Official Translation

REPUBLIC OF LITHUANIA

LAW ON CONSUMER PROTECTION

November 10, 1994 No I-657

Vilnius

(As last amended on 12 January 2007 – No X-1014)

CHAPTER I

GENERAL PROVISIONS

Article 1. The Purpose and Scope of the Law

1. This Law shall define consumer rights, spheres of the protection of consumer rights, establish an institutional system of the protection of consumer rights, the competence of the authorities of the protection of consumer rights, regulate the education of consumers, relations of consumers and sellers, suppliers of services, the protection of consumer rights out of court and the liability for violations of the legal acts regulating the protection of consumer rights.

2. The application of the legal acts of the European Union, referred to in the Annex to this Law, shall be ensured by this Law.

3. This Law shall not apply to educational and social services financed with the funds of the state and municipal budgets, to personal and public health care services the costs of which according to the laws are covered (compensated) from the budget of the Compulsory Health Insurance Fund, with the funds of the state or municipal budgets, to the supply of medicines, as well as when enforcing court judgements.

Article 2. Basic Definitions of This Law

1. Producer means a person functioning (established) in accordance with the procedure laid down by legal acts in the Republic of Lithuania or any other state of the European Economic Area, who:

1) has produced the product or has publicly announced it by marking it with his own name, trademark or some other distinctive sign;

2) acts as a representative of the producer when the producer has not been established in a state of the European Economic Area, or imports the product when there is no representative of the producer who has been established in a state of the European Economic Area;

3) as a participant in the supply of the product may influence the quality and safety of the product which is supplied to the market.

2. Financial service means any service of an insurance and pension funding nature as well as the financial services referred to in the Law on Financial Institutions.

3. Contract for the supply of financial services concluded by using means of communication means any contract for the supply of financial services concluded between a supplier and a consumer, using only means of communication (one or several).

4. Quality guarantee means any undertaking by a producer, seller, supplier, given without extra charge, to reimburse the price paid for the goods or services, to replace and repair the goods or otherwise eliminate the deficiencies of the goods or services, if the goods or services do not meet the specifications set out in the guarantee statement or in the relevant advertising.

5. Seller means any person who is in the trade and who offers and sells goods to consumers in the course of his business.

6. Sales price means the final price of goods, services fixed in monetary terms, together with the value added tax and all the other taxes, and in the event of failure to indicate a precise price, an example of calculation of the price according to which a consumer may check the price.

7. Service means any repayable activity or (and) its result by which the concrete needs of a costumer are offered to be met or are being met.

8. Service supplier means any person who, when acting for purposes relating to his business, offers and supplies for payment the services to customers.

9. Durable medium means any instrument which enables the consumer to store information addressed personally to him in a way accessible for future reference for a period of time adequate for the purposes of the information and which allows the unchanged reproduction of the information stored (a computer disk, Compact Disc read-only memory (CD-ROM), versatile digital (optical) disc (DVD), consumer’s hard disc drive which contains an electronic mail and other, except web pages if they do not conform to the characteristics defining the definition of the durable medium).

10. Initial contract for the supply of financial services means a contract concluded between a consumer and a service supplier of financial services which does not cover future transactions of the same type and carried out in sequence or individually.

11. Goods means any item offered for sale or being sold to a consumer. Heat and electricity, water, natural gas are also considered to be goods.

12. Standard unit price of goods means the price, including all taxes, of one kilogram, one litre, one metre, one square metre or one cubic metre of goods.

13. Means of communication refers to any means which, without the simultaneous physical presence of the service supplier and the consumer, may be used for the conclusion of a contract between the service supplier and the customer.

14. Consumer contract means a contract for acquisition of goods or services which is concluded with a seller or a service supplier for purposes which are outside consumer’s business or profession, i.e. to meet his personal, family or household needs.

15. Consumer means a natural person, who expresses his intention to buy, buys and uses goods or services to meet his own personal, family or household needs are outside his business or profession.

16. Information to the consumer means provision and dissemination of information relating to meeting of consumer needs and protection of their rights.

17. Consultation of the consumer means advices and practical help to consumers on the issues of the protection of consumer rights.

18. Consumer awareness means education, information and consultation of the consumer.

19. Consumer education means a process during which the main attention is focused on the awareness of the consumer rights, development of skills of critical thinking, taking of decisions and receiving of information, and which comprises formal education (primary, basic and secondary education, vocational training as well as post-secondary and higher studies) and non-formal education (pre-school, pre-primary and other non-formal education of children and adults).

CHAPTER II

CONSUMER RIGHTS AND

IMPLEMENTATION OF THE PROTECTION THEREOF

Article 3. Consumer Rights

1. Consumers shall have the right to:

1) acquire and use goods or services according at their own discretion (to choose a seller, service supplier);

2) acquire safe goods or services of suitable quality;

3) obtain correct and thorough information in the state language on the goods sold or services supplied;

4) obtain information about the procedure for enforcing and protecting of their rights;

5) defence of impaired rights and redress of pecuniary or non-pecuniary damage (loses);

6) appeal to authorities for the settlement of disputes or the court regarding the defence of the impaired rights;

7) join consumer associations;

8) education in the sphere of consumption;

9) protection of economic interests.

2. Consumers shall also enjoy other rights set forth in this Law and other legal acts.

Article 4. Requirements for purchase-sale of goods, the services related thereto and repayable services supplied to consumers

1. The requirements of the Civil Code shall apply to purchase-sale of goods and the services related thereto.

2. When supplying repayable services to consumers the requirements laid down in articles 6.350-6.370 of the Civil Code shall apply mutatis mutandis.

Article 5. Provision of Information on Goods and Services

1. A producer, seller, service supplier must provide in the state language to consumers the information established in the Civil Code and other legal acts and mark goods in the manner prescribed by legal acts.

2. The state language shall be obligatory in all public external and internal inscriptions of trade and service supply premises intended for consumers, including the names of trade and service supply premises.

Article 6. Principle of Fair Business Practice

When offering to purchase and supplying goods and services to consumers, sellers and service suppliers must adhere to the fair business practice. Goods and services must be offered in such a way that a consumer would be aware of a commercial character of an offer.

Article 7. Implementation of the Protection of Consumer Rights

The protection of consumer rights shall be implemented:

1) by applying preventive measures (educating, informing, providing consultations to consumers, carrying out research, performing market surveillance, and other measures);

2) through administrative, civil, criminal liability;

3) defending consumer rights out of court in accordance with the procedure laid down in Chapter VI of this Law and other laws, as well as in court.

chapter 3

spheres and institutional system of

the protection of consumer rights

Article 8. Spheres of the Protection of Consumer Rights

The spheres of the protection of consumer rights shall be purchase-sale of goods and the services related thereto, all repayable services when goods are acquired or services are supplied to consumers.

Article 9. Institutional system of the protection of consumer rights

The protection of consumer rights shall be guaranteed in the Republic of Lithuania by:

1) state and municipal institutions;

2) consumer associations.

Article 10. Competence of state and municipal institutions within the system of the protection of consumer rights

1. In the sphere of the protection of consumer rights the Government shall:
1) every four years approve a national strategy of the protection of consumer rights;

2) establish a state consumer rights protection authority and approve its regulations;

3) in the cases established by law approve standard terms and conditions of contracts;

4) approve or authorise state institutions and establishments to approve rules for the supply of separate types of services;

5) carry out other functions laid down by laws and other legal acts.

2. In the sphere of the protection of consumer rights the Minister of Justice shall:

1) participate in shaping and implementing a policy of the protection of consumer rights;

2) participate in organisation of the protection of consumer rights;

3) carry out other functions laid down by laws and other legal acts.

3. In order to ensure the implementation of the functions assigned to the Minister of Justice in the sphere of the protection of consumer rights, a state consumer rights protection board shall be set up (hereinafter referred to as the “Board”). This Board shall be a collegiate advisory body acting on a voluntary basis.

4. The Board shall consist of one representative of the Ministry of Justice, the State Consumer Rights Protection Authority (hereinafter referred to as the “Authority”), the State Food and Veterinary Service (hereinafter referred to as the “Service”), the State Non Food Inspectorate under the Ministry of Agriculture (hereinafter referred to as the “Inspectorate”), the State Public Health Service under the Ministry of Health (hereinafter referred to as the “State Public Health Service”), four representatives of consumer associations and one representative of the Association of Local Authorities in Lithuania. The Minister of Justice shall approve the regulations and composition of the Board. A representative of the Ministry of Justice shall head the Board.

5. The Board shall:

1) submit proposals concerning the implementation and improvement of a policy of consumer rights protection;

2) analyses information of institutions ensuring the protection of consumer rights regarding their activities and submit proposals concerning their activities;

3) submit proposals concerning passing and amending of legal acts regulating the protection of consumer rights.

6. In the sphere of the protection of consumer rights the Ministry of Science and Education shall:

1) coordinate consumer education and integrate consumer awareness into the formal education (primary, basic and secondary education, vocational training as well as post-secondary and higher studies) and non-formal education (pre-school, pre-primary and other non-formal education of children and adults);

2) approve programmes for qualification improvement of teachers, which contain issues pertaining to consumer education, and implement a consumer awareness policy in conjunction with educational establishments.

7. Other state and municipal institutions which implement the measures referred to in Article 7 of this Law shall, in accordance with the competence established by this and other laws and legal acts, participate in organising the protection of consumer rights, defending consumer rights.

Article 11. The State Consumer Rights Protection Authority

1. The State Consumer Rights Protection Authority shall be a state establishment under the Ministry of Justice, which implements the state policy in the sphere of the protection o consumer rights and guarantee the protection of consumer rights.

2. The State Consumer Rights Protection Authority shall be a legal entity. It shall have its bank accounts and the seal with the Coat of Arms of the State of Lithuania and its name.

3. The State Consumer Rights Protection Authority shall be a budgetary institution.

4. The State Consumer Rights Protection Authority shall be headed by the director. The director of the State Consumer Rights Protection Authority shall be appointed to this position by the Minister of Justice in accordance with the procedure laid down by the Law on Civil Service.

5. In order to implement the functions specified in subparagraphs 5, 6 and 7 of paragraph 1 of Article 12 the director of the State Consumer Rights Protection Authority shall set up a collegiate body – commission from the heads of structural units of the State Consumer Rights Protection Authority. Working arrangements of the State Consumer Rights Protection Authority shall be established by this and other laws, the regulations of the State Consumer Rights Protection Authority and the rules of procedure approved by it.

Article 12. Functions and rights of the State Consumer Rights Protection Authority

1. The State Consumer Rights Protection Authority shall exercise the following functions:

1) ensures the protection of consumer rights;

2) coordinates activities of consumer rights protection institutions, responsible for the regulation of a certain area of consumption, in the sphere of the protection of consumer rights (analyses the accumulated information, obtained periodically from state and municipal institutions, about the protection of consumer rights, submits proposals regarding the improvement of the protection of consumer rights);

3) adopts and harmonises legal acts relating to the protection of consumer rights;

4) presents conclusions and proposals on the laws and other legal acts relating to the protection of consumer rights;

5) considers complaints of consumers in accordance with the procedure of the settlement of consumer disputes out of court;

6) controls standard terms and conditions of contracts in the manner prescribed by law and contests unfair terms and conditions of consumer contracts;

7) applies sanctions provided for by law;

8) defends public interest of consumers in accordance with the procedure laid down in chapter seven of this Law;

9) organises consumer education, coordinates activities of state and municipal institutions, consumer associations when organising consumer education, provides information about consumer rights to sellers and service suppliers;

10) creates and manages a database of the protection of consumer rights;

11) in conjunction with other state institutions organises and carries out exchange of information with the Commission of the European Communities and member states (RAPEX system) in accordance with the procedure laid down by legal acts of the European Union;

12) in conjunction with the Commission of the European Communities and other national authorities of other member states of the European Union implements Regulation (EC) No 2006/2004 of the European Parliament and of the Council on cooperation between national authorities responsible for the enforcement of consumer protection laws;

13) represents the Republic of Lithuania in international organisations in the sphere of the protection of consumer rights;

14) carries out other functions prescribed by other laws and other legal acts.

2. The State Consumer Rights Protection Authority shall have the right:

1) to obtain information relating to the protection of consumer rights from state and municipal authorities responsible for an appropriate management sphere;

2) to obtain from state and municipal institutions, establishments, other persons the information and documents necessary to investigate infringements of laws and, when necessary – samples of advertised goods;

3) to carry out necessary on-site inspections as much as necessary to achieve the purposes of Regulation (EC) No 2006/2004 of the European Parliament and of the Council on cooperation between national authorities responsible for the enforcement of consumer protection laws;

4) to request that producers, importers, sellers and service suppliers or their representatives arrive to the State Consumer Rights Protection Authority and submit explanations orally or in writing;

5) to set up commissions, working groups for drafting of legal acts or solving other issues falling within the competence of the State Consumer Rights Protection Authority, to include in them the specialists of other institutions (after consultation with their heads);

6) other rights laid down by laws and other legal acts.

Article 13. Consumer associations

1. Consumer associations shall have the right:

1) to survey opinion of consumers about the assortment of goods and services, their quality, organisation of trade and supply of services;

2) to examine the quality of goods and services at testing laboratories, as well as to submit goods and services for expert examination and investigations;

3) to publicly announce results of surveys of consumer opinion, expert examinations testing of goods and services;

4) to present to state and municipal institutions proposals on the prohibition of production and sale of goods and supply of services hazardous to consumer health;

5) to submit to sellers and service suppliers proposals concerning improvement of the protection of consumer rights;

6) to educate consumers, to issue publications intended for them, to prepare broadcasts, etc;

7) to represent consumers when considering disputes in accordance with the procedure for settling disputes of consumers out of court;

8) to obtain information from producers, sellers, service suppliers about the quality of goods sold and services supplied, as well as other data necessary to defend consumer rights and interests;

9) to receive information form state and municipal institutions;

10) to implement programmes on information and provision of consultations to consumers;

11) to present proposals on the development of a policy of the protection of consumer rights and to participate in its implementation;

12) to defend public interest of consumers in accordance with the procedure laid down in chapter seven of this Law;

13) other rights defined by laws and other legal acts.

2. State financial support shall, in accordance with the rules approved by the Government, be granted to the consumer associations meeting the conditions set out in paragraph 1 of Article 31 of this Law, after they present an activity report in the manner prescribed by the Government.

3. Local authorities shall enjoy the right to support consumer associations in accordance with the procedure laid down by a municipal council.

CHAPTER 4

QUALITY AND SAFETY OF GOODS AND SERVICES

Article 14. Quality and Safety Requirements for Goods and Services

1. Quality and safety requirements for goods and services shall be established by the Civil Code, the Law on Product Safety, the Law on Food and other legal acts.

2. Unless proved otherwise, any lack of conformity which becomes apparent within six months of delivery of the goods or supply of the services shall be presumed to have existed at the time of delivery or supply unless this presumption is incompatible with the nature of the goods, services or the nature of the lack of conformity.

3. If the purchase-sale of goods include installation of the goods and the goods were installed by the seller or under his responsibility, any lack of conformity resulting from incorrect installation of the consumer goods shall be deemed to be equivalent to lack of conformity of the goods. This shall apply equally if the product, intended to be installed by the consumer, is installed by the consumer and the incorrect installation is due to a shortcoming in the installation instructions.

Article 15. Prohibition to sell goods after the expiry of their safe shelf life

It shall be prohibited to sell goods after the expiry of their safe shelf life. Goods shall be deemed to be completely or partially unsuitable for use according to their purpose, when their characteristics are or may be worse than established in the technical regulations intended for those goods and (or) the regulatory document declared by the producer, and if the characteristics are or may be worse than the consumer might have expected before the expiry of their safe shelf life.

Article 16. Quality guarantee

1. The quality guarantee provided by the seller, service supplier may not affect the consumer rights which, upon the acquisition of the goods or services of inadequate quality, are provided for them by legal acts.

2. The quality guarantee must be in the Lithuanian language. It must state that the quality guarantee may not affect the consumer rights upon the acquisition of the goods or services of inadequate quality. It must set out in plain intelligible language the business name (or the name and surname) and address of the guarantor, and the terms and conditions of the guarantee, notably the duration and territorial scope of the guarantee as well as the information necessary for making claims under the guarantee.

3. On request by the consumer, the quality guarantee shall be made available in writing or feature in another durable medium available and accessible to him.

4. Should a guarantee infringe the requirements of this Law or other legal acts, the consumer can still require that it be honoured.

CHAPTER 5

CONSUMER AWARENESS

Article 17. Conception of consumer awareness

1. Consumer awareness shall be a process in the course of which consumers are provided with possibilities to acquire knowledge and capabilities which would be necessary when purchasing and using goods and services to meet persona, family, household needs, implementing and defending consumer rights.

2. Trends and tasks of consumer awareness must be defined in the State Consumer Rights Protection Strategy.

Article 18. Broadcasting of radio programmes and telecasts on the issues of consumer rights protection

The National Radio and Television of Lithuania shall, from the appropriations allocated from the state budget, provide information on the issues of the protection of consumer rights in radio programmes and telecasts broadcast by it.

CHAPTER 6

DEFENDING CONSUMER RIGHTS OUT OF COURT

Article 19. Ways of defending consumer rights

1. A consumer presuming that the seller, service supplier has infringed his rights or the interests protected by law, shall have the right to appeal in the manner prescribed by this chapter to the seller, service supplier, the Service, Inspectorate or the State Public Health Service as well as to the authorities for the settlement of disputes referred to in paragraph 1 of Article 22, or to the court.

2. The consumer shall be entitled to defend his rights in other legal ways, which are not specified in this Law.

Article 20. Consumer’s appealing to the seller, service supplier

1. A consumer presuming that the seller, service supplier has infringed his rights or the interests protected by law must first of all appeal to the seller, service supplier and specify his request. If the seller, service supplier does not satisfy the consumer’s requests and the consumer thinks that his rights have been infringed, the consumer must appeal to the seller or service supplier in writing and set down his requests.

2. The seller, service supplier, objecting to the consumer’s requests, must not later than within 10 days from the date of receipt of the consumer’s application unless otherwise provided for by other laws, submit to the consumer a reasoned written reply, substantiated with the documents. The copies of these documents must be attached to the reply of the seller, service supplier to the consumer. The sellers, service suppliers must consider consumers’ applications free of charge.

Article 21. Consumer’s appeal to the Service, Inspectorate or the State Public Health Service

1. If the seller, service supplier fails to satisfy a consumer’s request regarding the acquired unsafe and (or) inadequate quality goods or services, he shall have the right to appeal to the Service, Inspectorate or the State Public Health Service with respect to return of the goods, elimination of the deficiencies, reduction of the price, replacement and (or) provision of information. These institutions must examine the consumer’s application not later than within 20 working days from the receipt of the application. When due to the objective reasons the examination of the consumer’s application cannot be finished, these institutions may extend the time limit but not longer than 10 working days.

2. After having examined the consumer’s application, the Service, Inspectorate or the State Public Health Service shall write out an inspection report specifying whether or not the consumer’s request is valid and if it is valid, shall propose to the seller, service supplier to satisfy the consumer’s request within a set time limit. The Service, Inspectorate or the State Public Health Service shall inform the consumer about the results of the inspection.

3. If the seller, service supplier fails to meet the proposal of the Service, Inspectorate or the State Public Health Service to satisfy the consumer’s request, these institutions shall submit a copy of the inspection report to the State Consumer Rights Protection Authority which shall solve an issue regarding the defence of consumer rights.

4. If in order to consider a consumer’s request an expert examination or laboratory test is needed by means of which the quality of goods and (or) services related to them is determined, this shall be done with the appropriations of the state budget allotted to the Service, Inspectorate or the State Public Health Service for that purpose, with the exception of the cases laid down in paragraph 5 of this Article.

5. The following shall pay for an expert examination or laboratory test in accordance with the procedure laid down by the Government or an institution authorised by it:

1) the seller, service supplier, if it is established that the goods and (or) services related to them or other repayable services are of inadequate quality;

2) the consumer if, on the decision of the Service, Inspectorate or the State Public Health Service an expert examination or laboratory tests are not necessary and the consumer wishes them to be carried out, when it proves out that the goods and (or) services related to them or other repayable services are of adequate quality.

6. If the persons indicated in paragraph 5 of this Article fail to pay for an expert examination or laboratory tests, the Service, Inspectorate or the State Public Health Service shall appeal to the court for awarding such costs.

Article 22. Authorities for the settlement of disputes, their right s and duties

1. The following institutions shall settle disputes in accordance with the out-of-court procedure for the settlement of consumer disputes (hereinafter referred to as the “authorities for the settlement of disputes):

1) the Communications Regulatory Authority of the Republic of Lithuania – in the spheres of electronic communications, postal and courier services;

2) the Insurance Supervisory Commission of the Republic of Lithuania - in the cases and according to the procedure laid down by the Law on Insurance;

3) the State Energy Inspectorate under the Ministry of Economy – in the spheres of the protection of consumer rights provided for in the Law on Energy;

4) the National Control Commission for Prices and Energy - in the spheres of the protection of consumer rights provided for in the Law on Energy;

5) other institutions – in the cases provided for in the laws;

6) the State Consumer Rights Protection Authority – in other spheres of the protection of consumer rights which are nor covered in subparagraphs 1-5 of paragraph 1 of this Article.

2. Disputes shall be settled in accordance with the procedure laid down by this chapter, unless otherwise provided for in other laws.

3. When settling disputes the institutions listed in paragraph 1 of this Article shall be entitled to:

1) apply to the consumer for additional information and specify a time limit for provision of such information;

2) receive from state and municipal institutions the information necessary for settlement of disputes and taking of decisions;

3) request from the seller, service supplier to whom a request has been issued, to present within the specified time limit the proof necessary to examine the consumer’s application and to receive explanations orally or in writing;

4) receive conclusions from state and municipal institutions;

5) other rights provided for in laws and other legal acts.

4. The institutions referred to in paragraph 1 of this Article must furnish the State Consumer Rights Protection Service with the information specified in paragraph 3 of Article 28 of this Law, ensure that the persons concerned would be provided with the information in writing or in any other acceptable form about the competence of the institution in settlement of disputes, the type of the disputes being settled, the procedure and time limits of settlement of the disputes, legal acts applicable in taking of decisions, potential expenses in the course of settlement of disputes, their distribution, the legal effect of a decision, consequences of failure to comply with a decision. The institutions specified in paragraph 1 of this Article shall, in their websites, announce information about the amount of applications received from consumers for settlement of disputes in accordance with the out-of-court procedure for settlement of disputes as well as the generalized results of the settlement thereof, an average time of settlement of disputes, the types of the generalized applications of consumers. Moreover, the institutions specified in paragraph 1 of this Article shall, at the request of the court or the disputing party, present conclusions in the lawsuit when the disputing party appeals under Article 29 to the court for a substantial consideration of the dispute.

Article 23. Appeal to authorities for the settlement of disputes

1. Every consumer shall have the right to file an application in the manner prescribed by this Article to an authority for the settlement of disputes in order to have his infringed or disputed rights and law protected interests defended.

2. When appealing to an authority for the settlement of disputes, a consumer must submit:

1) an application which must indicate: the name of an institution settling disputes to whom the application is being submitted; the consumer’s name, surname, address; the business name (name, surname), address (head office) of the seller, service supplier with respect to whose actions (failure to act) the consumer’s requests are being submitted; consumer’s rights and interests protected by law, which, in the consumer’s opinion, are being infringed by the seller, service supplier; consumer’s requests; information about appeal to the seller, service supplier; information whether or not a dispute of the same parties and on the same grounds is considered in an authority for the settlement of disputes, whether or not settlement of a dispute has been terminated under Article 26 of this Law, whether or not an authority for the settlement of disputes has taken a decision, whether or not a court decision has come into effect; a list of copies of the documents attached;

2) copies of the documents confirming the circumstances stated in the application.

3. In the case of a doubt concerning the authenticity of the copies of the submitted documents, an authority for the settlement of disputes shall have the right to request that the consumer and (or) the seller, service supplier would present originals of the documents.

4. After having received the documents referred to in paragraph 2 of this Article, an authority for the settlement of disputes shall determine whether or not there are grounds for refusing to examine an application.

5. An authority for the settlement of disputes shall refuse to examine an application of a consumer:

1) if it is not authorised to take a decision on the request indicated in the consumer’s application. In this case an authority for the settlement of disputes shall within 5 working days, refer the consumer’s application to other institutions specified in paragraph 1 of Article 22 and inform the consumer about this in writing;

2) if another authority for the settlement of disputes or the court settles a dispute of the same parties with regard to the same subject matter or on the same grounds. In this case the consumer’s application shall, within 5 working days from the date of its receipt at the authority for the settlement of disputes, be returned to the consumer and the grounds for its return shall be indicated;

3) if a decision of an authority for the settlement of disputes has been taken or a court’s decision has become effective on the dispute of the same parties regarding the same subject matter and on the same grounds, or a court ruling has become effective concerning the acceptance of withdrawal of a claim of the same parties with regard to the same subject matter and on the same grounds, or a court ruling has become effective on the approval of a peaceful settlement agreement;

4) when the consumer’s name and surname, address is not indicated or which is not signed by the consumer or his representative, or which is signed by the person who is not authorised by the consumer.

6. When representing consumers in the settlement of disputes in the out-of-court procedure for the settlement of disputes, consumer associations must submit copies of the documents confirming that they are registered in the Register of Legal persons, that the purpose of their activities, indicated in their founding documents is the representation and defending of consumer rights and lawful interests and that the consumers for the interests of whom the association appeals are the members of this association or that they have authorised it in writing to defend their interests.

Article 24. Preparation for settlement of a dispute

1. Upon the receipt of an application of a consumer, an authority for the settlement of disputes shall send to the seller, service supplier with respect to whose actions (failure to act) the consumer’s request has been filed, a notification about the received application of the consumer, the copies of this application and its attachments, requesting not later than within 10 days of the receipt of the notification to present in writing exhaustive explanations and the documents substantiating them.

2. If a consumer appeals to an authority for the settlement of disputes without having appealed to the seller, service supplier with respect to the subject matter of an application, or if he appealed but have not received any reply within the time limit fixed in paragraph 2 of Article 20 of this Law, the authority for the settlement of disputes must sent the consumer’s application to the seller, service supplier and propose to settle a dispute peacefully within the time limit fixed by it. If the seller, service supplier does not agree to settle a dispute peacefully, he shall submit to the authority for the settlement of disputes a reasoned explanation and the proof substantiating it. The authority for the settlement of disputes shall not settle a dispute if the seller, service supplier proposes to settle the dispute peacefully within the time limit fixed by the authority, and the consumer agrees with this or fails to indicate within the time limit fixed by it that he does not agree with such way of settlement of the dispute.

3. An authority for the settlement of disputes may appeal to state and municipal institutions which are responsible for the sphere related to the dispute, requesting conclusions regarding the request specified in the consumer’s application or the explanations submitted by seller, service supplier. When necessary, the above-mentioned authorities shall carry out an expert examination or laboratory tests. Expert examinations and laboratory tests shall be paid in accordance with the procedure laid down in paragraphs 4 and 5 of Article 21 of this Law.

4. State and municipal institutions responsible for the sphere of consumption related to the dispute shall submit conclusions to the authority for the settlement of disputes at its request within the time limit fixed by this authority, but not later than within 20 working days. If due to the objective reasons conclusions may not be submitted within the said time limit, this time limit may be extended but not longer than 10 working days.

Article 25. Settlement of disputes

1. When ready to settle a dispute, an authority for the settlement of disputes shall settle it in accordance with the written procedure according to written and (or) material evidence. By the decision of the authority for the settlement of disputes a dispute may be settled in accordance with the oral procedure when it is necessary to hear oral explanations of the parties to the dispute, when peaceful settlement of a dispute is sought or in other necessary cases. While settling a dispute in accordance with the oral procedure, the parties to the dispute and other interested parties must be informed about the venue, date and time of a sitting intended for the settlement of the dispute. If the consumer fails to attend a sitting of the authority for the settlement of disputes without a valid reason or fails to produce explanations and other evidence, the settlement of the dispute shall be terminated under Article 26 of this Law. If the seller or service supplier fails to attend a sitting of the authority for the settlement of disputes or fails to produce explanations and other evidence, the authority for the settlement of disputes shall have the right to take a decision taking into consideration the available evidence.

2. Settlement of disputes shall be open to the public, with the exception of the cases when by the decision of the authority for the settlement of disputes it is necessary to protect state, official, commercial, bank, occupational secrets or to ensure the consumer’s right to inviolability of private life. All the material of the case, except for the material of the cases, whose consideration was not open to the public, shall be accessible to the public and the persons who did not participate in the case consideration may get access to such material in accordance with the procedure laid down by the Minister of Justice.

3. A dispute shall be settled in compliance with the adversarial principle and principles of expedition of case consideration and transparency.

4. An authority for the settlement of disputes shall disclose the essence of the dispute, examine the available evidence and take measures for conciliating the parties.

5. In the course of an oral process, the parties to the dispute and all the interested persons participating during the settlement of the dispute shall adhere to the conduct of sitting established by the chairman of the sitting.

6. The parties to the dispute and other interested persons participating during the settlement of the dispute shall have the right to get access to the material of the case, to make transcripts, copies, submit evidence and participate in their examination, to submit applications, to receive an extract of the decision of the authority for the settlement of disputes, to make use of other rights granted by this Law. The persons participating during the settlement of the dispute must make use of these rights fairly, without protracting the settlement of the dispute.

7. An authority for the settlement of disputes shall first of all take measures to reconcile the consumer and the seller, service supplier and propose to settle the dispute in a peaceful manner, if, in the opinion of this authority, peaceful settlement is possible taking into consideration the circumstances which have come to light in the course of the settlement of the dispute. If the seller, service supplier and the consumer end the dispute in the form of a peaceful settlement agreement, the settlement of the dispute shall be terminated by the decision of the authority that settles it. In the event of failure to end the dispute in the form of a peaceful settlement agreement, the authority for the settlement of disputes shall take a decision on the dispute.

8. The authority for the settlement of disputes shall consider the application of the consumer and take a decision not later than within 20 working days from the date of submission of the application meeting the requirements of Article 23 of this Law, unless otherwise provided for by other laws. If due to the valid reasons the consideration of the consumer’s application cannot be finished within the said time limit, the authority for the settlement of disputes may extend such time limit, but not longer than 20 working days. The authority for the settlement of disputes shall take measures that the parties to the dispute would not misuse their rights and would not protract the settlement of the dispute, and shall seek that the dispute shall be properly settled within the shortest possible period of time.

9. Authorities for the settlement of disputes shall settle applications of consumers free of charge.

Article 26. Termination of the Settlement of a Dispute

1. An authority for the settlement of disputes shall terminate the settlement of a dispute in the following cases:

1) the parties to the dispute reconcile;

2) when invited the consumer fails to attend a sitting the authority for the settlement of disputes without a justifiable reason or does not provide explanations and evidence;

3) one of the parties to the dispute appeals to the court of general jurisdiction regarding the dispute which is being settled;

4) the circumstances come to light, which are referred to in subparagraphs 1-3 of paragraph 5 of Article 23 of this Law;

5) the consumer retracts his requests;

6) it is impossible to settle a dispute due to the objective circumstances.

2. When an authority for the settlement of disputes terminates the settlement of the dispute, the consumer shall not have the right to appeal to the authority for the settlement of disputes repeatedly with respect to the same subject matter, however, this does not restrict his right to appeal to the court.

Article 27. Decisions of the authority for the settlement of disputes

1. Upon having settled the consumer’s application, the authority for the settlement of disputes shall take one of the following decisions:

1) to satisfy the requests of the consumer;

2) to partially satisfy the requests of the consumer;

3) to reject the application of the consumer.

2. The authority for the settlement of disputes shall take its decision by taking into consideration the circumstances established during the settlement of the dispute as well as the evidence substantiating them.

3. A decision of the authority for the settlement of disputes must indicate:

1) the time and venue the decision was taken;

2) the name of the authority which took the decision;

3) the composition of the collegiate body which took the decision, if the dispute was settled collegially, the secretary of the sitting, the parties to the dispute, the interested persons who participated during the settlement of the dispute;

4) the essence of the dispute;

5) the summary of the explanations of the persons who participated during the settlement of the dispute;

6) evaluation of the evidence;

7) arguments because of which some evidence are declined;

8) the laws and other legal acts complied with, other legal arguments;

9) one of the decisions specified in paragraph 1 of this Article, taken by the authority;

10) the procedure for implementing the decision and the time limits within it is proposed to implement the decision, information that failure to implement the decision will be announced in accordance with the procedure laid down by Article 28 of this Law.

4. Transcripts of the decision of the authority for the settlement of disputes shall be sent to the consumer and the seller, service supplier within three working days.

Article 28. Public announcement

1. Having received notification that the seller, service supplier has not implemented the decision within the time limit specified in subparagraph 10 of paragraph 3 of Article 27 of this Law, the State Consumer Rights Protection Authority shall publicly announce about the failure to implement the decision in its website.

2. Having received notification that the seller, service supplier failed to implement a peaceful settlement agreement referred to in paragraph 7 of Article 25 of this Law, the State Consumer Rights Protection Authority shall publicly announce the failure to implement the peaceful settlement agreement in its website.

3. Authorities for the settlement of disputes must inform the State Consumer Rights Protection Authority about non-implemented decisions and peaceful settlement agreements immediately upon having received a notification about the failure to implement them. Notifications about the failure to implement decisions and peaceful settlement agreements shall be publicly announced in the website of the State Consumer Rights Protection Authority.

Article 29. Appeal to the court of general jurisdiction

The parties to the dispute shall be entitled to appeal to the court of general jurisdiction requesting to settle the dispute in essence during the process of settlement of the dispute in the authority for the settlement of disputes as well as after this institution takes a decision. Appeal to the court after the authority for the settlement of disputes takes a decision shall not be deemed the appeal against the decision of this authority.

CHAPTER 7

PROTECTION OF PUBLIC INTERESTS OF CONSUMERS

Article 30. Protection of public interests of consumers

1. Public interests of consumers shall be protected by the State Consumer Rights Protection Authority as well as consumer associations meeting the conditions set out in Article 31 of this Law, and in the cases laid down by law – other state and municipal institutions and legal entities.

2. Protection of public interests of consumers shall mean filing a claim or a petition (complaint) for the protection of public interests of consumers with the aim to recognize or change legal relationship, injunct (terminate) actions (failure to act) of the seller or service supplier which infringe the lawful public interests of consumers and are unfair from the point of view of consumers, are incompatible with a fair business practice or are in violation of the Civil Code, this Law or other legal acts.

3. The provisions of this Chapter does not restrain the rights of the consumer to protect the infringed rights himself.

Article 31. The right of a consumer association to protect public interests of consumers

1. Consumer associations shall have the right to protect public interests of consumers, provided such associations meet the following conditions:

1) are registered in the Register of Legal Persons;

2) the purpose of activities, indicated in the founding documents, is representation and protection of consumer rights and lawful interests;

3) at least 20 members comprise an association. In the event that the members of an association are other consumer associations, the total number of the members of these associations must be not less than 20;

4) are independent of business interests and other interests which are related to the protection of consumer rights.

2. When filing a claim or a petition (complaint) for the protection of public interests of consumers, a consumer association must present to the court the evidence that it corresponds to the conditions specified in paragraph 1 of this Article. The fact that a consumer association meets the condition indicated in subparagraph 4 of paragraph 1 of this Article shall be confirmed by a statement of this consumer association specifying that it is independent of business interests and other interests which are related to the protection of consumer rights, unless it is proven otherwise.

Article 32. Applying to the seller or service supplier

1. Upon having established that the public interests of consumers were infringed, the State Consumer Rights Protection Authority must apply to the seller, service supplier and propose to him to cease the infringement of the public interests of consumers within 14 days from the receipt of this proposal, as well as point out to the seller or service supplier that the State Consumer Rights Protection Authority will appeal to the court with a claim or petition (complaint) for the protection of the public interests, if the seller or service supplier will not cease the infringement of the public interests.

2. Upon having established that the terms and conditions of a consumer contract are unfair, the State Consumer Rights Protection Authority must apply to the seller, service supplier and propose to him within 14 days from the receipt of this proposal to amend, repeal or discontinue application of the unfair terms and conditions when concluding contracts with consumers, as well as point out to the seller or service supplier that the State Consumer Rights Protection Authority will appeal to the court with a claim or petition (complaint) for recognising the unfair terms and conditions invalid or amending them, if the seller or service supplier will not fulfil the proposal of the State Consumer Rights Protection Authority.

3. Upon having received the proposal of the State Consumer Rights Protection Authority referred to in paragraphs 1 or 2 of this Article, the seller, service supplier, who consents to cease the infringement of the public interests, shall, within the set time limit of 14 days, send to the State Consumer Rights Protection Authority a notification that he consents to cease the infringement of the public interests or that he has ceased the infringement. Having checked that the infringement of the public interests has been actually ceased, the State Consumer Rights Protection Authority shall announce a notification about this fact in its web site. If the infringement of the public interests has not been ceased, the State Consumer Rights Protection Authority shall appeal to the court for the protection of the public interests.

4. The provisions of paragraphs 1-3 of this Article shall apply mutatis mutandis also in the cases when the public interests of consumers are protected by other state and municipal institutions in the cases laid down by law, and paragraphs 1 and 2 of this Article shall apply mutatis mutandis when the public interests of consumers are protected by consumer associations and, in the case laid down by law, other legal entities.

Article 33. The right of the institutions or organisations of the member states of the European Union to bring an action in Lithuania for the protection of public interests

1. The institutions or organisations of the member states of the European Union which are included by the European Commission in the list provided for by Directive 98/27/EC of the European Parliament and of the Council on injunctions for the protection of consumers' interests and published in the Official Journal of the European Communities, shall have the right in accordance with paragraph 1 of Article 49 of the Code of Civil Procedure to bring an action in the courts of the Republic of Lithuania for an injunction to cease by the sellers (suppliers) of goods or services the infringements of public interests. The provisions of this paragraph shall apply in the cases when the activities of the sellers (suppliers) of goods and services, functioning in Lithuania, infringe the legal acts of the European Union the list of which shall be approved by the Minister of Justice of the Republic of Lithuania according to the Annex of Directive 98/27/EC of the European Parliament and of the Council on injunctions for the protection of consumers' interests, and such activities infringe the public interests of consumers of any other member state.

2. The institutions or organisations of the member states of the European Union may make use of the right to bring an action, specified in paragraph 1 of this Article, only after they have consulted in writing the State Consumer Rights Protection Authority of the Republic of Lithuania. The State Consumer Rights Protection Authority of the republic of Lithuania must provide a reply to institutions or organisations of the member states of the European Union within 14 days. Before bringing an action the institutions or organisations of the member states of the European Union shall also enjoy the right to apply to the seller or service supplier regarding the cessation of the infringement of the public interests of consumers and to propose to cease the infringement of the public interests of consumers within 14 days after the proposal is received, as well as to point out to the seller or service supplier that if the seller or service supplier will not cease the infringement of the public interests of consumers, the institutions or organisations of the member states of the European Union shall bring an action to the court for the protection of the public interests.

3. The State Consumer Rights Protection Authority shall notify the European Commission about the procedure of prior consultation adopted by Lithuania, as provided for in paragraph 2 of this Article.

Article 34. Protection of public interests of consumers in the member states of the European Union

1. The State Consumer Rights Protection Authority shall have the right to appeal to the courts and other competent authorities of the member states of the European union with a request to take a decision committing the seller (supplier) of goods and services, functioning in that member state of the European Union to cease the infringement of the public interests of the Lithuanian consumers.

2. The consumer associations meeting the requirements laid down in Article 31 of this Law, about which the European Commission is notified in compliance with paragraph 3 of this Article, shall also enjoy the right to appeal to the courts or other competent authorities with a request to take a decision committing the seller (supplier) of goods or services, functioning in that member state of the European Union to cease the infringement of the public interests of the Lithuanian consumers.

3. The State Consumer Rights Protection Authority of the Republic of Lithuania shall, at the request the consumer associations meeting the requirements laid down in Article 31 of this Law, inform the European Commission of the names and purposes of these associations. If other laws will provide for other state institutions for the right to appeal to the courts or other competent authorities of other member states of the European Union, the State Consumer Rights Protection Authority of the Republic of Lithuania shall inform the European Commission of the names of these institutions as well as of the scope of their authority.

Article 35. Public announcement about the protection of public interests

1. The consumer associations meeting the conditions laid down in Article 31 of this Law and in the cases specified by law – other state and municipal institutions and legal entities who protect public interests of consumers must, not later than within 5 working days from the accepting of a claim or petition (complaint) to be considered in the court, notify the State Consumer Rights Protection Authority about this. The State Consumer Rights Protection Authority shall announce this information in its web site.

2. The entities referred to in paragraph 1 of this Article shall, not later than within 5 working days from the adoption of a court’s decision in compliance with this Chapter, send this decision to the State Consumer Rights Protection Authority. The State Consumer Rights Protection Authority shall announce in its web site the effective court’s decisions in which the infringement of public interests is established.

CHAPTER 8

SUPPLY OF FINANCIAL SERVICES UNDER CONTRACTS CONCLUDED USING MEANS OF COMMUNICATION

Article 36. Supply of financial services under contracts concluded using means of communication

1. The provisions of this chapter shall apply when financial services are supplied under contracts concluded using means of communication with the participation of a service supplier himself or his intermediary. The Civil Code and other legal acts regulating the supply of financial services shall apply to the relations of the supply of financial services which are not defined by this chapter.

2. Consumers may not waive the rights granted to them in this chapter.

3. In the case of a contract for the supply of financial services comprising an initial financial service agreement followed by successive operations or a series of separate operations of the same nature performed over time, the provisions of this chapter shall apply only to the initial financial service agreement.

4. In case there is no initial financial service agreement but the successive financial operations or the separate financial operations of the same nature performed over time are performed between the same contractual parties, this Article shall apply only when the first operation is performed. Where, however, no operation of the same nature is performed for more than one year, the next operation will be deemed to be the first in a new series of operations and the requirements set out by this Article shall apply.

5. Prior to the conclusion of a contract for the supply of financial services a supplier of financial services must provide a consumer with the information which must contain the date related to the service supplier, the financial service, the contract for the supply of financial services concluded by using means of communication and redress.

6. The following information must be provided about the supplier of financial services:

1) the service supplier’s business name, head office (address), telephone, fax numbers, electronic mail, web site addresses, the register in which the data about this legal entity are accumulated and stored, code of the legal entity, as well as the data about the main business of the service supplier;

2) the identity of the representative of the supplier of financial services functioning in the consumer's Member State of residence and the address relevant for the customer's relations with the representative, if such a representative exists;

3) when prior to the conclusion of the contract the consumer's dealings are with any professional other than the supplier of financial services, and if the fact of the consumer’s dealings with the professional and all necessary provided data are known to the supplier of financial services – the professional’s name, surname, the capacity in which he is acting vis-à-vis the consumer, and the address;

4) where the service supplier's activity is subject to a licence and (or) an authorisation - the authority which has issued the licence and (or) the authorisation, its address, telephone, fax numbers, electronic mail, web site addresses and the date of issuance of the licence.

7. The following information must be provided about the financial service:

1) a description of the main characteristics of the financial service;

2) the total price including all related fees, charges, expenses and taxes paid via the service supplier or, when an exact price cannot be indicated, the basis for the calculation of the price enabling the consumer to verify it;

3) notice indicating that the financial service is related to instruments involving special risks related to their specific features or the operations to be executed;

4) notice indicating that the price depends on fluctuations in the financial markets outside the supplier's control and that historical performances are no indicators for future performances;

5) notice of the possibility that other taxes and/or costs may exist that are not paid via the service supplier or imposed by him;

6) any limitations of the period for which the information provided is valid;

7) the arrangements for payment and for performance of the financial service;

8) any specific additional cost for the consumer of using the means of communication, if such additional cost is charged.

8. The following information must be provided about the contract for the supply of financial services concluded by using means of communication:

1) the existence of a right of withdrawal and the procedure for implementing such right, including information on the amount which the consumer may be required to pay, as well as the consequences of non-exercise of that right or the absence of a right of withdrawal;

2) the minimum duration of the contract in the case of financial services to be performed permanently or recurrently;

3) information on any rights the parties may have to terminate the contract early or unilaterally, including any penalties imposed by the contract in such cases;

4) practical instructions for exercising the right of withdrawal indicating, inter alia, the address to which the notification of a withdrawal should be sent;

5) the Member State or States whose laws are taken by the supplier as a basis for the establishment of relations with the consumer prior to the conclusion of the contract;

6) any contractual clause on law applicable to the contract and/or on competent court;

7) in which language, or languages, the contractual terms and conditions, and the prior information referred to in this chapter are supplied, and furthermore in which language, or languages, the service supplier, with the agreement of the consumer, undertakes to communicate during the duration of this contract.

9. The following information must be provided about the redress:

1) whether or not there is an out-of-court procedure for the settlement of disputes concerning the infringement of consumer rights;

2) the existence of guarantee funds or other compensation arrangements.

10. The commercial purpose of the information referred to in paragraphs 6-9 of this Article shall be provided in a clear and comprehensible manner in any way appropriate to the means of communication used, with due regard to the principles of good faith in contractual relationships, and the principles governing the protection of the persons with incapacity or limited capacity.

11. Information on contractual obligations, to be communicated to the consumer during the pre-contractual phase, shall be in conformity with the contractual obligations which would result from the law presumed to be applicable to the contract if the latter were concluded.

12. In the case of voice telephony communications the identity of the supplier of financial services shall be provided and the commercial purpose of the call shall be indicated at the beginning of any conversation with the consumer. When the consumer expresses to the explicit consent, the identity of the person in contact with the consumer and his link with the supplier of financial services as well as the information referred to in subparagraphs 1, 2, 5 of paragraph 7 and subparagraph 1 of paragraph 8 of this Article (with the exception of the information on the consequences of non-exercise of the right of withdrawal) shall be also given.

13. In the case of voice telephony communications the supplier of financial services shall inform the consumer about his right to obtain the information other than the information referred to in paragraph 12 of this Article and specify the nature of this information.

14. After the conclusion of the contract, at any time during the contractual relationship the consumer shall be entitled, at his request, to receive any information related to the contract on paper. The consumer shall be entitled to change the means of communication used, unless this is incompatible with the contract concluded or the nature of the financial service provided.

15. Before the consumer is bound by a contract, he must receive the information referred to in paragraphs 6-9 of this Article on paper or on another durable medium available and accessible to the consumer.

16. If at the request of the consumer the contract is concluded using the means of communication which does not enable providing the information in conformity with paragraph 15 of this Article, the service supplier shall provide the information immediately after the conclusion of the contract.

17. The burden of proof that the information has been provided to the consumer in accordance with the requirements of this Article, that the consumer has expressed his consent to conclude the contract and that the performance of the contract is adequate shall be placed on the supplier.

Article 37. The consumer’s right of withdrawal or termination of a contract of financial services concluded by means of communication

1. The consumer shall enjoy the right to withdraw from the contract for the supply of financial services concluded using means of communication, by informing in writing the service supplier within a period of 14 days from the date of the conclusion of the contract, unless otherwise provided for in paragraph 2 of this Article.

2. The consumer shall enjoy the right to withdraw from the life assurance contract or the pension accumulation agreement concluded using means of communication, by informing in writing the service supplier within a period 30 days. The period for withdrawal from pension accumulation agreements shall begin from the day of the conclusion of the agreement. The period for withdrawal from life assurance contracts shall begin from the time when the consumer is informed that the contract has been concluded.

3. If the consumer receives the information in accordance with paragraph 15 or 16 of Article 36 of this Law after the conclusion of the contract or later than the notification about the conclusion of the contract, the period for withdrawal shall begin from the date of receipt of the information.

4. It shall be prohibited to restrict the right of the consumer to withdraw from the contract with additional obligations, fees or to limit it in any other way or to repeal it, with the exception of the cases provided for in this Article.

5. The consumer may not exercise the right established in this Article to withdraw from:

1) the contract relating to financial services whose price depends on fluctuations in the financial market outside the supplier’s control, which may occur during the withdrawal period. Financial services whose price depends on fluctuations in the financial market outside the supplier’s control, which may occur during the withdrawal period shall mean the service related to foreign exchange, money market instruments, transferable securities, units in collective investment undertakings, financial-futures contracts, including equivalent cash-settled instruments, forward interest-rate agreements, interest-rate, currency and equity swaps, options to acquire or dispose of any instruments referred to in this subparagraph including equivalent cash-settled instruments (this category includes in particular options on currency and on interest rates);

2) travel and baggage insurance policies or similar short-term insurance policies of less than one month's duration;

3) contracts whose performance has been fully completed by both parties at the consumer's express request before the expiry of the time limit for withdrawal from the contract.

6. The consumer who wishes to exercise his right of withdrawal from the contract shall, before the expiry of the deadline for the withdrawal from the contract, notify this to the service supplier, following the practical instructions given to him in accordance with subparagraph 4 of paragraph 8 of Article 36. The deadline shall be deemed to have been observed if the notification (if it is on paper or on another durable medium available and accessible to the service supplier), is dispatched before the deadline expires.

7. This Article shall not apply to credit agreements cancelled under paragraph 6 of Article 6.367 and paragraph 2 of Article 6.370 of the Civil Code.

8. If together with a contract of a financial service concluded using means of communication another contract has been concluded, using means of communication, concerning services provided by the supplier or by a third party on the basis of an agreement between the third party and the supplier, this contract shall be cancelled, without any additional obligations for the consumer, if the consumer exercises his right of withdrawal from the contract.

9. If the service supplier fails to comply with the provisions of this chapter, the contract for the supply of financial services concluded using means of communication must be cancelled without any additional obligations for the consumer.

10. The supplier of financial services may begin performance of the contract, prior to the expiry of the period for withdrawal from it, only with the consumer’s consent. When the consumer exercises the right to withdraw from the contract, he shall, within the period specified in the contract, pay for the financial service actually provided by the supplier under the contract.

11. The consumer shall pay for the actually supplied financial service, if he has been adequately informed in accordance with subparagraph 1 of paragraph 8 of Article 36 of this Law. The burden of proof that the consumer has been adequately informed shall be placed on the service supplier. The supplier of financial services may not request the payment for the financial service supplied, if he began performance of the contract without a prior consent of the consumer before the expiry of the period for the withdrawal from the contract, provided for in paragraph 1 or 2 of this Article.

12. The supplier of financial services shall, no later than within 30 days from the day on which the supplier receives the notification of withdrawal from the contract, return to the consumer any sums (and(or) property) he has received from him in accordance with the contract, except for those referred to in paragraph 10 of this Article. The consumer who withdraws from the contract in accordance with paragraphs 1 and 2 of this Article, shall return to the supplier any sums (and/or property) he has received from the supplier of the financial services no later than within 30 days from the day on which the consumer dispatches the notification of withdrawal.

Article 38. Unsolicited financial services

1. It shall be prohibited to supply financial services to a consumer without his consent, when this supply includes a request for payment.

2. The consumer who has been supplied with financial services without his consent may make use of these services at his own discretion for free. In this case the consumer shall be exempt from any liability related to the use of the services.

Article 39. Unsolicited communications

1. The supplier may send notifications by automated calling systems without human intervention (automatic calling machines) and fax machines only with the consumer's prior consent.

2. The supplier of financial services may use the means of communication other than those referred to in paragraph 1, which the consumer uses for personal needs, only with the consumer’s prior consent.

3. In the cases referred to in paragraphs 1 and 2 of this Article conditions must be created for the consumer to express his will gratuitously.

CHAPTER 9

FINAL PROVISIONS

Article 40. Liability for infringements of the legal acts regulating the protection of consumer rights

Sellers and service suppliers shall be held liable for infringements of the legal acts regulating the protection of consumer rights according to the procedure established by law.

Annex to the Law of the Republic of Lithuania

on Consumer Protection

THE LEGAL ACTS OF THE EUROPEAN UNION

WHICH ARE IMPLEMENTED BY THIS LAW

1. Directive 98/27/EC of the European Parliament and of the Council of 19 May 1998 on injunctions for the protection of consumers' interests (OJ, 2004 Special Edition, chapter 15, volume 4, page 223) with the latest amendments done by Directive 2002/65/EC of the European Parliament and of the Council of 23 September 2002 (OJ, 2004 Special Edition, chapter 6, volume 4, page 321).

2. Directive 1999/44/EC of the European Parliament and of the Council of 25 May 1999 on certain aspects of the sale of consumer goods and associated guarantees (OJ, 2004 Special Edition, chapter 15, volume 4, page 223).

3. Directive 2002/65/EC of the European Parliament and of the Council of 23 September 2002 concerning the distance marketing of consumer financial services and amending Council Directive 90/619/EEC and Directives 97/7/EC and 98/27/EC (OJ, 2004 Special Edition, chapter 6, volume 4, page 321).

4. Regulation (EC) No 2006/2004 of the European Parliament and of the Council of 27 October 2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws (2004 OJ, L 364, page 1).

I promulgate this Law passed by the Seimas of the Republic of Lithuania.

PRESIDENT OF THE REPUBLIC	VALDAS ADAMKUS