Protection of the Rights of Entrepreneurs and Consumers
🔷 I. GENERAL OVERVIEW
Article 10 of the Civil Code of the Republic of Kazakhstan defines:
· the concept of entrepreneurial activity;· guarantees of its freedom;· forms of state protection of business;· basic rights of consumers.
It reflects the dual legal policy of the state:
· on the one hand — promotion of private initiative;· on the other — regulation in the interests of society and consumers.
🔹 II. CONCEPT OF ENTREPRENEURSHIP (para. 1)
🔸 The activity must be:
· independent — the subject acts of its own free will;· initiative-based — implies business activity;· risk-oriented — the entrepreneur bears property (financial) liability;· aimed at generating net income.
🔸 Forms of ownership:
· private ownership (based on Article 192 of the Civil Code of the RK);· state ownership (through enterprises operating under the right of economic management — Article 202 of the Civil Code of the RK,or operational management — Article 203 of the Civil Code of the RK).
📌 Example: An individual entrepreneur opens a café — acting on their own initiative, at their own risk, and using their own property.
🔹 III. STATE GUARANTEES TO ENTREPRENEURS (para. 2)
🔸 These guarantees are based on Article 26 of the Constitution of the Republic of Kazakhstan, which establishes:
· freedom of economic activity;· protection of private property.
🔹 Support for entrepreneurship is also implemented through:
· the Entrepreneurial Code of the Republic of Kazakhstan — a special legal act;· state programs such as the “Business Road Map” and others.
🔹 IV. METHODS OF PROTECTING THE RIGHTS OF ENTREPRENEURS (para. 3)
📌 Subparagraphs 1–7 are commented on below:
| No. | Mechanism | Commentary |
|---|---|---|
| 1 | 📃 Freedom from permits/notifications | Only in cases expressly provided by the Law “On Permits and Notifications.” |
| 2 | 🏢 Simplified registration procedure | Registration with a single registering authority (e.g., via eGov or Public Service Centers). |
| 3 | 🕵️ Limitation of inspections | See Article 143 of the Entrepreneurial Code — scheduled and unscheduled inspections are allowed only on statutory grounds. |
| 4 | ⚖️ Termination of activity only by court decision | For example, liquidation upon the claim of a tax authority — only through a court. |
| 5 | 🚫 List of prohibited types of activity | See Resolution of the Government of the RK No. 1302 of 2015. |
| 6 | 💸 Liability of state bodies for unlawful interference | Example: compensation for damages caused by an unlawful refusal to issue a license (see also Articles 9 and 956 of the Civil Code of the RK). |
| 6-1 | 🤝 Prohibition on imposing contracts by state bodies | Prevents substitution of state functions and unlawful interference in the economy. |
| 7 | 🔍 Other means of protection | Related mechanisms: administrative appeals, mediation, international arbitration, etc. |
🔹 V. PERMIT AND NOTIFICATION REGIMES (para. 4)
🔸 Regulated by the Law of the Republic of Kazakhstan “On Permits and Notifications”:
· permit-based regime — for high-risk activities(e.g., pharmaceuticals, weapons licensing);· notification-based regime — for less hazardous activities(opening a café, tailoring studio, etc.).
🔸 Main criteria:
· protection of life and health;· environmental protection;· ensuring national security and public order.
📌 Example: A license is required to carry out educational activities, whereas opening a hairdressing salon requires only notification.
🔹 VI. COMMERCIAL SECRECY (para. 5)
🔸 Protected by:
· Article 126 of the Civil Code of the RK;· Article 22 of the Entrepreneurial Code of the RK;· the Law “On Private Entrepreneurship”;· the Criminal Code of the RK(Article 200 — unlawful acquisition and disclosure of commercial, banking, and other secrets).
🔸 Includes:
· technological processes;· information about clients;· pricing data, business plans, marketing strategies.
🔸 Does not include:
· data from state registers;· licenses;· state statistics, etc.
📌 Example: A travel agency’s client database is a commercial secret and may not be transferred to competitors.
🔹 VII. CONSUMER RIGHTS (para. 6 and end of the article)
🔸 Also regulated by the Law of the Republic of Kazakhstan “On Consumer Protection.”
| Right | Description |
|---|---|
| ✅ Freedom of contract | The right to choose goods, services, and sellers. |
| ✅ Quality and safety | Product requirements — Technical Regulations, Article 8 of the Consumer Protection Law. |
| ✅ Information | Composition, expiration date, and other details — Article 16 of the Consumer Protection Law. |
| ✅ Right to association | Participation in consumer associations (Article 39 of the Consumer Protection Law). |
📌 Example: A consumer has the right to return goods of inadequate quality within 14 days and receive a refund (Article 9 of the Consumer Protection Law).
🔷 VIII. RELATED AND INTERNATIONAL NORMS
| Source | Provision | Relevance |
|---|---|---|
| Constitution of the RK | Articles 6, 26 | Protection of property and entrepreneurship |
| Entrepreneurial Code of the RK | Articles 143–149 | Inspections, liability of state bodies |
| Law “On Permits and Notifications” | in general | Defines permit procedures |
| Consumer Protection Law of the RK | Articles 8–41 | Consumer rights and protection |
| UN Guidelines for Consumer Protection (1985) | General standards of consumer protection | |
| WTO Agreement on Technical Barriers to Trade (TBT) | Product safety requirements | |
| International Covenant on Civil and Political Rights (ICCPR) | Articles 17, 19 | Protection of information and entrepreneurial rights |
🔷 IX. CONCLUSION
Article 10 of the Civil Code of the Republic of Kazakhstan establishes a balance between market freedom and consumer rights. It:
· encourages private initiative and entrepreneurial development;· guarantees protection against arbitrary interference by state bodies;· safeguards consumer rights as those of the more vulnerable party.
Attention!
Law and Law Law Law draws your attention to the fact that this document is basic and does not always meet the requirements of a particular situation. Our lawyers are ready to assist you in legal advice, drawing up any legal document suitable for your situation.
For more information, please contact a Lawyer / Attorney by phone: +7 (708) 971-78-58; +7 (700) 978 5755, +7 (700) 978 5085.
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