With the new year, a significant amendment to the Czech consumer protection laws came into force that further strengthens consumer rights and increases transparency in providing information to consumers. But there are also important changes in the marketing area, including tighter restrictions on using influencers to promote products and services.

Here the amendment introduces a new unfair commercial practice. This can be committed by a seller who publishes false consumer reviews or recommendations to promote a product or service or instructs another person to provide such consumer reviews or recommendations. It limits the previous practice circumventing the obligation to indicate a paid promotion by publishing seemingly objective reviews or recommendations. With the newly introduced right of consumers to withdraw from a contract or claim a reasonable discount where their decision to purchase a product or service has been affected by an unfair commercial practice, uncontrolled use of influencer marketing appears to be very risky.

Therefore, an adequate contract between the advertiser and the influencer is more important than ever. Such a contract should consider not only the form of promotion, the number of posts published or the obligation to indicate the cooperation, but also the compensation in case of a fine imposed by a supervisory authority or if the consumer withdraws from the contract.

Authors: Tomáš Klíma a Jiří Beneš