Doing Business In - International Franchise Association

has grown exponentially as bank regulations for the issuance of credit cards have been
relaxed to near-Western standards. Five years ago, it was rare for a Czech consumer to
use a credit card to make a purchase; today, virtually all professionals in major cities
have at least one.
Sales Service/Customer Support Return to top
Although not yet at the level of Western standards, customer service has come a long
way since the market opened up. There is still some room for improvement, and any
firm able to implement a customer-friendly support system will have an edge in the
market. This applies to both retail and industrial customers.
The retail market is less consistent when it comes to service/support. Many local firms
still do not seem to have grasped the concept of employee customer service training in
this post-Communist society, and this often leads to a mentality of “the customer is never
right.”
The industrial sector is somewhat more developed as the Czechs have made great
strides to become part of the international marketplace. U.S. companies should take
pains to demonstrate to potential end users their after-sale service capacities. Some
industrial users have the impression that European suppliers offer superior after-sale
support, and the presence of a well-trained, well-supported local agent who can service
equipment is important in closing a sale.
Conscious of the discrepancies among Member States in product labeling, language
use, legal guarantee, and liability, the redress of which inevitably frustrates consumers in
cross-border shopping, the EU institutions have launched a number of initiatives aimed
at harmonizing national legislation. Suppliers within and outside the EU should be aware
of existing and upcoming legislation affecting sales, service, and customer support.
Product Liability
Under the 1985 Directive on liability of defective products, amended in 1999, the
producer is liable for damage caused by a defect in his product. The victim must prove
the existence of the defect and a causal link between defect and injury (bodily as well as
material). A reduction of liability of the manufacturer is granted in cases of negligence on
the part of the victim.
Key link:
http://ec.europa.eu/enterprise/policies/single-market-goods/product-liability/
Product Safety
The 1992 General Product Safety Directive introduces a general safety requirement at
the EU level to ensure that manufacturers only place safe products on the market. It was
revised in 2001 to include an obligation on the producer and distributor to notify the
Commission in case of a problem with a given product, provisions for its recall, the
creation of a European Product Safety Network, and a ban on exports of products to
third countries that are not deemed safe in the EU.