2.1. The state progress strategy “The Lithuanian Progress Strategy “Lithuania 2030”, approved by resolution No. XI-2015 of 15 May 2012 of the Seimas of the Republic of Lithuania “On Approving the State Progress Strategy “The Lithuanian Progress Strategy “Lithuania 2030”;

2.2. The programme of the sixteenth Government for 2012–2016, approved by resolution No. XII-51 of 13 December 2012 of the Seimas of the Republic of Lithuania “On the State Programme of the Government of the Republic of Lithuania”;

2.3. The priority measures of implementing the programme of the Government of the Republic of Lithuania for 2012–2016, approved by resolution No. 228 of 13 March 2013 of the Government of the Republic of Lithuania “On Approving the Priority Measures of Implementing the Programme of the Government of the Republic of Lithuania for 2012–2016”;

2.4. The national progress programme for 2014–2020, approved by resolution No. 1482 of 28 November 2012 of the Government of the Republic of Lithuania “On Approving the National Progress Programme for 2014–2020” (hereinafter referred to as the National Progress Programme for 2014–2020);

2.5. The results of implementing the state consumer protection strategy for 2011–2014, approved by resolution No. 848 of 7 July 2011 of the Government of the Republic of Lithuania “On Approving the State Consumer Protection Strategy for 2011–2014” (hereinafter referred to as the State Consumer Protection Strategy for 2011–2014);

2.6. Regulation (EU) No. 254/2014 of the European Parliament and of the Council of 26 February 2014 regarding the multiannual consumer programme for 2014–2020, according to which Decision No. 1926/2006/EC (OJ 2014 L 84, page 42) is repealed (hereinafter referred to as the Multiannual Consumer Programme);

2.7. The resolution of the European Parliament of 22 May 2012 on the strategy for strengthening the rights of vulnerable consumers (2011/2272(INI)) (Texts adopted, P7_TA(2012)0209);

2.8. The Communication from the European Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 22 May 2012 “A European Consumer Agenda - Boosting Confidence and Growth” COM(2012) 225 final (hereinafter referred to as the European Consumer Agenda);

2.9. The Communication from the European Commission of 18 December 2012 on Content in the Digital Single Market COM(2012) 789 final;

2.10. The working document of the European Commission on the Consumer Conditions Scoreboard “Consumers at Home in the Single Market”, Ninth edition, 22 July 2013, SWD(2013) 291 (hereinafter referred to as the Ninth Consumer Conditions Scoreboard).

11.1. In April 2014, a study of the system of institutions implementing the market surveillance policy(http://www.ukmin.lt/uploads/documents/imported/lt/veiklos_kryptys/ es_vidaus_rinka/Rinkos_priez_politika_galutine_ataskaita_2014-05-16.pdf) was presented; the goal of the study was to analyse the functions of the market surveillance system and to determine whether national law properly implements the provisions of Regulation (EC) No. 765/2008 of the European Parliament and of the Council of 9 July 2008 setting out the requirements for accreditation and market surveillance relating to the marketing of products and repealing Regulation (EEC) No. 339/93 (OJ 2008 L 218, page 30) – the requirements for accreditation and market surveillance relating to the marketing of the product, and to present proposals regarding potential improvement of the regulation. One of the objects of the study was the cooperation of national market surveillance institutions. The study states that: “Cooperation agreements should ensure a smoother, faster and more efficient cooperation between various public institutions. Interagency cooperation may adopt different forms: sharing and exchange of information, provisions of methodological assistance and advice, participation in joint activities by performing certain actions together. Irrespective of form, interinstitutional cooperation should be carried out without violating the requirements of the legal acts that regulate the functions and the activity of the institution.” Since the examination of consumer complaints and the prohibition of potentially illegal commercial activity requires coordinated action of several public institutions, it is expedient to develop interinstitutional cooperation in the area of consumer protection. One of suggested forms is the organisation of seminars, conferences and meetings to discuss matters of safety assessment of non-food products (products and services). Efficient market surveillance is also ensured by improving the competence of relevant professionals, therefore it is expedient to organise training for the employees of market surveillance institutions.

11.2. Websites that are registered abroad are used to sell food supplements that are non-notified in Lithuania and potentially unsafe. These products are usually particularly intensively advertised, in violation of the provisions of Regulation (EC) No. 1924/2006 of the European Parliament and of the Council of 20 December 2006 on nutrition and health claims made on foods (OJ 2006 L 404, page 9) and the Law of the Republic of Lithuania on Advertising. However, when the manufacturer of such food supplements is registered in a non-EU state, no contact information is given on the distributor of the food supplements, and when the websites are registered in non-EU states, the surveillance institutions of the Law of the Republic of Lithuania on Advertising have no measures to stop advertising that does not fulfil the requirements. The situation is the same in the case of supervision of compliance with the Civil Code of the Republic of Lithuania, the Law of the Republic of Lithuania on the Prohibition of Unfair Business-to-Consumer Commercial Practices, the Law of the Republic of Lithuania on Consumer Protection or other laws online. Therefore, it is expedient to analyse the necessary scope of surveillance for websites that violate the requirements of legal acts, the possibilities of restricting consumer access, and ways of improving the relevant legislation.

11.3. Paragraph 4 of Article 14 of the Law of the Republic of Lithuania on Advertising stipulates that the advertising of food supplements must include the reference “food supplement”. Paragraph 7 of Article 14 of the Law of the Republic of Lithuania on Advertising stipulates that the advertising of energy drinks must include the words “do not mix with alcoholic beverages”. It is unclear how these provisions of the Law of the Republic of Lithuania on Advertising should be implemented, for example, how big the information label should be or how much of the area (percentage) of the total advertising space it should occupy, whether the label is mandatory for all advertising measures, whether it is enough for the label to be visible or it should be audible as well, etc. Currently there is no case law associated with these matters. Necessary implementing legislation would help to properly implement paragraphs 4 and 7 of Article 14 of the Law of the Republic of Lithuania on Advertising. If business operators properly comply with the provisions of paragraphs 4 and 7 of Article 14 of the Law of the Republic of Lithuania on Advertising, consumers will receive information in an adequate manner.

12.1. In order to increase the efficiency of market surveillance, as regards product safety, it is expedient to reconsider the provisions of the Law of the Republic of Lithuania on Product Safety, while paying particular attention to imposed economic sanctions and the imposition procedure because it is not particularly effective. Currently there are many companies that were fined for violating the Law of the Republic of Lithuania on Product Safety, but they still repeatedly violate the requirements of the aforementioned law. Therefore, fines fail to fulfil their main (preventative) function, they do not ensure that appropriate measures are taken so that only safe products are supplied to the market. On this basis, it is planned to prepare a draft law to amend the Law of the Republic of Lithuania on Product Safety: to set higher maximum fine limits, to expand the list of aggravating circumstances and to establish equal liability for introducing a dangerous product as well as a dangerous service to the market.

12.2. Currently the activity of companies that collect the debts out of court is not specially regulated; the general provisions of the Civil Code of the Republic of Lithuania and the Law on Services of the Republic of Lithuania are applied to them. Sellers or service providers to whom a consumer is indebted (consumer debt) may transfer the right of claim to third persons (to persons who collect debts). Usually consumers do not know to what debt collection company the collection of the debt will be transferred by the creditor if the debt is not paid on time, and they cannot influence the decision. When debts are collected out of court, debt collection companies are not obligated to inform the consumer with regard to whom collection actions are being performed about the collection procedure and the collection costs. During out-of-court debt collection, maximum cost amounts are not set; in addition, it is not established for how long debt collection companies may carry out debt collection actions. There are cases when debt collection companies abuse their rights and take unreasonable and unnecessary collection actions by unjustifiably increasing the consumer debt that they intend to collect. Although in this case debt collection companies base their claims on consumer contracts, they are not linked to consumers by consumer contracts. Therefore, an investigation is planned: to study the experience of foreign countries in the area of consumer protection when debts are collected out of court and to present proposals on improving consumer protection in this area.

12.3. Construction work is a problematic area for consumer protection. It is crucial to improve consumer protection, as regards the quality of construction work, and overhaul and repair of buildings, in a systematic manner. Currently the participation of public institutions in the identification of construction faults that emerged under guarantee is not regulated, it is not established which public institution can evaluate the quality of construction work and installed products (windows and doors), identify causes of faults, and present conclusions. If there is a dispute between the parties regarding the quality of construction work, consumers have the right to order an expert assessment of the faults and (or) the quality of the components (windows and doors) of the building. Consumers who incurred damage as a result of construction faults may apply to a certified expert assessment company of their choice; however, these services (expert assessment) are expensive and it is difficult for consumers to protect their rights that were violated because of the poor quality of construction work. In addition, legal acts provide for a warranty period for construction work, so if the entity that performed the construction work goes bankrupt the consumer has no chance to demand that the construction faults be eliminated. Considering the above, it is planned to prepare draft laws to amend the Law of the Republic of Lithuania on Construction and the Law of the Republic of Lithuania on Consumer Protection – to improve the procedure of identifying construction faults (flaws) and the fulfilment of warranty obligations.

12.4. Legal acts regulating the heat economy do not regulate certain matters that cause disputes between heat consumers and heat suppliers: the responsibility of heat suppliers for incorrect heat distribution; recalculation of fees paid by consumers to heat suppliers for heat and hot water; provision of information to consumers when hot water accounting devices are installed and replaced; obligations and responsibility of communities of owners of multi-apartment houses when the heat distribution method is applied in the building; calculation of heat used for heating a flat or other room and recalculation of distributed heat in multi-apartment houses where a collector heating system is installed in the flats or other rooms. Thus, after the analysis of consumer protection in the area of heat economy is complete, it will be decided how the regulatory framework should be improved in order to strengthen consumer protection in the area of heat economy and, if necessary, draft amendments to the law on amending the Law of the Republic of Lithuania on Heat Economy and the Rules of Heat Supply and Consumption approved by order No. 1-297 of 25 October 2010 of the Minister of Energy “On Approving the Rules of Heat Supply and Consumption” will be prepared.

12.5. Cases of tour operators’ bankruptcy and insolvency that caused direct damage to consumers (tourists) in 2014 demonstrate that it is necessary to strengthen consumer protection and improve the function of surveillance and supervision of providers of tourism services, which is carried out by the State Department of Tourism under the Ministry of Economy of Lithuania. For this purpose, it is necessary to analyse the relevant current practice and actions that EU member states take when tour operators become insolvent or go bankrupt and to determine whether these measures could be implemented in Lithuania. After research results are analysed proposals on improving consumer protection in this area will be presented.

12.6. Consumer protection institutions perform the surveillance of consumer markets, use the same system to collect and analyse data on consumer markets and periodically provide information on the developments on consumer markets as well as present proposals regarding these matters. In order to assess the status of consumer protection as accurately as possible and to make decisions based on surveillance results, consumer protection institutions provide information to the State Consumer Rights Protection Authority on activities that were performed. The State Consumer Rights Protection Authority every year systematises information of all consumer protection institutions regarding complaints examined by the institutions, cases of protecting the public interest, market surveillance activity, corrective action applied to business, implemented consumer education, and surveillance results and makes this information publicly available; in addition, it submits proposals on amending the legal acts.

14.1. The Directive on consumer ADR provides for quality requirements imposed on the entities of alternative resolution of consumer disputes and on the procedures of alternative resolution of consumer disputes in order to ensure that consumers, irrespective of their place of residence in the EU, have the opportunity to use high-quality, transparent, effective and fair out-of-court rights protection measures. The Directive on consumer ADR encourages member states to involve representatives of professional organisations, business associations and consumer organisations in the creation of alternative consumer dispute resolution systems.

It is important to mention Regulation (EU) No. 524/2013 of the European Parliament and of the Council of 21 May 2013 on online dispute resolution for consumer disputes and amending Regulation (EC) No. 2006/2004 and Directive 2009/22/EC (Regulation on consumer ODR) (OJ 2013 L 165, page 1). This Regulation and the Directive on consumer ADR comprise the common legislative package for creating alternative dispute resolution in the EU. On the basis of the Regulation on consumer ODR, a single EU online platform will be created to allow consumers who purchased goods online in any EU member state (in their country as well as in a different EU member state) as well as traders to resolve disputes arising from contracts online. This Regulation, with certain exceptions, will apply from 9 January 2016.

14.2. In order to improve the effectiveness of alternative resolution of consumer disputes and considering that the consumer is the weaker party in the legal relationship, it is expedient to transfer the provisions of the Directive on consumer ADR to the national law by taking into account the current situation, to reconsider the guideline character of the decisions made by alternative consumer dispute resolution entities and to establish, if necessary, that the decisions made by alternative consumer dispute resolution entities are obligatory if a dispute party does not go to court within a set period of time.

16.1.According to the data published by the European Commission, some indicators of consumer rights knowledge and skills of Lithuanian consumers are rather high in the context of the EU as a whole. For example, in Lithuania 70 per cent (EU average – 69 per cent) of consumers know their rights related to withdrawing from a distance contract (as well as the period for exercising the right of withdrawal), 27 per cent (EU average – 22 per cent) of consumers have heard about the European Consumer Centres. Compared to 2011, certain other indicators have improved as well, for example, there has been a rapid increase of the number of consumers who know about the warranty period when a faulty product is purchased (in 2012 – 43 per cent, in 2011 – 35 per cent), although the EU average has not been reached yet (56 per cent). When entrepreneurs’ skills and knowledge of consumer rights were analysed, it was found that 79 per cent of entrepreneurs know where to look for and obtain information on matters of consumer protection (EU average – 85 per cent); however, only 12 per cent of entrepreneurs know how long repairing a faulty product should take (EU average – 29 per cent). Taking these data into consideration, it is necessary to implement measures to better inform consumers and entrepreneurs about certain consumption-related matters.

According to the data of a study of financial behaviour and literacy of Lithuanian residents conducted in 2012 at the request of the Bank of Lithuania, the country's consumers lack financial literacy, which may lead to long-term financial difficulties, unreasonable selection of financial services and products, and debts. As many as 39 per cent of those surveyed assess their ability not to spend more than they earn as poor or very poor, while 36 per cent of them would not be able to subsist on their savings for more than a month if they lost their main source of income. In order to systematically improve the financial literacy of individuals, it would be expedient to involve institutions that coordinate formal education in the financial education process and to include financial literacy matters into educational programmes. In this area, the role of consumer associations as main disseminators of information is particularly important – financial literacy projects created by them would reach more residents of the country, particularly those who are already facing financial difficulties or have long-term debts.

16.2. In the Consumer Markets Scoreboard presented by the European Commission in 2014, consumers of the utilities market, particularly electricity and gas, were evaluated lower than average. Despite recent progress, evaluation of opportunities to compare offers and to choose or change service providers on the utilities market remains poor. The goal is to expand the offers of energy supply to consumers, to make bills more transparent, to ensure that consumers have the opportunity to obtain data regarding consumed energy, and to create more favourable conditions for changing service providers.

Consumer applications (complaints) received from the National Commission for Energy Control and Prices show that consumers do not understand factors that determine the amounts in heating bills, the costs of shared premises heating, and the values of energy efficiency in buildings. Therefore, first it is necessary to teach society about the basics of energy, to educate consumers, to increase their energy literacy, and to fundamentally change the negative public opinion of the energy sector. Too little attention is paid to educating young people and consumers who experience social exclusion (disabled and elderly people) according to their specific needs and financial capabilities.

According to data from 2013, 81 per cent of residents did not know where they should apply if their rights or legitimate interests in the energy sphere had been violated.In 2013, 13 per cent of applications (complaints) received by the National Commission for Energy Control and Prices were forwarded by other institutions, and 6 per cent were forwarded to other institutions according to their areas of expertise. So, a considerable number of these documents is still received by the National Commission for Energy Control and Prices indirectly or should be attributed to the area of expertise of a different public administration institution. Hence, consumers do not know to which institution they should apply and are not aware of the areas of expertise of institutions that supervise the energy sector.

17.1.More and more purchases are made online. According to the data published by the European Commission, in 2013 the number of consumers in Lithuania who purchase goods and services electronically increased by 4 per cent in comparison with 2012. So, trust in electronic commerce of consumers who purchase goods and services electronically is growing.

Lithuanian consumers buy goods or services in other EU member states more and more often, but they are unsure whether in this case it would be possible to protect their infringed rights. Due to the enormous potential of electronic commerce and the constant growth of the EU electronic commerce market, consumers continually face new problems. One of the major problems is the surveillance of the market of electronically sold goods. In addition, it is important to mention that in the case of electronic commerce, it is not always clear who the seller or the entity that supplied an unsafe product to the market is; after unsafe goods are removed from retail premises, they are still accessible online; the capabilities of market supervision institutions to respond promptly to online violations are limited. Some consumers do not trust sellers in cyberspace because of the limited and undefined nature of the protection of their rights.

In order to improve consumer trust in electronic commerce, it is essential to educate consumers and entrepreneurs. One of the measures of improving consumer trust in electronic commerce could be the creation and use of online trust signs. Such signs help to protect consumers who make online purchases because electronic business representatives guarantee the protection of consumer data from theft of personal data and electronic invoices, security breaches, viruses or other interventions. With the assistance of business and consumer associations, it is expedient to carry out a study and determine the trust signs system model that would suit Lithuanian consumers and to encourage the use of the Internet trust sign.

17.2. According to the data of a representative survey of Internet users in Lithuania carried out in 2013, electronic signature was used by 18 per cent of those surveyed, while 65 per cent of them indicated that they know that electronic signature may be used to sign electronic documents. The survey results showed that residents lack information on what an electronic signature is and on how and when it may be used. If they knew how and where an electronic signature may be used, 64 per cent of those surveyed would try to use this instrument. Therefore, it is necessary to raise awareness of consumers and business operators on matters of electronic signature use.

The National Computer Emergency Response Team of the Republic of Lithuania (CERT-LT) investigated 25,337 incidents in 2013 according to reports received from Lithuanian providers of electronic communications services, foreign authorities that investigate international incidents, and Lithuanian Internet users on incidents in cyberspace. The number of such reports in 2013 was 18 larger than in 2012 (21,416 reports). Therefore, it is necessary to improve consumer knowledge of cyber security because only informed consumers may be properly protected in cyberspace.

18.1.One of the tasks of the national progress programme for 2014–2020 is to strengthen the role of the non-governmental sector. During implementation of this task, the goal is to encourage the development of civil society and active participation of residents in organised activity. Thus, it is important to strengthen the role of non-governmental organisations in the effective solution of societal problems by providing more higher-quality public services and representing the interests of citizens and the non-governmental sector at the national as well as international levels in a professional manner. It is planned to implement this task by improving the regulatory framework of the activity of non-governmental organisations, improving the financing mechanisms of the activity of these organisations, and developing the cooperation between non-governmental organisations and public institutions. Some of the most important directions of implementing this programme: To improve the opportunities for non-governmental organisations to participate in public policy (external environment, participation at international level, skills, activity financing); to improve conditions for non-governmental organisations to provide public services and carry out preventive activities (regulatory framework, competences, financing); to strengthen the institutional capacities of non-governmental organisations; to strengthen the self-regulation of non-governmental organisations; to develop infrastructure suitable for community-based activities and activities of non-governmental organisations; to promote and develop social innovation created by non-governmental organisations (social entrepreneurship, social groups).

18.2. The strengthening of consumer organisations is a component of consumer protection. Consumer organisations are closest to consumers; they quickly identify major problems early. Consumers trust these organisation more; therefore, their role in monitoring the market situation and giving advice to consumers is very important. Strong consumer organisations help consumers become more effective market participants and receive better advice. They have a voice in public discussions when they represent consumer interests on the political front. Thus, it is important to develop responsible, independent and strong consumer organisations. For the competence of these organisations to grow, not only one-off support, but also consistent, long-term and systematic support is needed.

18.3. Consumer associations, according to the Rules of Providing Financial Support to Consumer Organisations, approved by resolution No. 127 of 13 February 2008 of the Government of the Republic of Lithuania “On Providing Financial Support to Consumer Organisations”, receive financing for the implementation of programmes and projects of consumer protection measures; therefore, it is crucial to ensure that consumer education measures and other consumer protection measures implemented by consumer associations and public institutions are planned and implemented in a coordinated manner, after determining which areas are important to consumers, with a view to achieving optimum results and using the funds of the budget of the Republic of Lithuania rationally. Consumer education is the part of consumer protection where the main role must be played by consumer organisations. The State Consumer Rights Protection Authority and other institutions that plan specific consumer education actions in annual activity plans, should first consider the opportunity of performing these actions via consumer associations, by purchasing their services via public procurement. Priority axes of consumer education could be discussed in the State Consumer Rights Protection Authority.

18.4. In order to strengthen cooperation between public institutions and non-governmental organisations with regard to consumer education matters, the Lithuanian Consumer Institute and the State Consumer Rights Protection Authority implement the project “Cooperation of Non-Governmental Organisations and Public Institutions in Creating and Implementing a Consumer Education Model”. The goal of the project is to encourage public institutions and non-governmental organisations that work in the area of consumer education to cooperate and to jointly contribute to improving the consumer education policy implemented by the government – to create the education model. According to the project, 3 surveys of the non-governmental and public sectors are being conducted to identify the obstacles of implementing the consumer education policy, there will be recommendations on improving the legal acts; guidelines on improving the cooperation between the public sector and the non-governmental sector; a methodological tool for implementing the consumer education policy; and a document defining the consumer education model. After the implementation of this project, the State Consumer Rights Protection Authority, on the basis of prepared materials, will approve the guidelines on the cooperation between the public sector and the non-governmental sector with regard to consumer education, which will be followed during consumer education.