(2023.07.20-ны өдрийн орчуулга)                                                    Unofficial translation

LAW OF MONGOLIA

December 26, 2003              Ulaanbaatar city

ON THE Consumer right protection

chapter one

GENERAL PROVISIONS

Article 1.Purpose of the Law

1.1.The purpose of this Law shall be to govern relations concerning consumer right protection arising from sale and purchase of goods and products (hereinafter referred to as "goods"), performance of works and provision of services.

Article 2.Legislation on Consumer right protection

2.1.The legislation on consumer right protection shall consist of the Constitution of Mongolia, the Civil Code, this Law, and other acts of legislation enacted in conformity therewith.

2.2.If an international agreement to which Mongolia is party provides otherwise than this Law, then the former shall prevail.

Article 3.Definitions of terms in the law

3.1.The following terms used in this Law shall have the following meanings:

3.1.1."consumer" shall mean an individual who orders, purchases goods, receives or uses any services for personal and family use only rather than for commercial purpose;

3.1.2."seller" shall mean business entity or organization irrespective of the form of organization, sole proprietor or individual offering the goods to consumers;

3.1.3."producer" shall mean business entity or organization irrespective of the form of organization, sole proprietor or individual producing the goods with the purpose of to sell to consumers;

3.1.4."contractor" shall mean business entity or organization irrespective of the form of organization, as well as sole proprietor or individual performing work or providing services, either for consideration or for free to consumers;

3.1.5."period of warranty" shall mean a guarantee period of quality and safety of the goods, works or services provided by producer, seller, or contractor;

3.1.6."contract for work and services" shall mean any work defined in Articles 343 and 359 of the Civil Code.

Article 4.Principles of Consumer right protection

4.1.The following principles shall be adhered to in consumer right protection:

4.1.1.The goods, works, and services being offered at the market shall meet the respective requirements of consumer's safety, quantity, volume, quality, durability and purpose;

4.1.2.Consumers shall be ensured the possibilities to obtain true information on goods, works, and services and to acquire consumer culture;

4.1.3.Any harm caused to the consumer's health, life, property, non-property interests and environment shall be redressed, the violated rights restored, and losses compensated for.

Chapter two

CONSUMER RIGHTS

Article 5.Consumer Rights to Receive Quality and Safe Goods, Works and Services

5.1.Consumers shall have the right to use goods, receive works and services that match the consumer right protection standards established by relevant authorities, technical conditions, building and hygiene norms, pharmacopeias and prescriptions, as well as the quality, quantity and safety requirements set forth in the legislation and contracts.

5.2.Consumers shall be entitled to the warranty and durability period of quality and safety of goods.

5.3.If producer does not provide a warranty period for durable goods, unless otherwise provided in the law, buyer shall be entitled to a six months warranty quality and safety period commencing from the date of purchase.

5.4.The person who causes harm to the consumer's life, health, property or environment due to the failure to ensure the quality and safety of goods, works or services, shall be liable to compensate the harm as provided in Chapters 18 and 52 of the Civil Code.

5.5.Consumers shall be entitled to the protection of their rights violated due to the goods, works or services of inadequate quality through nongovernmental organizations operating in the field of consumer right protection.

5.6.Consumers shall have the right to demand from producers' numbers of relevant documents, information on the license granting authority, as well as the permits and conclusions on the quality and safety of the goods issued by an inspection authority.

Article 6.Consumer's Right to the Redress of the Harm and Compensation for the Loss Suffered at the Fault of Producers, Sellers or Contractors

6.1.Consumers shall protect their economic interests by having the harm redressed or the loss compensated for which they suffer at the fault of producers.

6.2.In case of physical defects (as to the quantity, volume, size, quality or period) in the goods or violation of rights, a consumer shall be entitled to demand the redress of the harm or compensation of the loss within the period set forth in contract or if such period is not set forth in the contract, to demand from the seller to immediately redress the harm or compensate the loss.

6.3.Consumers shall be entitled to demand from the seller who has sold defective, incomplete, or inadequate in quantity, volume, or quality goods to eliminate the harm or compensate for the loss as provided in Article 254 of the Civil Code one of the following:

6.3.1.To demand remedy of the defect free of charge or compensation of the cost incurred by consumer him/herself or by third party to remedy such defect;

6.3.2.To reduce the price of the goods in proportion to the defects;

6.3.3.To refuse to accept or re-calculate the price due for the goods which fail to meet the quantity or volume specified in the contract;

6.3.4.To replace the defective goods or return the goods and make refund; or

6.3.5.To terminate contract;

6.3.6.In case of failure of the seller to notify the consumer of the defects or incompleteness of the goods, the seller shall immediately replace the goods at the consumer's demand, or if that is not possible, within a time period agreed with the consumer replace or complete the goods, and if that is still not possible and if the consumer demands so, to partially or fully refund the price;

6.3.7.If within the warranty period goods fail to satisfy the purpose not at fault of the consumer or if the consumer discovers hidden defects, the seller shall replace or repair the goods free of charge within a time period agreed with the consumer. If that is impossible and the consumer demands so, the price or the difference shall be fully refunded.

6.4.The loss incurred by the consumer due to inadequate quality of works or services or non-performance of contractual obligations shall be compensated as follows:

6.4.1.by reducing the contract price in proportion to the loss incurred by the consumer due to the performance of work or service which fails to meet the contractual terms and conditions;

6.4.2.in case of consumer's refusal to accept the work or services due to the failure to meet the contractual conditions when performing work or providing services using consumer's materials, the contractor shall, unless the consumer otherwise provided for in the contract, perform the work or services meeting the contractual conditions by using materials of the same kind and quality.

6.5.If a consumer's complaint about inadequate quality, defects or incompleteness of goods, works or services is proved to be groundless by an opinion of a competent person, and if the consumer has violated the rules of transportation, storage or use of the goods pursuant to Article 255.1.3 of the Civil Code, then the seller shall not be liable for the relevant costs and expenses.

Article 7.Consumer Right to Information on Goods

7.1.Consumers shall have the right to be ensured objective information on goods to assist them in making a right choice.

7.2.Producers shall provide to consumers the following information regarding their goods:

7.2.1.Name and address of producer, trademark and other identification marks, bar code of the goods;

7.2.2.Purpose and consumption features of the goods;

7.2.3.Ingredients and components, methods of storage and use of the goods;

7.2.4.Description of the goods and price;

7.2.5.Amount and unit of measurement of the goods;

7.2.6.Guarantee and usage periods of the goods; and

7.2.7.Instructions for proper use of the goods.

Article 8.Consumer Right Defendable In Court

8.1.Consumers shall be entitled to claim to court in case of refusal of producer, seller, or contractor to satisfy their demands to redress the harm caused or compensate for the loss incurred.

Article 9.Consumer's Right to Acquire Consumer Culture

9.1.Consumers shall have the right to acquire consumer culture and to have opportunity to learn about it.

Article 10.Limitation Period for Claims Concerning Defects of Goods, Works and Services

10.1.In case of detecting defects in goods, works or services consumers shall have the right to make claim within the time period set in Articles 254 and 349 of the Civil Code.

10.2.In case of seasonable goods, the guarantee period shall run from the beginning of the given season.

10.3.In case of delivery of the goods by mail the period for making claim shall run from receipt of the claim by the consumer.

10.4.Producers, sellers and contractors shall be obliged to remedy defects in the goods, work or service within a reasonable period. The reasonable time period and the amount of a penalty shall be set out in the contract and certified by signatures of the both parties.

10.5.A producer, seller, or contractor who fails to perform its duty to timely remedy the defects in the goods, work or service shall be subject to a penalty pursuant to Article 232 of the Civil Code.

Article 11.Invalidity of Contracts with Consumers

11.1.Consumers, producers and contractors may conclude contracts of sale or supply of goods, or performance of work or services in writing or orally.

11.2.If the terms of a contract concluded with a consumer are less favourable than those set forth in the Law on Consumer right protection and other acts of legislation, then the former shall be null and void.

Chapter three

DUTIES OF PRODUCERS, SELLERS AND CONTRACTORS

Article 12.Duties of Producers, Sellers and Contractors

12.1.Goods, works, and services offered in the market by producers, sellers and contractors shall meet the requirement of not causing harm to consumers' life, health and environment, obligatory standards and the requirements of technical regulations.

12.2.When putting goods into circulation sellers shall be obliged to have contracts concluded with the producer (supplier) for supplying the goods that meet the requirements set forth in this Law.

12.3.Producers, sellers and contractors shall be obliged to dispose the consumers' complaints on the quality of the goods, works and services in accordance with law.

12.4.If it is established that goods, works or services offered in the market are potentially hazardous to consumers' life, health, property or environment, then the producer, seller or contractor shall immediately inform the public.

12.5.Producers and the sellers shall be obliged to sell the goods that meet the requirement of the guarantee period. In case of sale of goods of inadequate quality the producer or seller shall take back the goods at consumer's demand and refund the price.

12.6.Producers, sellers and contractors shall eliminate in accordance with law the harm caused to the consumer's health, property and environment due to violation of the safety requirements of the goods.

12.7.Producers, sellers and contractors shall immediately terminate supply or sale of goods and withdraw them from circulation in the case where it is proved that in spite of the consumer's observing the rules of transportation, storage and/or use, the goods have caused harm to the consumer's life, health, property or environment.

12.8.Producers, sellers and contractors shall be prohibited from giving to consumers false information regarding the goods, works and services.

12.9.It shall be prohibited to conclude sales contracts or contract for works or services by misleading or using force which violate consumer rights.

Article 13.Setting of Warranty Period and Rights of Producers and Contractors

13.1.Unless otherwise provided in the law, producers and contractors shall set a guarantee period for goods, works and services.

13.2.When offered to the market, goods, works and services shall carry clear and easy for consumers safety instructions of use, storage and transportation, attention remarks, production date, sale documentation, address and label.

13.3.If the law or standards set the requirements for the goods to be harmless to consumers' life, health, property and environment, then the meeting of such requirements shall be certified by an independent relevant authority.

Article 14.Producer's Duty to Repair and Provide Other Technical Services

14.1.Producers shall be obliged to arrange repair and technical services of the goods with the purpose to ensure reliable working within the period of usability, as well the production period, and in the case of cessation of production of the goods until the expiration of the wearing out period. If no such period is set, the producer shall be obliged to supply the respective spare parts of the goods within 5 years from putting of the goods into circulation.

Article 15.Period for Remedying Defects of the Goods, Works and Services

15.1.In case of complaint concerning defects in goods, works or services, such defects shall be remedied within the following period:

15.1.1.A seller shall immediately redress the possible harm caused due to incorrect setting of durability of foodstuffs or daily consumption goods;

15.1.2.In the case of a valid reason (public quarantine), or in case of seller (producer or contractor)'s sickness, death, bankruptcy, dissolution, or suspension or termination of its business during the disposing of the complaint concerning the goods, works or services the seller (producer or contractor) shall agree with the consumer to postpone the period for remedying the defects of the goods.

15.2.If the period for remedying the defects is missed without any valid reason, the seller (producer or contractor) shall pay a penalty equal to 0.1 percent of the total price of the goods, works, or services per each day of such delay.

CHAPTER FOUR

MANAGEMENT AND ORGANIZATION OF CONSUMER RIGHT PROTECTION

Article 16.Powers of the State Administrative Body in Charge of Consumer right protection

/The title of Article 16 was amended according to the law as of December 19, 2008/

16.1.The state administrative body in charge of consumer right protection shall exercise the following powers:

/This paragraph was amended according to the law as of December 19, 2008/

16.1.1.organizing the implementation of state policies and laws related to the protection of consumer rights at the national level, to monitor their implementation and reporting results;

/This sub-paragraph was amended according to the law as of December 19, 2008/

16.1.2.undertaking measures to promote fair competition with the purpose to provide consumers with a wide possibility to select cheap, safe, and quality goods according to their demand;

16.1.3.carrying out activities such as monitoring the implementation of laws and regulations in matters related to the protection of consumer rights, carrying out inspections in cooperation with relevant organizations, providing information and advertising, and organizing training, on the basis of a contract by non-governmental organizations for the protection of consumer rights, and providing them with professional and methodological support.

/This sub-paragraph was amended according to the law as of November 11, 2022/

16.1.4.to submit to the relevant authorities the issue of imposing responsibility on the individuals and legal entities that produced goods, sold work and services that may cause danger to the life, health, property, or environment of the consumer, and submit a reasoned proposal to the relevant authority to stop the sale and production of the goods;

16.1.5.to improve the quality of the goods and demand to obtain a guarantee of conformity of the goods;

16.1.6.have an accredited laboratory analyze the quality and safety of the goods and make a conclusion;

16.1.7.to submit a proposal to the relevant supervisory authority to impose appropriate measures on officials who have received an official demand for serious damage to consumer rights, but have not taken action, or file a lawsuit in court.

/Sub-paragraphs 16.1.4-16.1.7 were added according to the law as of December 19, 2008/

Article 17.Powers of Aimag, Capital City, Soum, and District Hurals of Citizens' Representatives

/The title of this Article was amended according to the law as of April 22, 2022/

17.1.Aimag, capital city, soum, and district Hurals of Citizens' Representatives shall exercise the following powers:

/This paragraph was amended according to the law as of April 22, 2022/

17.1.1.to consider and approve the policies for, plans, and budget of consumer right protection activities to be conducted within the respective territory;

17.1.2.to support non-governmental organizations operating in the area of consumer right protection within the respective territory and assess their activities;

Article 18.Powers of Aimag, Capital city, soum, and district Governors

/The title of this Article was amended according to the law as of April 22, 2022/

18.1.The aimag, capital city, soum, and district Governors shall have the following powers:

/This paragraph was amended according to the law as of April 22, 2022/

18.1.1.to organize and supervise the implementation of consumer rights protection policies and laws in the territory;

/This paragraph was amended according to the law as of December 19, 2008/

18.1.2.to organize trainings on consumption culture;

18.1.3.to cooperate on the contract basis with non-governmental organizations operating in the area of consumer right protection within the respective territory and support them.

Article 19.Functions of Consumer right protection Non-governmental Organizations

19.1.Non-governmental organizations operating in the area of consumer right protection shall have the following functions:

19.1.1.to make proposals to the relevant authorities to terminate the production or sale of the goods that can be hazardous to consumers' life, health, property and environment and warn the public about such goods through the mass media;

19.1.2.to require to improve the quality of and to obtain respective guarantees for the goods;

19.1.3.to have the quality and safety of goods examined and conclusions drawn by authorized laboratories;

/Sub-paragraphs 19.1.1-19.1.3 were annulled according to the law as of December 19, 2008/

19.1.4.to conduct informal trainings of consumers on consumption culture;

19.1.5.to submit to the respective authorities the matters of imposing liability onto the individuals, business entities and organizations that produce goods, perform works, or provide services hazardous to consumers' life, health, property or environment or fail to fully perform works or services under contracts;

/Sub-paragraph 19.1.5 was annulled according to the law as of December 19, 2008/

19.1.6.to submit to the relevant authorities proposals to modify or rescind the procedures and regulations that breaks the legislation on consumer right protection;

19.1.7.to submit proposals to the relevant inspection authorities or make claims to court to impose sanctions on the officials who failed to take measure despite the receipt of justified complaints about serious violations of consumer right protection;

19.1.8.to monitor the implementation of the consumer right protection legislation and inform the public of the results of monitoring;

/Sub-paragraphs 19.1.7-19.1.8 were annulled according to the law as of December 19, 2008/

19.1.9.based on complaints and suggestions made by a consumer, make suggestions about the activities of an inspection organization and submit them to the relevant organization for resolution;

/This sub-paragraph was amended according to the law as of November 11, 2022/

19.1.10.to provide consumers with information and counseling on the quality, safety, and market price of the goods.

Article 20.Monitoring the Implementation of Consumer right protection Legislation

20.1.The state bodies and inspections agencies shall monitor the implementation of the legislation on consumer right protection.

/This paragraph was amended according to the law as of November 11, 2022/

Chapter five

MISCELLANEOUS

Article 21.Liabilities to be imposed on the violators of the Law

21.1.Any person or legal entity who violates this Law shall be held liable under the Criminal Code or the Law on Violations.

/This Article was modified according to the law as of December 4, 2015/

THE VICE-CHAIRMAN OF STATE GREAT KHURAL OF MONGOLIA BYAMBADORJ.J