Amendment to the Commercial Code

The amendment is primarily focused on efficiently combating so-called catalogue frauds as a type of misleading conduct. The new rules were included in Section 46 as a new subsection five. Since a competitive relationship between companies offering catalogue advertising and parties suffering detriment normally does not exist, the amendment extends both the general clause of Section 44(1) and the meritory definition of unfair advertisement in section 45(1) to include conduct in “standard” business transactions, in addition to competitive conduct.
At the same time, the impact of the protection against unfair competition in the said provisions extends to other customers in addition to competitors and consumers. This broader definition thus includes businesses that are not parties committing any unfair conduct in carrying out business as well as legal entities that are not businesses. The provisions will have to be interpreted in the context of the new definition of the term consumer as per other laws (see below), i.e. just as a natural person.
The new provision of Section 55, applicable to any type of unfair conduct, constitutes a substantial change. The provisions set forth that any agreement or any part thereof shall be held null and void if the ban on unfair competition is breached upon the execution thereof pursuant to the applicable provisions of the Commercial Code.
The amendment was published on 21 May 2010 under No. 152/2010 Coll. and takes legal force and effect on 1 July 2010.
Other articles
KŠB Assisted with the Refinancing of the BigBoard Group, a leading player in the premium outdoor advertising market
Our team provided legal advice to BigBoard Praha, a leading player in the premium outdoor advertising market in the Czech Republic, in connection with its refinancing. Founded in 1993, the BigBoard Group is the largest provider of premium outdoor advertising in the Czech Republic, with an approximately 70% market share and annual turnover of around CZK 2 billion. Its advertising media cover key locations across the country, including the Prague metro and major transport hubs.
KŠB Assisted Sandberg Capital with a Majority Investment in HotelTime Solutions
The KŠB team provided legal advice to the investment group Sandberg Capital on the completion of a majority investment in HotelTime Solutions, one of the leading providers of cloud-based software for hotel operations management.
KŠB assisted Seyfor with the extension of its financing provided by Raiffeisenbank, Tatra banka and, newly, Slovenská sporiteľňa.
The KŠB team provided legal advice to its long-standing client Seyfor in connection with the continuation and expansion of its syndicated financing. The existing lending banks, Raiffeisenbank Czech Republic and Tatra banka, decided to continue supporting Seyfor’s growth, with Slovenská sporiteľňa joining the financing as a new lender.