1. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Working Group for Chapter 28 – Consumer and Health Protection Bilateral screening: Chapter 28 PRESENTATION OF MONTENEGRO Brussels, 15-16 April 2013

2. Chapter 28: Consumer and Health Protection Directive 2002/65/EC of 23 September 2002 2002/65/EC of 23 September 2002 concerning the distance marketing of consumer financial services (DMFS Directive) Nikola Kaluđerović Central Bank of Montenegro nikola.kaludjerovic@cbcg.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

3. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Contents Chapter 28: CONSUMER AND HEALTH PROTECTION  Relevant Acquis  National Legislation  Institutional Framework  Level of transposition (key rules)  Enforcement  Future activities Chapter 28: Consumer and Health Protection

4. Relevant acquis  Directive 2002/65/EC of 23 September 2002 2002/65/EC of 23 September 2002 concerning the distance marketing of consumer financial services  (DMFS Directive) Nikola Kaluđerović Central Bank of Montenegro nikola.kaludjerovic@cbcg.me M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Chapter 28: CONSUMER AND HEALTH PROTECTION

5. Chapter 28: Consumer Protection and Public Health M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union National Legislation  Law on Consumer Protection, OG RMN No. 26/07, aims to ensure a uniform minimum protection of consumers in respect of B2C contracts concluded by means of distance communication  Law on Internal Trade, OG RMN, No. 49/08, expands definition who can be cought under term „trader“, and provides for further compliance with Directive definition of „seller“;  Law on Obligations, OG MN No. 47/08, general contract law applicable in B2B, B2C, B2P, and P2P transactions. Chapter 28: CONSUMER AND HEALTH PROTECTION

6. Chapter 28: Consumer Protection and Public Health M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Institutional Framework  Beside MoE and Authority for Inspection Surveillance, other main institutions and stakeholders: -Ministry for Information technology, in charge for e-commerce/electronic communication law and legislative development actions -Agency for Electronic Communications, -Courts, individual complaints, -Arbitration Board for Out-of-court Settlement of Consumer Disputes, ADR scheme for consumer protection Chapter 28: CONSUMER AND HEALTH PROTECTION

7. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union  The LCP was adopted by Parliament of MNE in May 2007  LCP → regulates → distance contracts  LCP → does not regulate → contracts for retail financial services (banking, insurance, payment and investment services, including pension funds) negotiated at distance (e.g. by telephone, fax or over the Internet), i.e. by any means which do not require the simultaneous physical presence of the parties to the contract Transposition measures (Not transponed) Chapter 28: CONSUMER AND HEALTH PROTECTION Chapter 28: Consumer and Health Protection

8. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Definitions:  LCP → Consumer – one definition for whole LCP - natural person who buys, orders, accepts, uses goods or services, including public services, for non- business, namely non-professional purposes, or to whom the offer for a product or service is targeted;  LCP → ??? → Supplier  LCP → Distance contract shall mean the contract negotiated and concluded through the means of distance communication within the sales network set up by the trader  LCP→???→ Financial services  DMFS → Consumer (art.2; par.1; point d)  DMFS → Supplier (art.2; par.1; point c)  DMFS → Distance contract (art.2; par.1; point a)  DMFS → Financial services (art.2; par.1; point b) Level of transposition (Key rules I) Chapter 28: CONSUMER AND HEALTH PROTECTION Chapter 28: Consumer and Health Protection

9. M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Level of transposition (Key rules II) Chapter 28: CONSUMER AND HEALTH PROTECTION DMFSMNE Legislation Information to be provided to the consumer prior to the conclusion of the distance contract √ (not harmonized; trader, product,elements of the distance contract) Right of withdrawalX Protection against fraudulent use of payment cards X Prohibition of unsolicited servicesx Chapter 28: Consumer and Health Protection

10. Chapter 28: Consumer Protection and Public Health M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Enforcement I  Authority for Inspection supervision: -Authorized to issue orders toward traders in respect of consumer rights relating to wrong calculation of price (Art. 126(1) LCP) -Initiating misdemeanor procedure in case of infringement of the Law (Art. 129(1)[14 and 15] and (2) LCP) -“3-Peak Model”, Three Supervisory Authorities (Central Bank,Insurance Supervision Agency, Securities and Exchange Comississon) → financial services (art.2; par.1; point b) Chapter 28: CONSUMER AND HEALTH PROTECTION

11. Chapter 28: Consumer Protection and Public Health M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Enforcement II  Courts : -individiual complaints; -collective complaints: individual consumer, consumer organizations or other interested parties can submit a complaint with a competent court against individual trader, two or more traders involved in the same economic sector, or traders’ associations, in order to abate the provisions of the contract (pre- formulated contract terms) if these are waiving rights of the consumers in respect of distance sale (Art. 114 LCP).  Arbitration Board for Out-of-court Settlement of Consumer Disputes Chapter 28: CONSUMER AND HEALTH PROTECTION

12. Chapter 28: Consumer Protection and Public Health M O N T E N E G R O Negotiating Team for the Accession of Montenegro to the European Union Future plans  ME in 3 rd and 4 th quarter 2010 executed detailed screening of 11 CP directives (including Directive 97/7/EC), supported by IPA 2009 Project (AIM)  Guidelines for Harmonization of Montenegrin CP legislation (blueprint for new LCP)  Draft new Law on Consumer Protection, fully harmonized with Directive 97/7/EC and ready to be adopted by GoM Chapter 28: CONSUMER AND HEALTH PROTECTION

13. Thank you for your attention. QUESTIONS