ADMINISTRATIVE PENALTIES BECAME SUBJECT TO CONCILIATION (AUGUST 2018)

Conciliation for administrative penalties became a part of consumer protection legislation with the amendment of the Consumer Protection Law numbered 6502. The aim of the amendment is avoiding public expenses to be occurred due to litigation process regarding administrative sanctions in relation to breach of consumer protection law’s obligations and finalize the process as soon as possible.   

Regulation on Conciliation of Administrative Penalties within the scope of Consumer Protection Law numbered 6502 (“Regulation”) has been prepared by the Ministry of Customs and Trade which published in Official Gazette dated 30/05/2018, numbered 30436 in order to set forth the principles and procedures of such conciliation.

According to the Regulation, conciliation applications shall be made to the Ministry of Customs and Trade within 15 days’ period following the notification date of the administrative penalty. Applications which are executed later than the mentioned 15 days’ period shall not be accepted.

Administrative penalties which can be subject to the conciliation are as follows:

  • In case the addressee company of the administrative penalty claims that; the violation or failure which caused issuance of administrative penalty has originated due to misinterpretation of legislation or,
  • in case there is a conflict between the judicial decisions and the ministry’s decisions.  

Administrative penalties which cannot be subject to the conciliation are as follows:

  • administrative penalties subject to a pending administrative law suit,
  • administrative penalties issued by the Board of Advertisement,
  • some of the administrative penalty which have been already notified to the addressee,
  • administrative penalties which have been already paid,
  • in case a previous conciliation process of an administrative penalty cannot be consummated, then such penalty cannot be subject to a new conciliation process again.

Commissions to be established by the Ministry pursuant to the Regulation are authorized to evaluate conciliation applications. Decisions of the commission to be rendered under conciliation process are final. There isn’t any objection right against the decision of commission.

Administrative penalties may be discounted up to 50% in case a conciliation decision has been made at the end of the conciliation negotiations. Cash payment discount is not applicable in case of application for conciliation regardless of result of such conciliation.

Application for conciliation suspends payment duration and limitation of action. In case of failure in consummation of conciliation process such periods shall continue. 

Conciliation application must be consummated within 3 months’ period. Administrative penalties, for which a conciliation application has been made, cannot be sued until finalization of the application. The settled amount must be paid within 15 days following the notification of the minutes of conciliation.