Unfair Commercial Practices under Turkish Law and EU Law

Author: Atty. Deniz Nalbant
Introduction
Fair competition, which constitutes one of the fundamental pillars of a free market economy, is of vital importance for the protection of consumers and the establishment of trust among market actors. However, particularly in today’s environment of intensified commercial competition driven by digitalisation and globalisation, it is observed that some businesses resort to commercial practices that violate ethical and legal boundaries in pursuit of short-term gains. In this context, unfair commercial practices that mislead, pressure, or impair consumers’ freedom of decision-making constitute not only violations of consumer rights but also serious distortions of market balance.
Both Turkish law and European Union legislation have introduced various regulatory frameworks aimed at preventing such practices. These regulations contain not only consumer-protective provisions but also binding obligations for commercial actors. This article examines the legal nature, constituent elements, scope of application, and limits of unfair commercial practices from the perspective of both Turkish law and comparative law, with particular emphasis on the convergences and divergences between Law No. 6502 on the Protection of Consumers and the EU legislative framework.
I. Definition and Constituent Elements
For a commercial practice to be classified as unfair under Turkish Law, it must be contrary to the requirements of professional diligence and must materially distort, or be likely to materially distort, the economic behaviour of the average consumer with respect to a product or service clearly identified by the marketer.
Within this framework, misleading and aggressive commercial practices are expressly regulated in the Turkish legislation. Other forms of practices are addressed through references to the Regulation on Commercial Advertising and Unfair Commercial Practices. For example, under Turkish law, pursuant to Articles 61/2 and 61/3 of the Law on the Protection of Consumers and Article 7 of the Regulation on Commercial Advertising and Unfair Commercial Practices, advertisements must be honest and accurate, and advertisements that fail to comply with this principle are considered misleading advertisements. The concept of “honest and accurate” advertising refers to the requirement that promotional content reflect the truth and not contain expressions that may mislead consumers.
The primary rationale behind prohibiting unfair commercial practices in the eyes of the Turkish lawmakers is the protection of the consumer’s free will and autonomy in decision-making. Such practices undermine consumers’ capacity to make informed choices by vitiating their will. For instance, concealing or misrepresenting the place of manufacture of a product, or withholding information that is decisive from the consumer’s perspective, falls within the scope of unfair commercial practices.
In Turkish law, the principal legal bases governing unfair commercial practices are found in the Turkish Commercial Code (Article 55) and the Law on the Protection of Consumers. The latter refers, in matters of detail, to the Regulation on Commercial Advertising and Unfair Commercial Practices, which enumerates the main types of unfair practices by way of illustration. In addition, Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices constitutes one of the fundamental reference instruments in this field. Annex I of the Directive contains a “black list” of 31 practices, which are deemed unfair in all circumstances. This list is not exhaustive; other practices falling within the scope of Article 5 of the Directive may likewise be considered unfair.
II. Practices Considered as Unfair Commercial Practices
The Regulation on Commercial Advertising and Unfair Commercial Practices, in line with Annex I of Directive 2005/29/EC, classifies unfair practices under two main categories, misleading and aggressive, and provides a non-exhaustive list of 25 sample practices.
1. Misleading Commercial Practices
The following acts are regarded as misleading commercial practices, as they distort the consumer’s will by misrepresentation or concealment of information:
- Falsely claiming membership in professional associations, stock exchanges or chambers, or falsely asserting adherence to codes of conduct.
- Using trust marks, quality marks, environmental symbols or similar signs without authorisation from competent authorities.
- Creating the false impression that a code of conduct or institutional approval exists.
- Falsely claiming that a product or service has been endorsed, authorised or approved by public or private bodies.
- Inviting consumers to purchase products at a stated price while knowing that sufficient quantities will not be available at that price.
- After promoting a product:
- failing to present the product,
- refusing to accept orders or delaying delivery,
- displaying a defective sample.
- Creating a false impression that a product or service is available only for a very limited time or under special conditions in order to press the consumer into making an immediate decision.
- Falsely stating that the supply of a product or service is lawful.
- Presenting statutory consumer rights as a special advantage.
- Making unfounded claims that failure to purchase the product or service would endanger the consumer or their family.
- Falsely claiming that a trader is about to cease trading, relocate or change business activities.
- Falsely stating that a product facilitates winning games of chance.
- Making unlawful health claims.
- Providing false information about market conditions in order to induce consumers to purchase under disadvantageous terms.
- Promising prizes or equivalent benefits without any actual intention or ability to deliver them.
- Promoting a product as “free of charge” or “gratis” whilst requiring payment beyond inevitable costs.
- Falsely presenting oneself as a consumer or creating the impression of being a consumer.
- Creating a false impression that after-sales services are available abroad.
- Justifying price increases by reference to exchange rates or input costs when the price has not in fact been affected by such factors.
2. Aggressive Commercial Practices
The following behaviours, which exert pressure or use physical or psychological coercion, are considered aggressive commercial practices:
- Creating the impression that the consumer will not be allowed to leave the premises until a contract is concluded.
- Making repeated visits to the consumer’s home for reasons unrelated to an existing contractual obligation.
- Requesting irrelevant documents, charging unjustified fees, or systematically avoiding communication regarding the transaction.
- Exerting pressure by claiming that the commercial undertaking will suffer harm if the consumer does not purchase the product or service.
- Creating the false impression that a prize or benefit has been won or will be obtained, conditional upon the consumer making a payment or undertaking a specific action, where no such prize or benefit actually exists.
Conclusion
Unfair commercial practices constitute a significant legal problem area, as they undermine the free will of consumers, distort market equilibrium, and weaken the competitive position of honest traders. Preventing such practices is essential not only for the protection of individual consumer rights but also for the establishment of a fair and sustainable economic order.
Both Turkish law and European Union law seek to ensure that consumers are able to make informed and autonomous decisions by prohibiting unfair commercial practices. The conceptual framework and broad sphere of influence of the EU Directive play a guiding role in the development of Turkish law in this field and in the interpretation of domestic regulations. Accordingly, the application of the legislation should not be limited to a purely formal review, but should adopt a substantive and dynamic assessment method focusing on the actual impact on consumer behaviour, with a principle of broad, consumer-favourable interpretation. The ultimate objective should be not only consumer protection per se, but the establishment of a fair and competitive commercial environment.