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- Reverse greetings: they offered to take compensation for losses from returning brands
Reverse greetings: they offered to take compensation for losses from returning brands
For foreign brands, in the event of their return to Russia, it was proposed to introduce mandatory compensation for losses to consumers. The authors of the initiative propose to transfer the money to a special fund, its size should be at least 400 billion rubles. The Public Consumer Initiative (OPI) has submitted such an initiative to the Cabinet of Ministers. According to public figures, if a foreign company, such as Apple or BMW, has disabled any function in its product for Russians, it is obliged to refund 5-10% of its value.
How will it be possible to receive compensation from a foreign company
The social activists offered the government their conditions for the return of foreign brands that left the country in 2022-2023. Thus, the OPI is confident that foreign companies should compensate people for the losses caused, the organization said in a letter to the government, which was reviewed by Izvestia. Indeed, in some cases, when our former partners — manufacturers and importers — left the country, they violated the rights of consumers.
For example, manufacturers disabled the functions of smartphones, cars, and other equipment. Also, people could not install software updates, and the repair time increased, sometimes it happened that the service specialists could not diagnose the goods. All this created difficulties for customers in using fairly expensive products, to the point that it was impossible to use appliances and electronics, the letter says OPI. This resulted in losses for people, which continue to occur even now.
— Disabling the product's functions during the warranty period and service life is unacceptable, we are sure that this should be recognized as a defect in the product, in which the consumer has the right to demand that the manufacturer or importer refund the money paid for these products. Plus, consumer claims to the quality of the product's software (computer, smartphone, car, and so on) should be considered as requirements for the quality of the product itself as a whole," Oleg Pavlov, head of the OPI, told Izvestia.
For example, in practice, the consumer will need to prove the purchase of the product. The amount of compensation can be 5-10% of its cost if it is a question of disabling the functions of machinery and equipment. In particular, if the smartphone no longer has contactless payment options or the manufacturer has blocked the installation of some applications. The same should be done if foreigners have disabled some of the car's functions, such as remote start, status monitoring, and so on.
For such cases, a special fund should function in the Russian Federation, to which returning companies contribute, and people will be able to receive further compensation from it. This should be done according to uniform rules that have yet to be developed. According to the OPI estimates, sales of foreign brands in the Russian market before leaving it exceeded 8 trillion rubles, which means, according to the organization, the size of the compensation fund should be at least 400 billion rubles. A contribution to it should become a prerequisite for returning to Russia, such funds can also be used for import substitution programs, Oleg Pavlov said.
"Companies such as Apple, Google, Samsung, Sony, Mercedes and other manufacturers of machinery, electronics and cars that have discontinued warranty support and disabled critical functions should become one of the first payers to such a fund if they return to the Russian market," the expert said. — Now we need to develop rules for the return of foreign companies to the Russian market, which will legalize this compensation mechanism. With its help, it will be possible to form a compensation fund under state management. You will also need to create a methodology that will allow you to determine the amount of payments to people depending on the violation and the damage caused.
In the government, Izvestia was redirected to Rospotrebnadzor, where questions were not answered. The editorial board also sent questions to the Ministry of Industry and Trade and the Ministry of Finance, which are now actively discussing what the conditions for the return of foreigners to the domestic market should be.
The Association of manufacturers of electronics and household appliances RATEK did not provide comments. In addition, Izvestia sent inquiries to Apple, Google, Samsung, Sony, Mercedes, BMW, Audi.
In March 2022, OPI tried to defend consumer rights in the courts. For example, social activists have sued Apple's Russian subsidiary. Then the company suspended the import, sale and maintenance of its products in the Russian Federation. However, the courts refused to accept or consider such claims due to the lack of direct indications in the legislation on the duty of importers to ensure the possibility of maintenance and repair of imported goods.
In 2023, Toyota resumed direct deliveries of spare parts to Russia, Izvestia wrote. Also, the Russian subsidiary Toyota Motor (the official supplier of products in the Russian Federation) allowed its dealers to import parallel parts subject to restrictions, such as electronics. Since the goals of the trial were achieved, it was decided to dismiss the claim, Oleg Pavlov noted.
The head of the Ministry of Industry and Trade, Anton Alikhanov, previously named the conditions for the return of foreign brands. He noted that it will be necessary to enter the Russian market only with Russian partners and under Russian control, only with the introduction of technology and only with the development of a full production cycle in our territory in the long term. The deputies of the State Duma, who were supported by the Ministry of Finance, also presented their vision. So, the parliamentarians decided that the Russian authorities will be able to refuse to buy back shares of companies if they significantly affect socially significant areas of the economy.
What conditions do foreigners need to meet when returning to the Russian Federation?
The main condition for the return of foreign companies to the Russian consumer market, according to the Consumer Union of the Russian Federation, is to ensure compliance with obligations that are already provided for by the law on consumer protection, including the provision of necessary spare parts and other standards, said Alexey Koitov, chairman of the organization.
— Alternatively, we can consider compulsory liability insurance of foreign companies to Russian consumers, or form a fund for these purposes. Plus, it is necessary to legislate parallel imports in Russia as a permanent, rather than a temporary measure. This will prevent monopolistic supplies of foreign brand goods, which eventually result in price discrimination and overestimation," the expert explained.
The OPI initiative is aimed at protecting consumer rights and makes sense in terms of compensation for real damage caused by service outages, said Pavel Lyulin, vice President of the Union of Shopping Centers. However, its format with a mandatory contribution, which will eventually form a fund of 400 billion rubles, may complicate the return of brands to Russia and make it more expensive.
— The main risk in this situation is that foreign companies simply will not want to return due to additional financial and bureaucratic barriers. Moreover, it is necessary to take into account the complexities of managing the fund and the fair distribution of compensation," he noted. — When returning, brands should be offered clear conditions: mandatory localization of production and investments, uniform regional presence, fulfillment of previously assumed contractual obligations. This will ensure a balance between the interests of the market and consumers.
The initiative for compensation expressed by public figures is an objective measure, Ivan Melnikov, vice president of the Russian division of the International Committee for the Protection of Human Rights, told Izvestia. However, the question arises: how to find all the victims, or, for example, how to determine who bought Apple equipment after the brand left or before it. One option is to make payments through the users themselves: they confirm the purchase and receive compensation directly, the expert suggested.
— The main risk in this case is to identify all the victims. Moreover, it is unclear how to collect customer data, especially if the company no longer operates in our market. In addition, if compensation is paid through the fund, delays and bureaucratic difficulties are possible," Ivan Melnikov reflects. — Another point is the reaction of foreign brands. If the conditions of return in the Russian Federation are too strict, for example, there will be a ban on profit withdrawal or mandatory localization without guarantees, the companies will not return. They have alternatives — other sales markets in the world, especially since sanctions risks reduce the attractiveness of Russia.
But, the expert is sure, the authorities, in the event of the return of companies, must find a balance between consumer protection and business interests. On the one hand, companies must guarantee service and fulfillment of obligations to customers, and on the other, they need reasonable conditions without excessive regulation, which will only scare off investors.
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