Montenegro Moves to Strengthen Consumer Protection Laws

Montenegro’s Minister of Economic Development, Nik Đeljošaj, announced in parliament that a new Consumer Protection Law is expected to be adopted by the end of 2023. This legislation aims to align Montenegrin regulations with European Union standards, enhancing consumer rights and addressing illegal trading practices.

During a recent session, lawmakers discussed a set of laws focused on consumer protection. The proposed regulations include improvements in product safety, better access to product recall systems, and stricter rules to reduce exposure to hazardous products. These measures are designed to ensure consumers receive adequate information about risks associated with products.

A significant aspect of the new legislation is the introduction of collective lawsuits, allowing citizens to initiate legal action when their consumer rights are threatened. Đeljošaj emphasized that this model of collective protection would enable consumers to seek compensation for damages caused by unlawful practices, particularly when individual legal actions are not viable or economically justified.

Support from Political Parties

Both the parliamentary majority and opposition expressed support for these proposed laws. Mihailo Anđušić from the Democratic Party of Socialists (DPS) highlighted that the changes reflect the substantial benefits that European directives can bring, directly impacting consumer interests in Montenegro. He pointed out that consumers frequently voice concerns, especially regarding issues in the energy and telecommunications sectors.

Anđušić noted that despite the existence of independent regulators, unexpected increases in monthly fees have occurred without prior notice. He stated, “This law can bring significant improvements for citizens,” underlining the need for stronger protections.

The proposed legislation comes in the wake of two legal disputes involving the Consumer Protection Centre (CEZAP) against a bank over credit processing fees and early loan repayments. Although the bank’s practices were abolished following a successful lawsuit, those who had previously paid these fees did not receive any compensation, raising concerns about the effectiveness of existing consumer protections.

Impacts on Consumer Trust

Zdenka Popović from the Democrats stressed that these regulations would not only protect consumer interests but also promote responsible business practices. She underlined the necessity for consumers to feel secure when purchasing products online, highlighting the prevalence of misleading messages on digital platforms.

Popović asserted, “It is essential to ensure that deceptive practices in digital marketing are regulated similarly to those in the EU market.”

The Ministry of Economic Development has indicated that these legislative changes are necessary to address the challenges posed by individual lawsuits, particularly when damages are minor, but the number of affected consumers is significant. This issue is particularly pertinent in sectors where consumers frequently encounter misleading advertising, hidden fees, and unfair contractual clauses, such as financial services, telecommunications, energy, tourism, and online commerce.

These developments signal a crucial step towards enhancing consumer rights in Montenegro, potentially transforming the landscape of consumer protection in the country and fostering greater trust in the marketplace.