Regulation Amending the Regulation on Commercial Advertising and Unfair Commercial Practices

The Regulation Amending the Regulation on Commercial Advertising and Unfair Commercial Practices (“Amendment”), which was published in the Official Gazette No. 31737 dated 1 February 2022 and entered into force as of 1 March 2022, introduced various amendments to the Regulation on Commercial Advertising and Unfair Commercial Practices (“Regulation”).

Within the scope of the Amendment, significant changes have been made regarding the principles applicable to advertisements and unfair commercial practices. The main provisions considered important are summarized below.

Regulation Regarding the Determination of the Sales Price Before the Discount

Pursuant to the Amendment, when displaying the discount rate and amount for products subject to discounts, the lowest price applied within the 30-day period prior to the date on which the discount was applied must be taken as the basis.

This regulation aims to prevent misleading advertisements and practices where consumers are misled regarding discount rates.

Information Regarding the Regulation on Price Labels

In parallel with the above-mentioned amendment, the Price Label Regulation was also amended as of March 2022, introducing the obligation for retailers to display the lowest price applied within the 30 days preceding the discount period.

Accordingly, the following provision has been added:

“The discounted sales price, the price before the discount, tariffs and price lists, and labels of goods or services subject to discounted sales shall be displayed. In determining the sales price before the discount, the lowest price applied within the thirty-day period prior to the date on which the discount was applied shall be taken as the basis.”

Regulation Regarding Personalized Pricing

For the first time, the Amendment introduced a definition of personalized pricing. Personalized pricing is defined as:

“A price offered for a good or service as a result of analyzing the consumer’s purchasing behavior and other personal data.”

Within this scope, special prices and campaigns offered to consumers based on factors such as their birthdays or previous shopping history are considered personalized pricing.

Where such pricing is offered, businesses must:

• also display the current sales price applicable to the consumer;

• inform consumers about the criteria used to determine and offer the relevant personalized price.

Regulation Regarding Consumer Reviews and Evaluations

According to the Amendment, on online platforms:

• evaluations regarding goods, services, sellers, or service providers may only be made by customers who have actually purchased the relevant product or service;

• the rules and criteria according to which evaluations will be published must be clearly disclosed;

• published reviews must remain available for at least one year and must be displayed according to an objective ranking system;

• if a review is not permitted to be published, the relevant consumer must be informed.

If a consumer complaint mentioned in a review is resolved, this information must be published without delay in the same section where the original review was displayed.

Furthermore, agreements with real or legal persons for the purpose of increasing the sales of goods or services through statements encouraging sales are prohibited.

Practices Regarding the Publication of Consumer Complaints

With this amendment, complaint platforms are required to grant sellers or service providers subject to consumer reviews a period of at least 72 hours to exercise their right to respond before publishing complaint-related evaluations.

Accordingly, consumer complaints cannot be published before the expiry of the 72-hour period.

In addition, evaluations determined to be inaccurate based on the seller’s or service provider’s response will not be published on the platform.

Information Regarding Ranking Criteria

The Amendment regulates that where goods or services offered online are ranked through comparisons based on factors such as price, quality, or similar characteristics, consumers must be provided with information regarding the criteria used for such ranking.

Such information must be made easily accessible:

• in the same section where the ranking appears; or

• through a link or warning symbol directing consumers to detailed information.

This disclosure requirement also includes information regarding paid or sponsored products, where applicable.

This regulation is particularly significant for online marketplace platforms.

Conclusion

The Amendment aims to protect both consumers and real or legal persons providing goods and services. In this regard, significant regulations and innovations have been introduced concerning commercial advertisements, discount practices, consumer reviews, personalized pricing, and online marketplace transparency.

Submitted for your information and consideration.