Legal Journal: Legislative Compass - November 2023

We bring you the latest information from the world of law for the month of October 2023 in our Legislative compass.

Here are the most important news:

1st UGC also for electric scooters?

2. Will there be a change in the electoral system during the next election period?

3. Important changes in consumer law

JUDr. Karol Nagy, attorney

PZP also for electric scooters?

The European Union has responded to the increased risk when using electric scooters by adopting a directive [1], which aims to introduce mandatory contractual insurance for electric scooters in all EU Member States. In connection with this goal, Member States, including Slovakia, must adopt the necessary national legislation to put this obligation into practice. They must do so by 23 December 2023, otherwise they will be committing a breach of obligations under European law, which may lead to proceedings before the Court of Justice of the EU.

The obligation to conclude an insurance policy should apply to a vehicle, which means: "every motor vehicle propelled solely by mechanical energy on land, but not operated on rails:

• with a maximum design speed of more than 25 km/h, or
• maximal operating weight of more than 25 kg and a maximum design speed of more than 14 km/h,

including any trailer" to be used with the above vehicle.

From the end of December 2023, all owners of electric scooters (or Segways) that reach the highest possible speed of more than 25 km/h, as well as scooters whose weight exceeds 25 kg and reach the highest possible speed of more than 14 km/h, will have to have a UGC from the end of December 2023.

In conclusion, it should be added that the Slovak Parliament has not adopted this obligation and related legal norms to date, and it seems that it will not be able to do so by the set deadline, which means that the obligation to insure your electric scooter is not yet in sight on Slovak roads. The legislation regulating the UGC for electric scooters is still only in the inter-ministerial comment procedure [2].

Will there be a change in the electoral system during the next election period?

The Hlas-SD party, led by its chairman Peter Pellegrini, is proposing a change in the electoral system. The announced change should abolish one constituency and move the elections more to the regions. The coalition Hlas-SD sees a potential change in the electoral system as a higher level of democracy, in which only candidates who are in advantageous positions on the candidate list would not get into parliament.

The Speaker of the Parliament Peter Pellegrini would like all districts or at least regions to be represented. However, any change will require a constitutional majority, which will be the subject of negotiations with opposition parties. Progressive Slovakia together with Igor Matovič's Slovakia movement strongly reject the change, they see the change in the electoral system as an attempt to cement themselves in power. The SaS party admits certain changes to the electoral system, but their proposals relate to the introduction of a two-round election in majority elections, i.e. for the presidents of self-governing regions. They would also welcome the connection of the presidential elections with the European elections. However, the opposition KDH is ready to negotiate with the coalition. Milan Majerský claims that it is time to include Slovakia among the modern countries of the world by changing the electoral system to eight constituencies, with each constituency having its own candidate list.

We have had the current system of one constituency in Slovakia since 1988. From the point of view of several experts, its biggest disadvantage is the centralization of political parties. A change in the electoral system could force several political parties to build party structures in the regions. In connection with a potential change in the electoral system, it will also be important to enforce that deputies cannot run in any district, but only in the district where they have permanent residence.

Important changes in consumer law

The new Consumer Protection Act should be the basic legislation in the field of consumer protection in the future. The aim of the Act will be to unify and modernise consumer protection legislation with an emphasis on the implementation of several key directives of the European Parliament and the Council of the EU. As a result of the unification of several pieces of legislation into one, it is intended to ensure clearer regulation for consumers as well as traders, in particular by eliminating application problems or terminological inconsistencies.

The most significant changes on the consumer side include increasing the level of protection against unfair commercial practices or false marketing. Consumers will be obliged to be informed about the authenticity of product ratings by other consumers, as well as about the main parameters determining the ranking of the products they are looking for and their mutual importance. Regulation on price reductions will also be introduced in an effort to prevent price manipulation from fictitious discounts and sales. Misleading consumers about the actual amount of the discount is one of the phenomena that could be observed in practice in several retailers, especially during sales periods. Following the evolving market as well as European consumer protection legislation, the new law will include legal definitions of terms such as digital content, digital service or things with digital elements. For contracts concluded during an unsolicited visit to the trader's home or at an organised event where products are presented and offered to consumers, there will be a 30-day withdrawal period. Last but not least, the new legislation should bring with it a guarantee of faster consumer compensation.

Changes will also occur on the part of traders. Traders will no longer be obliged to publish a notice 24 hours in advance that their operations will be temporarily closed. When making purchases, they will have to explicitly state whether the purchase offer comes from a trader or a non-trader. New institutes should also be introduced aimed at reducing or waiving the sanction for violating the law. For example, it will be the institute of the so-called second chance, which will consist in waiving the imposition of a sanction, or reducing its amount, in cases of voluntary termination of the violation of the relevant legal regulations by the trader. However, the latter will also be obliged to carry out remedies for the benefit of the consumer concerned. However, new sanction measures should be imposed depending on the trader's turnover, which should avoid liquidation fines while achieving a greater degree of fairness. All the mentioned changes should apply from March 1 next year.

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[1] DIRECTIVE (EU) 2021/2118 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 November 2021 amending Directive 2009/103/EC relating to insurance against civil liability in respect of the use of motor vehicles and the enforcement of the obligation to insure against such liability.

[2] LP/2023/402 - Act amending Act No. 381/2001 Coll. on Compulsory Contractual Liability Insurance for Damage Caused by the Operation of a Motor Vehicle and on Amendments to Certain Acts, as amended, and amending certain Acts.