Administrative liability has been introduced for sellers (providers, or owners of aggregators) for groundlessly compelling consumers to provide personal data

Pepeliaev Group advises that, on 28 May 2022, the Russian President signed the Law on amending article 14.8 of the Russian Code of Administrative Offences[1] (the “Law”) in terms of additional measures of administrative liability being introduced for compelling consumers to provide personal data.

The provisions of the Law correspond to the amendments introduced to article 16 of the Law “On protecting consumers’ rights” and providing, among other things, for a prohibition on sellers (providers, or owners of aggregators) compelling consumers to provide personal data by threatening to refuse to complete a transaction, in a situation where the provision of such data is not stipulated by Russian legislation or is not connected with a transaction for the sale of goods (work, or services) being completed.

This prohibition comes into effect on 1 September 2022.[2]

For a violation of the prohibition, sellers (providers, or owners of aggregators) may be held administratively liable in the form of the following administrative fines being imposed:

  • on officers from RUB 5,000 to RUB 10,000;
  • on legal entities from RUB 30,000 to RUB 50,000.

What to think about and what to do

It would be reasonable for companies active on the consumer market to take steps to bring their activities in line with the new requirements of the Law “On protecting consumers’ rights” to minimise the risks of administrative liability, for instance:

  • to audit the processing of consumers’ personal data;
  • to analyse the composition of the personal data received from consumers and establish whether it corresponds to the purposes for which the personal data is processed;
  • to devise a procedure for providing to consumers information on the specific reasons and legal grounds which determine that it is impossible to conclude a transaction without consumers providing personal data.

The timely identification and elimination of violations will help mitigate any legal risks, eventual additional expenses on eliminating the consequences, and avoid any reputational losses.

Help from your adviser

Pepeliaev Group’s lawyers constantly monitor changes in legislation in the fields of protecting consumers' rights and the processing of personal data. They have experience in providing comprehensive business support in relation to compliance with the law, and to the identification, assessment and mitigation of legal risks.

Pepeliaev Group provides the following types of services:

  • advising on compliance with consumer protection and personal data legislation;
  • carrying out a complex audit of the processing of personal data to establish whether it corresponds to the legislative requirements;
  • drawing up documentation regulating personal data processing;
  • auditing rules for the sale of goods, the provision of services and loyalty programmes for compliance with the legislation on the protection of consumers’ rights;
  • representing companies in dealings with state authorities and in courts in disputes related to the protection of consumer rights and the processing of personal data.

[1] Federal Law No. 145-FZ “On amending article 14.8 of the Code of Administrative Offences of the Russian Federation” dated 28 May 2022.

[2] For more information about the changes in the Law on Protecting Consumers’ Rights, see  Pepeliaev Group's Alert.

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