Cash rewards introduced for reporting low-quality goods

In Uzbekistan, individuals who report substandard goods may be rewarded. This is stated in the draft law “on market supervision,” submitted by the Ministry of Justice for public discussion on August 21 of this year.

According to the draft law, economic operators who become aware that a product placed on the market does not comply with mandatory requirements must report this to the Market supervision authority within 10 days from the moment the information becomes known.

An authorized representative of the manufacturer, as well as the importer or distributor, who receives information that a product placed on the market does not meet mandatory requirements, must convey this information to the manufacturer within ten days.

A person who is not considered an economic operator but becomes aware that a product placed on the market does not comply with mandatory requirements has the right to report this information to the Market supervision authority. The legislation may also provide for financial incentives for such individuals.

Upon receiving information that a product placed on the market does not comply with mandatory requirements, the Market supervision authority must notify the economic operator within five days.

According to the draft law, the Cabinet of Ministers of the Republic of Uzbekistan will:

• approve the procedure for providing financial incentives to individuals who report non-compliant products within four months;
• ensure the development of a methodology for determining the amount of moral damage, based on the best practices of advanced foreign countries, with the involvement of international consultants through state and non-state scientific institutions within six months;
• align government resolutions with this law;
• ensure that executive authorities of the republic review and repeal their regulatory legal acts that contradict this law.

As outlined in the draft law, within three months, the Supreme Court of the Republic of Uzbekistan will create and regularly update a database of court cases from the past three years in which compensation for moral damage was awarded in favor of citizens. This database will be made available for use by courts when considering cases related to moral damage.