Azerbaijan amends law on sale of automobiles

Restrictive terms have been added to the contracts for the sale of automobiles, Azernews reports, citing the Antimonopoly and Consumer Market Control State Service under the Ministry of Economy.

During the sale of mini cars in Azerbaijan, the addition of restrictive conditions to contracts with customers has revealed signs of unfair competition against other market subjects.

The service information states that, according to the approved monitoring plan of the State Service for 2023, an investigation has been conducted into the compliance of the terms in contracts concluded during the sale of mini cars on the market with the requirements of unfair competition legislation.

As a result of the investigations, it has been determined that restrictive conditions have been added to contracts concluded with customers by major market participants, including warranty terms, which may lead to unfair competition against technical service providers or stations providing technical repair services for vehicles.

In order to eliminate the identified legal violations, meetings were held with representatives of market participants who were found to have violations in their activities in December of last year at the State Service for Antimonopoly and Consumer Rights Protection. During the meetings, the issue of the compliance of contracts and warranty terms concluded by market participants with the requirements of unfair competition legislation was discussed, and the legal requirements were explained to them. As a result, several market participants made appropriate changes to the contract terms.

According to the "Law on Unfair Competition" of the Republic of Azerbaijan, exerting unlawful influence on the decision-making and execution of business decisions of a competitor in the field of entrepreneurship with the aim of gaining an unjustified advantage over them, as well as considering unjust unilateral advantages in contracts, is considered unfair business activity, and such actions are not allowed.

Regarding the cases mentioned above, the State Service for Antimonopoly and Consumer Rights Protection under the Ministry of Economy has initiated proceedings against one market participant engaged in the sale of mini cars for indications of violating the requirements of the "Law on Unfair Competition" of the Republic of Azerbaijan. Measures in accordance with the law are also envisaged regarding other market participants.

Citizens and business entities facing restrictive terms and unfair competition practices in contracts can directly appeal to the State Service for Antimonopoly and Consumer Rights Protection under the Ministry of Economy. They can do so through an official request via the official website (https://competition.gov.az/az/page/muraciet/erize-sikayet-teklif), email ([email protected]), or by contacting the call center at 195-1.