed an administrative fine in the amount of ""110,110"" Turkish Liras (*).

(6) An administrative fine in the amount of ""220"" Turkish Liras (*) shall be imposed on the manufacturers and importers, which act in breach of the obligations set forth within Articles 55 and 56 of this Act, for each good released thereby, and against the suppliers, which act in breach of the same, for each good sold thereby.

(7) Any party, who offers rewards in breach of the provisions of Article 60 of this Act, shall be imposed an administrative fine in the amount of ""110,110"" Turkish Liras (*).

(8) Any party, who acts in breach of the obligations provided within the third paragraph of Article 31, Article 42 and the eighth paragraph of Article 50 of this Act, shall be granted a period of one month for the remedy of such breach. (5) Should any such breach not be remedied by the date of expiration of such period; any card issuing institution, which may have acted in breach of the provisions of the third paragraph of Article 31, shall be imposed an administrative fine in the amount of ""5,505,500"" Turkish Liras (*), and any party, who may have acted in breach of the provisions of Article 42 and the eighth paragraph of Article 50, shall be imposed an administrative fine in the amount of ""550,550"" Turkish Liras (*).

(9) An administrative fine in the amount of ""5,505"" Turkish Liras (*) shall be imposed on any periodical publication organization, which acts in breach of the obligations provided within Article 53 of this Act, and an administrative fine in the amount of ""110,110"" Turkish Liras (*) shall be imposed on the same if the breach has been committed by way of a periodical publication that is disseminated nationwide. Also, the concerned periodical publication organization shall cease the campaign as well as any and all advertisements and announcements related to the campaign. In the event of the maintenance of the breach, an administrative fine in the amount of ""11,011"" Turkish Liras (*) shall be imposed for each issue/day as of the date, on which the obligation to cease advertisements and announcements becomes effective.

(10) – An administrative fine in the amount of ""110,110"" Turkish Liras (*) shall be imposed on the manufacturers and the importers, which act in breach of the provisions of Article 58 of this Act, for the failure to obtain after-sales service adequacy certificate; and an administrative fine in the amount of ""11,011"" Turkish Liras (*) shall be imposed on the same for each service station not established, and an administrative fine in the amount of ""1,101"" Turkish Liras (*) shall be imposed on the same for each service station for the deficiencies and discrepancies detected at the service stations.

(11) Any radio and television company, which acts in breach of the provisions of the second paragraph of Article 59 of this Act, shall be imposed an administrative fine in the amount of ""11,011"" Turkish Liras (*).

(12) Any advertiser, advertisement agencies and channel placement entities, which act in breach of the obligations within Article 61 of this Act, shall be imposed the penalty of suspension, correction through the same means or the administrative fines or, where considered necessary, preventive suspension for up to three months. The Board of Advertisement may impose the said penalties either collectively or individually with due consideration of the nature of the breach. Accordingly;

a) An administrative fine in the amount of ""11,011"" Turkish Liras (*) shall be imposed in the event the breach has occurred through a local television channel,

b) An administrative fine in the amount of ""220,220"" Turkish Liras (*) shall be imposed in the event the breach has occurred through a national television channel,

c) Half of the fines provided under sub-paragraphs (a) and (b) (5,505 and 110,110 (*)) shall be imposed in the cases, where the breach has occurred through the agency of periodical publications,

d) An administrative fine in the amount of ""5,505"" Turkish Liras (*) shall be imposed in the event the breach has occurred through a local radio channel,

e) An administrative fine in the amount of ""55,055"" Turkish Liras (*) shall be imposed in the event the breach has occurred through a national radio channel,

f) An administrative fine in the amount of ""55,055"" Turkish Liras (*) shall be imposed in the event the breach has occurred through the Internet,

g) An administrative fine in the amount of ""27,527"" Turkish Liras (*) shall be imposed in the event the breach has occurred through an SMS,

h) An administrative fine in the amount of ""5,505"" Turkish Liras (*) shall be imposed in the event the breach has occurred through any other means or channel.

. The Board of Advertisement may impose the aforementioned fines by up to ten folds in the event the breach subject to administrative penalty recurs within a period of one year as of the date of the initial breach.

(13) Any party, who acts in breach of the obligations provided within Article 62 hereof, shall be imposed the sanction of preventive suspension for up to three months or cessation of the unfair trade practice or an administrative fine in the amount of ""5,505"" Turkish Liras (*). The Board of Advertisement may impose the said penalties either collectively or individually with due respect to the nature of the breach. The administrative fine shall be imposed in the amount of ""55,055"" Turkish Liras (*) in the cases, where the breach has occurred nationwide. Where it is established that the breach has occurred through advertisement, the provisions of the twelfth paragraph of the present Article shall be applicable.

(14) An administrative fine in the amount of ""110,110"" Turkish Liras (*) shall be imposed on any manufacturer or importer, who acts in breach of the obligations provided within Article 74 of this Act, and an administrative fine in the amount of ""5,505"" Turkish Liras (*) shall be imposed on any manufacturer or importer, who acts in breach of the obligations provided within Article 79 hereof.

(15) Any party, who acts in breach of the obligations provided within the second paragraph of Article 75 of this Act, shall be noticed to accurately submit the information and documents within a period of seven days or to allow for on-site examination. In the event of the maintenance of the breach in spite of the notice, the concerned party shall be imposed an administrative fine in such amount that is up to one percent of the respective annual gross income derived thereby by the end of the accounting year that precedes the accounting year, in which the breach has been detected, which amount shall, however, not be any less than ""27,527"" Turkish Liras (*). In the event the breach recurs within a period of one year as of the date of the initial breach, the administrative fine shall be imposed in two folds.

(16) Any provider, which provides services in breach of the provisions of the third paragraph of Article 76 of this Act, shall be imposed an administrative fine in the amount of ""220"" Turkish Liras (*) for each transaction.

(17) The applicable provisions of Turkish Criminal Code No. 5237, enacted on 26/9/2004, shall be applicable for any party, who starts or organizes a pyramid scheme or propagates the same through meetings, electronic mail or such methods that are suitable to ensure the participation of numerous other persons, or supports the propagation of such a scheme for commercial purposes.

(18) Any party, who does not commit any of the breaches provided above but fails to comply with the obligations imposed by this Act and the measures established by the Ministry through regulations or communique, shall be imposed an administrative fine in an amount between ""1,101"" Turkish Liras (*) and ""55,055"" Turkish Liras (*).

(19) In the cases, where the total sum of the administrative fines imposed within one calendar year as of the date of establishment of the breach, except for the administrative fines provided within the eighth, the ninth, the twelfth and the thirteenth paragraphs of the present Article, exceeds ""27,527"" Turkish Liras (*); the total amount of administrative fines, which shall not be less than the said amount and not exceed ""110,110,000"" Turkish Liras (*);

a) may not exceed five percent of the respective annual gross income derived by the concerned natural person or legal entity by the end of the accounting year that precedes the accounting year, in which the breach has been detected. In the event any gross income has not been derived in such preceding year, the gross income that has been derived as of the date of establishment of the breach shall be taken into consideration. The provisions of this sub-paragraph shall not be applicable in the cases, where the gross income has not been reported or has been reported inaccurately.

b) may not, in the case of banks, financial institutions that lend consumer loans and card issuing institutions, exceed fine thousandths of the equities of the relevant entity as published within the latest financial statements thereof that have been disclosed to the public.

(20) The imposition of administrative sanctions under this Act shall not preclude any other action that could be taken under any other act or code. The Ministry shall be empowered to eliminate any doubts and ambiguities that could emerge through the course of the enforcement of the present article.

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(*) The monetary amounts provided within Article 77 have been revised to be effective as of 1.1.2015 pursuant to the Communique, which was promulgated within the issue No. 29218, dated 27.12.2014, of the Official Gazette, and so inserted into the wording hereof.

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Jurisdiction on imposition of penalties and contests"

"ARTICLE 78 - (1) The administrative sanctions provided within the second, the seventh, the eighth, the ninth and the eleventh paragraphs of Article 77 of this Act shall be imposed by the Ministry; and the administrative sanctions, which are imposed by the Board of Advertisement under the twelfth and the thirteenth paragraphs of the same, shall be enforced by the Ministry. The administrative sanctions, which are provided by the other paragraphs, shall be imposed by the governor's office in the province, where the principal office of the addressee of the sanctions is situated.

(2) Any party, to whom any administrative sanction is imposed in accordance with the provisions of this Act, may resort to administrative jurisdiction in accordance with the applicable provisions of the Code No. 2577 of Administrative Procedure, enacted on 6/1/1982. However, a legal action may be filed with an administrative court within a period of thirty days as of the date of service of the notice on the relevant action. The fact that an action for nullity has been field with an administrative court shall not preclude the enforcement of the relevant sanction.

(3) Any administrative fine imposed under this Act should strictly be paid within a period of one month as of the date of service of the notice thereon.

PART NINE

Miscellaneous Provisions

Food imitating products"

"ARTICLE 79 - (1) The production, marketing, importation and exportation of any product, which, despite not being a food product, seems different that it, in fact, is due to its form, odor, color, appearance, package, labeling, volume or dimensions, and thus jeopardizes the health and safety of consumers for being confused with food products by consumers and especially children, shall be prohibited. The foregoing provisions shall not be applicable for the products, which are, despite not being food products, produced in the form of food products as traditional handicraft articles, and are not harmful for health, on the condition that they should bear warning signs and inscriptions thereon.

(2) The Ministry shall be empowered to take the necessary measures and issue and enact the necessary regulations against such products, which seem different than they, in fact, are and thus jeopardize the health and safety of consumers.

(3) In respect of the actions to be taken in the event any such products, which have been released to the market, are established to be unsafe and the reporting of such actions to the European Commission; the provisions of the Act on the Preparation and Enforcement of the Technical Regulation Regarding Products shall be applied.

(4) It shall be the duty of the Ministry to conduct the market surveillance and supervision of the said products.

(5) The right of legal action of any consumer, who buys any food imitating product, on account of any financial and moral losses and damages sustained thereby shall be reserved.

Pyramid schemes"

"ARTICLE 80 - (1) A pyramid scheme is a scheme of expected gains, which encourages the hopes of its participants for the opportunity of monies or property in consideration of the placement of a certain amount of money or property and on the condition of finding other participants for the scheme under the same terms, and entails the other participants' also acting in accordance with the relevant terms for property gain, and is thus not realistic or the gains promised within which are fairly unlikely to be achieved.

(2) The establishment, propagation or recommendation of pyramid schemes shall be prohibited.

(3) The Ministry shall be empowered to conduct the necessary examinations and investigations in relation to pyramid schemes, and to take the necessary actions in cooperation with the other relevant public entities and organizations, including the cessation of the relevant electronic systems in Turkey, if any.

Tests, inspections and analyses"

"ARTICLE 81 - (1) The Ministry may employ the laboratories of public or private bodies and institutions for the purpose of the enforcement of this Act. The testing and inspection expenses shall be covered from the Ministry's budget.

(2) In the event the testing and inspection results of any product are established to be in breach of the relevant applicable administrative and technical regulations; any and all costs and expenses incurred in relation to such testing and inspection process shall be collected from the relevant manufacturer or importer in accordance with the applicable provisions of the Code on the Procedure for the Collection of Public Receivables. The testing and inspection costs and expenses so collected shall be entered as revenue to the budget.

Allowance"

"ARTICLE 82 - (1) The expenses related to the activities of the Board of Advertisement, the Advertisement Council, the Consumer Council and the arbitration committees for consumer problems as well as the expenses incurred by the Ministry for the purpose of the protection of consumers and the other expenditures shall be covered from the allowance, which shall be allocated out of the Ministry's budget.

Miscellaneous provisions"

"ARTICLE 83- (1) Any matters , which are not provided herein, shall be governed by general provisions.

(2) The existence of any provision within any other act or code regarding any transaction, one of the parties to which is a consumer, shall not preclude the consideration of such transaction a consumer transaction and the applicability of the provisions of this Act regarding jurisdiction, duties and powers.

Regulations and other regulatory actions"

"ARTICLE 84 - (1) The Ministry shall be empowered to take the measures and actions and issue and enact the regulations in accordance with the applicable legislations as necessary for the purpose of the enforcement of this Act.

(2) The regulations contemplated within this Act shall be issued and enacted by the Ministry within a period of six months as of the date, on which this Act comes into force.

(3) The opinions of the relevant public bodies and authorities, professional organizations with public institution status, the non-governmental organizations and professional organizations shall be obtained in respect of the secondary regulations, which shall be issued and enacted by the Ministry.

Staff formation"

"ARTICLE 85 - (1) The staff positions as per the list enclosed herewith have been formed and supplemented to the section pertaining to the Ministry of Customs and Trade of the schedule No. (I), which is enclosed to the Legislative Decree No. 190 on General Staff and Procedure, enacted on 13/12/1983.

Abrogated provisions"

"Article 86- (1) The Act No. 4077 on Consumer Protection, enacted on 23/2/1995, is hereby abrogated. Any and all references made within any other legislation to the Act on Consumer Protection shall be considered to be made to this Act.

Transitory provisions

PROVISIONAL ARTICLE 1 - (1) Any legal action, which was filed prior to the date of effectiveness of this Act, shall continue being tried by the court, with which it was filed.

(2) In respect of the consumer transactions, which may have been conducted before the effectiveness of this Act, and as to whether or not such transactions are legally binding and as to the consequences of such transactions; the provision of such act that was in force on the date of conduct of any such transaction shall be applicable. However:

a) Any provision of any contract, which was executed prior to the date, on which this Act came into force, and which is currently in force, that is in contravention to this Act shall not be enforced as of the date of effectiveness of this Act.

b) In the event any period of prescription and term of limitation, which started to elapse prior to the date, on which this Act came into force, has not expired; the same shall have expired upon the elapsing of the period of time that is provided by this Act.

(3) The provisions of the regulations and other legislations, which were issued and enacted on the basis of the Act on Consumer Protection, which is hereby abrogated, that are not in contravention of this Act shall be applicable until the regulations, which are contemplated herein, are brought into force.

Effectiveness"

"ARTICLE 87 – (1) This Act shall come into effect six months after the date of its publication.

Enforcement"

ARTICLE 88- (1) The provisions of this Act shall be enforced by the Council of Ministers.