bulgaria eu accession and consumer protection

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EUROPEAN UNIVERSITY OF LEFKE & ROUEN SCHOOL OF MANAGEMENT MASTERS OF SCIENCE IN EUROPEAN MANAGEMENT Dissertation Bulgaria’s EU accession and Consumer Protection Submitted to the Faculty of Economics and Administrative Sciences in partial fulfilment of the requirements for the Degree of Masters of Science in European Management Submitted to: Dr. Alan Bell Submitted by: Emine Yuseinova Student No: 24-0824

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EUROPEAN UNIVERSITY OF LEFKE

& ROUEN SCHOOL OF MANAGEMENT

MASTERS OF SCIENCE

IN EUROPEAN MANAGEMENT

Dissertation

Bulgaria’s EU accession and Consumer Protection

Submitted to the Faculty of Economics and Administrative Sciences in partial

fulfilment of the requirements for the Degree of Masters of Science in European Management

Submitted to: Dr. Alan Bell Submitted by: Emine Yuseinova

Student No: 24-0824

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“Consumers by definition, include us all. They are the largest economic group, affecting and affected by almost every public and private economic decision. Yet they are the only important group... whose views are often not heard.” - John F. Kennedy, 15th March 1962 in a declaration to the US Congress ~ · ~ “The world's consumers know what they want from trade - greater access to services, better and cheaper goods, and more information about the products they are buying - and the consumer voice should be at the heart of trade negotiations.” - Richard Lloyd, Director General of Consumers International, a quote from the conference “Towards Hong Kong”, December 2005 ~ · ~ “There are now 450 million consumers in Europe. Their expenditure represents over half of EU GDP. They are key to economic growth and creating jobs. And yet there is an EU-wide lack of consumer confidence when it comes to cross-border transactions. A solid legislative framework has to be complemented with enhanced consumer information and education at EU level, to shift from consumer protection to consumer empowerment.” - Markos Kyprianou, European Health and Consumer Protection Commission, on the occasion of the World Consumer Day, 15th March 2006

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Table of Contents

PART I…………………………………………………………………………………. 6

1. Introduction…………………………………………………………………………. 6 1.1 Formulating the Research Project…………………………………………………... 6 1.2 Preliminary Work…………………………………………………………………... 7 1.3 Researchable Questions…………………………………………………………….. 14

2. Research and Information Finding………………………………………………... 14

3. Conclusion…………………………………………………………………………... 17

PART II………………………………………………………………………………... 19

1. National legal framework dealing with consumer protection…………………… 19 1.1 Overview……………………………………………………………………………. 19 1.2 The Old Law on Consumer Protection (03/07/1999) ……………………………… 19 1.3 The New Law on Consumer Protection (in effect as of 10/06/2006) ……………… 28 1.4 Definitions of “consumer” and “consumer association” in Bulgaria………………. 37 1.4.1 Comparisons of the definitions of “consumer” and “consumer association” in Bulgaria with the definitions laid down on EU level…………………………………… 38

2. Bodies involved in consumer protection in Bulgaria……………………………... 41 2.1 Commission for Consumer Protection……………………………………………… 41 2.2 Other institutional bodies dealing with consumer protection………………………. 48 2.3 Consumer Associations……………………………………………………………... 50 2.3.1 Federation of Consumers in Bulgaria…………………………………………….. 51 2.3.2 Bulgarian National Consumers Association……………………………………… 52 2.3.3 Independent Union of Consumers in Bulgaria…………………………………… 54 2.3.4 Others……………………………………………………………………………... 55

PART III……………………………………………………………………………….. 57

1. Hypotheses…………………………………………………………………………... 57

2. Overview of the questionnaire analysis…………………………………………… 62

3. Consumer Protection……………………………………………………………….. 63

3.1 Consumer protection and confidence……………………………………………... 63 a) Level of consumer protection in Bulgaria…………………………………………... 63 b) Level of consumer protection in the EU……………………………………………... 65 c) Level of safety in products…………………………………………………………... 66 d) Level of supervision and control on the market for safer products and services……. 67 e) Enforcement of legislation on Consumer Protection………………………………… 68

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f) Governmental efforts on consumer protection……………………………………….. 69 g) Market surveillance: should Government strengthen and better it? ………………… 70

3.2 Informed Consumers………………………………………………………………. 71 a) Consumers’ level of knowledge of their rights……………………………………… 71 b) Information given by sellers / traders……………………………………………....... 71 c) Information regarding labels, ingredients, and contents of products and services…... 72 d) Information regarding clauses in trade contracts…………………………………….. 73 e) Information regarding claims for products and services…………………………….. 74 f) Knowledge about the New Law on Consumer Protection…………………………… 75 g) Knowledge about claim registers maintained by sellers / traders…………………… 76 h) Knowledge of Consumer Institutions………………………………………………... 76 i) Knowledge of the “Consumers’ Telephone Line” …………………………………... 78 j) Do consumers want to know more about their rights………………………………… 79 k) Means of information………………………………………………………………... 80

3.3 Consumers’ economic interests……………………………………………………. 81 a) Sale’s slips and warranties given by sellers / traders………………………………... 81 b) Sale’s slips and warranties requested by customers…………………………………. 82 c) Products bought from Door-to-Door Sellers / Traders………………………………. 83 d) Safety of products offered by Door-to-Door Sellers / Traders………………………. 84 e) Consumers’ claims regarding faulty products……………………………………….. 85 f) Warranties: how fair are clauses for redress…………………………………………. 86

4. Access to Justice…………………………………………………………………….. 87

4.1 Complaints made about products and services………………………………….. 87 a) How often Bulgarian citizens complain about products & services………………… 87

4.2 Problems encountered when purchasing products or services…………………… 88 a) How many BG citizens are able to find an amicable settlement to their problems….. 88 b) Solutions reached…………………………………………………………………….. 89

4.3 Access to justice…………………………………………………………………….. 90 a) Do BG consumers take a case to court………………………………………………. 90 b) Does joint action with other consumers encourage BG citizens to defend their rights 92 c) In whom do BG citizens place their trust to defend them in court………………… 93 d) The level of confidence in courts……………………………………………………. 94 e) Which body can best protect BG consumers’ rights………………………………… 95

4.4 Consumer Knowledge……………………………………………………………… 96 a) Access to means of dispute settlement………………………………………………. 96 b) Awareness of means to dispute settlement ADR……………………………………. 97 c) Involvement of Consumer Associations……………………………………………... 98 d) Integration of Consumer Rights in other policies in Bulgaria……………………….. 99

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5. Bulgaria’s EU accession and consumer protection……………………………….. 100

5.1 Bulgarian Consumers and their attitude towards the Single EU Market………... 100 a) Price of non-food products…………………………………………………………... 101 b) Price of food products……………………………………………………………….. 101 c) Price of Services……………………………………………………………………... 101 d) Quality of non-food products………………………………………………………... 101 e) Quality of services…………………………………………………………………… 102 f) Choice of non-food products…………………………………………………………. 102 g) Choice of food products……………………………………………………………... 103 h) Choice of services……………………………………………………………………. 103

5.2 Bulgarian Consumers and their attitude towards consumer rights and market surveillance…………………………………………………………………………….. 104 a) Bulgaria’s EU accession and consumer rights………………………………………. 104 b) Bulgaria’s EU accession and market supervision and control………………………. 105

PART IV……………………………………………………………………………….. 107 1. Recommendations…………………………………………………………………... 107

2. Conclusion…………………………………………………………………………... 123

Annex………………………………………………………………………………….. 127

References…………………………………………………………………………….. 133

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PART I

1. Introduction

My name is Emine Yuseinova and I am a Master student in the European University of Lefke. I

am in the Masters in European Management program that is run in collaboration with the Rouen

University in France. I am a Bulgarian citizen and that is one of the reasons I chose to do my

Master degree in this area. Since Bulgaria is a candidate member, I am very keen on learning

what the future will hold for the Bulgarian Nation. I am taking the Master program as a part-

time student and this is my second and also final year on the road to my graduation. Therefore,

the dissertation I am going to concentrate on is very important for the months ahead till my

Graduation Jury.

The beginning of every dissertation is very difficult. As written in the Business Research

Methods course booklet “The process of formulating and clarifying the research project is one of

the most important parts of the dissertation process and it is also the stage that causes much

worry” (Ed Hyatt, Business Research Methods, MEM course, 2005). I have to admit that I really

had troubles as to what I should choose as a basis for my dissertation. I had to look what really

interested me and what was relevant to the Master I am taking in order to give a fresh start to the

process in question. I included all the brainstorming and the research I made in the following

paragraphs.

1.1 Formulating the Research project

In the beginning of our first year, Dr. Alan Bell introduced us a lot of areas and subjects that

could become basis for our dissertations. Therefore, as a beginning, I looked at all subjects

included in the Masters in European Management program to figure out which courses interest

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me and which ones not. I believed that I should choose an area that I was interested in, in order

to be successful in what I was going to do.

After looking at the various subjects given to us by Dr. Bell, I found that I am genuinely

interested in legal issues. I am very aware of the fact that law governs all aspects of our lives,

including the European Union. Without law, it would have been very difficult to create such a

big Union, in fact even impossible. All practices within and outside the European Union are

governed by huge amount of treaties, rules, regulations, etc. and any business there is properly

functioning due to the law controlling it. To mention few, there is the Competition Law and the

various rules that govern each of the fundamental freedoms in the Community (goods, persons,

etc.)

Taking account of this and having in mind the importance of every legal activity, I have chosen

my research area to be European Union Business Law.

Considering all of the above, I have to add that I will look at the EU Law issues in regards to my

country – Bulgaria. Bulgaria is one of the countries preparing to accede to the European Union

and there are many legislative processes going on there in order to fulfil the Copenhagen

Criteria.

1.2 Preliminary Work

Finding a suitable area should be followed by formulating a research idea and this would be the

area where I was going to specialize in. In a visit to my country in January 2005 and later on in

August 2005, I realized, after researching, that the present status of the consumers in Bulgaria

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was very bad and the dated Law on Consumer Protection1 had many flaws. The problems in this

area were obvious and I heard many people complaining that there was no relevant organ to take

care of them.

a) The History and Problems – year 2006 and earlier

Before the adoption of the New Law on Consumer Protection (10/06/2006), The Law on

Consumer Protection and Trade Rules was the basic legal act in the field of consumer

protection, and the main body enforced by law in the field of consumer protection and market

surveillance was the Commission on Trade and Consumer Protection. Bulgaria adopted the Law

on Consumer Protection and Trade Rules in 1999 with a view to transposing the Acquis. In

accordance with this Law a National Council was to be set up and its role should be further

strengthened and its activities stepped up, so that it could formulate the main principles and the

objectives of consumer policy. However, only tiny changes were made to it.

As stated in many of the EU Commission Reports in regards to Consumer Protection, a major

effort was still needed to effectively implement the legislation which had been transposed,

particularly by means of effective surveillance procedures. In the 2004 Report, for instance, the

Commission stressed that the legislative framework needs to be improved and the market-

surveillance mechanism introduced, and that the only steps taken were the training measures

implemented by the competent body (the Commission on Trade and Consumer Protection) to

explain the application of the law on tourism.

I would like to discus the 1999 Law that was enforced in Bulgaria. When we look at the Law on

Consumer protection, we can see that it was combined with the trade rules, and in practice, this

1 The Law on Consumer Protection and Trade Rules i.e. the Law that was in force before 10/06/2006

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Law protected not the consumers but the traders (Pavel Karlev, Standard newspaper, No 4327,

22/01/2005). And if we look closer we will see that most of the readings concerned the trade and

the trade associations, instead of how consumer rights were to be protected. There was also a

special paragraph, according to which the Law on Consumer Protection and Trade Rules did not

cover products and goods that were covered by special provisions and rules. This meant that we

had to take out the food, the alcohol, and the water, since there were different rules guiding

them. The question here was what else the Law left there to control. Another problem is that

there was no single organ to perform such a control. In that situation, over 10 institutions

supervised the selling of goods, and when a consumer went to complain to one of them he/she

was usually sent over to another one with the excuse that it was not in their range of authority to

solve the problem at hand. Thus, a consumer with an elementary complaint had to revolve

around the various institutions without being protected.

Another serious problem was that clients did not know what rights they have as to what

compensation he/she would be given in case of faulty goods. Usually firms and companies did

not give money back, nor change the good in question, but offered to repair the flaw. For

example, there was a friend of mine, a woman, who purchased expensive boots in November.

With the first snow, they began leaking. After complaining, the firm took them for repair and

gave them back to the woman in April. There were lots of other examples, from water-heaters

that waited for spare parts until the guarantee period expired till video-players taken for

repairing being kept by the traders for two years (Pavel Karlev, Standard newspaper, No 4327,

22/01/2005).

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Formerly, the most commented goods were the food products and the household goods. The

signals were most often related to incomplete label information of foods of animal origin: no

expiry date, no information about the producer, content or weight, etc.

In the beginning of September 2005 the Bulgarian Cabinet approved a consumer protection bill,

this being one step forward in aligning Bulgarian legislation in the sphere to the European one.

The Bill introduced in full European standards in customer protection in spheres such as

providing credible customer information by marking goods’ and services’ prices, regulations on

misleading and advertising, etc. The bill regulated the matter of goods’ and services’ safety as

well as manufacturers’ liabilities in cases of harm caused by a faulty piece of goods.

The Bulgarian Government hoped to have the bill passed into a law by the end of 2006 so that

coordination was achieved between government departments and other bodies involved in

consumer protection (Emil Alexiev, Chief at the Department of “Protection of Consumers”,

“Foreign Trade and Commercial Policies). However, the major challenge facing Bulgaria was

not simply the adoption of yet another law, but the putting into motion the system of protection

of customer rights. It was only thus that Bulgaria would cover EU regulations in full.

Later on, in early October 2005, the Minister of Economy and Energy Rumen Ovcharov met

with the EU Commissioner for Health and Consumer Protection Markos Kyprianou who

underlined that “Consumer protection is an issue widely discussed at the European Parliament

and virtually becomes a major criterion for the progress made by any EU aspiring country in

the pre-accession process”. Minister Ovcharov pointed out that the consumer protection area is

of particular significance for the Bulgarian government. He also added that to this end, as of

October 2005, a separate directorate at the Ministry of Economy and Energy becomes

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responsible for consumer protection issues. The establishment of such a department was

welcomed by EC’s representatives as a highly positive step.

The major objectives outlined by the Ministry of Economy and Energy in its strategy were as

follows: to maintain a high level of consumer protection in Bulgaria, to effectively apply the

relevant legislation and encourage NGOs working in consumer protection. The adoption of the

Consumer Protection Law by the end of 2005 was expressed to be a priority for the Ministry of

Economy and Energy. However, it was not until mid-2006 when the New Consumer Protection

Law was adopted by the Bulgarian Government.

A law would not take care of the problems; however, it would secure the circumstances for

guaranteeing people’s rights, prescribe the responsibilities of business and government

administration and sanction departmental cooperation. A proper law would create conditions,

but consumer culture required a lofty civic position, awareness and adoption of action on the

part of individual consumers. This culture should not be the “They did this and that to us” kind,

but rather more the “We look after our rights” brand (Emil Alexiev, Chief at the Department of

“Protection of Consumers).

b) Comparisons

When we look at the countries in the European Union, we can see that the picture is different

there. Usually, they have only one institution that controls everything. In France, the consumer

protection is a government policy and it is given a very important place. For example, there is a

special provision that requires a special degree of temperature in order to transport fish.

Therefore, a police officer can stop you and if the temperature is higher than the allowed, he has

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the authority to punish you. On the other hand, the consumer protection is in the hand of the

constituencies in United Kingdom.

c) Community Aqcuis

During the past years the policy of consumer protection became yet more significant within the

frames of the EU institutions. Existing Community rules cover the protection of consumers'

economic interests (in particular the monitoring of trade descriptions, the indication of prices,

consumer credit, unfair terms, distance selling, package holidays, sales away from business

premises and time share property), product safety in general, cosmetics, the designation of

textile products and toys. Most importantly, according to Art.III-65 (present provisions), the

consumer protection should also be taken into consideration when setting up internal market

rules.

As just mentioned above, consumer policy is a crucial issue in regards to the European

Community. EU Consumer policy is particularly relevant to two of these aims: modernizing the

European economy and ensuring a better quality of life for European citizens. Through

establishing a consumer-friendly internal market, consumer policy sets the conditions for more

choice and more cross-border trade. And through enabling consumers to buy what they need on

fair terms, consumer policy contributes to the intangible, but fundamental, objective of an

improved quality of life for EU citizens.

The European Commission has always drawn three main objectives when preparing annual

action plans for consumer protection. These are: first, a more powerful voice for the consumer

throughout the European Union; second, a high level of health and safety for EU consumers;

and third, full respect for the economic interests of EU consumers. The economic prosperity of

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everyone in Europe depends on the internal market functioning effectively. This is widely

accepted; what is perhaps less widely understood is that in order for the internal market to

function effectively, consumers must be able to participate effectively in the marketplace.

“Business cannot thrive without consumer confidence” (SPEECH/01/434 by Mr. David

BYRNE, European Commissioner for Health and Consumer Protection).

I would like to add that participation of candidate countries in Community programmes is an

important way to prepare for accession and familiarize candidate countries' administrations, as

well as their citizens, with the Community policies and working methods.

To this end, Bulgaria expressed her interest in participating in the EU programme for consumer

policy, (Decision 20/2004/EC), establishing a general framework for financing Community

actions in support of consumer policy for the years 2004 to 2007.

The government of the country and the Commission signed a bilateral agreement Memorandum

of Understanding in October 2004. This laid down the practical terms of participation in the

programme, including the financial contribution, from 2005 onwards. The agreement enabled

Bulgarian consumer protection authorities and consumer associations to benefit from most of

EU consumer policy actions, such as training for national officials and staff of consumer

associations in EU legislation and participation in calls for specific projects.

Looking at Bulgarian accession process, the Association Agreement between the European

Union and Bulgaria provides for the harmonization of Bulgarian law with Community law and

cooperation to achieve full compatibility between Community and Bulgarian consumer

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protection systems. However, until 10th of June 2006, Bulgaria still had considerable amount of

legal and institutional adjustment to make in order to reach the Community level.

1.3 Researchable Question

In view of the facts that I mentioned above I was able to formulate researchable questions for

my dissertation.

"How Bulgarian accession in the European Union will benefit consumers in regards to their

protection?" And "What do Bulgarians want from consumer protection?"

I realize that I will have to perform serious investigation in order to find solution or an answer to

these. In the following paragraphs, I explain what kind of information I will need, where I can

find it, how I expect to get and use the information, and if there is any extra information I need

in order to complete my dissertation.

2. Research and Information Finding

As a start point of my research, I consider the Federation of Consumers in Bulgaria’s website. I

have searched through their official site at www.potrebiteli-bg.com and found very useful

information related to my dissertation. I have also emailed them ([email protected]) with the

request for information, such as annual reports, statistics, leaflets and brochures in regards to

consumer protection, and their journals (provided they have such).

My next source of information will be the Trade and Consumer Protection Commission (TCPC)

in Bulgaria. On the 15th of March this year (2005), the TCPC initiated an “Open Doors”

Program that was widely covered by the media. The Bulgarian citizens raised specific questions,

filed claims, and provided signals for irregularities in the retail network. The Commission

experts were handing out to all their visitors the brochure “Complete Information – Right

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Choice”, which provided clear information on most frequent questions asked by citizens when

shopping. There was a special emphasis on the labelling rules for sale of shoes, electrical

devices and textile products. The objective was to make people understand their rights as

consumers so that their protection becomes a “mutual process” (Damian Lazarov, TCPC

Chairman). The experts from the Trade and Consumer Protection Commission tried to explain

to citizens that it is to their benefit to know their consumer rights, to require fairness and

accuracy from the traders and producers and to use their right to information before closing the

trade deal. Any purchase of goods, be it a small item or a large product, is a type of contract

between the trader and the consumer and both parties have rights and obligations under it.

I think that the “Open Doors” initiative was a step forward in improving the system of

safeguarding the consumer rights and believe that I will be able to conduct a very useful research

through the database of this initiative (e.g. citizens claims, behaviour, and reaction to it) and also

the database of the TCPC itself. The official site of the Commission is http://www.ktzp.bg .

Next, I consider the Bulgarian Ministry of Economy and Energy (MEE) as a source of

information for my thesis. Recently, the MEE has organized a conference on consumer rights in

cooperation with the Municipality of Madrid. Among the Main Topics of discussion were:

protection of Bulgarian Consumers’ rights when purchasing goods or signing commercial

contracts, facilitating the acquirement of consumer credits, and safeguarding the consumer

against buying dangerous goods.

Experts from the area of consumer protection from Bulgaria and ten EU Member Countries took

part in the conference under the PHARE programme, joined by representatives of the European

Commission’s Delegation in Bulgaria, of the business sphere and of consumer unions in the

16

country. They discussed the European practices in the effective applications of consumer-

protective legislation.

I will email them at [email protected] and try to contact them at their official telephone

numbers in order to get the information I need in regards to consumer protection and the

outcome of the conference in question. I hope to get some useful statistics concerning consumers

as well.

Collecting primary and secondary data from the aforementioned bodies and interviewing the

relevant authorities will be essential for me in finding information in regards to consumer

protection policies. I will try to contact Mr. Pavel Karlev, the founder of the Bulgarian

Consumers’ Federation, Nina Radeva, Deputy Minister of Economy and Energy, or any other

scholars specialized in the field of consumer protection in order to get a primary data for my

dissertation. I will use the data collected in order to find some hypotheses – solutions to the

current problem in Bulgaria.

I will also make use of the European Consumer Centres Network (ECC-Net) which is EU-wide

network to promote consumer confidence. It was created by merging two previously existing

networks: the European Consumer Centres or “Euroguichets”, which provided information and

assistance on cross-border issues; and the European Extra-Judicial Network or “EEJ-Net” which

helped consumers to resolve their disputes through alternative dispute resolution schemes

(ADR). Currently, there are centres in 23 countries across Europe and their number is expected

to increase in the near future. I have already got a list of their addresses, telephone numbers and

emails. I will use the information taken from them to make some comparative analyses between

EU countries and Bulgaria.

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I will also make comparisons of some of the crucial consumer policy definitions laid down on

Bulgarian and EU legal framework level. This will help me figure out what possible legal

outcomes would come up after Bulgaria accedes to the European Union.

I think to design a detailed questionnaire in order to measure the level of knowledge of

Bulgarian citizens regarding consumer protection and consumer rights and in order to see what

Bulgarian citizens expect from consumer protection.

I will also try to get information from the EU Commission’s Annual Reports concerning the

state of the Bulgarian Consumers and thus follow up on how much has Bulgaria improved in

regards her consumer protection, what is there still to be done, and what are the major problems

that still need to be addressed so the Consumer practices align with those of the EU. In this

regard, I will make a comparison between the Old Law on Consumer Protection that I have

discussed above and the New Law on Consumer Protection that entered in force as of 10th of

June 2006.

3. Conclusion

The right of consumers to protection today represents one of the fundamental civic rights.

On the other hand, harmonisation with consumer protection rules constitutes one of the

conditions for the elimination of market barriers and for market integration, which

includes the circulation of goods and services with the same standards of safety and

quality. Therefore, it is highly essential if all countries in the European Union and the

candidate countries have functional and effective standards and rules for protecting the

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consumers. I would be more than happy if I can contribute to and specialise in this area of

market integration.

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PART II

1. National legal framework dealing with consumer protection.

1.1 Overview

The New Law on Consumer Protection has entered in force as of 10th of June, 2006, thus

replacing the Old Law on Consumer Protection which was not sufficient to protect Bulgarian

consumers efficiently and was not also aligned to the consumer protection framework of that of

the European Union. I am therefore going to discuss the major points of the legal structures of

both the Old and the New Law in order to compare and analyze the differences between the two

and also to observe to what extent the New Consumer Law has covered and introduced the

consumer protection regulations and directives of the European Union.

1.2 The Old Law on Consumer Protection (03/07/1999)

The Law on Consumer Protection and Trade Rules2 (LCPTR) that came into force at the year of

1999 laid the foundation of consumer law and the government policy for consumer protection in

Bulgaria. This Law for the first time3 in Bulgarian legislation had come to regulate the basic

rights of Bulgarian consumers such as the right to protection against risks of buying products

and services that might endanger human life, consumers’ health, right to protection of

consumers’ economic interests when buying products and services; access to justice and out-of-

court settlements; consumers’ right to associate together in order to better defend their interests

and the right to information.

2 See the Law on Consumer Protection and Trade Rules on the Commission for Consumer Protection website at http://www.ktzp.bg 3 Bulgaria is the only East-European country that had not accepted a special law for consumer protection until 1999

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The Law regulated the basic rights and consumers’ economic interests and defined the legal

guarantees for their protection. The LCPTR introduced the definition of the term “consumer”

and thus a new legal subject was established in the market relations: any person who bought or

used products or services4 for personal needs.

The Law on Consumer Protection and Trade Rules regulated the right to information of

consumers as a preliminary legal opportunity for assessment the characteristics of a product

prior to its acquisition or usage by the consumer. The matter of the “right to information” was

laid down in Art. 3, paragraph 1 of the Law, which included:

- product’s сcharacteristics, ingredients, labelling, instructions for use, packaging and

maintenance;

- product’s price and quantity;

- effect on other products in case of joint use;

- clauses and time limit of warranties; and

- expire period / date

The decree specified in Art. 3, paragraph 1 of the Law had imperative character and the above

mentioned elements could be seen as minimum required information that traders were obliged to

give to consumers. According to the requirements of the LCPTR, the information given by

traders had to be correct, complete, clear and conveyed to consumers in an appropriate manner.

The Law stipulated specific requirements for giving information for specific groups of products

such as:

- second-hand products / products that had already been in use;

- products with expired dates that did not endanger consumers’ health and life;

4 I would like to note here, that although the term “services” was mentioned in the LCPTR, there was no legal definition laid down in the Law as to what “service” might be

21

- products with deviation of previously announced indicators; and

- products subject to auctions

The Law on Consumer Protection and Trade Rules regulated the basic rights and obligations of

producers, traders and importers5 in regards to products’ safety. The right to consumer

protection against products or services that might endanger consumers’ lives, health or

properties corresponded with the counter-obligation on part of producers, traders, and importers

to “offer only safe products on the market”. The LCPTR developed further this obligation

stating that producers, traders and importers were also obliged not to offer any goods they

supposed, knew or must have known to be unsafe.

Thus, once the producer, trader or importer found out that a product was not safe, s/he was

obliged to:

- withdraw from the market products being threat for consumers’ lives, health and

properties; and

- inform immediately in an appropriate manner consumers and Consumer Protection

supervision authority for all risks related to the use of the products concerned

The Law on Consumer Protection and Trade Rules introduced special requirements concerning

“warranty responsibilities” and “the right to claims” as additional legal opportunity for

consumers to defend their rights and economic interests.

Thus when producers or importers offered goods with warranties they were obliged to indicate

in the contract or the warranty document the period and the clauses that applied for that good.

The warranty period started from the time the good was received, unless the parties had not

5 The Law on Consumer Protection and Trade Rules did not include the legal term “distributor”. It is now introduced as a legal subject in the New Law on Consumer Protection, 2006

22

negotiated a later period. Specificity was provided for food products – their warranty period was

their expiry date.

The LCPTR provided for conditions related to warranty responsibilities that had to be carried

out by traders. S/he was obliged to give consumers warranties given to him by the producer. In

case of damage or flaw in products that occurred during the warranty period, producers and

traders were obliged to provide for spare parts and other necessities for repair of the damaged or

faulty products. For local products producers and traders were required to establish their own

repair services or to make contracts with the repair services of other traders.

The warranty responsibility was directly related to the “right to claim” given to consumers. The

legal order of this law established a higher level of consumer protection without the need of

third party participation, be it a public or a control body. Consumers had the right to claim

regardless of whether the producer had given a warranty in the following hypotheses regulated

by the Law:

- flaws in the good

- inconformity with the declared size or amount

- inconformity with the declared trade mark

- any established lack in the good / anything missing

The LCPTR introduced specific provisions related to the right to claim in which consumers had

three working days, from the time the good was bought, to exercise this right in case there were

evident and obvious flaws. Thus, based on their right to claim, consumers might request for one

of the following:

- refund of the sum paid for the good

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- replacement of the flawed one with new

- partial reimbursement of the sum; or

- free-of-charge repair

The Law on Consumer Protection and Trade Rules also introduced the concept of unfair term in

a consumer contract, which was defined to be contrary to the requirements of good faith and that

caused a significant imbalance in the trader’s and consumer’s rights and obligations. In the

presence of doubts that a consumer contract might contain unfair terms, they would be

interpreted in a manner favourable for the consumer. The Law explicitly defined unfair terms as

insignificant, except the hypotheses where such terms were negotiated individually between the

trader and consumer.

The Law on Consumer Protection and Trade Rules stipulated the establishment of a new legal

institute in Bulgarian legislation who would cooperate in dispute settlement between consumers

and traders in the hypotheses related to warranty liabilities; the right to claims and unfair terms

in consumer contracts.

The LCPTR also introduced the conciliation bodies as out-of-court dispute settlement methods

between consumers and traders. The set-up and the proceedings of the conciliation commissions

were arranged by the Rules for Proceedings of Conciliation Commissions. A conciliation legal

procedure might be started by a filing in a petition by a consumer. The decisions taken by the

Commission were not binding on the parties, but at a later stage of hearing the case by judicial

authorities these decisions might be presented as written proofs aiming at the protection of

parties’ statements before the court.

24

Despite the achieved results, it has to be noted that the Law on Consumer Protection and Trade

Rules did not arrange a number of areas pertinent to the protection of consumers. Accordingly,

new enhanced rules were needed in order to promote and better the level of consumer protection

in Bulgaria. New rules and regulations were also needed because of the following reasons:

- The building of functioning market economy in Bulgaria required the need of a modern

legal framework for consumer protection that could secure and guarantee not only

protection for consumers, but also to help attain economy effectiveness by guaranteeing

the protection of all economic actors. The wide variety of products and services offered,

the development of new trade selling techniques, the progress of advertisement, and the

opening of Bulgarian market to imported goods required the need for legislation that

would regulate all these aspects of trade in order to attain a balance in the relations

between consumers and traders.

- After 1999, there were new Directives for consumer protection adopted and passed on a

European level that were not incorporated in the Bulgarian legislation. These are the

Directive on Certain Aspects of the Sale of Consumer Goods and Associated Guarantees

1999/44/EC that sets a minimum baseline for consumers’ rights across the internal

market, the General Product Safety Directive 2001/95/EC to extend safety regulation to

all consumer products and Directive on Distance Selling of Financial Services

2002/65/EC6.

On the other hand, there were certain EU Directives which were not incorporated in the Law on

Consumer Protection and Trade Rules, 1999, though they were passed on EU level before the

year of 1999. These are the Timeshare Directive 94/47/EC and the Directive on Comparative

Advertising 97/55/EC.

6 Information on EU Directives on Consumer Protection is taken from the European Commission Consumer Affairs website at http://ec.europa.eu/consumers

25

At the same time, part of the directives on consumer protection were incorporated in the Law on

Consumer Protection and Trade Rules only partially, such as the Doorstep Selling Directive

85/577/EC to protect consumers in respect of contracts negotiated away from business premises,

and the Distance Selling Directive 97/7/EC to protect consumers in respect of distance contracts.

In order to harmonize Bulgarian legislation on consumer protection with the European one there

was a strong need that all European Directives are fully integrated in a new legislation.

The need to create preconditions for integrating Bulgaria in the Single European Market of the

European Union posed the question of regulating consumer contracts with international elements

(ALEKSIEV, Emil7;; “Market & Law” journal, issue 01/2005). In the process of Bulgarian

accession in the European Union it was obvious that cross-border consumer contracts would

increase and that Bulgaria had to undertake the revision of the Law on Consumer Protection and

Trade Rules to align to EU “consumer acquis”. In 2003 the first alteration of the legislation on

consumer protection took place in this direction. The Rules of the Rome Convention8 Art.5

(80/934/EEC) were brought in the LCPTR to then cover the applicable legislation related to

consumer contracts with international elements. However, taking into account that most of the

European Directives on consumer protection already had decrees that related to the applicable

legislation on consumer contracts with international elements, it was appropriate that all decrees

concerning and related to the consumer contracts in question were set apart in a separate Chapter

in the Bulgarian consumer protection law (ALEKSIEV, Emil, “Market & Law” journal, issue

01/2005).

7 Emil Aleksiev is the Chief of the Department for Consumer Protection at the Ministry of Economy and Energy 8 See more for Rome Convention, 19 June 1980, at http://www.rome-convention.org/instruments

26

Consequently, the new Bulgarian legislation on consumer protection had to pursue the following

aspects in order to align its consumer protection policies to these of the EU prior to her

accession:

- To lay down the policy direction related to the protection of Bulgarian consumers and to

guarantee high level of consumer protection, consumers’ health protection, safety and

economic interests.

- To guarantee the attainment of harmonization of Bulgarian legislation to that of the

European one to a greater extent as expected in the light of the undertaken commitments

by the Bulgarian Republic9. Hence, new legislation was required to integrate fully the

regulations of most of the existing European Directives, namely:

o The Directive on Price Indications (98/6/EC)

o Misleading Advertising Directive (84/450/EEC)

o Comparative Advertising Directive (97/55/EC)

o The Directive on Certain Aspects of the Sale of Consumer Goods and Associated

Guarantees (1999/44/EC)

o The Directive on Unfair Terms in Consumer Contracts (93/13/EEC)

o Distance Selling Directive (97/7/EC)

o Doorstep Selling Directive (85/577/EEC)

o Timeshare Directive (94/47/EC)

o The New Directive on Product Safety (2001/95/EC)

o Injunctions Directive (98/27/EC)

o Directive on Liability for Defective Products (85/374/EEC)

9 See the Negotiation Position of Bulgarian Republic on Chapter 23 “Consumer Protection and Health” (CONF-BG 31/00)

27

As a result of the above mentioned factors there was a new law drafted and adopted by the

Bulgarian Government at the year of 2005, which goals were to:

- To create preconditions for increasing consumers’ confidence in market economy

- To create conditions for the effective execution of the legislation

- To encourage the activities of consumer associations as well as the representation of

consumer interests

- To create conditions for coordination of the proceedings of the different Ministries and

Departments that deal with consumer protection

- To strengthen the independent character of the consumer protection policy and to create

conditions for integrating the consumer protection policy in other policy areas.

As stated by Mr. Emil Aleksiev, the Head of Consumer Protection Affairs, the New Law on

Consumer Protection had the following aims:

- To broaden the basic consumer rights declared in the LCPTR as well as the right to

consumer education on matters related to consumer protection and consumer

representation in public bodies that take decisions on consumer related issues.

- To include services and service safety in the sphere of the new law

- To include the comparative advertising, joint offers, timeshares, and requirements for

directions for use of products offered to consumers in the legal framework of the new

law

- To improve the regulations on trade guarantees and consumers’ claims

- To introduce the rules from Art. 129 (a)10 of the Treaty of Amsterdam, which will bring

forth better reading of consumer protection policy in carrying out and implementing

other policies. It is therefore required that horizontal approach is taken in carrying out the

10 Art. 129 (a) is Ex. Art.153 in the Treaty of Amsterdam. Visit http://www.eurotreaties.com/amsterdam for more information on the Treaty

28

consumer policy as well as that consumer policy is taken into account in the spheres of

other policies such as transportation policy, communication, public services,

environment, agriculture etc.

- To delimit precisely the functions of the control bodies dealing with market surveillance

and to create conditions for the coordination in the proceedings of the control body

performing surveillance on the general safety of goods, and the control bodies

responsible for the application of vertical legislation for safety of goods. There is

therefore the need for regulations and decrees that will arrange the cooperation and

information exchange between the different control bodies.

- To regulate the relationship between the administration and consumer associations for

creating the necessary conditions for active participation of consumers and their

representatives in the decision-making process on all matters related to consumers. There

should be certain criteria for consumers’ representation regarding their participation in

different consultative bodies.

- And finally, the new law has to overcome the limitations of the Law on Consumer

Protection and Trade Rules, 1999, according to which the Law does not apply to

products and goods that are regulated by other special provisions and rules11.

1.2 The New Law on Consumer Protection (in effect as of 10/06/2006)

In November 2005, the 40th National Assembly passed a New Law on Consumer Protection that

was promulgated on December 9th 2005 (copy 99 of the National Newspaper). The New Law on

Consumer Protection abrogates the Law on Consumer Protection and Trade Rules and comes in

effect as of June 10th, 2006.

11 The Law on Consumer Protection and Trade Rules, 1999, Temporary and Concluding Decrees - §2

29

The New Law on Consumer Protection proclaims the basic consumer rights and introduces the

regulations of Art.153 of the Treaty of Amsterdam for integration and implementation of

consumer policy in the spheres of other policies.

The New Law now arranges the following issues:

- giving information to consumer (general duty for giving information, product labeling,

directions for products use, price indication of products and services);

- misleading, dishonest and comparative advertising;

- trade practices and selling methods (contracts made away from business premises,

distance contracts, information related to price discounts, joint offers);

- safety of goods and services;

- trade guarantees and the consumer right to claim;

- the trader’s liability for damages caused by faulty products, unfair terms in consumer

contracts; and

- timeshares

The Law on Consumer Protection now introduces fully the following European Directives:

o The Directive on Price Indications (98/6/EC)

o Misleading Advertising Directive (84/450/EEC)

o Comparative Advertising Directive (97/55/EC)

o The Directive on Certain Aspects of the Sale of Consumer Goods and Associated

Guarantees (1999/44/EC)

o The Directive on Unfair Terms in Consumer Contracts (93/13/EEC)

o Distance Selling Directive (97/7/EC)

o Doorstep Selling Directive (85/577/EEC)

30

o Timeshare Directive (94/47/EC)

o The New Directive on Product Safety (2001/95/EC)

o Injunctions Directive (98/27/EC)

o Directive on Liability for Defective Products (85/374/EEC)

The Law on Consumer Protection also introduces part of the regulations of Directive on

Distance Selling of Financial Services 2002/65/EC12.The Law on Consumer Protection Part II,

Chapter IV arranges the consumer protection in distance selling contracts including the sphere of

financial services. The decrees of the Law on Consumer Protection introduces fully the

regulations of Directive 97/7/EC on distance selling contracts while also introducing essential

elements of Directive 2002/65/EC for the distance selling of financial services13.

The new Law on Consumer Protection also arranges the institutional structure for consumer

protection in Bulgaria. The chief administrative body that is assigned with the execution of

consumer protection is the Ministry of Economy and Energy. The Minister of Economy and

Energy implements and coordinate the public policy for consumer protection and undertakes

measures for integrating the consumer protection policy in carrying out other policies. The

Minister of Economy and Energy is in charge of the proceedings of the National Council for

Consumer Protection and also coordinates the activities of other administrative bodies dealing

with consumer protection.

The decrees of the Law on Consumer Protection provides for retaining the statute of the now

operative Commission for Trade and Consumer Protection which changes its name to

12 The Directive 2002/65/EC amended the previous Directives on Distance Selling of Financial Services: Directive 90/619/EEC and Directives 97/7/EC and 98/27/ECs 13 Bulgarian legislation envisages fully introducing the Directive 2002/65/EC by adopting a special law on distance selling of financial services

31

Commission for Consumer Protection (CCP). The New Law increases substantially the powers

of the CCP, so that the Commission for Consumer Protection has now the power to conduct

administrative control in the sphere of misleading, dishonest and comparative advertising. More

so, according to the decrees in the Law the Commission for Consumer Protection will become

the main supervision body for misleading and comparative advertising.

The CCP is also given additional powers in implementing the Law on Consumer Protection in

the sphere of goods & services selling and related claims, the sphere of general products and

services safety, and also in the sphere of timeshares. The CCP has also the power to bring

actions for the protection of consumers collective interests and also to refer to the court to issue

injunctions for suspending breaches and violations of the consumer protection legislation. The

Commission for Consumer Protection becomes the main surveillance organ for consumer

protection in the framework of this legislation.

The Law on Consumer Protection gives control powers to consumer protection units of

municipality administrations related to giving information to consumers, some selling methods,

trade guarantees and the right to claim.

Partial powers are also given to surveillance organs regulated by other Laws, e.g. Law on Food

Safety and Law on Technical Requirements for Products.

The New Law regulates in detail the means for settling consumer disputes through consumer

complaints and calls, the conciliation commissions and the instruments for collective

consumers’ protection – bringing actions for suspending violations and claims for consumers’

32

compensation. It is useful to note here, that according to the Law consumer associations might

also bring actions with the aim of protecting the collective interests of consumers.

The new Law regulates the proceedings and activities of consumer associations and their

relationship with administration bodies. The Law defines the criteria for recognition of

consumer associations as well as the criteria for those consumer associations who can take part

in the proceedings of different consultative bodies including the National Council for Consumer

Protection.

The Law on Consumer Protection arranges the following consumer momentums:

Confirms the grounds and the constitutional basis of the consumer protection policy;

Confirms the independent character of the consumer protection policy;

Contains definitions, principles and decrees applicable for all consumer goods &

services;

Consigns a coordinated and general institutional structure in carrying out the consumer

protection policy;

Introduces the regulations of Art.153 of the Treaty of Amsterdam

Adopts horizontal methods of approach in implementing the consumer protection policy

in the spheres of other policies, such as in the spheres of transportation, energy,

competition etc.;

Broadens the sphere of basic consumer rights so that it incorporates the

recommendations and rules of the UN Economic and Social Council Resolution 1984/63

(26 July 1984) and UN General Assembly Resolution A/RES/39/248 (1985)14.

Consumers now have the right to education and training on matters related to consumer

14 See more of these Resolutions at the UN website at http://www.un.org/documents

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protection as well as the to consumer representation in public decision- making bodies

dealing with consumer protection;

The Law on Consumer Protection now regulates the services and services safety;

For the first time, the Law regulates the public relations regarding comparative

advertising, the joint offers, information on price discounts, and timeshares;

Trade guarantees and consumer claims are now better regulated by the New Law;

Actions for violations of the consumer protection legislation are brought in according to

the Law. In order to speed up the legal procedures on claims related to consumer

legislation breaches, the Law stipulates that these claims are heard according to the order

in Chapter 12 (a) “Prompt Proceedings” of the “Civil-Procedure Code”;;

The duties of the surveillance bodies who deal with consumer protection are more

precisely defined in the new Law; more so, better conditions are created for coordination

and information exchange between the different surveillance bodies;

The Law regulates the relationship between the administration and consumer

associations aiming for better conditions for consumer representatives’ participation in

implementing consumer legislation and in the decision making process. As mentioned

above, certain criteria are laid down for representation of consumer association and their

participation in consultative bodies.

The new Law now covers all goods and services amending the Law on Consumer

Protection and Trade Rules. According to the new Law, in case where two laws’ decrees

contradict with each other applicable will be this law which ensures a higher level of

consumer protection.

Recently the Parliament has passed a draft law on consumer credit that was drawn up by the

Ministry of Economy and Energy in 2005. The draft law fully integrates the regulations of the

34

EU Consumer Credit Directive 87/102/EEC that was amended with Consumer Credit Directive

90/88/EEC and Directive 98/7/EC15. The draft law aims at securing protection and confidence in

consumers in the sphere of consumer credit transactions. The draft law on consumer credit

envisages certain requirements for creditors prior to concluding a credit contract as well as

during the concluding process and after realization. The Bulgarian Government aims at full

harmonization of the legislation with the European one concerning consumer credits, securing a

consumer protection mechanism in consumer credit transactions and restricting frauds and abuse

in this area of the legislation.

Consumer protection is also dealt with in the spheres of other Laws (secondary legislation). One

of them is the Decree for Food-Like Products adopted by the Council of Ministers on January

12th, 2006, which is now in force along with the Law on Consumer Protection from June 10th,

2006, and it introduces the EU Directive 87/357/EEC16 on dangerous imitations. It aims at

preventing risks related to consumers’ health and safety emanating from the use of products

imitating food. The Commission for Consumer Protection has the power to order producers and

distributors to withdraw dangerous food-like products and also to impose administrative

sanctions as provided for in the new Law.

Other normative acts issued by the Ministry of Economy and Energy that seek to increase

consumer protection are: Regulation for the Proceedings of the Conciliation Commissions;

Regulation for the Proceedings of the National Council for Consumer Protection; Decree for

Product Pricing and giving information to consumers for repair of daily appliances; Decree for

the conditions and the order for giving information by producers, distributors and suppliers 15 These European Directives are now being revised with the aim of adopting new law on consumer credit that will guarantee consumers a good level of protection in cross-border credit transactions taking into account the innovations in the financial services sector. 16 The Directive 87/357/EEC was adopted on June 25th,1987, and aims for the approximation of Member States’ Laws concerning products which, appearing to be other than they are, endanger the health or safety of consumers.

35

regarding dangerous goods & services on the market as well as the collaboration between

producers, distributors / suppliers and the surveillance bodies in regards to products & services

safety; Decree for withdrawing and destroying dangerous products and related consumer

compensation17.

In September 20th 2005, the Council of Ministers of the Republic of Bulgaria adopted a

correction in the Organizational Statutes of the Ministry for Economy and Energy establishing a

Directorate for Consumer Protection. The alteration gives the Directorate many functions from

harmonizing Bulgarian consumer legislation to the European one, preparing medium-term

strategies for the development of consumer protection policy, coordinating the RAPEX

proceedings in Bulgaria, relationship with consumer association to preparing, coordinating and

implementing PHARE projects and other international consumer protection programmes.

In conclusion, I would like to say that the New Law on Consumer Protection is far more

inclusive of regulations critical and important for the enhancement of consumer confidence and

guaranteeing consumer protection. As we have seen, most of the European Directives are

incorporated in the rulings of the Law with few Directives left to be introduced in the short-term.

The institutional and administrative structure is better defined, powers are designated, and

cooperation between the different bodies dealing with consumer protection is established.

However, it has yet to be seen how the new Law will affect the various aspects of trade in

Bulgaria, traders and producers attitudes toward the new consumer concept who will be

informed, educated and a careful choice-maker. Although Bulgarian legislation introduced a lot

of new areas and new moments for consumer protection and “built the necessary legal

framework for attaining a higher level of consumer protection in Bulgaria” (ALEKSIEV, Emil,

17 For more information on the normative acts see the Commission for Consumer Protection website at http://www.ktzp.bg

36

“Market & Law” journal, issue 01/2005), it will be difficult to reap results from the benefits the

Law offers unless a powerful consumer culture is there in force to defend its rights in this fairly

new market economy18.

1.4 Definitions of “consumer” and “consumer association” in Bulgaria

Now, I am going to have a look at the definitions of “consumer” and “consumer association” as

laid down by the New Law, confront it with the definitions prescribed in the Old Law, and then

compare it with the definitions existing on a European Level. Since the concepts of consumer

and consumer association are of great importance to the formation of active consumer trend and

consumer culture, I find it useful to discuss these definitions to see if they differ or are similar to

the European ones.

According to the Law on Consumer Protection, “consumer” is every natural person who

acquires goods or makes use of services that are not intended for conducting trade or

professional activities, and every natural person who, as a party to the contract of this Law

operates outside the framework of his/her trade or professional work. The Law on Consumer

Protection and Trade Rules defined “consumer” as every individual who acquires goods or

makes use of services for his/her personal needs or the needs of his/her relatives, and not for

selling, producing or practicing of profession or trade. We can notice that although formulated

somewhat differently by the two laws, the definitions come to define identical concepts.

Consumer associations, on the other hand, are defined as associations, whose activities are

directed mainly at protection for consumers, they are non-profit organizations who work only

for the interest of consumers, are not bound to certain political party, are economically 18 Bulgarian economy was a centralized economy under the Communist Regime till 1989. The transition to free market economy began around 1991 with the help of Western financial assistance approved by IMF (source: The Library of Congress Country Studies and the CIA World Factbook)

37

independent from producers, importers, traders and distributors, and are registered in the

Ministry of Justice as non-profit organizations aiming at conducting socially useful activities. As

stipulated in Art.167. (2), persons who are producers, importers, traders and distributors cannot

occupy leading positions in the administrative bodies of the consumer associations as well as

government officials who perform consumer protection functions, persons occupying

managerial or control positions in trade associations or co-operations, and persons who hold

managerial or leading positions in political parties or organizations.

The Old Law on Consumer Protection and Trade Rules Art.38 (1) defines consumer associations

also as non-profit and comprised of individuals united to protect their consumer rights, and

briefly stipulates the persons who cannot hold leading positions in consumer associations. In this

matter, it has to be noted that the New Law better defines the term “consumer associations”,

precisely sets criteria for consumers’ representation and participation in governmental,

consultative and control bodies and in is genuinely aiming at stimulating consumer activities and

confidence. Interesting to also note is, that the Old Law provides for consumer associations’

assistance by public bodies, municipalities and local administration only to those associations

whose members are more than 300 (Art.39). This suggests that though an association of less

than 300 members might be very active and socially useful than a bigger one, it could not be

given assistance by the Government and sets somewhat restrictive character on association

movements. The legislative authorities should have seen this limitation that it is now not

included in the New Law, however, the Law on Consumer Protection stipulates that one of the

requirement for consumer association’ representation is that the association has established

consultative office in at least one third of the districts’ cities. I will agree that this requirement

has incentive character for fostering consumer protection, since more consultation offices might

38

help consumers not only to know their rights and protect them, but also direct and orient

consumers to be more active, informed and confident.

1.4.1 Comparisons of the definitions of “consumer” and consumer association” in Bulgaria

with the definitions laid down on EU level

As basis for comparison regarding the definitions of “consumer” and “consumer association”

between Bulgaria and European country, I have decided to look upon the following countries:

Estonia, Latvia and Slovakia in order to see how some of the countries that entered the EU in

2005 formulated the terms that are of importance to my dissertation. I would like to discuss the

countries’ concepts19 according to the order given above.

In most Member States the legislation contains various definitions of consumer and consumer

associations (British Institute of International and Comparative Law, “Unfair Commercial

Practices”, General Report 2005). The various legislations are rather similar and often akin to

the definitions of consumer and consumer associations provided in various EC Directives.

According to Art.2 of Directive on Unfair Commercial Practices (definitions) “consumer” means

any natural person who, in commercial practices covered by the Directive, is acting for purposes

which are outside his trade, business, craft or profession.

a) Consumer

Estonia: §34 Law of Obligations Act defines consumer as natural person who performs a

transaction not related to an independent economic or professional activity. The Consumer

Protection Act §2 (1) defines consumer as natural person to whom goods or services are offered

19 The concepts of the three countries in question are taken from the General Report on Unfair Commercial Practices, 2005, from the British Institute of International and Comparative Law and also Reports on Institutional Relations between Public Authorities and Consumer Organizations at National Level

39

or who acquires or uses goods or services for purposes not related to his or her business or

professional activities.

Latvia: The Consumer Rights Protection Law defines a consumer as a natural or legal person

who expresses a wish to purchase, purchases or might purchase goods or utilizes a service for a

purpose which is not directly related to his or her entrepreneurial activity.

Slovakia: A definition of the consumer is envisaged in three different sources: the Act on

Consumer Protection, the Law on Consumer Protection at Distance Marketing and Door-to-

Door Selling and a chapter in the Civil Code which deals with consumer contracts. These

definitions are slightly different but their substantive part is identical. According to the Act on

Consumer Protection and the Law on Consumer Protection at Distance Marketing and Door-to-

Door Selling consumers are defined as both “individuals and corporations, who buy goods or

exploit services” or as stated in the Civil Code “concludes or fulfils a contract and do not

perform these activities within or towards business”.

b) Consumer Association

Estonia: According to Consumer Protection Act (enforced on 15 April, 2004) a consumer

organization is a voluntary association of persons the activities of which is to protect and

promote the interests and rights of consumers an which is founded and registered in accordance

with the Non-Profit Associations Act. For the purposes of the Consumer Protection Act, a

consumer association is deemed to be representing the collective interests of consumers if the

association which are the members of the federation have at least 50 members in total, and if the

association or the federation: 1) represents the interests of consumers at local or national level;

2) is independent of undertaking and political parties.

40

There is no official list of consumer organization at national level in Estonia, but the

organizations that are considered as consumer organizations are the Estonian Consumer Union

(ECU) which is called “umbrella” organization and comprises of 9 member organizations and

300 activists from all over Estonia, and there are also around 5 small consumer organizations

dealing outside the sphere of the ECU. Consumer organizations may be financed from the State

Budget for consumer protection activities and funded under specific projects, according to the

Consumer Protection Act. Consumer organizations can participate in the decision-making

process for developing consumer policy, and are also invited to give their opinion on legislative

issues and participate in workgroups, meetings, seminars, and cooperation projects.

Latvia: The legal base of non-governmental organizations is stated in the Consumer Rights

Protection Law, Section 22, “consumer organizations” as public organizations (clubs, societies

or associations) voluntarily united of consumers with purpose to protect consumer rights and

these organizations act in accordance with regulatory enactments and articles of associations of

the relevant public organization for consumer rights protection.

As in Estonia, there is no official list of consumer organization at national level in Latvia, but

the organizations that are de facto considered as consumer organizations are the Club for

Protection of Consumer Interests and the Latvian Consumer’s Protection Association that

incorporates ten regional consumer organizations. Consumer organizations are not funded by the

state20.

20 Information presented is dated 2005

41

Slovakia: Consumer organizations are established in accordance with the act no.83/1990. There

are no specific criteria for determining consumer organization – but the statute of the

organization should clearly state, that it is an organization established to protect consumers or to

act in a way to protect consumers. Consumer Organizations have to be registered as such at the

Ministry of Interior of the Slovak Republic. There are around 34 consumer organizations in

Slovakia that are funded by the Ministry of Interior on projects submitted by NGOs. The

consumer organizations are less or more involved in the decision –making process regarding

consumer protection and related EU issues.

2. Bodies involved in consumer protection in Bulgaria

As stated in the Law on Consumer Protection, different state bodies are involved in consumer

protection activities and market surveillance. The Law provides for coordination and

information exchange between these different state bodies, however, there are currently no

statistics or analysis that shows the effectiveness of the coordination between them, neither there

is information on how the bodies, except the Commission for Consumer Protection (CCP), deal

with consumer related issues and consumer complaints. I am going to discuss here the activities

conducted by the CCP for enforcing consumer protection from the year 2005 to now. Then I will

discuss briefly the bodies as stipulated in the Law on Consumer Protection and the activities and

work undertaken by consumer organizations in Bulgaria.

2.1 Commission for Consumer Protection

The Commission on Consumer Protection currently has 6 regional Directories that cover

municipalities all over Bulgaria. The work and activities of the CCP is supervised by the

Ministry of Economy and Energy. The CCP is the main control and counseling body in Bulgaria

dealing with consumer protection and also market surveillance. It is a fairly new institutional

42

body considering the fact that it was established in the year 1999 along with the then adopted

Law on Consumer Protection and Trade Rules.

The Commission on Consumer Protection has been working on projects and activities under the

headline of “Consumer Education” since year 2005. The aim is to increase the level of

consumer information so that consumers make informed choices and know how to protect their

rights when needed. Along with consumer related activities, the CCP also works on market

surveillance and conducts inspections together with other control bodies in order to increase

safety and fair trade practices.

In the year 2005, inspectors from the Commission21 accomplished a total of 33 718 inspections

in 25 618 targets regarding topics such as: giving information to consumers and products pricing

and labelling; specific requirements for textile products; requirements for materials used in shoe

making; requirements for daily appliances; automobiles and related issues; application of the

Law on tobacco and tobacco products; application of the Law on medicine; and verification of

claims put by consumers.

Since the end of the year 2005, Bulgaria receives and submits notifications on the RAPEX22

system as part of the EU association arrangements in order to harmonize and guarantee the level

of products safety and related legislation with that of the European Union. In this direction,

between the period October – December 2005, there were 88 notification received on RAPEX,

for which the Commission undertook the following actions: for 22 of the cases, the Commission

initiated control checks to see if the products subject to these notifications were offered on

Bulgarian market; and for 66 of the cases, the Commission gave information to the competent

control bodies for initiating the necessary operations (56 notifications to the Public Metropology 21 The then named Commission for Consumer Protection and Trade Rules (2005) now carries the name Commission for Consumer Protection (as of 10th June 2006) as stipulated in the New Law 22 Rapid Alert System for Non-food Products / See more for RAPEX at http://ec.europa.eu/consumers

43

and Technical Control Agency, 9 notifications to the Ministry of Health Protection; and 1

notification to the Ministry of Internal Affairs accordingly). At the same time, Bulgaria

submitted 7 notifications on RAPEX system for 7 dangerous products. There were also 4

RAPEX notifications on dangerous products found on the Bulgarian market in January 2006.

The Commission also issued orders for the temporary suspension of realization of 32 types of

goods doubted to carry risks to consumers’ health, lives and properties, 19 of which were proved

to be unsafe and dangerous and forbidden for market realization.

Another 7,734 control checks were conducted by the Commission on the safety of specific

groups of products such as textiles, shoes, daily appliances, handicrafts, leather, glass, crystal

ands toys. The Commission carried out 7 safety campaigns aiming for preventive control on the

safety of the just mentioned groups of products including automobile parts. The 7 campaigns

consisted of 1,743 overall inspections resulting with established 322 administrative violations.

Apart from the safety related actions, the Commission deals with consumer claims and

complaints. During year 2005, 4290 consumer complaints were received in the Directories of the

Commission. 3103 of the complaints were related to violations of the Law on Consumer

Protection and Trade Rules. 1768 of the complaints were settled in favour of consumers. 2,173

check controls were carried out in respect of consumer complaints of which 62 were withdrawn

by consumer themselves, 88 were carried over to conciliation commissions, and 409 were found

groundless. Most of consumer complaints were related to electrical and daily appliances,

furniture, mobiles, TVs and washing machines.

44

The Commission implements tasks concerning the protection of consumers’ economic interests.

As a result from the advertisement supervision on the market carried out by the Commission

during year 2005, 138 traders were examined for advertisements that aroused suspicions for

containing misleading and dishonest elements. 37 of the traders were issued orders to eliminate

the breaches, 11 were drawn up acts for administrative violations, and there was 1 legal action

taken against trader for protection of the collective interests of consumers related to a misleading

advertisement.

In the sphere of contracts with general clauses, the Commission required, analyzed, and issued

orders to 10 business firms.

In the area of distance selling, the most encountered violation faced by the Commission

concerning distance selling contracts is the non-compliance to the right of the consumer to reject

the product during the 7-days period of its purchase. As an outcome, 26 consumers’ claims who

bought products via distance selling were satisfied accordingly. The Commission found

breaches of 6 distance selling traders who were issued orders to change the contents of the

proposals offered to consumers.

In regards to individual and group trips with common price on the Law for Tourism, the

Commission carried out 174 inspections in tour operators’ offices and issued 24 acts for

violations of the legislation. The most common violations are those related to not including the

necessary information in concluded written agreements for organized tours as defined in the

Law on Tourism, and in the given written information lacking information about the kinds of

transportation services, locality, category and type of the tourist’s site, number and type of meals

given; and name of the insurance company.

45

As provided for in the Law, the Commission also organizes the work of the conciliation

commissions. In the year 2005, 107 conciliation proceedings were set up, as the number of the

proceedings increased slightly compared to year 2004, where there were only 68 instances of

approaching the conciliation commissions. This suggests that more consumers and traders turn

to and trust out-of-court methods in settling their disputes. Of the 107 proceedings set up, in 14

the parties came to an agreement; in 67 the proceedings were ceased due to traders’ non-

participation; in 11 the proceedings were ceased due to parties coming to an agreement prior to

the proceedings; in 8 the proceedings were ceased due to other reasons; and 7 of them are still

pending. The conciliation commissions are mainly referred to due to disputes between

consumers and traders regarding claims. Since October 2005, there is also a Conciliation

Commission for payment disputes which deals with disputes related to bank transactions, credit

cards and the institutions and persons dealing with such type of money transactions. Since its

establishment there were 3 conciliation procedures set up till the end of year 2005.

As of year 2006, the Commission has increased significantly its efforts in promoting consumer

education and consumer protection. The line undertaken by the Commission for promoting

consumer culture is necessitated by approaching the date specified by the European Union for

possible Bulgarian accession and the strong need for harmonizing the level of consumer culture

to the one in the European Union. Consumer help-desks are being set up regularly in big malls

and supermarkets in major cities, information concerning consumer protection is conveyed to

the media, brochures and leaflets containing basic consumer rights and other important

information is handed out to consumers; intensive inspections and controls are carried out

especially in tourist’s places at the Black Coast and necessary measures are undertaken to

prevent dishonest business practices. Inspections are carried out in 6 municipalities of Bulgaria

46

by the regional directories of the Commission, and according to data given by the Commission

on Consumer Protection in Plovdiv, out of 600 inspections monthly around 90 traders and firms

are issued acts on Consumer Protection Law and the Law on Tourism. Again by data given by

the Commission, 85% of the consumer complaints on consumer protection are satisfied

accordingly and almost 100% of the consumer complaints on the Law on Tourism are concluded

in favour of consumers.

Considering the facts shown above, it could be said that the Commission for Consumer

Protection help consumer protection in two ways: directly and indirectly. Directly, the

Commission helps promote consumer confidence by dealing with the complaints brought by

different consumers on different matters. I would like to give an instance of this direct “help”

that I happened to observe at first hand. A consumer came to the Commission, very upset, and

explained the problem that happened to him. Apparently, the consumer bought a TV branded

“SONY” 29 inches from a big store called “METRO” which has branches in major cities in

Bulgaria. After the purchase he found out that the TV has a defect. He went to the service

written in the warranty, they repaired it, and he took it home and again a “defect”. The consumer

went to the service once more, but they could not do anything. He went to the store he had

bought the TV from, and requested the authorities to change the TV with new one. According to

the New Law, a consumer can choose the type of compensation in case of flaw in the product

and the trader is obliged to enter the complaint in the claim register and to compensate the

consumer accordingly. However, the authorities there didn’t fulfil the consumer’s claim neither

have they entered the complaint in the claim register arguing that they would only change the

product with a protocol issued by the repair service: a clause that was not written in the

warranty. Thus the consumer turned to the help of the Commission for Consumer Protection to

47

help him defend his rights. Consequently, the Director called the store and everything was

settled right at the moment.

Many examples as the one above happen in day to day live of Bulgarian citizens. The settlement

of the complaint will depend on the documents obtained by consumers at the time of purchase.

Without sale’s slips, warranties and other consumer contracts there is a very little chance for

consumers to defend their rights if there’s a breach. Consumers should know that only if they

know their rights and take the necessary preventive steps, only then the Commission will be able

to help them effectively. Traders’ actions, such as the one in METRO, show that even

businesses of reputation may deny basic rights to consumers, showing that traders and sellers

use the ignorance of consumers to foster their trade. I will discuss the level of consumer

information in Part III, a force that could not be ignored and that could bring higher level of

consumer protection and to safer trade and fair trade practices.

The indirect help of the Commission consists of the various inspections carried out regarding

different aspects of not only consumer protection legislation, but of the related laws, such as

tourism, food, health etc. An instance of this would be the hundreds of check controls on hotels,

restaurants, street vendors, tour operators and stores conducted monthly at the Black Sea Coast,

an area which is highly active during summer season and there are ongoing businesses

throughout the summer till middle fall. One of the most common violations are setting different

prices for foreigners and also setting different prices for the day and the night at restaurants and

bars. The inspections have as aim to prevent unfair trade practices and the offering of goods and

services of poor quality or of danger to consumers’ health and lives. Thus, indirectly the

Commission and other related bodies help increase the level of consumer protection by

preventing traders and salespersons ignoring the legislation in question.

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2.2 Other institutional bodies dealing with consumer protection

Other institutional bodies having relation to and dealing with consumer protection are:

Regional Inspections for Safeguarding and Control of Public Health

Public Metropology and Technical Control Agency

National Health-insurance Fund

Tourism Agency

National Veterinary and Medical Office

Regional Municipality Units for Consumer Protection

Executive “Automobile Administration” Agency

Commission for Competition Protection

Others as necessitated by the occasions

During the year 2005, the Commission had various interactions with the above mentioned

bodies in carrying out inspections and check controls for securing the safety of non-food

products. There were overall of 260 joint inspections carried out on a national level for the year

2005. 53 joint inspections were carried on safety of products as 36 of them with the Public

Metropology and Technical Control Agency; 1 with the General Tax Directory; 14 with “Public

Police Services” Directory; 1 with the National Service on Plant Protection; and 1 with the

Inspection on Labour.

In 2005, the Commission received 17 notifications from “Customs” Agency in regards to

products that arouse suspicions for serious and direct risks for the health and safety of

consumers, or for goods that lacked proper documentation. According to the adopted Instruction

for interaction and cooperation between different institutional bodies, the Commission launched

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immediate counter-measures and accordingly 7 notifications were given to the Public

Metropology and Technical Control Agency and the Ministry of Health Protection which are

responsible for the safety of the products defined in the notifications; concrete actions were

carried out in regards to 6 of the notifications for the dangerous character of 3 of the products for

which the Commission gave information to “Customs” Agency in advance.

There are currently ongoing inspections at the Black Sea Coast region due to the intense tourist’

activities taking place during the summer season, especially in the cities Burgas, Varna, Albena,

Golden Sands, Sunny Beach and also Sofia, the capital of Bulgaria. Joint inspections are carried

out with the Tourism Agency, the Regional Inspections for Safeguarding and Control of Public

Health, Economic Police Forces, and public municipalities. At the same time, the Commission

for Competition Protection embarks on check controls related to unfair competition practices

which might mislead and economically harm consumers. For instance, a couple of months ago

the Commission for Competition Protection imposed sanctions for 160,000 Leva to two firms

for violations of the legislation. The two businesses, THS Cosmetics and Trade House Slavkov-

90, imitated shampoos of another very reputable firm, “Alen Mak”, which not only harmed the

firm in questions, but also misled consumers believe they buy shampoo of a well-known firm.

Institutional and administrative cooperation is essential to preserving the rights of consumers,

implementing the legislation on consumer protection and normalization of the market economy.

A better normative basis is not on its own sufficient for the protection of consumer rights. All

surveillance bodies have to cooperate and interact with each other and all of them have to be

strong-willed to actually implement the Law on Consumer Protection and related legislation.

Only thus, consumers will reap benefits of the current legislation in regards to the effectiveness

of the mutual cooperation between the different state bodies.

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2.3 Consumer Associations

Consumer associations are at the heart of the consumer issues and they represent consumers’

thoughts and attitudes in the best way possible. It’s no chance that the European Union and the

EU Commission consider consumer association as very important elements in formulating

consumer policies and support them in order to foster active consumer trends and info-

dissemination of consumer rights23. Consumer associations are one of the most important factors

in informing consumers about their rights and in driving governments take into account

consumers’ concerns and apply consumer legislation in practice. As stated on the EU

Commission website “the proper involvement of consumer organizations in EU policies is a key

element of producing better and more effective consumer protection regulation”.

I believe that consumer associations are the mirror of the consumer culture existing in a country.

As many consumers know about their rights and as much information they have at their hands as

many “strong” consumer associations there will be in a given country. Consequently, we can

observe that countries that have history of consumer culture have much more active consumer

organizations than the ones that do not, e.g. as in the United Kingdom or France.

In Bulgaria, the process that consumer associations engage in is very dynamic. Yearly, there are

many consumer organizations that spring up and fade away simply because they can’t find

sufficient financial resources to keep them “alive”. Many of them prepare and present projects to

the EU Commission, but when projects are not approved they do not have any chance but to go

downhill. The Bulgarian government does not provide funds for consumer organizations unless

they are officially recognized by the Ministry of Economy and Energy. According to the Law on

23 The EU and EU Commission attach great importance to working closely with consumer associations. See more about this topic on the EU Commission website.

51

Consumer Protection, the Ministry of Economy and Energy publishes a list of the recognized

consumer associations assessed by the criteria defined in the Law. Currently, the list of official

Bulgarian consumer organizations numbers only three: the Federation of Consumers in Bulgaria;

Bulgarian National Consumer Association, and the Independent Union of Consumers in

Bulgaria. I would like to now discuss these organizations in regards to their structure and

activities.

2.3.1 Federation of Consumers in Bulgaria

The Federation of Consumers in Bulgaria (FCB) was established on May 10, 1990, and is a non-

profit organization. It was created with the aim to protect the rights of Bulgarian consumers. The

Federation becomes a member of the International Organization of Consumer Associations in

1991, which is later renamed to Consumers International by the 14th World Congress.

In 1995, the FCB becomes a member of the Balkan Consumer Centre together with similar

organizations from Greece, Albania, Romania, and Yugoslavia (Cyprus and Turkey joined the

Centre one year later). The Balkan Consumer Centre was also institutionalized by the EU

Commission in the following years.

The Federation of Consumers in Bulgaria is one of the few organizations in Bulgaria whose

activities are directed mainly in favour of protecting the rights of consumers and consists of 23

regional consumers unions in almost all constituencies, and 96 Consumer Clubs.

The FCB’s activities are conducted in three main directions (as stated in their website):

First, Protection of the Economic interests of Bulgarian Consumers

Second, Facilitating the physical safety and improving the quality of goods and services,

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And third, help people get familiar with their rights as consumers.

The Federation of Consumers in Bulgaria had so far joint projects with Consumers International

regarding surveillance on the Bulgarian market for food products and also projects on the

PHARE programme such as the effect of introducing VAT, price control on the market, progress

of the consumer protection activities and consumer control. The FCB is currently engaged with

the thousands of consumer complaints regarding the “Heating Installations” Agency, a

monopolist business that is state-owned. The FCB is also investigating on the SMS games in an

action to determine if the promised easy gains on a given true answer do not violate the

legislation. The Federation claims that the SMS games violate at least three Laws: the Law on

Gambling, the Law on Consumer Protection and the Law on Competition Protection. Apart from

these issues, there is no current information on the actions undertaken by the FCB during the

past year and now. I observed that the website of the Federation has not been updated since the

beginning of the year 2005 when I first visited their website. This might suggest that the FCB

does not have the financial or human resources for updating their site or that they conduct their

activities mainly in the direction of the claims against the “Heating Installations” Agency which

is an issue that is at the centre of all Bulgarian media lately. Interestingly enough is also the fact

that in the Memorandum of Understanding24 signed between the Commission for Consumer

Protection and consumer associations & trade organizations, the name of the FCB does not

figure there, whereas the names of the other two official consumer organizations are at the

foremost.

2.3.2 Bulgarian National Consumers Association

24 Memorandum of Understanding signed on 15th March 2006 between the CCP and consumer and trade associations, provides for information exchange and cooperation in regards to market surveillance and protection of consumer rights.

53

The Bulgarian National Consumers Association (BNCA) is an independent non-governmental

organization for protection of the consumer interests. The BNCA was founded in 1998 and it

aims at protection of consumers’ rights and interests by providing information that supports

consumers’ choices in the market, giving assistance about infringing upon consumers’ rights and

interests, and lobbying for the improvement of the legislation by representing consumers’

interests. It has 9 regional and 2 special branches established in Bulgaria so far and is a member

of the National Council for Consumer Protection, the National Union of Consumer Organization

founded on 17 March 2003, and an affiliate member of Consumers International. The BNCA

had many accomplished projects concerning consumer protection issues sponsored by a variety

of donators such as SPAN Consultants, Delegation of European Commission to Bulgaria,

USAID, PHARE Access Program, Leonardo da Vinci Program, Socrates, The Dutch Embassy

and others. This shows that the BNCA is an organization that can prepare and defend its projects

very well in order to receive financial assistance. The BNCA is also currently working on many

other projects such as “Food Safety – A shared responsibility”, “Stimulation of Energy Saving

House Consumption” sponsored by the Energy Alternatives Program 2005, and “Consumer

Watch”.

During the past year 2005, the BNCA published and distributed many bulletins, brochures and

CD-ROMs regarding consumer protection and related matters. The Association also provided

specialized thematic materials to the press such as information on offered goods & services,

information on protection of the economic interests of the consumers, and information on the

applicable law in the field of consumer protection in the EU and Bulgaria. The BNCA offers a

well-prepared, organized and informative website available both in Bulgarian and English

languages to interested consumers and other parties. There were 8 seminars and conferences

organized by the BNCA during 2005 with consumer information and protection topics as well as

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about 32 consumer related seminars, conferences and workgroups that BNCA attended as a

participator. Assistance and help was given to consumers on various consumer topics from

consulting the public on consumer rights to in and out-of-court settlements. According to data

given by the BNCA, there is one legal suit that the Association and the Commission for

Consumer Protection are engaged with against the “Educational Center DIOGEN” Ltd which

concerns a claim for misleading advertisement (civil suit No: 826/2003). The BNCA currently

works on preventive actions directed to tourist’s issues such as traveling contracts and organized

common tours.

2.3.3 Independent Union of Consumers in Bulgaria

The Independent Union of Consumers in Bulgaria (IUCB) was founded on May 15th 1999 and it

now has representatives in all regional centre cities in Bulgaria. Since its establishment, the

IUCB has established active dialogues with state bodies that deal with consumer protection and

launched specific initiatives for direct discussion of consumers’ problems with traders at various

seminars and exhibitions. One of the main causes for the activities of the Union is, as stated by

the IUCB, to protect Bulgarian consumers, because the State is not able to, on one side, apply

the Law in practice and at the same time neglect the violations of consumer rights by state

monopolies. That is why IUCB has been directing its activities to harmonize the relations

between consumers and state monopolies. The IUCB issued newspapers on consumer protection

and prepared proposals to the Ministry of Economy and Energy consisting of critical consumer

issues to be taken into account. However, since year 2001 their website has not been updated

and there is no current information on the activities conducted since year 2001, except the

activities directed to protecting consumer rights in relation to state monopolies such as in the

spheres of energy, heating installations, communication, and water and drainage systems.

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2.3.4 Others

According to data given by the Commission for Consumer Protection in Plovdiv, there are

currently around 15-16 consumer associations in Bulgaria. As mentioned above, the process

with the consumer associations in Bulgaria has been and is very dynamic and their existence will

depend on the financial resources and the projects that they prepare and defend. Since no fund

by the Government is available for consumer association except the ones that are officially

recognized, it is very difficult for such organizations to exist in a country where the average

wage accounts to 100 - 150$ a month and citizens manage somehow “make both ends meet”25.

Consumer organizations have to be very creative, credible and convincing in preparing and

defending projects aiming at attracting the necessary financial resources.

Apart from the three associations discussed above, there are the Regional Consumer Unions in

Plovdiv and Vidin, Consumers Academy in Bulgaria, Union for Consumer Protection, the

Association of Consumers and others for which no information is available due to their nature of

short duration.

The Regional Consumer Unions do not have informative websites, but they offer help and

assistance to consumers regarding consumer issues at their regional offices. The Consumers

Academy in Bulgaria, on the other hand, has a website that provides information as to the aims,

history, helpful links, campaigns, projects and contact details to interested citizens; however, no

recent update of the site is currently available. The main project of the Academy is the consumer

surveillance and education on Genetically Modified Food as well as campaigns and seminars on

the same subject and the safety of goods & services. The Union for Consumer Protection has the

best organized and informative website of all consumer associations in Bulgaria, according to

25 According to statistics carried out by the National Statistical Institute in Bulgaria conducted in year 2006. See more at http://www.nsi.bg

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my observation. The website was sponsored by the EU PHARE programme and offers complete,

useful and updated information on most consumer-related issues. Also as a part of the PHARE

project, the Union has had consultants taught at the Informative-consultant Centre in Plovdiv,

has submitted documents for accreditation of its surveillance powers on food control, has

conducted informative consumer days, and published a variety of brochures for consumers’

help. It also has established a local club in Plovdiv for reception of consumers’ claims.

Though these consumer organizations provide help and information to consumers they do not

figure on the official list of consumer organizations issued by the Ministry of Economy and

Energy. This means that they cannot participate when formulating consumer and other related

policies, do not have the right to representation in the National Council for Consumer Protection

and consequently cannot participate in state consultative and collective bodies. Since it is at the

discretion of the Ministry of Economy and Energy to evaluate the representation requirements of

consumer organizations according to given criteria, such as the organization’s volume, capacity,

public value and significance, there is little room to discuss the lack of required elements of each

consumer organization. As a conclusion, I have to say that consumer associations in Bulgaria

have to become much stronger forces in the Bulgarian society in order to make consumers’

voice heard and urge the Government to not only take into account consumers’ problems, but

also to take control over its monopolies in order to balance the relationship and bring

equilibrium into the rights between the state monopolies and the consumers.

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PART III

1. Hypotheses

Consumer Protection is a relatively new area in Bulgaria for its citizens as well as for the

government. There has been no research conducted previously on this topic and there is not

much documentation on consumer protection issues. When I visited the regional Commissioner

for Consumer Protection in Plovdiv I was not given any single document or statistics regarding

consumer activities for the past couple of years, though I asked for them. I was only given verbal

information that I have included in the previous chapters. Therefore, it was of significant

importance to my dissertation to design and hand out a questionnaire to the citizens of Bulgaria

in order to facilitate my work on consumer protection. The questionnaire aims at testing the

hypotheses that I am going to establish now.

While conducting my research on consumer protection in Bulgaria I have observed that many if

not most of the Bulgarian citizens are unaware of consumer protection issues. It seems to me

that many of them are not even aware that they, as consumers, have certain rights and privileges

which are governed by a specific type of law. I therefore think that consumer knowledge

enhancement should be one of the main priorities of the Bulgarian government when drafting

consumer policies. Ones Bulgaria is in the European Union the market will enlarge and people

will be bombarded with millions of different products and services. Lack of information /

knowledge about consumer rights will harm the citizens and eventually the Single EU Market. I

have therefore drawn up a couple of hypotheses that I think will enhance consumer knowledge

and will contribute to the effective and efficient workings of the Single EU Market. The other

hypotheses that I am going to discuss below will aim at smoothing the procedures of and

58

enhancing the cooperation between different governmental organs to achieve better protection of

consumers.

Hypothesis 1: I think that the introduction of lectures in secondary schools that deal

entirely with consumer related issues will form a consumer oriented culture in Bulgaria.

Such compulsory lectures in schools are existent in a couple of European countries where the

level of consumer knowledge was not at an appropriate level. Accordingly, this hypothesis

presumes the "injection" of consumer information into the young minds of the Bulgarian Nation

that will help shape future generations enriched with consumer awareness in the long term.

Hypothesis Two: I believe that the introduction of consumer related weekly programmes

on national TVs and Radios; the introduction of consumer oriented seminars and

increased number of consumer focused articles on newspapers and magazines will enhance

and create a stronger consumer culture in Bulgaria. In short, the hypothesis envisages the

media as one of the main channels through which consumers are informed about their rights and

privileges. In my opinion, the television, the radio and the press are the most influential and easy

way to address to millions of people living in Bulgaria26.

Hypothesis Three: I think that the amplification of strong non-governmental consumer

organizations will help restore the balance between the consumers, the traders, and the

governmental institutions dealing with consumer protection. I say restore the balance,

because according to me currently consumers are on lower level on the scale than traders. I think

this is caused by the lack of sufficient consumer related information of the Bulgarian citizens. If

proper funding and governmental support is given to such organizations, then I think they will

26 According to statistical data gathered in 2001, almost every family in Bulgaria owns a television set and a radio receiver. Averagely, citizens tend to read a newspaper and a magazine for about 15-16 minutes a day each one.

59

have a big potential to influence consumer policy and protection in Bulgaria and consequently

"build" powerful consumer mentality in Bulgarian citizens.

Hypothesis Four: I believe that improvement of the Bulgarian justice system will enhance

the trust of the citizens in the courts and the government which in return will help improve

the protection of consumer rights. In my opinion, the judicial system – the third power of the

Bulgarian Government – needs to be improved. Without harmonization of the legal proceedings

and without improvement of the court proceedings, not only the institutions dealing with

consumer protection will be affected negatively, but also the consumers will experience a

negative impact of the inefficient workings of the Bulgarian courts once Bulgaria becomes a part

of the Single EU Market.

Hypothesis Five: I consider that the projection of ADR bodies and methods in addition the

Bulgarian judicial system will promote better consumer protection. I think that if the

number of such ADR bodies is boosted in Bulgaria and if citizens are familiarized with them, it

will lift the burden out of the Bulgarian judicial system (which currently deals with all consumer

related hearings) and provide cost and time effective solutions for consumers in Bulgaria.

Hypothesis Six: In my view, the development of the cooperation between the Institutions

dealing with Consumer Protection. There are nine Institutions dealing with consumer related

issues as defined by the New Law on Consumer Protection. I have discussed them in the

previous Part. As said by the Regional Commissioner, presently the interaction and the blending

of these institutions is "mechanical"; i.e. as I explain it to myself it is rather an unconscious, non-

voluntary interaction between the bodies that deal with consumer protection, it is a blending that

is accomplished by the artificial forces of the compulsory legal mechanism recently introduced

60

in the Bulgarian judicial system. I argue that ones this interaction becomes conscious, deliberate,

voluntary and naturally occurring then Bulgarian and European Consumers will be better

protected against harmful trade practices.

2. Overview of the questionnaire analysis

This questionnaire was carried out in three different populated areas in Bulgaria between 1

August and 31 August, 2006. The questionnaire appears in the Annex. Half or more of the

questions were utilized from the annual survey carried out by the EU Directorate – General of

Health and Consumer Protection.

The public opinion questionnaire analyzed in this chapter was carried out in one major big city,

one average size city, and one village, in Bulgaria. This part of the dissertation addresses and

measures the level of variety of issues of major concern to Bulgarian citizens in regards to their

consumer protection such as Bulgarian consumers opinions on consumer protection and

consumer confidence issues, consumer knowledge, and Bulgarian consumers and the Single

European Market. In each populated area, the questionnaire was given to a representative sample

of the national population aged 15 and over. A total of 200 people were surveyed, as 114 of

them were female and 86 of them were male. Figures for Bulgaria are presented in this chapter

as the weighted average of all the three different populated areas figures. In the sections on socio

demographic analysis, certain constructed variables come across such as the level of education

and occupation / working position. For example, I borrowed the subjective thresholds for the

level of education from the EU annual survey on consumer protection where there are three

main levels of education. The first level is "poor", which covers those people who left the

educational system aged 15 or earlier; the second level is "average", which covers those

61

individuals who left the system between age 16 and 19, and the third level is "high", which

includes those who finished their education after they were 19 years old.

3. Consumer Protection

The aim of this part is to assess the level of consumer protection and confidence, the extent to

which consumers are informed about their rights, and the extent to which consumers safeguard

their economic interests.

3.1 Consumer protection and confidence

a) Level of consumer protection in Bulgaria (Q.6a)

When asked generally as to whether they believe they have a high level of protection as

consumers in Bulgaria, only about 16 % of the Bulgarians answer positively. On the other hand,

more than half of the Bulgarians answer negatively, which shows that the level of consumer

confidence is quite low taking into account that about 14 % have answered that it "depends" if

they have a high level of protection as consumers and 11 % have answered with "don't know" to

the question. Interestingly enough is that the respondents from the village have the most positive

view on consumer protection where we have nearly 45% that answer positively as opposed to

the respondents from the mid-size town with 8% and the large city respondents with about 17%.

Consequently, we have the highest negative level of response from the mid-size town citizens

with 68% and large city citizens with 62%.

- Socio Demographic Analysis

With respect to socio demographic variables, there is also a considerable amount of variation in

consumer confidence. The variables employed in the questionnaire are gender, age, education,

working position, and place of residence and they all play a role as we will see from the analysis

undertaken. Nearly 19% of the male respondents have answered positively to the high level of

consumer protection as opposed to 13% of the female respondents. Women are slightly more

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negative than men regarding consumer confidence with about 62% negative response to 56% of

the male responses. On the other hand, age plays a greater role in consumer related issues.

Generally speaking the younger the person the more likely he or she to have confidence in

aspects of consumer protection. Consequently, we have the highest level of consumer

confidence in the "15-24" age group with about 20% and the lowest level in the "55+more" age

group with about 7% of the surveyed that answered positively. Education also plays a role in

consumer related issues as highest positive responses are given by those who are still in the

education system and those who have left it at the age of 16-19, respectively 18% and 16%. The

highest negative response is given by those who have left the education at the age of 15 and

earlier with nearly 67%. In the category of occupation variable, we have the highest level of

positive response among the managers, self employed, manual workers and the unemployed, and

the highest negative response among the retired, workers, and other white collars.

b) Level of consumer protection in the EU (Q6b)

When asked if they believe they have a high level of protection in the European Union, half of

the Bulgarians answer positively with about 51%. Nearly 19% of the Bulgarians believe they do

not have a high level of protection in the EU as a whole. About 17% have said they "don’t

know" and 13% have said that it "depends" if they have a high level of consumer protection. We

can observe the same positive response percentage in the village and mid-size town citizens with

about 52% and 51% respectively, whereas large town respondents are a little bit more

pessimistic than the others with about 44%. The village citizens have the highest "don't know"

answer with about 27%, and the large town citizens have the highest "depends" answer with

nearly 23% within their category.

- Socio Demographic Analysis

Nearly 63% of the male respondents answer positively to the high level of protection in the EU

as opposed to the female respondents who have nearly 42%. Women also answer a lot more than

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men with "don't know" with about 20%. In the age variable, there is no great variation between

the different age groups, however, the "55+more" age group has the highest positive percentage

with 60% as the rest of the age groups are between the variation of 49 – 51%. The age group

"15-24" respondents are a little bit more negative regarding their consumer confidence in the EU

with about 22% "don't know" and "depends" responses. As in the previous question, we can

observe that people who are still in the education system or have left it at the age of 19 and more

have the highest consumer confidence in the EU with about 54% and 60% respectively. In the

category of occupation variable, managers are far ahead of the rest of the categories with almost

78% positive response. Following closely, is the unemployed citizens with about 67%, other

white collars with 58%, and students with 54%. The manual workers answer with "don't know"

the most with about 40% and the retired citizens are most negative regarding their EU consumer

confidence well ahead of others with 30%.

c) Level of safety in products (Q.19)

When asked of the level of safety of products/goods offered on the market, Bulgarians are quite

pessimistic with a way down level of about 4% positive response. Nearly 51% of the people

have answered that products are "not always" safe and about 34% say that products offered on

the market are not safe. Only about 13% have said that they "don't know" if products are safe

enough. Large town citizens are most negative regarding the level of safety of products in

opposition to the village citizens who are slightly more positive regarding product safety than

the rest categories with about 8% positive response. Large and mid-size town citizens believe

that products are not always safe with 61% and 54% respectively, whereas village citizens are

quite ahead with their 37% reply that they have no idea (don't know) of the safety level of

products offered on the market.

- Socio Demographic Analysis

64

There are no great variations in regards to the gender variables where we can observe quite

similar percentage in responses to the product safety level; however, men are somewhat more

positive than women regarding the safety level with nearly 5% "yes" response as opposed to the

women's 3%. In the age group variable, 15-24 and 55+more age groups are seen to be a little bit

more positive in respect to the safety level and vice versa, 25-39 & 40-54 age groups are more

negative to product safety issues in comparisons to the rest of the age groups. The 55+more age

group is far ahead of the others with 67% response that products offered on the market are not

always safe. Education proves a factor that increases the level of confidence in product safety as

those who are still in the education system or have left at the age of 16 -19 and more answer a

lot more positively than those who have left the education system at the age of 15 and earlier. In

general, people of all the age groups believe that products offered on the market are "not

always" safe. Surprisingly, on the other hand, manual workers are the variable group with

highest positive response of 20% followed by the managers with 11% way ahead of the others.

Generally, there is no great variation between the different categories which all believe products

are "not always" safe with the retired citizens leading with 70% a little bit ahead of the rest. The

unemployed citizens are the most to have no idea whether product safety level is sufficient with

about 25%.

d) Level of supervision and control on the market for safer products and services (Q.20)

When asked as to whether they think that surveillance on the market for safety of goods and

services is effective and sufficient, only about 3% of the Bulgarians answer positively. The

majority of the Bulgarians are quite sceptical in regards to the supervision level on products &

services safety as about 58% believe that the level of supervision is not as good as it should be.

Nearly 29% of the people believe that surveillance is "not always" effective and sufficient and

about 11% have said that they "don't know" what the level of supervision is. Citizens of big

populated areas are a lot more positive in regards to the supervision level than smaller populated

65

areas leading with almost 17% of the positive answer. On the other hand, respondents from the

"small or mid-size town" group are ahead of the others with the negative view on the

surveillance level with almost 62% "no" response and the village residents answer with "don't

know" the most with 24% well ahead of the rest.

- Socio Demographic Analysis

In the gender variable, men are more positive than women with about 5% positive response and

women are quite ahead of the men to not know what the level of supervision of products and

services is. Other than this, there is no great variation in between as about 58% of the men and

women believe that the supervision level is not sufficient enough. The younger generation

believes they have higher level of supervision than the older one leading with about 6% "yes"

response and the oldest generation is the most to have no idea of the level of surveillance on the

market with about 34%. The “25-39” age group is at the top of the negative response percentage

with about 63% amongst the other categories. As observed in the previous questions, those

Bulgarians who are still in the education system or have left at a later age are the most positive

in regards to the surveillance level and those who have left at the age of 15 or earlier are at the

top to say that the level of supervision is not always efficient with nearly 67% within the

categories. Students and the self employed believe they have efficient level of supervision

considerably more than the rest of the occupation categories with about 6% and 8% positive

response respectively. The manual workers and the retired believe they don't always have

sufficient level of surveillance on the safety with about 40% both. Managers and other white

collars think that the level of supervision is not sufficient enough with about 67% and 68%

respectively.

e) Enforcement of legislation on Consumer Protection (Q.25)

When asked if they think that the legislation on consumer protection is applied in practice,

nearly half of the Bulgarians say that the enforcement is not sufficient and needs to be improved

66

(~50%). Only 9% of the respondents think that it is sufficient, 11% of the citizens don't know

what the level of enforcement is, and 30% of them are very negative in regards to the legislation

enforcement of consumer protection. The positivism is higher in the larger cities and it drops

down in the smaller populated areas. The negativism is higher in the small or mid-size town and

it decreases in the large town category. Bulgarians living in a village are more prone to not know

what the level of enforcement is, and, though people living in a large town are more positive in

regards to the level of enforcement they are also the largest category to believe that enforcement

on consumer rights needs to be improved.

- Socio Demographic Analysis

Men are as twice more positive than women when asked about the level of enforcement and

women believe more than men that the enforcement needs to be boosted up. The “40-54” age

group is most negative among the other groups and, on the other hand, positivism increases as

age decreases. The 55+more age group has the highest percentage to not know what the level is,

and in general all groups think the enforcement should be improved with the “40-54” age group

leading in front. Here as well we can observe that education is a factor to advance positivism as

those who are still in the education system are the most positive ones. At the occupation

category, interestingly, manual workers group answer most positively with about 40% and the

managers and the self employed strongly believe that the legislation enforcement needs to be

advanced with about 67% each. Workers believe that there is no sufficient enforcement with

about 44% a lot higher than the other categories.

f) Governmental efforts on consumer protection (Q.21)

When asked as to whether they think the government exerts enough efforts for the protection of

consumer rights, nearly half of the Bulgarians think that the government doesn't exert "enough"

efforts in the direction of consumer rights with about 51%. About 6% of the citizens believe that

the governmental efforts are sufficient enough, another 6% do not know what the level of efforts

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is, and nearly 37% are negative regarding the level of efforts exercised by the Bulgarian

Government. Most positive about the efforts on consumer protection are the residents of a large

town followed by the village residents and most negative about the efforts are the small or mid-

size town residents with about 40%. Here again, residents of a village are the most to not know

what the level of governmental efforts on consumer right is.

- Socio Demographic Analysis

Women are more negative and more to not know what the level of efforts exercised by the

government and vice versa, men are a little bit more positive concerning the subject. Young

people are more akin to think that the efforts are sufficient enough and the older generation

believes that the government should increase its efforts in the direction of consumer rights. The

“25-39” age group is the most negative among the other groups with about 41% against the

efficacy of governmental efforts. Those ones who are still in the education system are most

positive in regards to the level of efforts while those who have left at the age of 15 or earlier

strongly believe that the government needs to increase its efforts for the protection of

consumers. In the occupational variable, manual works are most positive with about 20% ahead

of the rest; managers, self-employed and the students are most negative regarding the

governmental efforts; and the unemployed are the most to not know what the level of efforts

exercised is.

g) Market surveillance: should Government strengthen and better it? (Q.22)

Nearly 84% of the Bulgarians think that the Government should improve and strengthen the

surveillance on the market regarding safety of goods, the goods of poor quality, and the unfair

trade practices. About 12% of the Bulgarians do not know if the Government should increase its

supervision on the market and another 4% believe that government surveillance is sufficient

enough. Citizens of larger populated areas are more to think that governmental surveillance

68

should increase and citizens from a village are the most to not know if the government should

increase its supervision activities.

- Socio Demographic Analysis

In the gender variation there is no big difference between the males and the females, however,

men are slightly more positive than women concerning the governmental market surveillance.

On the other hand, we can observe that demand for increase of the governmental surveillance is

going up as age rises and the younger population is more unaware of the level of surveillance on

the market. Those who have left the education system at a later stage or are still in it are more

demanding of the government to increase it surveillance on the market, and those who have left

at earlier age believe more that the surveillance is sufficient enough. The unemployed and the

manual workers are the most ignorant of the level of market supervision and generally all

occupational groups are for increase of the surveillance with the workers, the retired and the

other white collars at the top of the scale.

3.2 Informed Consumers

a) Consumers’ level of knowledge of their rights (Q.7)

Nearly 54% of the Bulgarians think that they do not know enough about their rights as

consumers under Bulgarian laws. About 18% of the Bulgarians do not reply to the question

(don’t know) and about 28% of the Bulgarians believe they know enough about their rights as

consumers. Citizens of a large city are more to think they don’t know enough about their

consumer rights and this trend decreases as the populated area shrinks. Here again, village

citizens are more unaware of their knowledge of consumer rights as almost 24% of them do not

know if they know enough about the subject.

- Socio Demographic Analysis

In the gender variable, men think they know about their consumer rights a great deal more than

women do. The same trend applies for the age variable, where, the younger the person the more

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he or she is to think s/he knows enough about their rights. Those who are still in the education

systems and the ones who have left it at the age of 19 and more believe the most they know

enough about their rights whereas those who have left at the age of 15 or less are the most

unaware as to whether they know enough about their consumer privileges. The managers are at

the top of the scale to know about their rights followed by the manual workers and the other

white collars whereas the retired, the workers, and the unemployed are the most to think they do

not know enough about their consumer rights.

b) Information given by sellers / traders (Q.12)

When asked if they think traders/sellers give sufficient information regarding products they are

to buy or buying, nearly 44% of the Bulgarians think that they are not given enough information

at the time of buying a product. About 13% of the Bulgarians say they do not have time for it,

another 8% of the citizens do not know if they are given sufficient information, and about 35%

think that they are furnished with enough info by the traders/sellers. Nearly 50% of the small or

mid-size town citizens say that they are not given enough info regarding products; almost 19%

of the village citizens do not know if they are supplied with enough info; and about 22% of the

large city citizens say they do not have time to be given enough info and at the same time they

are at the top to say they are given sufficient info along with the village residents.

- Socio Demographic Analysis

Interestingly, as opposed to men, women think that they are supplied with enough info by the

sellers more than man do, and their percentage is higher in saying they do not have time to be

given enough info than men's. At the same time, men twice as more than women say that they

do not know if they are supplied with enough information regarding products to buy. In the age

variable, we can examine that the younger the respondents the more they think they are provided

enough information about products and vice versa. On the other hand, the oldest and the

youngest generation are amongst the highest to say that they do not have time and that they do

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not know if they are supplied with enough info by sellers. Respondents who are still in the

education system or who have left it at a later stage are more to say that they are given enough

info by traders. The workers, the other white collars and the managers are the least to think they

are given enough info about the product they are about to buy.

c) Information regarding labels, ingredients, and contents of products and services (Q.13)

When asked if they read products' or services' labels/contents carefully before and after they

purchase the products or services, nearly 38% of the Bulgarians say that they always read them

before and after they purchase them; another 29% say they read the labels/contents most of the

times; about 7% say they read them in rare occasions; 17% - 14% say they don't always read the

labels (only when it depends) before and after the purchase respectively; and 8% of the

Bulgarians say they don’t read the labels/contents before purchase while 15% state they don't

read them after purchases are made. People resident in a large city tend to read the labelling &

contents most of the times while village residents are in the highest percentage to always read

the labelling and contents of products. At the same time, village residents category has the

highest percentage of the categories to say they don’t read the labels before (13%) and after

(26%) purchase of products.

- Socio Demographic Analysis

There is no great variation in the gender categories, as both females and males tend to read the

labelling and contents always or most of the times; however, men are slightly more to say they

don’t read them after and before a purchase. There is also no great variation in the age

categories, as all of them read the labelling or the contents mostly always or most of the times

before or after purchase, however, the oldest generation has the highest percentage to not the

read the labelling/contents before a purchase is made, and the youngest generation is the most to

say it depends if they are to read the labelling/contents before a purchase. Those with poor

education are the most to say they don’t read the labelling/contents before purchase while those

71

who are still in the education system or have left at a later stage are the most to read the labelling

before and after purchase is made. On the occupational level, managers and self employed are at

the top of the scale to always read the labelling/contents before and after purchase while the

manual workers are the most to say they do not read the labelling before or after purchase.

d) Information regarding clauses in trade contracts (Q.14)

When asked if they read the clauses in the warranties carefully before and after they purchase

the products, about 51% of the Bulgarians say they always read the clauses before they purchase

the product and another 21% say that they read the clauses most of the times before the purchase

is made. About 12% of the Bulgarians say they don’t read the clauses before they buy products

with warranties. We can observe nearly the same trend percentage concerning the warranty

clauses after a purchase is made. According to the statistical data, citizens of larger populated

areas tend to read the warranty clauses before and after purchases are made more than the

citizens living in less populated areas.

- Socio Demographic Analysis

According to the data, more men read the warranty clauses than women before a purchase is

made and also more women than men say they read the clauses in rare occasions only. In the age

variable, there is no great disparity between the different age groups, however, slightly we can

observe that the younger the citizens the more they are to read the clauses before and after a

purchase is made. Bulgarians who are still in the education system or have left it at a late stage

read the warranty clauses before and after a purchase a lot higher than those who have left the

education system earlier. In the occupational variable, managers, students, and the self employed

tend to read the warranty clauses more than the citizens being in another employment category.

e) Information regarding claims for products and services (Q.16)

When asked as to whether they know they can complain and put a claim about a product no

matter if the trader or seller gave them warranties for that product or not, 33% of the Bulgarians

72

believe that this is not possible, nearly 39% say they know about it, about 15% say they don't

know of this rule, and about 13% of the Bulgarians say they don't know if they are aware of this

situation. Large town citizens are more aware of this regulation than citizens of smaller

populated areas and citizens who live in a village are more likely to say that they don’t know if

they are aware of this as well as that they don’t think it is possible to claim for a product without

providing a warranty card.

- Socio Demographic Analysis

Women are a lot more likely to say they know they can put a claim about a product without a

warranty card than man, but they are also more likely to think that it is not possible, i.e. if they

put a claim it won't be taken into consideration without providing the warranty. The younger the

respondents the more likely they are to say they know they can claim about a product having no

warranty and vice versa. The 40-54 age group respondents are the most aware of this matter

whereas the oldest group is the most to say they are not aware of it. Citizens who have left the

education very early are a lot more likely to say they don’t know they can claim about a no-

warranty product whereas those with high education level are the most to say they know of this

arrangement and also the more likely for them is to think that it is not possible. The respondents

who are most aware of this regulation are most likely to be managers, self-employed and other

white collars whereas respondents who are the least aware of the arrangement are most likely to

be either retired or unemployed. On the other hand, manual workers are most likely to believe

that it is not possible to claim for a product having no warranty.

f) Knowledge about the New Law on Consumer Protection (Q.24)

When asked if they know that as of 10th June 2006 the parliament passed a new law that contains

most of the European Directive on Consumer Protection, nearly half of the Bulgarians (~49%)

say they have not heard about it. About 30% of the Bulgarians say they were not informed about

it and only 21% say they know about the New Law. Only 5% of the people surveyed who reside

73

in a village say they know about the New Law and they are also more likely to say they were not

informed of it. Respondents who live in larger cities are a lot more likely to have heard and to

know about the new regulation.

- Socio Demographic Analysis

In the gender variable, there are no significant discrepancies between the genders – nearly the

same percentages are presented for both of them, however, women are slightly more likely to

know about the New Law. Older respondents are more likely to know about the new regulation

than younger respondents, and the youngest group is the most likely to say they were not

informed of the New Law. Those respondents with higher level of education are the most likely

to say they know about the new regulation and respondents who are still in the education system

are a lot more likely to state they were not informed of the new introduction into the legal

system. In the occupation variable, we can observe again that those who know about the new

law are more likely to be managers, other white collars, and the retired with surprisingly the

manual workers group at the top of the scale.

g) Knowledge about claim registers maintained by sellers / traders (Q.28)

When asked as to whether they know that, according to the New Law, all traders / sellers are

required to keep claim registers and enter all consumer claims in those registers, only 26% of

people surveyed say they have heard about the new regulation, another 34% say they have heard

about it, but don’t think traders abide by this rule, and about 40% of the respondents say they

don’t know about it. Citizens residing in a village are less likely to have heard about the new

regulation and citizens living in larger populated areas are more likely to say they have heard

about it, but don’t think sellers conform to the new regulation.

- Socio Demographic Analysis

Women are less likely to know of the new regulation than men, and men have a greater tendency

to think traders do not conform to the legal requirement they know of. The youngest respondents

74

are most sceptical of this issue stating they have heard about it but don’t think traders conform to

it. On the other hand, the mid-age groups have greater tendency to know about and positively

think of the new regulation, and the oldest group is the most likely to not know of the new legal

requirement. Surveyed people with higher level of education are slightly more likely to know of

the new requirement than those with poorer level of education and to think positively about it.

The self-employed are most likely to know about the new regulation, whereas the retired and the

unemployed are the least likely to have heard about the new regulation, and the manual workers,

the students and the managers are the most likely to think that traders do not abide by the new

legal requirement.

h) Knowledge of Consumer Institutions (Q.29)

When asked to indicate which public institutions dealing with market control and surveillance

they have heard about or know of, only 3% of the people surveyed indicated all the institutions

concerned, and nearly 9% of the respondents did not indicate any of the institutions concerned

as most of the respondents that have not heard of any of the institutions tend to live in a village.

74% of the people surveyed indicated they know of the Commission for Consumer Protection as

most of them reside in larger populated areas. Only about 34% of the respondents have heard of

the Regional Inspections for Safeguarding and Control of Public Health; 12% of the people

surveyed have heard of the Public Metrology and Technical Control Agency; about 30% of the

respondents know of the National Health-insurance Fund; about 10% of the Bulgarians have

heard of the Tourism Agency; 25% of the surveyed know of the National Veterinary and

Medical Office; nearly 30% of the Bulgarians have heard about the Regional Municipality Units

for Consumer Protection; about 7% of the respondents know about the Executive Automobile

Administration Agency; and 16% of the Bulgarians say they have heard about the Commission

for Competition Protection. In general, citizens that reside in larger populated cities have a

greater tendency to have heard about the institutions mentioned above.

75

- Socio Demographic Analysis

Men are more likely to have heard about all of the institutions than women as well as those

respondents being in the "40-59" age group category and the respondents with high education

level. The retired and the unemployed have a greater tendency to not know of all the institutions

concerned and only students and workers indicated they have heard about all institutions that

deal with market control and supervision. In the gender variable, there are no great differences

between the two genders with men slightly more than women to have heard about the concerned

institutions except for the National Health-Insurance Fund and the Tourism Agency where

women have the lead. In the age variable, the mid-age groups' respondents are more likely to

have heard about the institutions concerned except for the Tourism Agency where the youngest

group is at the top of the scale to having heard about it and the Commission for Consumer

Protection with the youngest and the oldest groups above the rest. In the education variable, the

data shows that those respondents with higher level of education are the most likely to have

heard about the institutions dealing with market surveillance. On the whole, Bulgarians who

have heard of the concerned institutions are more likely to occupy the positions of managers,

self-employed, other white collars and students, however, in some instances the retired and the

manual workers are amongst the ones to state they have heard of certain market surveillance

institutions of which the starkest example is the Commission for Consumer Protection.

i) Knowledge of the “Consumers’ Telephone Line” (Q.30)

When asked as to whether the have heard about the Consumer Hot Line dealt by the

Commission for Consumer Protection, nearly half of the Bulgarians (~49%) say they haven't

heard about it. About 27% of the respondents say they know about the Consumer Hot Line and

nearly 15% say they have heard about it, but they would not call there. About 9% of the

respondents say they don’t know if they heard about the line in question. Those respondents

residing in a village are more likely to have heard of the concerned line, but would not make a

76

call there. On the other hand, respondents living in larger populated areas are more likely to

know and think positively of the consumer line.

- Socio Demographic Analysis

Men are slightly less likely to have heard about the consumer line and if heard they are a bit

more negative about the efficiency of it than women. However, it can be seen here that there is a

higher percentage of women than man who did not give a response (don’t know). Respondents

belonging to the intermediate age categories are more likely to know about the consumer line

and respondents belonging to the oldest age group are more likely to think negatively of the line

as well as to not give a response than the rest of the age categories. The knowledge of the

consumer line increases with the level of education. Consequently, those respondents with

higher degree of education are a lot more likely to heave heard about the consumer line than the

respondents with lesser degree of education. Of the occupational categories, the self employed

are the most likely to have heard about the consumer line and following are the other white

collars, the workers and the students with somewhat smaller percentage than the self employed.

Interestingly, the managers and the retired have the greatest percentage than the other categories

to have not heard of the consumer line.

j) Do consumers want to know more about their rights (Q.8)

94% of the people surveyed state they want to know more about their rights as consumers.

Nearly 4% of the respondents say they don’t want to know about their consumer rights and

about 2% of the people surveyed give no response to the question (don’t know). Respondents

living in larger populated areas are a lot more likely to want to know about their consumer rights

as opposed to those respondents living in less populated areas, and people living in a village are

more likely to not give a response to the question.

- Socio Demographic Analysis

77

The analysis of the gender variable shows that there are no great differences between the two

genders; yet, men are proportionately more likely to want to know more about their consumer

privileges. In the age variable, proportionately all age categories have nearly the same

percentages concerning the enhancement of their consumer information. The younger age

groups, though, are more likely to not give a response to the question (don’t know). A positive

relationship can be observed between the level of education and the demand for more consumer

rights knowledge – as higher the level of education as higher the demand for consumer

knowledge. In the socio-professional variable, the managers and the self-employed are the most

confident in their knowledge of consumer rights as they have the greatest percentage in saying

they don’t want to know more about their rights as consumers. On the other hand, students,

retired and manual workers are proportionately more likely to want to know more about their

consumer privileges.

k) Means of information (Q.9)

When asked through which information medium they prefer to be informed about consumer

protection issues, nearly 67% of the people surveyed indicate the television as a medium, 17%

of the Bulgarians indicate the newspapers and the magazines, about 7% of the respondents say

they want to be informed through seminars, about 3% of the respondents show the consumer

consultation desks, 3% of the people surveyed point to the radio as preferred medium, and about

3% of the respondents indicate the "other" option. The last 3% of the respondents have written

the internet and specially designed brochures containing consumer information as their preferred

medium of information. Direct information given by the sellers/traders themselves was written

as an option by one of the respondents as well. Citizens residing in larger cities are more likely

to indicate the seminars as favoured medium, whereas citizens residing in villages tend to

indicate the radio and the newspapers & magazines as medium of information. Citizens residing

78

in small or mid-size town tend to indicate the television, the consumer consultation desks and

"other" proportionately more than the rest of the categories of the populated area variable.

- Socio Demographic Analysis

There is no significance difference between the genders, however, proportionately men are more

likely to indicate the newspapers/magazines and consumer consultation desks response while

women tend to indicate the television and the seminars as medium selection. The television and

the consumer consultation desks are indicated the most by the "55+more" age group; the

seminars are pointed to the most by the youngest age category; the radio is picked up the most

by the intermediate age groups; the newspaper & magazines as well as the "other" response are

indicated proportionately more by the younger age groups. Those respondents with higher level

of education have a tendency to indicate the seminars, the radio, and the consumer consultation

desks as chosen medium while those respondents with poorer level of education have a tendency

to indicate the television and the newspapers/magazines as preferred info medium. The retired

and the manual workers are more likely to indicate the television as a preference medium to be

informed; the seminars are mostly indicated by the unemployed; and managers prefer to be

mostly informed by the newspapers/magazines and the consumer consultation desks.

3.3 Consumers’ economic interests

a) Sale’s slips and warranties given by sellers / traders (Q.10)

When asked as to whether traders / sellers give them sale slips and warranties when purchasing

products, 20% of the respondents say they are given sale slips always, 35% of the respondents

state they are given slips most of the times, about 39% say traders don’t always give them sale

slips, about 5% of the people surveyed say they are given slips only in rare occasions, and only

1% of the respondents say they are not given the concerned slips. As for the warranties, about

52% of the citizens state they are always given warranties, about 27% of the Bulgarians say they

are given warranties most of the times, 14% of the respondents are not always given warranties,

79

5% of the citizens say they are given them only in rare occasions, and about 2% say they are not

given warranties. Citizens residing in large towns are most likely to be given sale slips as well as

warranties and people residing in small or mid-size towns are more likely to not always be given

slips and warranties.

- Socio Demographic Analysis

Men are more likely to be given sale slips and warranties by traders than women, and, on the

other hand, women are more likely to state they are given slips and warranties only in rare

occasions or not always. Respondents from the youngest and the oldest age groups are a bit

more likely to be given sale slips than the rest of the age groups whereas people of the

intermediate age groups are more likely to not always be given sale slips. Regarding the

warranties, there is no significant difference except that the youngest group is more likely to be

given warranties in rare occasions or not always and the oldest group is more likely to say they

aren’t given warranties. Citizens with richer level of education are more likely to be provided

sale slips and warranties than those citizens with poorer level of education. Those respondents

who have left the education system at 15 or earlier are proportionately more likely to not always

be given the slips and the warranties concerned. The managers, the self employed, and the

retired are proportionately more likely to be given sale slips always or most of the times than the

other occupational categories. The other white collars are likely to not always be given sale slips

whereas the students tend to be given sales slips in rare occasions more than the rest of the

categories. The self employed, the managers and the other white collars are more likely to be

always given warranties when purchasing products. The unemployed are at the top of the

percentage scale to be given warranties most of the times, the students are again more likely to

not always be given warranties by the sellers, and the manual workers are proportionately more

likely to state they are not given product warranties.

b) Sale’s slips and warranties requested by customers (Q.11)

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When asked if they require sale slips and warranties in case traders/sellers do not provide them

when purchases are made, about 15% of the respondents say they always request the sale slip

while 24% state they request the sale slips most of the times. 33% of eth people surveyed don’t

always request a sale slip, another 15% request the slip only in rare occasions, and about 14% of

the respondents say they don’t need a slip therefore they don’t request one. 64% of the people

surveyed state they always request the product warranties when not supplied, nearly 17% of the

people say they request the warranty most of the times, nearly 9% of the respondents say they

don’t always request the product warranty, about 7% of the respondents request the warranty

only in rare occasions, and about 3% of the Bulgarians say they don’t request one, because they

think they don’t need it. Citizens living in a village are proportionately more likely to think they

don’t need a sale slip and a warranty and at the same time they have the greatest percentage in

saying they always request the sale slip and the warranties. People living in larger towns have

the highest percentage in requesting a sale slip only when it depends. In general, no matter the

size of the populated area, citizens have a greater tendency to request the warranty of a product a

lot more than to request a sale slip.

- Socio Demographic Analysis

Male have a greater tendency than women to request the sale slips and the warranties when not

provided while women have a greater tendency to state they request them only in rare occasions.

In the age variable, the youngest group has higher percentage in saying they request sale slips

and warranties when it depends; the older age groups have higher percentage in saying they

don’t need the slips and/or warranties;; and the 25-39 age group has higher percentage in

requesting the slips and the warranties always or most of the times. Citizens with higher level of

education have a greater tendency in requesting a sale slips than those citizens with poorer level

of education. However, when it comes to product warranties there is no significant difference

between the education levels – apparently all of the categories are somewhat equally aware of

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the importance the warranties carry. The self-employed, on the other hand, have the highest

percentage in requesting sale slips while managers have the highest percentage in requesting

warranties out of all occupational categories. The manual workers are more likely to state they

don’t need the sale slips and warranties when compared to the other occupational groups. The

retired and the unemployed citizens have a greater tendency to say they request the slips and the

warranties only in rare occasions.

c) Products bought from Door-to-Door Sellers / Traders (Q.17)

When asked if they would buy goods from a street vendor / door-to-door seller, nearly 56% of

the Bulgarians state they would buy depending on the product or the price, about 34% of the

respondents say they won't buy goods from street vendors, and 10% say they would purchase

goods from the concerned sellers. The small or mid-size town citizens have a greater tendency in

buying products from street vendors depending on the product or the price, the village citizens

are somewhat more negative to the street vendors' products having higher percentage in saying

they won't buy products from them while the large town citizens have a greater tendency in

saying they would buy products from door-to-door sellers.

- Socio Demographic Analysis

In the gender variable, there are no great differences between the two genders; however, women

have a greater tendency to buy products from street vendors depending on the product or the

price. The youngest age group are more likely to buy products from street vendors depending on

the product / price, whereas the tendency not to buy products from the concerned sellers

increases proportionately with the age. Those respondents who have left the education system at

15 or earlier have the greatest percentage in purchasing street vendor’s products depending on

the product/price while those respondents with the highest level of education have more

inclination to not purchase from such sellers. The manual worker, the managers, and the workers

have a greater tendency in buying from street vendors depending on the product/price while the

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retired, the other white collars and the self employed have a higher percentage in preferring not

to buy from the sellers concerned.

d) Safety of products offered by Door-to-Door Sellers / Traders (Q.18)

When asked as to whether they think the goods that street vendors offer are reliable and of

quality, 55% of the Bulgarians state that the products are not always reliable and of quality,

about 6% of the people surveyed say the concerned products are reliable, 28% of the

respondents are negative against such products, and about 11% of the surveyed people do not

give a response (don’t know). Citizens of small or mid-size towns are most negative about the

products sold by the street vendors whereas, surprisingly, people of large town are most positive

out of all groups regarding these products. People of village have the highest percentage in not

giving response to the question.

- Socio Demographic Analysis

Male respondents have a greater tendency than women to think that the street vendors’ goods are

not reliable and of quality while women are more likely to state that the reliability and the

quality of the goods is not always sufficient. The oldest age group is the most negative regarding

the quality and reliability of the street vendors’ products and the younger age groups have a

higher percentage in not giving a response to the question. The group with the highest level of

education as well as the group who have left the education at age 15 or earlier have a higher

percentage in saying the goods concerned are not or not always reliable and of quality. In the

socio-occupational variable, the manual workers are the most positive about the quality and

reliability of street vendors’ products while the most negative in this regard are those

respondents being managers and retired. Workers have the greatest tendency in believing that

those products are not always reliable and of quality.

e) Consumers’ claims regarding faulty products (Q.26)

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When asked as to whether they would complain about a product if they found that there is defect

or flaw in the product, nearly 55% of the respondents state they would complain in case of a

flaw or defect. 27% of the people surveyed say they would complain depending on the product;

nearly 12% of the respondents say they would do so depending on the price of the product;

about 2% of the respondents say they would complain if they knew the trader/seller; less then

2% of the surveyed people state they would not complain; and 3% of the Bulgarians did not give

a response to the question. The product complain percentage increases as the populated area

grows, therefore, consequently those respondents who would complain the least are those

residing in a village and vice versa. The respondents residing in a village also have the highest

percentage in stating they would complain about a faulty product depending on the product, the

price, or if they knew the seller, and they also have the highest percentage in not giving a

response to the question. The ‘depends’ and ‘don’t know’ response percentage diminishes as the

populated area increases.

- Socio Demographic Analysis

Women have a greater tendency than men to complain in a case of faulty product while men

tend to complain about a product depending on the various subjects given. The intermediate age

groups have a higher percentage in complaining about faulty products than the other age groups.

The youngest age group is more akin to complain depending on the variables given while the

oldest age group has a somewhat higher tendency to not complain in case of a flaw in the

product. Here education doesn’t prove a big factor to influence citizens in their complain

initiative – the most obvious issue from the data analyzed is that those respondents still being in

the education system are the least to complain about faulty goods and also among the most to

complain about them depending on the variables given in the responses. The retired, workers,

and managers have a greater tendency in complaining in case of a flaw in a product, the manual

workers have a greater tendency to complain about a product depending on the product or the

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acquaintance with the seller, and the students are likely to complain to a seller depending on the

product and/or the price.

f) Warranties: how fair are clauses for redress (Q.15)

When asked as to whether they think warranties contain enough clauses for compensation in

case of faulty products, nearly 55% of the Bulgarians say that clauses in warranties are not

always fair enough. About 26% of the respondents say the warranty clauses are not fair enough;

12% of the respondents are positive about the clauses saying they are sufficiently fair; and 7% of

the people surveyed did not give a response (don’t know) to the question. We can observe from

the data that the positivism in fairness of the warranty clauses grows as the populated area

shrinks and, consequently, people residing in larger cities tend to be more sceptical regarding the

warranty clauses. Citizens of less populated areas are more prone to not give a response to the

question.

- Socio Demographic Analysis

In the gender variable, women have a greater tendency in believing the clauses in the warranties

are not always fair whereas men are likely more positive regarding the fairness of the clauses. In

the age variable, the tendency of thinking that clauses are not always fair increases as the age

raises. The intermediate age groups, on the other hand, are more negative in regards to the

fairness of the clauses than the rest of the age groups. The youngest age group has a higher

percentage in not giving response to the question. Citizens with the highest level of education

are observed to be the least positive regarding the fairness of the warranty clauses and citizens

who fall in the poorest level of education group have a higher tendency in believing that clauses

are fair or ‘not always’ fair (about 33% and 66% respectively). In the socio-occupational

variable, manual workers are observed to be a lot more positive in regards to the clauses and

they also have the highest percentage of not giving response to the question. The retired, the

managers and the other white collars have a greater percentage than the rest occupational

85

categories in thinking that clauses are not always fair and the self employed and the managers

are ahead of the others in stating the warranty clauses are not fair enough.

4. Access to Justice

4.1 Complaints made about products and services

a) How often Bulgarian citizens complain about products & services (Q.27)

When asked if they ever had to complain to a salesman, retailer, or a service provider, nearly

43% of the respondents state they have never complained about a product or a service. 27% of

the people surveyed say they sometimes complain to a seller; 25% of the Bulgarians say they

complain to a seller rarely; only 2% of the people surveyed say they often complain about

products or services. About 3% of the respondents did not respond to the question (don’t know).

People residing in small or mid-size town are more inclined to complain to a seller about

products or services while people residing in large town are the least likely to complain about a

product or a service. People residing in a village have the highest percentage in not giving a

response to the question.

- Socio Demographic Analysis

In the gender variable, there is no major difference between the genders, however, the women

are observed to be more predisposed to complain to a seller in case of unsatisfactory product or

service. In the age variable, the younger respondents have somewhat higher tendency to

complain about products/services, and the oldest age group have a higher tendency to complain

about products/services on a rare basis. There is no major contrast between the different levels of

education, however, the overall analysis of the data shows that those still being in the education

system and those who have left the education system between the age of ‘16-19’ are to some

extent more inclined to complain about a product or a service. There is no great difference

between the different occupational categories – there is no obvious relationship between the

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complaint percentage and the occupation the respondents hold. As a portrait of the percentage

scheme, the manual workers and the self employed have the highest percentage in stating they

sometimes complain about product / services; the students and the unemployed are at the top of

stating they often complain to sellers; the managers and the other white collars have a higher

percentage in saying they rarely complain about products.

4.2 Problems encountered when purchasing products or services

a) How many BG citizens are able to find an amicable settlement to their problems (Q.34)

When asked as to whether, in the last 5 years, they have ever had problems they could not settle

amicably with the salesman / retailer / service provider, nearly 42% of the Bulgarians state they

have never had any problems; about 18% of the respondents say they have had problems that

they couldn’t settle amicably;; 18% of the respondents state they have had problems, but they

settled them amicably; and 22% of the Bulgarians did not give a response to the question. The

tendency in having problems which citizens cannot settle amicably increases proportionality

with the size of the populated area. Accordingly, people living in larger towns have a greater

tendency to face consumer problems they cannot settle amicably. Citizens residing in small or

mid-size town have a higher tendency to resolve problems amicably while those citizens

residing in a village have the greatest tendency in not having any consumer problem and they are

also more likely to not give a response to the question (don’t know).

- Socio Demographic Analysis

There is no great variation between the genders in regards to the settlement of consumer

problems, but it can be observed from the data that men are more likely than women to

encounter problems which they equally settle amicably or cannot settle amicably (21% for both

responses). The percentage of respondents, who could settle their problems amicably, increases

as the age rises, and consequently, younger respondents are more likely to encounter consumer

problems they cannot settle amicably. The oldest age group, on the other hand, has a higher

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percentage in not having any consumer problems in the last 5 years. People who have left the

education system at 15 or earlier and those respondents who are still in the education system

tend to have more problems they cannot settle amicably while those respondents with the

highest level of education have a greater tendency in managing to resolve their problems

amicably. The unemployed and the students have a greater inclination than the rest occupational

categories in not being able to settle their consumer problems amicably, and managers and the

other white collars have a higher tendency in resolving their problems amicably. The manual

workers and the retired citizens have a higher tendency in not encountering any consumer

problems.

b) Solutions reached (Q.35)

Those people, who could not settle their problems associated with the purchase of a product or a

service amicably, were asked what they did when such a solution could not be found. Nearly

65% of the Bulgarians say they did not do anything; about 16% of the respondents say they went

to see a solicitor who brought the matter to court; another 16% of the people surveyed asked for

the advice of a solicitor / consumer association but did not pursue the matter; and nearly 3% of

the Bulgarians say they brought the matter to court themselves. 80% of the citizen of a large

town did not take any action as this trend decreases proportionately with the size of the

populated area. Citizens of a large town are also more likely than the rest of the populated area

categories to take the matter to court themselves.

- Socio Demographic Analysis

An analysis of the socio-demographic variables will be meaningless, because of the very limited

number of people involved in this part of the survey (only 37 respondents). Therefore, the

variables were not analyzed for this particular question.

4.3 Access to justice

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In the first instance, the circumstances whereby Bulgarian citizens are prepared to take legal

action regarding a problem arising from the purchase of a product or service in Bulgaria are

examined. Then the factor of a joint action with other consumers is assessed in order to find out

if it encourages citizens to go to court. Respondents were also asked questions to determine

whom they trust the most to take the matter to court. Next, the role of the courts, in particular,

the level of trust people have in them is examined, and lastly, the bodies or institutions that

citizens think can best protect their consumer interests are presented.

a) Do BG consumers take a case to court (Q.36)

When asked as to whether they would take the matter to court in case they have a problem with

a product or a service purchased in Bulgaria, 6% of the respondents state they will take the

matter to court no matter what; 38% of the respondents state they will take the matter to court

depending on the product /service; and about 12% of the Bulgarians say they will take the issue

to court depending on expenses related to the legal procedure. Around 13% of the respondents

will not take the matter to court, because it would be useless / they won’t win;; 10% of the

Bulgarians will not take the matter to court, because of the length of the legal procedure; and

about 7% of the respondents won’t go to court due to the complexity of the legal procedure.

13% of the people surveyed did not give a response (don’t know) and almost 2% of the

Bulgarians have given a different response than those provided in the questionnaire. In

summary, 30% of the Bulgarians won’t go to court and about 50% of the Bulgarians will go to

court depending on various issues. People living in larger populated areas are more likely to go

to court than citizens of less populated areas and the product or service matter the most in their

decision making. Citizens living in a village have the highest percentage in not giving response

to the question.

- Socio Demographic Analysis

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In general, men are more prepared than women to go to court no matter what, while women are

more likely than man to go to court depending on the product or service. "Expenses to the legal

procedure" is a bigger factor for men while considering to go or not to go to court. On the other

hand, women are more influenced by the length and complexity of the legal procedure in their

decision to not go to court. The younger age groups are more likely to go to court while the

biggest reason for the older age groups to go to court is the expenses related to the legal

procedure. The younger age groups also have a higher percentage in believing it would be

useless to go court, because they would not win. Respondents with higher level of education are

more likely to go to court than respondents who have left the education system at age 15 or

earlier. In the occupational variable, managers, students, and self employed are more likely to go

to court depending on the product / service whereas the retired and the manual workers are more

likely to go to court depending on the legal procedure's expenses. The self-employed and the

managers are most influenced by the length of the legal procedure in their decision to not go to

court whereas the retired are more influenced by the complexity of the legal procedure. The

other white collars are most sceptical in regards to the court proceedings having the highest

percentage in believing it would be useless to go to court / they wouldn't win.

b) Does joint action with other consumers encourage BG citizens to defend their rights

(Q.37)

When asked as to whether they would be more willing to defend their rights in court if they

could join with other consumers having the same problem, 46% of the Bulgarians say they

would probably join with other consumers; about 22% of the respondents say they would

certainly join with other consumers; nearly 20% of the citizens did not respond to the question

(don’t know);; about 8% of the respondents say they would not certainly join other consumers in

court; and about 4% say they would not probably join consumers having the same problem. In

summary, nearly 68% of the Bulgarian citizens would be more willing to defend their rights

90

before a court if they could join with other consumers who were complaining about the same

thing while 13% of the respondents would not be prepared to do this. The willingness of

Bulgarians to defend their rights before a court with other consumers increases proportionately

with the size of the populated area. Bulgarians residing in a village have a higher tendency to not

be prepared to join with other consumers in a court case (21%) as well as to not reply to the

question (~45%).

- Socio Demographic Analysis

Men are slightly more willing then women to defend their rights in court if they could join with

other consumers who were complaining about the same thing. In the age variable, younger

citizens are more prepared to join with other consumers in order to defend their rights (72% of

those in the youngest age groups and 53% of those in the oldest age group). On the other hand,

the proportion of people who agree with this idea increases with the level of education (33% of

those who finished their studies at 15 or earlier, 64% of those who finished the studies between

16-19 years old, and nearly 70% of those who finished their studies aged 20 or older). This rate

is higher for manual workers (80%), students (~73%) and workers (~71%).

c) In whom do BG citizens place their trust to defend them in court (Q.38)

When asked in whom they would have the most confidence to defend their rights in court, 39%

of the respondents say they would trust the most in a solicitor. 23% of the respondents put their

trust in themselves, nearly 11% of the Bulgarians would be more confident to defend their rights

with another consumer having the same complaint, about 8% of the citizen put their trust in

consumer association, about 4% would trust a public service the most, and 3% of the

respondents would trust no one. 12% of the people surveyed did not reply to the question (don’t

know). Citizens of small or mid-size town have the greatest tendency to trust in a solicitor to

defend their rights in a court. The percentage of those who trust in themselves the most is about

the same for all populated area categories while consumer associations are trusted the most by

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the citizens of intermediately populated areas. Citizen residing in a village have the highest

percentage in not replying to the question (~32%).

- Socio Demographic Analysis

As far as socio-demographic variables are concerned, it is observed that men have more of a

tendency than women to trust in themselves as well as in another consumer having the same

problem whereas women have a greater tendency than men to put their trust in solicitors and

consumer associations. On the other hand, older citizens have higher percentage then younger

ones to trust in themselves, while the younger citizens tend to trust more in solicitors and public

services. The intermediate age groups have higher percentage than the rest to trust in consumer

associations. It can be observed that the level of confidence in consumer associations increases

with the level of education. The students, on the other hand are less likely to trust in themselves

and more likely to trust in solicitors, while those who left the education system at age 15 or

earlier are the least to trust in solicitors. Analysis of the socio-professional variables suggests

that the retired, the managers and the unemployed have more faith in themselves than other

groups do to defend themselves in court. Confidence in consumer associations is highest among

other white collars and managers while manual workers are more willing than the rest to put

their trust in another consumer and public services to defend their rights in court. Solicitors are

most trusted by the other white collars, the self employed and the students.

d) The level of confidence in courts (Q.39)

When asked as to what extent they have confidence in the courts to settle consumer disputes

efficiently, nearly 39% of the Bulgarians say they don’t have very much confidence in the

courts; about 22% of the respondents say they have a fair amount of confidence in the courts;

about 14% of the Bulgarians say they have no confidence at all in the justice system; and only

about 7% say they have a great deal of confidence in Bulgarian courts. 18% of the people

surveyed do not reply to the question (don’t know). Therefore the majority of Bulgarian citizens

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do not trust the courts to settle consumer disputes efficiently (overall 53% of those sceptical of

the efficiency of the Bulgarian courts). Citizens of averagely populated areas trust the least in

courts to efficiently resolve consumer disputes whereas citizens of large town have a greater

confidence in courts than the rest of the groups.

- Socio Demographic Analysis

There is no significant difference between the genders, however, men are slightly more likely

than women to trust the courts and women have a higher percentage to not reply to the question.

The '55+more" age group has the highest confidence in courts whereas the "40-54" age group

has the least confidence in them. The least educated have less confidence in courts as opposed to

the most educated who have the most confidence in courts. On the other hand, the managers, the

other white collars, and the self-employed have higher confidence in courts than the rest

occupational categories to resolve consumer issues efficiently. The unemployed are the least to

trust the courts to resolve consumer disputes (nearly 67%).

e) Which body can best protect BG consumers’ rights (Q.40)

When asked as to whom they think can best protect their consumer interests, nearly 28% of the

Bulgarians replied that they thought it would be a public body in charge of consumer protection.

Nearly 21% of the respondents think it would be a European public organization in charge of

consumer protection. Next is the court/justice system, where the percentage of people surveyed

believing in it is 13% closely followed by the body set up by consumer associations with nearly

13%. About 4% of the Bulgarians think a body equally made of consumers and salesmen will

protect them best; 3% of the respondents think that would be a body set up by association of

salesmen / retailers; and only about 1% of the Bulgarians place their trust in an

arbitration/mediation/conciliation body. 17% of the people surveyed do not reply to the question

(don’t know). Citizens who reside in a large town tend to think more than the other populated

area groups that the court/justice system, a body equally made of consumers and salesman and a

93

body set by trade association would best protect their consumer interests. Citizens of averagely

populated areas believe the most in bodies set up by consumer associations as well as in

Bulgarian and European public organizations in charge of consumer protection. Citizens

residing in a village have the highest percentage in not replying to the question (about 34%) as

opposed to those living in a large town (about 5%).

- Socio Demographic Analysis

Women have a greater tendency to believe that Bulgarian and European public organizations in

charge of consumer protection can best protect their consumer interests (28% and ~24%

respectively) while men tend to trust in courts/the justice system and bodies set up by consumer

associations more than women to defend best their interests as consumers (16% and 14%

respectively). The court/justice system trust in protection of consumer interests is higher in the

younger age groups and least in the 55+more age group (about 26% of those in the youngest age

group and about 7% of those in the oldest age group). The bodies set up by consumer

associations as well as the public organizations in charge of consumer protection, on the other

hand are believed to best protect the consumer rights by the older age groups the most (age 40

and higher). Respondents of the highest level of education think they would be the bodies set up

by consumer associations, and Bulgarian and European public organization in charge of

consumer protection. Students and those with the least level of education trust the court /justice

system and the European public organizations the most to defend their interests as consumers. In

the socio-professional variable, the managers and the retired have the highest level of confidence

in a body set up by consumer associations. The students and the manual workers have a higher

percentage of confidence in the justice system/the courts; the self employed and the unemployed

trust in a European public organization in charge of consumer protection more than the rest

occupational categories to best protect their interests; the manual workers, the retired and the

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other white collars have a higher percentage than the other groups to trust in a Bulgarian public

organization in charge of consumer protection to best protect their interest as consumers.

4.4 Consumer Knowledge

a) Access to means of dispute settlement (Q.32)

When asked as to whether they think they can have access to ways to settle disputes or not when

they buy products or services in Bulgaria and the EU respectively, about 36% of the respondents

think they don’t have ways to settle disputes in Bulgaria in contrast to the 22% of those

respondents who think they do have ways to settle disputes in their country. On the other hand,

35% of the Bulgarians think they have ways to settle disputes in the European Union as opposed

to the nearly 14% of the Bulgarians who think they don’t have ways to settle disputes in the EU.

20% of the respondents did not reply to the question asked in regards to Bulgaria and about 40%

of the respondents didn’t answer the question in regards to the EU (don’t know). 20% of the

Bulgarians say that it depends if they would have ways to settle disputes in Bulgaria while only

11% of the Bulgarians answer the same in regards to the European Union. Accordingly, more

Bulgarians believe people have greater access to ways of dispute settlement in the EU than in

Bulgaria. Citizens residing in a large town believe more in the EU ways of dispute resolution as

opposed to those citizens residing in a village who think they have greater access to dispute

resolution in Bulgaria. Citizens residing in average towns are most sceptical about ways of

dispute settlement both in Bulgaria and the EU.

- Socio Demographic Analysis

In general, men think they have access to ways of dispute resolution in the EU more than

women do. Women, on the other hand, have higher percentage in thinking that it depends if they

would have access to ways to resolve disputes in both Bulgaria and the EU. The intermediate

age groups have higher tendency to think they have access to ways of dispute settlement both in

Bulgaria and the EU more than the other groups do. The oldest age group has the highest

95

percentage in not replying to both questions (don’t know). Those respondents who fall in the

most educated group or who are still studying have higher tendency to think they have access to

ways of dispute settlement in Bulgaria and the EU than the rest educational categories. Those

respondents who fall in the poorest level of education tend to think they have access to ways of

dispute resolution in the EU rather than in Bulgaria. The manual workers, the self employed and

the unemployed are more likely than the rest of the socio-professional categories to think they

have access to ways of dispute resolution in Bulgaria while the retired and the workers are most

sceptical about having them. The unemployed and the students think they have greater access to

ways of dispute resolution in the EU while the self employed and the retired are most doubtful

about having access to the ways concerned in the EU.

b) Awareness of means to dispute settlement ADR (Q.33)

When asked as to whether they are aware of ways to settle disputes between consumers and

suppliers of products or services such as mediation, arbitration and conciliation, only 20% of the

Bulgarians say they are aware of the ways mentioned. About 34% of the respondents say they

are not aware of such ways of dispute settlement and about 46% of the people surveyed do not

reply to the question (don’t know). The awareness of the dispute settlement ways concerned in

this question is higher in citizens who reside in a small or mid size town.

- Socio Demographic Analysis

Men are more aware than women of the existence of such bodies of dispute resolution (about

23% and 17% respectively). The percentage of awareness of the mediation/conciliation bodies is

higher in the oldest and the youngest age groups whereas the intermediate age groups have the

highest percentage in not replying to the question. Citizens with the richest level of education

and the students are the most aware of the existence of the alternative dispute resolution ways

while those with the poorest level of education are the least aware of them. The managers, the

retired and the students have a higher tendency to have heard of such ways of dispute settlement

96

while the other white collars, the self employed and the workers have a higher tendency than the

rest occupational categories to not know of such dispute resolution bodies.

c) Involvement of Consumer Associations (Q.31)

When asked as to what they think the level of involvement of consumer associations in

formulating the consumer protection policy is, 72% of the Bulgarians think they should be more

involved in formulating the policy in question. Nearly 6% of the respondents believe the

consumer associations have sufficient involvement in the policy formulation and about 22% of

the people surveyed do not reply to the question. Citizens of a large town have a greater

tendency to believe that consumer associations have enough involvement whereas those

respondents of a small or mid size town are the most to believe that consumer associations

should be more involved in planning the consumer policy. Citizens of a village have the highest

percentage in not replying to the question (~37%).

- Socio Demographic Analysis

In the gender variable, men believe that consumer associations are sufficiently involved in the

policy formulation while women tend to think the consumer associations must be more involved

in it. The intermediate age groups are for more involvement of consumer association in the

policy formulation whereas the youngest age group has the highest percentage in believing there

is enough involvement of the associations already. 53% of those in the oldest age group do not

reply to the question. In the education variable, the majority of the respondents of the highest

level of education as well as the students think that consumer organizations should get more

involved in policy formulation. On the other hand, the manual workers, the other white collars

and the managers have a higher tendency in thinking there is no enough involvement of

consumer associations in formulating the consumer policy and therefore they should be more

involved in it.

d) Integration of Consumer Rights in other policies in Bulgaria (Q.23)

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When asked if they think they rights as a consumer are sufficiently taken into account in

Bulgarian policies (other than in consumer policy) such as agricultural policy, transport policy,

energy policy, telecommunication or competition policies, half of the Bulgarians (50%) think

there is “no enough” integration of consumer rights into other Bulgarian policies. Nearly 33% of

the respondents say there is no integration at all of consumer rights in other policies and only

about 6% of the respondents think consumer rights are sufficiently taken into account when

formulating other Bulgarian policies. 11% of the people surveyed do not reply to the question

(don’t know). The tendency of thinking there is “no enough” integration of consumer rights

increases as the size of the populated area increases. Citizens of a village have the highest

percentage in thinking there is sufficient integration of consumer rights and citizens of small or

mid size town are most negative about the integration of the rights concerned into other

Bulgarian policies.

- Socio Demographic Analysis

In the gender variable, women have a greater tendency to believe that there is no enough

integration of consumer rights into other Bulgarian policies than men do. The older age groups

are more akin to think that consumer rights are not sufficiently taken into account when

formulating other policies and the same trend applies to those respondents with higher level of

education and the students. Most negative about the integration of consumer rights are those

respondents of the 25-39 age group and those who have left the education system at 15 or

earlier. On the other hand, most positive about the integration are those of the youngest age

group and consequently those being still in the education system. The managers, the other white

collars, the self employed and the students have higher tendency than the other occupational

categories to think there is “no enough” integration of consumer rights in other Bulgarian

policies. Most negative about the integration of the rights concerned are the unemployed and the

retired and most positive about them are the manual workers.

98

5. Bulgaria’s EU accession and consumer protections

This part examines the attitudes of Bulgarian citizens towards the Single EU market where they

are asked of their opinions in regards to the price, quality and choice of products and services

offered on the EU market. Then the attitudes of Bulgarians towards consumer protection, market

supervision and control issues are analyzed to measure how Bulgarians feel about these issues

upon Bulgaria’s accession to the European Union.

5.1 Bulgarian Consumers and their attitude towards the Single EU Market (Q.41)

Bulgarian citizens where asked what they thought of the effect the Single EU Market had on the

following:

a) Price of non-food products

17% of the Bulgarians think the effect on the price of non-food products is very positive; 21%

say it’s fairly positive;; nearly 18% think it’s fairly negative;; about 10% say it’s very negative;;

and about 3% say there is no effect. About 31% of the respondents did not reply to the question

(don’t know). Bulgarians residing in a large town are most positive about the effect of the Single

EU Market on the price of non-food products whereas people residing in a small or mid-size

town are most negative about the effect concerned. 71% of the people residing in a village did

not give response to the question.

b) Price of food products

Nearly 18% of the Bulgarians think the effect on the price of food products is very positive; 22%

say it’s fairly positive;; about 18% think it’s fairly negative;; 13% say it’s very negative;; and 3%

say there is no effect. 26% of the respondents did not reply to the question (don’t know). The

same trend applies here as well: Bulgarians residing in a large town are most positive about the

effect of the Single EU Market on the price of food products whereas people residing in a small

99

or mid-size town are most negative about the effect concerned. Again 71% of the people

residing in a village did not give response to the question.

c) Price of Services

Nearly 12% of the Bulgarians think the effect on the price of services is very positive; nearly

21% say it’s fairly positive;; about 21% think it’s fairly negative;; 10% say it’s very negative;; and

2% say there is no effect. About 34% of the respondents did not reply to the question (don’t

know). Bulgarians residing in a large town are most positive about the effect of the Single EU

Market on the price of services and people residing in larger cities are observed to be more

negative about the effect concerned. About 74% of the people residing in a village did not give

response to the question.

d) Quality of non-food products

Nearly 26% of the Bulgarians think the effect on the quality of non-food products is very

positive;; 34% say it’s fairly positive;; about 4% think it’s fairly negative;; another 4% say it’s

very negative; and about 5% say there is no effect. About 27% of the respondents did not reply

to the question (don’t know). Here again we have Bulgarians residing in a large town being most

positive about the effect of the Single EU Market on the quality of non-food products whereas

people residing in a small or mid-size town are most negative about the effect concerned. About

71% of the people residing in a village did not give response to the question.

e) Quality of services

Nearly 29% of the Bulgarians think the effect on the quality of services is very positive; about

31% say it’s fairly positive;; about 4% think it’s fairly negative;; 3% say it’s very negative;; and

6% say there is no effect. 27% of the respondents did not reply to the question (don’t know). We

can observe that here the same trend applies where Bulgarians residing in a large town are more

positive about the effect of the Single EU Market on the quality of services. In contrast to the

previous questions on the effect of the Single EU Market, people residing in a small or mid-size

100

town are more positive towards the effect on the quality of services. About 68% of the people

residing in a village did not give response to the question.

f) Choice of non-food products

Nearly 24% of the Bulgarians think the effect on the choice of non-food products is very

positive;; 30% say it’s fairly positive;; about 6% think it’s fairly negative;; only 1% of the

respondents say it’s very negative;; and 4% say there is no effect. 35% of the respondents did not

reply to the question (don’t know). The same tendency is observed for this question as in the

above one: Bulgarians residing in a large town are most positive about the effect of the Single

EU Market on the choice of non-food products with people residing in a small or mid-size town

closely following them. About 71% of the people residing in a village did not give response to

the question.

g) Choice of food products

30% of the Bulgarians think the effect on the choice of food products is very positive; about

27% say it’s fairly positive;; 5% think it’s fairly negative;; nearly 2% say it’s very negative;; and

4% say there is no effect. 32% of the respondents did not reply to the question (don’t know).

Bulgarians residing in a large town are most positive about the effect of the Single EU Market

on the choice of food products and citizens residing in a small or mid-size town have a higher

negative percentage than the other groups towards the effect concerned. About 74% of the

people residing in a village did not give response to the question.

h) Choice of services

30% of the Bulgarians think the effect on the choice of services is very positive;; 28% say it’s

fairly positive;; about 7% think it’s fairly negative;; nearly 2% say it’s very negative;; and another

2% say there is no effect. About 31% of the respondents did not reply to the question (don’t

know). The tendency that we observed in the above questions regarding the effect of the Single

Market relates to this one as well: Bulgarians residing in a large town are most positive about the

101

effect of the Single EU Market on the choice of services and citizens residing in a small or mid-

size town have a higher negative percentage than the other groups towards the effect concerned.

About 63% of the people residing in a village did not give response to the question.

- Socio Demographic Analysis

In the gender variable, men tend to be more positive about the effect of the Single EU Market on

the price, quality and choice of products and services while women have a higher percentage

than men to not reply to the questions (don’t know) or to state there is no effect at all. In the age

variable, it is observed that, where the prices of products and services are concerned, the

tendency to think that the impact of the EU on prices is positive increases as age declines,

therefore, younger citizens are more positive in this respect than the older ones. Where the

quality and the choice of products and services are concerned, the situation is a bit different than

we have had for the prices. It can be observed that for the impact of the EU on the quality and

choice of products and services more positive are the youngest and the oldest age groups while

the “25-39” age group is more negative of the impact than the rest of the age categories. The

intermediate age groups also have the highest percentage of not giving reply to the questions. In

the education variable, in general, those respondents who fall in the highest level of education

and those who are still in the education system are more positive in regards to the EU impact on

the price, quality & choice of products and services except for the question regarding the choice

of non-food products where those being still in the education system are replaced with those

who have finished their studies between the age of 16-19. Those respondents falling in the

poorest level of education usually have a higher tendency of not replying to the questions. In the

socio-occupational variable, we have tendencies differing for the prices on one hand and the

quality and choice of products & services on the other hand. Consequently, in regards to the EU

effect on the prices of the products & services, we have the managers, the students and the other

white collars with higher positive approach and, on the other hand, the retired citizens with

102

higher negative attitude towards the impact concerned. In regards to the impact of the EU on the

quality and choice of products and services, we have the retired, the students, and the workers

with higher positive approach and, on the other hand, the manual workers with higher negative

stance on the issues. In general, the manual workers and the unemployed have a higher

percentage of not replying to the questions presented.

5.2 Bulgarian Consumers and their attitude towards consumer rights and market surveillance

(Q.42)

a) Bulgaria’s EU accession and consumer rights

When asked if they thought they would have better protection of their consumer rights after

Bulgaria’s accession in the European Union, nearly 67% of the Bulgarians believe they will

have better protection of their consumer rights upon Bulgaria’s accession. About 11% of the

respondents are negative about the accession effect saying they will not have better consumer

protection and 23% of the Bulgarians do not reply to the question (don’t know). The tendency to

think consumer rights will be better protected after accession increases as the size of the

populated area increases (about 83% of those residing in a large town and 50% of those residing

in a village). Citizens of a village have a higher percentage in not replying to the question.

- Socio Demographic Analysis

In the gender variable, men have a higher positive approach to consumer protection after

accession in the EU (70% men and 61% women) while women have a higher percentage in not

replying to the question. The “55+more” age group have a higher tendency to think that

consumer protection will get better after accession while the younger groups are slightly more

negative about it. Education is a big factor that influences the attitude of people towards

consumer protection after Bulgaria’s accession. Here we have the highest positive percentage of

those who have left studies at the age of 20 and more that are closely followed by those

respondents who are still studying (76%). People of the poorest level of education are most

103

negative about after accession’s consumer protection and also they have the highest percentage

of not replying to the question. In the socio-occupational variable, we have the managers

(100%), the retired (80%) and the other white collars (79%) with the highest positive attitude

towards consumer protection after the accession. The workers, on the other hand, are the most

negative about it.

b) Bulgaria’s EU accession and market supervision and control

When asked if they thought they would have better market surveillance after Bulgaria’s

accession in the European Union, nearly 72% of the Bulgarians believe they will have better

market surveillance after Bulgaria joins the EU. About 8% of the people surveyed believe they

will not have better market surveillance and 20% of the respondents do not answer the question

(don’t know). We can observe that we have the same positive trend of increase in the

respondents’ tendency of better market surveillance attitude that is proportional to the increase

in the size of the populated area, and accordingly, we have about 78% of those residing in a

large town versus the 55% of those residing in a village.

- Socio Demographic Analysis

Men tend to be more positive than women in regards to the market surveillance upon Bulgaria’s

accession in the EU (73% men and 70% women). We can observe that the tendency of thinking

that Bulgarians will have better market surveillance after accession increases as the age

decreases with about 76% of those in the youngest age group. As observed in the previous

question, citizens having higher level of education tend to be more positive about after

accession’s market surveillance and here we have 86% of those who are still studying and 77%

of those who have finished their studies at the age of 20 or more. Profession wise, we have the

managers (100%), the other white collars (about 90%), and the students (85%) with the highest

positive stance towards market surveillance after Bulgaria’s accession in the European Union

while workers are the most negative about it.

104

PART IV

1. Recommendations

In this final part, I would like to discuss on and analyze the findings of the questionnaire I

carried out this summer with the intention of testing the hypotheses I have written about in the

previous part. Recommendations and future expectations will be presented accordingly.

As seen from the data analysis of the questionnaires, more than half of the Bulgarians think they

don’t know about their rights (see Figure 1). In addition, almost all people surveyed stated they

would like to know more about their rights and the most preferred medium of information are

the television, the newspapers& magazines and seminars (see Figure 2).

Perc

ent

60

50

40

30

20

10

Level of Consumer KnowledgeDon't KnowYes

0

No

Do you think you know enough aboutyour consumer rights?

Perc

ent

100

80

60

40

20

Don'tKnow

No0

Yes

Would you like to know more about yourrights?

At the same time, most of the Bulgarians are also unaware of the adoption of the New Law on

Consumer Protection. Nearly half of the people surveyed stated they have not heard about the

New Law, which in itself is a sign of the lack of knowledge of consumers (see Figure 3).

Figure 1 Figure 2

105

21.0%

30.5%

48.5%

Yes, Iknow

I wasn'tinformed

No, I don'tknow

Knowledge about the New Law on ConsumerProtection

According to the data taken from the analysis, most of the citizens are also unaware of the

existence of claim registers in trade places, the "Consumers" Telephone Line, and most of the

Institutions dealing with consumer protection except for the Commission for Consumer

Protection. In the research, I have also found out that people are uninformed of the importance

of the sale slip that acts as a purchase contract or a warranty of the product or service bought.

Another area of concern is the products bought from street vendors/door-to-door sellers.

Usually, products from such traders are not always safe, reliable and of quality, however, due to

lower prices offered by door-to-door sellers products become attractive for citizens. The

problem with such products is that they are not provided warranties or sale slips. In case of a

flaw in the product, no consumer can claim their rights for redress and, in addition, it is highly

unlikely that one will manage to find the trader in question. The same goes for the so called

“Euro-Shops” where they sell products for the price of one to five euros in Bulgarian Leva or in

some places they are also called “One-Lev Shops”. Interestingly, even after the adoption of the

New Law for Consumer Protection I kept seeing notices in such shops saying that you can claim

or complain about a product only at the counters, which is of course, contrary to the Law. The

point here is that, because of the low income level of the Bulgarian citizens, people tend to go to

such shops and buy products at a cheaper price not thinking about the consequences of such an

action. Obviously, these products are not very durable and in case of a flaw you cannot

complain, because the notices at the counters speak for themselves. According to me, Bulgarian

Figure 3

106

consumers are either uninformed and lack knowledge of their rights as consumers, or they

simply do not care about their rights. While I was handing out the questionnaire to the people,

some of them even asked me if they had consumer rights in Bulgaria – and that is after the

adoption of the New Law that contains most of the EU Directives. The findings of the survey

and the attitude of the surveyed people confirm my opinion that Bulgarian consumers lack

enough information about their rights and privileges. In addition to this, a recent survey (April

2007) conducted by pollster Alfa Research in Bulgaria shows that citizens are rarely pursuing

their consumer rights. According to their findings, only 13% of the survey’s respondents have

ever tried to find out more about their consumer rights meaning that Bulgarians are not really

interested in their rights as consumers.

I therefore think that the introduction of consumer related lectures in secondary schools is a step

forward in the creation of a strong consumer culture in Bulgaria. In Poland, for example, the

Polish Consumers Federation introduced consumer education in schools in the late 90’s, an

initiative that was supported by then State Office for Competition and Consumer Protection and

although consumer education was not included specifically on the national curriculum. The first

attempt to introduce consumer education into Polish Schools was done in 1995 by the same

Federation and under the funding of the EC PHARE programme27. In Bulgaria, the first attempt

to introduce consumer education was done in the late 90’s by the Bulgarian Consumers

Federation, however, the attempt was done through the so-called “green schools” that provide

extra-curricular activities for students and are not compulsory. At that time, the Federation

managed to reach agreements only with a couple of schools regrettably and there is no

information as to whether these green schools continue with the activities to introduce the theme

of consumer protection. 27 The Polish Consumers Federation completed the programme “Consumer Education in Primary and Secondary Schools” in 1995. The programme was funded by the European Commission PHARE programme and coordinated by the State Office (see NICE-Mail No 4 1995).

107

According to the National Programme for Improvement and Development of the Primary and

Secondary Education (2006 – 2015)28 drawn by the Ministry of Education and Science in

Bulgaria, changes in the curriculum and the teaching material should be the result not only of an

administrative decision. In order for the changes to be feasible and well-defended and at the

same time reflecting the socio-economic realities, it is necessary that a public discussion is

organized with the active participation of teachers, parents, NGOs and employers. Therefore, I

believe that with the determination of the Government and the consumer organizations

consumer education in Secondary Schools could be smoothly introduced in the national

curriculum. The introduction of consumer education in schools will imply the establishment of

extensive network of contact schools and teachers that might be provided by the Commission for

Consumer Federation or the consumer organizations. The education programme should allow

students to be familiar not only with the legal framework of consumer protection issues but also

allow them to get accustomed to every day situation through role-play followed up by analysis

of their own behaviour. As a supplement to this, the Commission and the consumer

organizations might supply schools with published material containing developments of

consumer related issues. As previously done in Poland, the Bulgarian Government or the

consumer organization might benefit of the EU funding programme in order to realize this

project. As a matter of fact, the EU Commission has launched the Inter-Active Consumer

Education project in cooperation with higher education institutions where certain web-based

consumer education tools are provided for trainers and other multipliers in consumer education

and the consumers. As a result, Hypothesis One is proven right.

28 For more information and the PDF format of the programme visit www.minedu.government.bg

108

The second hypothesis also proves efficient and feasible according to the findings of the

questionnaire. As seen on the figure below, most of the citizens prefer being informed by the

television medium followed by the press and consumer related seminars (Figure 4).

3,5%

17,0%

3,5% 3,0%6,5%

66,5%

Percent

70

60

50

40

30

20

10

RadioOtherConsumerConsultation Desks

SeminarsNewspapers /

Magazines

0Television

Prefered Medium of Info

Here, I have not included the internet as an option, because there is plenty of information on the

internet regarding consumer rights, however, not many of the Bulgarian citizens can log on to

the internet and digest the info from there. The biggest reason for this is that not many of the

citizens have sufficient purchasing power to buy computers and to pay monthly for internet

subscription. Besides, the IT is relatively new stream in Bulgaria which needs to be boosted and

that could be done by improving the macro-economy that has the biggest impact on computer

penetration & usage in Bulgaria. According to a recent survey conducted by the Marketing

Research Agency in Bulgaria, total percentage of internet users in Bulgaria is 29.3% as internet

usage from home is 15.10%, internet usage from Internet clubs is 14.80%, and usage from

elsewhere is 9.30%. In addition, according to a report by Learn Link (USAID) nearly the entire

internet users live in big cities with only two to three percent residing in small towns and besides

in towns and villages, where Internet access is available the average costs for services is almost

twice as high as in the cities.

Figure 4

109

Consequently, the introduction of programmes on the television, specially addressed articles on

the press, and consumer related seminars in Bulgaria will help enhance consumer knowledge.

The most influential way to this, I believe, is to broadcast weekly programmes on the Bulgarian

National TV channel (BNT) that is watched almost by the entire Bulgarian population. Since it

is controlled and regulated by the Government it should be relatively trouble-free for the

Government to introduce consumer related programmes. While doing my research, I have found

out that 2 years ago there was a programme on the Bulgarian National Television (BNT) that is

the first and consequently the oldest TV channel in Bulgaria. The programme discussed

consumer related problems and how the take preventive measures against issues that might hurt

the end-user of products and/or services. There were two incidents of consumer problems shown

on the programme – one related with a customer who bought an expensive pair of shoes that

happened to have flaw in it, and the second one related to a newly purchased washing machine

that did not correspond to the features and quality guaranteed. Although two years have passed

since the programme was shown, people still remembered every detail about the consumer

problems discussed in it. On the other hand, I think that the press is also very dominant and

powerful medium of information in the country. The Government could use incentives for the

press to publish articles on consumer protection with the help of the Commission for Consumer

Protection and the consumer organizations. Allocating proper and sufficient funding for the

Centres of the Commission for Consumer Protection and the consumer organizations with the

aim of increasing the number of seminars to the public, especially for adults and for those

residing in smaller towns and villages will be of crucial importance since the greatest lack of

knowledge is observed in there. The use of specially designed brochures with easily-understood

& summarized information at these seminars could also be an effective way of retention of

110

consumer education. Therefore, Hypothesis Two is proven right according to my

observations.

The third hypothesis assumed the amplification of consumer organizations. As observed from

the data collected, 72% of the Bulgarians think that these organizations should be more involved

in formulating consumer policies (Figure 5).

Enoughinvolvement

Don't knowMore involved

80

60

40

20

0

Percent

5,5%

22,5%

72,0%

Involvement of Consumer Associations in consumerprotection policy

Consequently, the majority of the Bulgarians think that consumer organizations should play a

bigger role when it comes to consumer issues. The question is how? As discussed in the

previous chapters, the level and the number of consumer organizations are deficient for the

establishment of an adequate balance between the traders / the government and the consumers.

Consumers are in not very favourable position when compared to the other two, since they lack

the appropriate level of knowledge and since there is no satisfactory efficiency of the current

consumer organizations. As I stated above in the previous chapters, I think that consumer

organizations are the mirror of the consumer culture in the country. The lack or the presence of

such strong and independent consumer organizations therefore shows the level of that country's

consumer culture. In the interview with the Regional Consumer Protection Commissioner in

Plovdiv, he stated that consumer organizations were not as strong as the consumer organization

in the European Union; rather, he said they were like "one-day flies where they are born, active

Figure 5

111

for a day and then die." This is the situation with most of the consumer organization in Bulgaria,

because they lack funding. For the organizations to reach a satisfactory level they have to be

properly funded – something that is in deficiency in Bulgaria. There are plenty of options

available for such organizations to become more active, endurable and long-lasting. Consumer

Organizations might be funded by the government in the first place, by the EU and by other

International Organizations29 that provide funding for NGOs provided that consumer

organizations draw feasible projects that have a high chance of approval. On the other hand, for

consumer organization to be able to draw high-quality projects, their members should have

adequate level of knowledge. Consequently, if the first two hypotheses come into place, then we

will have better informed consumers which will lead to higher participation and membership in

consumer organizations with knowledgeable members who will be able to draw and defend the

projects in question. I therefore believe that education and information is a key approach in

amplifying the relevant organizations. I would like to also add to the options above the chance of

funding of consumer organization by the citizens themselves. In some European countries,

citizens subscribe to consumer organizations and in case of consumer related problems the

organization subscribed to provides its service to its subscribers - a mutual process that not only

help fund the organizations but is also a win-win situation for both sides.

In addition to this, the Government should play one of the biggest roles in the strengthening of

such organizations. In my opinion, one of the Government short and long-term objectives should

be the establishment of better represented consumer organizations that will have the adequate

budget to run their activities. The Government and/or the Commission for Consumer Protection

should provide incentives for citizens to take part in such organizations and technical assistance

to these organizations such as training or network services. Consequently, increased, better 29 For example, USAID provides funding for NGOs and has an already established programme in Bulgaria for NGOs funding under the name of “Increased, Better-Informed Citizens’ participation in Public Policy Decision-Making, 183-021

112

informed citizens’ participation in consumer organizations will lead to better participation of the

last in consumer policy decision-making. What's more, the EC has recently launched training

courses30 for staff of consumer organizations that aim at improving the effectiveness of

consumer organizations. One of the EC priorities is the consumer organizations’ involvement in

EU policy-making with the view of the pursuit of the “integration” of consumer concerns in all

EU policy areas. These training courses are open to personnel of consumer organizations of all

EU countries and they can be of help to the Bulgarian consumer organizations since Bulgaria

has become one of them. As the European Commission states “if consumer organizations are to

be stronger at national and European level, they should work together on certain issues,

exchange best practices and reinforce their networking”. Accordingly, Hypothesis Three

proves right.

I would like to embark on the Bulgarian justice system now. As I stated in the hypothesis, if

there is going to be better protection of consumer rights then the justice system needs to be

improved and the trust of the citizens in this system revived. The analysis of the questionnaire

shows that Bulgarian citizens don’t have a lot of trust in the courts.

OtherYes, Iwould

No, thelegal

procedurewould be

toocomplicate

d

No, thelegal

procedurewould betoo long

Dependson the

expensesrelated tothe legal

procedure

It would beuseless / Iwould not

win

Don't KnowDependson the

product /service

40

30

20

10

0

Percent

1,5%

6,0%7,5%

10,0%11,5%12,5%13,0%

38,0%

Would you take a consumer related matter to court?

30 Further information and on-line registration for the training courses is available at: www.trace-beuc.org

Figure 6

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As seen on the figures above (Figure 6) and below (Figure 7 & 8), consumers are not very

willing to place their trust in courts when it comes to consumer protection. Bulgarians tend to

trust a public organization in charge of consumer protection and/or European public organization

for consumer protection such as the relevant Commissions according to the answers provided for

in question 40 of the questionnaire. Only 13% of the people surveyed said they believe courts

can best protect their consumer rights which in itself is a sign of the general mistrust citizens

have in their courts.

a great dealof confidence

no confidenceat all

Don't Knowa fair amountof confidence

not verymuch

confidence

40

30

20

10

0

Percent

6,5%

14,5%

18,0%

22,5%

38,5%

Level of confidence in BG courts

17,0%

0,5%

20,5%

27,5%

12,5%

3,0%

4,5%

1,5%

13,0%

Don't KnowOther

A European publicorganization in chargeof consumer protect

A public organizationin charge of consumerprotection

A body set up byconsumer associations

A body set up byassociation ofsalesman / retailers /trade

A body equally madeof consumers andsalesman / retailers /

An arbitration /mediation /conciliation body

A court / the justicesystem

Which body can best protect your consumer rights?

Therefore, I still believe that if the justice system is to be improved then this will ensure the trust

of the citizens in it and will consequently provide for better protection of consumer rights. Here

again, I would like to mention about the interview I had with the Regional Commissioner in

Figure 7

Figure 8

114

Plovdiv. When I went to the Regional Consumer Protection Commission Office, I found out that

there were no other personnel but the Regional Commissioner, Mr. Dimitar Minchev. During

our interview, Mr. Minchev explained that all the personnel were attending court proceedings of

consumers who were having problems. Consequently, we started discussing the Bulgarian

judicial system that we observed to have many hinders in it. Apparently, when a problem is

taken to a court it takes a long time for the problem to be resolved. The situation being like that,

the Regional Commission's personnel were taken precious time when sent to attend court

proceedings. I say precious time, because the prolonged time spent in courts could be used to

improve, for example, the workings of the Commission's Office, the surveillance of the trade

places, and to enhance consumer knowledge by handing out specially designed brochures or by

organizing seminars to the public. Mr. Minchev stated that the number of his personnel was also

insufficient for the efficient working of the office taking into account the number of complaints

made to the Regional Commission every month and taking account of the inspections that the

personnel had to conduct on a regular basis. As he stated, with the insufficient number of the

personnel and the prolonged court proceedings the Office is wasting human, material and

financial resources at the same time, therefore, the main activities of the Regional Commission

Office were neglected most of the time. The situation of the Regional Commission Office

applies to all of the Offices of the Commission for Consumer Protection.

In addition, Bulgaria has been and continues to be criticized by the European Commission in

regards to the status of the Justice and Home Affairs Department. As stated by Mr. Geoffrey

Van Orden31, EU reporter for Bulgaria, the solution to the problems of the Bulgarian judicial

system requires much longer period than expected by the EU Commission. Just before the

entrance of Bulgaria into the EU, the internal EU report strongly criticized Bulgaria’s strategy 31 During his speech in March 2006, The EU reporter for Bulgaria added that Bulgaria would probably enter on January 1, 2007, but one of the safeguard clauses – the one in Chapter 24, Justice and Home Affairs – would be activated. Criticism in general was focused on the pace of curbing crime and corruption.

115

for judicial reforms stating that the country judicial system was still chaotic and “out of touch

with the principles of the block”32. The EU report criticised the nepotism in judge selections and

the low technical quality of the Bulgarian laws. The report said that the situation was further

aggravated by the population’s distrust to their own judicial system. As to prove my point,

“Bulgaria joined the European Union on January 1 2007, but the functioning of its judiciary and

the country’s failure to combat corruption prompted the EU to apply the strictest ever

monitoring mechanisms on the Balkan newcomer”33. According to a report published by the

Bulgarian-based NGO at the Centre for Liberal Strategies (CLS)34 last year, in general the

Bulgarian judicial system does not differ from the judicial systems in most of the member

countries; however, although the system was operating relatively well it did not mean that it did

not have problems. The most problematic areas as stated on the report were the fight against

organized crime, money laundering, corruption level among high-level state official and lack of

co-ordination among institutions when it comes to providing information about the system.

There is a close connection with these problems and the trust that the general public has in the

courts. Though the judicial system is not performing badly in other areas, the problems in these

areas lead the population think that the inefficiency of the courts covers all aspects of the justice

performance. And regrettably this situation is exacerbated by the wide-spread criticism against

the system as a whole which further undermines citizens’ confidence in it, and fuels the

influence of populist rhetoric. The report by itself is a quite realistic reflection of the status of the

courts and it provides possible solutions for the improvement of the justice system in Bulgaria

such as stepping up the performance of institutions in specific areas (corruption etc.), the

improvement of the coordination between the Ministry of Justice and the Supreme Judicial

Council, opening the judicial system to the public, and encouraging its cooperation and dialogue 32 As reported by International Herald Tribune 33 As stated by Novinite, the Sofia News Agency, on 27th April 2007 in an article on the Judicial System Bill. 34 A project of the Centre for Liberal Strategies, Sofia, in cooperation with the Supreme Judicial Council and the Embassy of the United Kingdom to Bulgaria named “Strengthening the Policy Making Capacity of the Bulgarian Judicial System”

116

with other branches of power. In addition to the project of the CLS there was also another

project in Bulgaria supported and funded by the United States Agency for International

Development (USAID) named “Judicial Strengthening Initiative”. This project aimed at

improving overall court administration along with efforts to increase public awareness and is

still going on.

In spite of the on-going projects in Bulgaria, just recently the European Round Table of

Industrialist, an influential European pressure group35, has said that it will seek the urgent

intervention of the Bulgarian Government to tackle the problems of the sluggish and protracted

court proceedings and biased settlement of company disputes. As a result, I strongly suggest that

if Bulgaria is going to establish a strong consumer culture then the problems with the judicial

system should be solved in the near future and legislation reform should be given priority so as

to enhance citizens’ trust in the system and bring forward better protection of consumer rights.

As a result of the findings, Hypothesis Four is proven right.

In addition to improvements of the justice system, I have brought forward the argument that if

ADR bodies are to be introduced intensively to the Bulgarian society then it will lift some of the

load off the judiciary and augment the protection of consumer rights. As known, Alternative

Dispute Resolution or ADR is most often used to describe any dispute resolution process other

than a trial in court. There are various types of ADR methods such as arbitration that is binding

and mediation that is non-binding and also conciliation, cooperative problem solving, dispute -

panels, early neutral evaluation, facilitation, fact-finding, interest based problem-solving, mini-

trials and so on. The only ADR body that is currently functioning in Bulgaria is the Arbitration

35 The Euro industrialists held their 8th annual meeting with the Bulgarian government in Sofia where they criticized the Bulgarian judicial system (reported by Dnevnik)

117

Court at the Bulgarian Chamber of Commerce and Industry36 that was established about 110

years ago as a Court of Conciliation at the same Institution. The Court of Conciliation began to

act as a voluntary arbitration court since 1989 that is since the fall of Communism in Bulgaria.

Apart from this court there are no other bodies dealing with alternative dispute resolution

methods such as conciliation, negotiation and mediation. As a result, the use of ADR methods is

limited to the Arbitration Court in Bulgaria mostly. In addition to it, the American Bar

Association Central European and Eurasian Law Initiative (CEELI) has been providing

assistance in Bulgaria since 1991 in Sofia and some other major cities by providing assistance

and training to attorneys in mediation skills and by providing informational training on

mediation to judges and citizens.

The benefits that could be expected in applying ADR methods in consumer dispute settlement

are:

Greater likelihood of reaching a resolution without the ill will and negative publicity of

court cases (since traders are involved in the process along with consumers)

Speed: Reduced time in settling disputes

Increased confidentiality, both as to the existence of the dispute and the terms of its

resolution

Less reliance on local courts, which should reduce the risk of an unpredictable result

Cost saving: compared to court trials ADR methods are not expensive

Better results: the resolutions are usually created by the parties, they work for them

36 For more information about this court visit www.bcci.bg

118

The data analyzed from the questionnaire proves my view that most consumers are unaware of

the existence of such ADR methods. Only 20% of the Bulgarians say they have heard of such

methods while almost half of the people surveyed don’t answer the question (Figure 9).

20,0%

33,5%

46,5%

YesNoDon't Know

Are you aware of ways to settle disputes other than going to court?

Therefore the introduction of ADR methods in the system will not only take care of the mistrust

Bulgarians have in the courts, but will also introduce ways of dispute settlement that are time

saving, cost reducing and result effective. A step forward could be the establishment of an

Alternative Dispute Resolution (ADR) Centre that would act not only as and effective system of

dispute resolution, but also as a teaching institution37. The Centre might offer seminars in

various ADR methods & practice and develop special programmes for judges to oversee and

support the ADR regime in Bulgaria. In addition, the Centre might offer assistance and advice to

lawyers and government officials on drafting of mediation and arbitration law, for instance, and

the implementation of the ADR regime. Funding, of course, will be of crucial importance, and it

might be achieved with the help of the Government, the EU, or International Development

agencies. In consequence of the research conducted, Hypothesis Five is also proven right.

37 An example of such centre is the ADR Center in Washington DC, USA, at the International Law Institute (www.ili.org)

Figure 9

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The final hypothesis foresees the development of cooperation between the institutions dealing

with consumer protection. As seen from the questionnaire analysis, except for the Commission

for Consumer Protection, most people are unlikely to have heard about the other Institutions

dealing with consumer protection (Figures 10-11-12-13-14-15-16-17). This led me to think that

firstly, consumers are uninformed of which bodies to contact when having certain consumer

problems (e.g. tourism related issues such as timeshares etc. are dealt by the Tourism Agency)

and secondly, because of a lack of cooperation between these institutions, consumers are

unaware how and which body will best protect their rights. Obviously, if sufficient level of

cooperation was existent then consumers having problems would have been directed to the

adequate institution thus increasing the level of consumer information about the institutions

concerned. During my interview with the Regional Consumer Commissioner in Plovdiv, I asked

him if they cooperate as a Commission with the other bodies as defined by the Consumer Law.

The answer was that they were cooperating mostly with the Regional Inspections for

Safeguarding and Control of Public Health Department and the Economic Police and the Tax

Services from time to time. Mr. Minchev also added that the interaction between the Institutions

defined by the Law was not satisfying, the reason being that it's a period of transition – the Law

is new and with the legal framework recently established it would take time till the theoretical

principles start to be actually applied in practice.

In addition, according to a round-table discussion38 carried out last month, it became clear that

there is a great deal of confusion in Bulgaria as to which authority consumers should turn to in

cases of breaches of their consumer rights. It was also stated that control by authorities was

38 The EU Commissioner for Consumer Protection, Ms. Meglena Kouneva, together with Stefano Soro (Head of the EC unit responsible for product and service safety), Bulgaria’s Consumer Protection Commission, business, media, and NGO representatives, took part in the second “School for Consumers” held at the European Commission representative office in Sofia. The main topic of the discussion was the safety of goods in the EU.

120

sporadic and as a result its effectiveness suffers. Parts of the round table discussion yet again

proved that often what is missing are direct answers to direct questions39. In spite of the round-

table discussion it was not made clear to which body a consumer should turn to if, for instance,

there is a refusal to agree to cash or goods in exchange when attempting to return a faulty

product. Ms. Kouneva underlined that concise, clear and easily accessible information on what

consumer should do in such cases is still insufficient in Bulgaria and this harms the end-users of

course.

Have HeardHaven't Heard

70

60

50

40

30

20

10

0

Percent

36,5%

63,5%

Regional Inspections for Safeguarding and Control ofPublic Health

Have HeardHaven't Heard

100

80

60

40

20

0

Percent

12,0%

88,0%

Public Metrology and Technical Control Agency

Have HeardHaven't Heard

80

60

40

20

0

Percent

25,5%

74,5%

National Health-insurance Fund

Have HeardHaven't Heard

100

80

60

40

20

0

Percent

9,5%

90,5%

Tourism Agency

39 As stated on the Sofia Echo – the electronic news – in the article on “Consumer concerns in Bulgarian and the EU”

Figure 10 Figure 11

Figure 12 Figure 13

121

In my opinion, if there is to be a synergy40 attained between the consumer protection institutions

such problems could be easily overcome. If synergy between those institutions is achieved that

will mean that good and effective actions are multiplied, therefore, it becomes crucial to making

real development happen and also crucial to the sustainability of the development. If consumer

protection is to be developed and improved then cooperation and collaboration between the

bodies dealing with consumer protection is vital. There is no use of the Law if it is not applied in

practice. The bodies are specified on the New Law for Consumer Protection as “mediators” to

ensure adequate protection of the rights of consumers in Bulgaria. However, up to this point

these institutions still lack the efficiency and effectiveness which are needed so that consumers

are better protected.

Have HeardHaven't Heard

80

60

40

20

0

Percent

29,5%

70,5%

Regional Municipality Units for Consumer Protection

Have HeardHaven't Heard

100

80

60

40

20

0

Percent

16,0%

84,0%

Commission for Competition Protection

Have HeardHaven't Heard

100

80

60

40

20

0

Percent

6,5%

93,5%

Executive "Automobile Administration" Agency

Have HeardHaven't Heard

80

60

40

20

0

Percent

25,0%

75,0%

National Veterinary and Medical Office

40 A synergy is generally defined as an action taken by two or more to achieve an effect that is greater than the sum of the individual effects. When applied to development, the positive benefits of the synergy cannot be understated – good effects in development can be amplified many times over, and more people can benefit in a variety of ways.

Figure 14 Figure 15

Figure 16 Figure 17

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I believe that cooperation between these institutions, for instance, reinforcing each other’s work,

sharing of information & work strategies, and establishing intensive networks amongst them, is

not only of importance to the better protection of consumer rights, but is also of importance to

the overall performance of the Bulgarian justice system. In summary, Hypothesis Six is

proven right according to my observations.

2. Conclusion

Consumer Protection is a form of government regulation which protects the interests of

consumers. Consumer protection is linked to the idea of consumer rights and to the formation of

consumer organizations which help consumers make better choices in the market place41.

However, without governmental determination and lack of consumer knowledge of citizens the

system of consumer protection is doomed to failure. No matter how well a country formulates its

laws, if there is no application of the law and keenness of the government to put into motion its

organs for better protection then citizens will continue their mistrust attitude towards the

government.

On the other hand, if consumers are unaware & uninformed about their rights and at the same

time reluctant to pursue these rights then there is no “push”-factor for the government to ensure

that consumers are well protected. It is therefore a mutual process where as much information

consumers have as much protection and assistance are they expected to receive from the

Government. Strong consumer organizations are and will be a vital force in ensuring that the

rights of consumers are taken into account when policies are projected, and in creating a strong

consumer culture in the country. I also believe that strong consumer organizations will be able to

fight better for consumer rights than individual citizens against the state monopolies dealing

41 Abstract taken from Wikipedia - the free encyclopedia and online dictionary

123

with, for instance, electricity and heating installations, and which are not covered by the Law for

Consumer Protection regrettably.

During my research and upon the analysis of the questionnaire, I have seen that education, age,

size of the populated area, occupational positions hold, and sometimes gender play big roles in

the attitude of citizens towards certain consumer issues. The education level is one of the biggest

factors in determining the level of consumer knowledge and that is why I have given primary

importance to the introduction of consumer related courses in the National Education System.

Creating awareness of the citizens of Bulgaria in regards to their consumer rights is a leap ahead

in not only creating a consumer culture, but also in improving the mechanism of the Single EU

Market of which Bulgaria is now a part. In spite of the fact that I had my survey carried out in

August 2006, yet the situation of the Bulgarian consumer protection system and the recent

surveys show that there has been no change since then in the attitudes of Bulgarian citizens

regarding consumer rights and protection. In addition to this, I have observed that Bulgarian

consumers lack confidence in their own country whereas most Bulgarians believe they are better

protected in the European Union when it comes to consumer rights. Bulgarians are also not

happy with the level of safety of products offered on the Bulgarian market and with the level of

supervision and control on this market for safer products and services. Most Bulgarians are also

not content with the enforcement of legislation on consumer protection and the governmental

efforts in creating better mechanism for protection of consumers including the one for efficient

market surveillance. Therefore, when consumers are having problems with

products/services/traders that they cannot settle amicably, majority of the consumers do not take

any further action for a solution to be found. And this is partly caused by the citizens’ mistrust in

the justice system and the government. Positive attitude of Bulgarians is observed in the

willingness to join with other consumers having the same complaints before a court and, on the

124

other hand, consumers are willing to place their trust in solicitors and themselves the most when

it comes to protecting consumer rights.

Although the attitude of Bulgarian citizens is negative to their government, most Bulgarians

have shown a positive outlook to the state of consumer protection and market surveillance once

Bulgaria is a part of the EU (see Figures 18 & 19 below). Besides, most Bulgarians believe that

they will have better quality and choice of products and services upon Bulgaria’s EU accession,

but the same thing cannot be said in regards to the price of products and services which citizens

think will be affected negatively.

23,0%

11,5%65,5%

Don'tKnow

NoYes

Bulgaria's EU accession and consumer rights

8,5%

20,0%

71,5%

No

Don'tKnow

Yes

Bulgaria's EU accession and market supervisionand control

A positive step in consumer protection, and which is a result from the accession, will be the

establishment of the European Network for consumers’ rights protection (ECC) in Bulgaria

within half a year from now42 where Bulgarians and other EU citizens will be able to lodge their

complaints. As I mentioned in the first part of the dissertation, the service that will be set up in

Bulgaria will be a part of the network of such centres, established by all the countries in the

European Union and is mostly funded by the EU itself.

42 As announced by Ms. Meglena Couneva, the EU Commissioner for Consumer Protection

Figure 18 Figure 19

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During the dissertation discourse, I have compared the Old Law for Consumer Protection and

Trade Rules to the New Law for Consumer Protection that is in force in Bulgaria as of 10th June

2006. I have observed that although the New Law integrates and introduce most of the European

Directives and regulations on Consumer Protection, the Law alone is not sufficient for the

protection of the customers’ rights. Still there is lack of information of Bulgarian customers,

lack of determination on behalf of the government, lack of communication between the

governmental institutions dealing with consumer protection, lack of strong consumer

organization force in the country, lack of citizens’ trust in their own government and its justice

system and lack of alternative dispute resolution methods offered to Bulgarian consumers. I

believe that all these factors negatively influence the state of consumer protection in Bulgaria

and are expected to continue having a negative impact unless “counter” or preventive measures

are taken. In my opinion, the EU membership of Bulgaria has started to have and will continue

having a positive impact on the attitude of consumers and the status of consumer protection in

the country. Another positive issue is that the current EU Commissioner for Consumer

Protection, Ms. Meglena Kouneva, is a Bulgarian citizen who, in my view, has the sufficient

determination and energy to put right the system of Bulgarian consumer protection. A major

point here is that it needs time. Consumer Protection improvement needs time. It has to begin

with the consumers – educating them, furnishing them with sufficient information – continue

with consumer organizations – which, I think, are one of the strongest forces in forming

consumer culture – that in return will put into motion the governmental and legal mechanism for

securing the privileges of Bulgarian consumers and thus create more favourable future for

consumers embraced with confidence and trust in their government.

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Annex

QUESTIONNAIRE Тази анкета е анонимна и е предназначена за измерване степента на информираност на българските потребители за техните права. Анкетата е част от дипломната ми работа за завършване на Магистърска степен, специалност Европейски Мениджмънт и резултатите от нея ще бъдат включени в анализите за защита на правата на българските потребители. Попълването на анкетата ще ви отнеме не повече от 5-6 минути. Бих искала да благодаря предварително за Вашето внимание и отделеното време. Q1. Please indicate your gender? а) Male b) Female Q2. Please, show which age group you are in? а) 15 – 24 г. b) 25 – 39 г. c) 40 – 54 г. d) 55 + г. Q3. Please, indicate the age you left the educational system? а) до 15 г. b) 16 – 19 г. c) 20 + г. d) still studying Q4. Please, indicate your occupation? а) self-employed b) manager c) other white collar worker / clerk d) manual worker e) unemployed f) retired g) student h) worker Q5. Please, indicate how populated is the city you live in? а) big city b) average / small city c) village Q6. а) Do you think that , as a consumer, you have a high level of protection in Bulgaria ? а In Bulgaria Yes No Depends Don’t Know

b) Do you think that, as a consumer, you have a high level of protection in the EU?

b In the EU Yes No Depends Don’t Know Q7. Do you think you know enough about your rights, as a consumer, under Bulgarian laws? а) Yes а) No c) DK Q8. Would you like to know more about your rights as consumer? а) Yes b) No c) DK Q9. Through which information medium would you prefer to be informed? а) TV b) Radio c) Newspapers / magazines d) Seminars e) Consumer consultation desks f) other .......................................(please write)

127

Q10. а) when you purchase goods or services do the trader / seller give you a sale’s slip? а Sale’s slip Yes,

always Yes, most of the times Not always In rare occasions No

b) when you purchase non-food products do the trader / seller give you a warranty? b Warranty Yes,

always Yes, most of the times Not always In rare occasions No

Q11. а) do you require a sale’s slip in case the trader / seller do not give you one? а Sale’s slip Yes,

always Yes, most of the

times Not always,

depends In rare occasions No, I don’t

think I need it

b) do you require a warranty in case the trader / seller do not give you one? b Warranty Yes,

always Yes, most of the

times Not always,

depends In rare occasions No, I don’t

think I need it

Q12. Do you think that traders / sellers give sufficient information regarding products you are to buy or buying? а) Yes b) Do not have time for it c) No d) DK Q13. Do you read products’ or services’ labels / contents carefully before and after you purchase them? а Before purchase Yes,

always Yes, most of the

times Not always,

depends In rare occasions No

b After purchase Yes, always

Yes, most of the times

Not always, depends

In rare occasions No

Q14. Do you read the clauses in the warranties carefully before and after you purchase the products? а Before purchase Yes,

always Yes, most of the

times Not always,

depends In rare occasions No

b After purchase Yes, always

Yes, most of the times

Not always, depends

In rare occasions No

Q15. Do you think warranties contain enough clauses for compensation in case of flaw or defect of the goods? а) Yes b) Not always c) No d) DK Q16. Do you know that, as a consumer, you can complain and put a claim about a product no matter whether the trader or seller gave you a warranty for that product or not? а) Yes b) No c) I don’t think it is possible d) DK Q17. Would you buy goods from a street vendor? а) Yes b) Depends on the product or the price c) No

128

Q18. Do you think the goods that street vendors offer are reliable and of quality? а) Yes b) Not always c) No d) DK Q19. Do you think that goods offered on the market are safe enough? а) Yes b) Not always c) No d) DK Q20. Do you think that surveillance on the market for safety of goods and services is effective and sufficient? а) Yes b) Not always c) No d) DK Q21. Do you think the government exerts enough efforts for the protection of the consumer rights? а) Yes b) Not enough c) No d) DK Q22. Do you think the government should improve and strengthen the surveillance on the market regarding safety of goods, the goods of poor quality, and the unfair trade practices? а) Yes b) No c) DK Q23. Other than in consumer policy, do you think that your rights, as a consumer, are sufficiently taken into account in Bulgarian policies such as agricultural policy, transport policy, energy policy, telecommunication policy or competition policy? а) Yes b) Not enough c) No d) DK Q24. Do you know that as of 10th June 2006, the parliament passed a new law that contains most of the European Directives on Consumer Protection? а) Yes, I know b) No, I don’t know c) I wasn’t informed Q25. Do you think that the legislation on consumer protection is applied in practice or not? а) Yes b) Not enough c) No d) DK Q26. Would you complain about a product, if you found that there is defect or flaw in the product with the aim of having it repaired, changed with new one, or having the product price reimbursed partially or completely? а) Yes b) Depends on the product c) Depends on the price d) Depends on whether I know the trader / seller e) No f) DK Q27. Did you ever have to complain to a salesman, retailer or service provider? а) Yes, often b) Yes, sometimes c) Yes, rarely d) No, never e) DK Q28. Did you know that, according to the New Law, all traders / seller are required to keep claim registers and enter all consumer claims in those registers? а) Yes, I know b) I have heard, but I do not think traders abide by this rule

129

c) No, I don’t know Q29. Please, indicate which public institutions dealing with market control and surveillance and which, you could turn to in case of irregularities, have you heard or you know about? а) Commission for Consumer Protection - CCP b) Regional Inspections for Safeguarding and Control of Public Health - RISCPH c) Public Metrology and Technical Control Agency - PMTCA d) National Health-insurance Fund - NHIF e) Tourism Agency - TA f) National Veterinary and Medical Office - NVMO g) Regional Municipality Units for Consumer Protection - RMUCP h) Executive “Automobile Administration” Agency - EAAA i) Commission for Competition Protection - CCMP j) I have heard about all institutions written above k) I haven’t heard about any of the institutions written above Q30. Have you heard about the Consumer Hot Line at “0700 111 22”, dealt by the Commission for Consumer Protection, that you can call to inform of violation of your rights as a consumer? а) Yes b) Yes, but I would not call there b) No c) DK Q31. Do you think that consumer associations have enough involvement in or should be more involved in formulating consumer protection policy? а) enough involvement b) more involved c) DK Q32. а) Do you think you can have access to ways to settle disputes or not when you buy products or services in Bulgaria? а In Bulgaria Yes No Depends DK b) And in the EU b In the EU Yes No Depends DK Q33. Are you aware of ways to settle disputes between consumers and suppliers of products or services other than going to court? By this, I mean mediation, arbitration and conciliation. а) Yes b) No c) DK Q34. In the last 5 years, after buying a product or service, have you ever had problems that you could not settle amicably with the salesman, retailer or service provider? а) Yes, could not settle amicably b) No, could settle amicably c) No, never had any problems e) DK Q35. If No go to next question, if Yes code here. What did you do when u did not find an amicable solution with the salesman, retailer or service provider? а) I did not do anything b) I went to see a solicitor who brought the matter to court c) I brought the matter to court myself

130

d) I brought the matter to an arbitration / mediation / conciliation body e) I asked for the advice of a consumer association/a consumer help desk, and I brought the matter to court f) I asked for the advice of a consumer association/a consumer help desk, and I brought the matter to an arbitration / mediation / conciliation body g) I asked for the advice of a solicitor / consumer association but did not pursue the matter h) Other ............................................................................................................(please write) В36. If you have a problem with a product or service purchased in Bulgaria would you take the matter to court? а) Yes, I would b) Depends on the product / service c) Depends on the expenses related to the legal procedure c) No, the legal procedure would be too long d) No, the legal procedure would be too complicated e) It would be useless / I would not win f) DK g) Other ................................................................................................................(please write) В37. Would you be more willing to defend your rights in court if you could join with other consumers who were complaining about the same thing? Certainly or Probably? а) Yes, certainly b) Yes, probably c) No, certainly d) No, probably e) DK В38. In whom would you have the most confidence to defend your rights in court? а) Yourself b) Another consumer having the same complaint c) Consumer Association d) Solicitor e) A public service f) Other ...............................................(please write) g) Nobody h) DK Q39. To what extent do you have confidence in the courts to settle consumer disputes efficiently? Would you say you have …..? а) a great deal of confidence b) a fair amount of confidence c) not very much confidence d) no confidence at all f) DK Q40. Who do you think can best protect your interests as a consumer? а) A court / the justice system b) An arbitration / mediation / conciliation body c) A body equally made of consumers and salesman / retailers / traders d) A body set up by association of salesman / retailers / traders e) A body set up by consumer associations f) A public organization in charge of consumer protection g) A European public organization in charge of consumer protections h) Other........................................................................................................................(please write) i) DK

131

Q41. As a consumer, do you think the Single European Market has a very positive, fairly positive, fairly negative, very negative or no effect on……? A The price of non-

food products Very Positive

Fairly Positive

Fairly Negative

Very Negative

No effect DK

B The price of food products

Very Positive

Fairly Positive

Fairly Negative

Very Negative

No effect DK

C The price of services

Very Positive

Fairly Positive

Fairly Negative

Very Negative

No effect DK

D The quality of non-food products

Very Positive

Fairly Positive

Fairly Negative

Very Negative

No effect DK

E The quality of services

Very Positive

Fairly Positive

Fairly Negative

Very Negative

No effect DK

F The choice of non-food products

Very Positive

Fairly Positive

Fairly Negative

Very Negative

No effect DK

G The choice of food products

Very Positive

Fairly Positive

Fairly Negative

Very Negative

No effect DK

H The choice of services

Very Positive

Fairly Positive

Fairly Negative

Very Negative

No effect DK

Q42. Do you think that, as a consumer, you would have better protection of your consumer rights and better market surveillance after Bulgaria’s accession in the EU? а Protection of Consumer Rights

YES NO DK

b Market Surveillance

YES NO DK

БЛАГОДАРЯ ЗА СЪДЕЙСТВИЕТО ВИ И ОТДЕЛЕНОТО ВРЕМЕ!!!

132

References

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