Analyze of the new Croatian legislative

Trade Act: Regulation of Retail Operations

The most notable change introduced through the Trade Act relates to the regulation of Sunday trading. Since July 2023, retailers in Croatia have been permitted to operate on only 16 Sundays per year, while most retail activities must remain closed on other Sundays and public holidays. The Government justified the measure primarily as a means of improving work-life balance for retail employees while preserving consumer access to goods through limited exceptions. 

Early government data suggested that retail turnover did not significantly decline following the introduction of the restrictions. Instead, consumer spending largely shifted to working days and the limited number of permitted Sundays. This indicates that consumers adapted relatively quickly to the new framework, while retailers adjusted their operational planning and staffing models accordingly. 

For businesses, however, the impact varies considerably depending on sector and location. Large shopping centres, supermarkets, and retailers operating in tourist destinations often view Sunday restrictions as a limitation on revenue potential, particularly during peak tourism seasons. Conversely, smaller retailers may benefit from reduced competitive pressure and lower staffing costs. The legislation therefore creates both challenges and opportunities depending on the business model. 

Additional amendments currently under consideration would grant local governments authority to restrict the sale of alcoholic beverages during nighttime hours, potentially between 8:00 PM and 6:00 AM. The proposal is primarily aimed at addressing public order concerns, particularly in tourism-heavy urban centres. If adopted, local authorities would gain greater flexibility in regulating retail activity according to local needs and circumstances. 

From a business perspective, these developments indicate a regulatory trend toward greater government involvement in retail operations. Companies operating in Croatia will increasingly need to monitor local regulations and adapt their compliance procedures accordingly.

Consumer Protection Act: Strengthening Consumer Rights

Croatia’s Consumer Protection Act is heavily aligned with European Union legislation and has evolved significantly in recent years. The law establishes core consumer rights, including protection of economic interests, access to information, legal remedies, and protection against unfair commercial practices. 

The current legal framework already provides consumers with extensive rights in relation to distance selling, online purchases, unfair contract terms, and complaint procedures. However, proposed amendments expected to be adopted during 2026 introduce additional protections reflecting recent EU policy priorities. 

One of the most significant developments is the introduction of a stronger “right to repair.” Under the proposed rules, manufacturers and service providers will be required to facilitate repairs even after warranty periods expire and ensure the availability of spare parts for designated products. Furthermore, repair providers will no longer be permitted to refuse repairs solely because a product was previously serviced by an unauthorized repair shop or by the consumer. These measures support sustainability objectives while reducing unnecessary waste and replacement costs. 

Another major reform concerns online contract cancellations. Consumers will gain the ability to withdraw from digital contracts through procedures that are as simple as the method used to conclude the contract. In practical terms, if a consumer signs up for a service online with a single click, cancellation must be equally straightforward. This addresses concerns regarding so-called “dark patterns” that make cancellations unnecessarily complicated. 

The amendments also enhance transparency requirements for retailers. Businesses will be required to display pricing information more clearly, while promotional discounts must be calculated based on the lowest price charged during the previous 30 days. These rules aim to prevent misleading discount practices and ensure consumers can accurately assess the value of promotions. 

In addition, enforcement mechanisms are being strengthened. The State Inspectorate is expected to receive broader powers, consumers will have improved complaint procedures, and penalties for non-compliance will increase. As a result, businesses face higher compliance obligations and greater regulatory scrutiny. 

Implications for Businesses

The combined effect of the Trade Act and Consumer Protection Act is a regulatory environment that places increasing emphasis on transparency, fairness, sustainability, and consumer welfare.

For retailers and service providers, compliance can no longer be viewed as a purely legal function. It is becoming a strategic business issue affecting operations, marketing, customer experience, and brand reputation. Companies must ensure that promotional campaigns comply with pricing rules, customer service processes facilitate complaints and cancellations, and internal policies reflect evolving consumer rights. 

E-commerce businesses face particularly significant obligations. The simplification of withdrawal procedures, stronger transparency requirements, and stricter oversight of commercial practices mean that digital customer journeys must be carefully reviewed and redesigned where necessary. 

At the same time, businesses that proactively embrace these changes may benefit from increased consumer trust. Transparent pricing, accessible repair services, and customer-friendly cancellation procedures can become competitive advantages rather than mere compliance requirements.

Conclusion

Croatia’s evolving Trade Act and Consumer Protection Act demonstrate a clear policy direction toward greater consumer protection, stronger market transparency, and enhanced social responsibility in retail operations. While the Trade Act focuses primarily on regulating when and how retail activity is conducted, the Consumer Protection Act increasingly concentrates on ensuring fair treatment of consumers in both physical and digital markets. 

For businesses, the key challenge will be adapting operational models and compliance systems to meet these evolving requirements. For consumers, the reforms promise greater transparency, stronger legal protections, easier contract management, and improved access to product repairs. Ultimately, the success of these legislative changes will depend on effective enforcement and the ability of businesses to integrate consumer-centric practices into their long-term strategies.