Limitation on sale and purchase of FFP3 respirators in the Czech Republic since March 4, 2020 and penalties for non-compliance
An emergency measure of the Ministry of Health of the Czech Republic restricting the sale of FFP3 class masks (respirators)
On March 3, 2020 the Ministry of Health of the Czech Republic as an administrative authority competent under § 80 para. 1, Letter (g) of Act no. 258/2000 Coll., on Public Health Protection and on Amendments to Certain Related Acts, as amended (hereinafter referred to as "Act no. 258/2000 Coll."), issued in accordance with Section 69 para. i) and paragraph 2 of Act No. 258/2000 Coll. on the protection of the general public and the prevention of the risk of developing and spreading COVID-19 caused by the new coronavirus SARS-CoV-2, an emergency measure prohibiting all persons with effect from March 4, 2020 from selling all personal protective equipment under EU Regulation No 2016/425, class FFP3 manufactured and marketed in accordance with EN 149: 2001 + A1: 2009 to persons other than:
- providers of health services pursuant to Act No. 372/2011 Coll., on health services and conditions for their provision (Czech Health Services Act), as amended,
- Providers of social services pursuant to Act No. 108/2006 Coll., on Social Services, as amended, who provide health services pursuant to Section 11, Para. b) of Act No. 372/2011 Coll., as amended,
- the Czech Republic and its branches,
- persons distributing said personal protective equipment, established or established in the Czech Republic, who may resell or transfer said personal protective equipment only to the above mentioned persons in accordance with this emergency measure.
Price regulation of the Ministry of Finance of the Czech Republic setting maximum prices for FFP3 class masks
At the same time, the Ministry of Finance of the Czech Republic issued, on March 4, 2020 in the Price Bulletin, Part 4, the Notice No. 03/2020, amending the list of regulated prices of goods issued by the Ministry of Finance No. 01/2020 to set maximum prices:
- for personal protective equipment according to Regulation (EU) 2016/425 of the European Parliament and of the Council, respirators class FFP3 produced by entities established in the European Union and placed on the market in accordance with technical standard EN 149: 2001 + A1: 2009 CZK 175 excluding VAT for one piece, regardless of the number of pieces in the package and the type of package when sold to persons specified in the above-mentioned Emergency Measure of the Ministry of Healthcare of Czech Republic for the prevention of the risk of developing and spreading COVID-19 caused by the new coronavirus SARS-CoV-2; and
- for personal protective equipment according to Regulation (EU) 2016/425 of the European Parliament and of the Council, respirators class FFP3 produced by entities located outside the European Union and placed on the market in accordance with technical standard EN 149: 2001 + A1: 2009 CZK 350 excluding VAT per item, regardless of the number of items in the package and the type of package when sold to persons as defined in the Emergency Measure of the Ministry of Health concerning the prevention of the risk of developing and spreading COVID-19 caused by the new SARS-CoV-2 coronavirus.
Fines for breach of the price regulation and related obligations under the Czech Act on Prices
Breach of the above price regulation can be committed by both the seller and the buyer
Fines for the seller
A natural person, legal entity or natural person doing business as a seller commits an offense pursuant to Section 16 of the Czech Act on Prices - unofficial English translation effective as of January 1, 2013 with a fine of up to CZK 1,000,000 if it:
a) does not maintain or maintain records of prices pursuant to Section 11 of the Czech Act on Prices;
(b) breaches any of the obligations laid down in Section 13 (2) to (11) of the Czech Act on Prices on prices when marking goods with prices; or
c) does not comply with the stipulated conditions agreed pursuant to Section 2 (1) of the Czech Act on Prices when selling or buying goods,
The same fine also applies to a legal entity or a natural person doing business as a buyer if it buys goods for a price that is not in accordance with the price officially determined pursuant to Section 5 (1) of the Czech Act on Prices.
(a) abuses his economic position in breach of Section 2 (3) of the Czech Act on Prices; or
(b) fails to provide information or documentation free of charge pursuant to Section 12 (1) of the Czech Act on Prices to the pricing authority or to provide false information.
A natural person, legal entity or natural person doing business as a seller commits an offense pursuant to Section 16 of the Czech Act on Prices with a fine of up to one to five times the unreasonable financial benefit if it is quantified, CZK 1,000,000 if the amount of disproportionate financial benefit is less than CZK 1,000,000 if it:
(a) offers, negotiates or requests a price not in accordance with the officially fixed price;
(b) fails to comply with the officially determined price pursuant to Section 5 (1) of the Czech Act on Prices;
c) fails to comply with the material conditions, rules or procedures for determining official prices, their changes and the manner of their negotiation, application and billing, set by the pricing authorities pursuant to Section 5 (5);
d) negotiates or requests a price the amount or calculation of which does not comply with the conditions of material price regulation pursuant to Section 6 (1) of the Czech Act on Prices,
e) fails to observe a price that is in accordance with the conditions of material price regulation pursuant to Section 6 (1) of the Czech Act on Prices,
(f) abuses his economic position in breach of Article 2 (3) of the Czech Act on Prices; or
A natural person, legal entity or self-employed natural person, as a seller, commits an offense pursuant to Section 16 of the Act on Prices with a fine of up to CZK 10,000,000 if the amount of disproportionate financial gain cannot be ascertained if it
(a) offers, negotiates or requests a price not in accordance with the officially fixed price;
b) fails to comply with the officially determined price pursuant to Section 5 (1) of the Czech Act on Prices;
c) fails to comply with the material conditions, rules or procedures for determining official prices, their changes and the manner of their negotiation, application and billing, set by the pricing authorities pursuant to Section 5 (5) of the Czech Act on Prices;
d) negotiates or requests a price the amount or calculation of which does not comply with the conditions of material price regulation pursuant to Section 6 (1) of the Czech Act on Prices,
e) fails to observe a price that is in accordance with the conditions of material price regulation pursuant to Section 6 (1) of the Czech Act on Prices,
f) abuses its economic position in violation of Section 2 (3) of the Czech Act on Prices.
Fines for buyers
A natural person, legal entity or entrepreneurial natural person as a buyer commits an offense pursuant to Section 16 of the Czech Act on Prices with a fine of up to CZK 1,000,000 if it:
a) does not comply with the stipulated conditions agreed pursuant to Section 2 (1) of the Czech Act on Prices when selling or buying goods,
b) fails to provide information or documentation free of charge pursuant to Section 12 (1) of the Czech Act on Prices to the pricing authority or provides false information.
The same fine also applies to a legal entity or a natural person doing business as a buyer if it buys goods from funds provided to it from the state budget for a price higher than the price regulated under § 5 or 6 of the Czech Act on Prices.
A natural person, legal entity or natural person doing business as a buyer commits an offense pursuant to Section 16 of the Czech Act on Prices with a fine of up to 1 to 5 times the disproportionate property benefit, if quantified, found during the audited period, CZK 1,000,000 if the amount of disproportionate property benefit is less than CZK 1,000,000 if it:
(a) abuses his economic position in breach of Article 2 (3) of the Czech Act on Prices; or
The same fine also applies to a legal entity or a natural person doing business as a buyer if it buys goods for a price that is not in accordance with the price officially determined pursuant to Section 5 (1) of the Czech Act on Prices.
A natural person, legal entity or natural person doing business as a buyer commits an offense pursuant to Section 16 of the Act on Prices with a fine of up to CZK 10,000,000 if the amount of disproportionate property benefit cannot be ascertained or unreasonable property benefit was not, if it:
(a) abuses his economic position in breach of Article 2 (3) of the Czech Act on Prices; or
The same fine also applies to a legal entity or a natural person doing business as a buyer if it buys goods for a price that is not in accordance with the price officially determined pursuant to Section 5 (1) of the Czech Act on Prices.
For more information, contact us at:
JUDr. Mojmír Ježek, Ph.D.
ECOVIS ježek, advokátní kancelář s.r.o.
Betlémské nám. 6
110 00 Praha 1
e-mail: mojmir.jezek@ecovislegal.cz
www.ecovislegal.cz
About ECOVIS ježek advokátní kancelář s.r.o.
The Czech law office in Prague ECOVIS ježek practices mainly in the area of Czech commercial law, Czech real estate law, representation at Czech courts, administrative bodies and arbitration courts, as well as Czech finance and banking law, and provides full-fledged advice in all areas, making it a suitable alternative for clients of international law offices. The international dimension of the Czech legal services provided is ensured through past experience and through co-operation with leading legal offices in most European countries, the US, and other jurisdictions. The Czech lawyers of the ECOVIS ježek team have many years of experience from leading international law offices and tax companies, in providing legal advice to multinational corporations, large Czech companies, but also to medium-sized companies and individual clients. For more information, go to www.ecovislegal.cz/en.
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