The Functioning of Consumer Courts and Arbitration Boards

Entrance

Today, the consumer is at the heart of economic life . Protecting consumers who purchase goods or services is not only a matter of individual rights but also a requirement for a fair market system .

In Turkey, the protection of consumer rights the Law No. 6502 on the Protection of Consumers (TKHK) and the Regulation on Consumer Arbitration Boards .
The judicial arm of this system the Consumer Courts .

This article will detail the jurisdiction of consumer courts, the functioning of consumer arbitration boards, and the updated monetary limits as of 2025.

The Purpose of Consumer Law

Consumer law provides protection for individuals in situations where they are economically weaker . The aim is to fairly balance the rights of the consumer against the powerful position of the producer or seller

The basic principles of consumer law are as follows:

Protecting consumer safety and health,
Protecting their economic interests,
The right to information and education,
Effective compensation for damages,
Accessible and fast dispute resolution.

Establishment and Basis of Consumer Courts

Consumer Courts were established pursuant to Article 73 of Law No. 6502. These courts are specialized courts at the level of Civil Courts of First Instance

Every provincial capital and major district has at least one Consumer Court .
In places where such a court does not exist the Civil Court of First Instanceacts as a consumer court.

Jurisdiction of Consumer Courts

Consumer Courts are responsible for handling all types of lawsuits and disputes arising from consumer transactions . A consumer transaction is defined as the provision of a good or service for commercial or professional purposes, and the consumer's purchase of it for personal needs.

The main types of cases that fall within its jurisdiction are as follows:

Defective goods and services lawsuits
(Claims for repair or replacement under warranty due to defective goods)
Consumer loan and credit card agreements
(Unfair terms in agreements with banks, interest rate disputes)
Installment sales and timeshare contracts
Distance selling (online shopping)
(Violation of the right of withdrawal and product return issues in purchases made on e-commerce sites)
Insurance contracts
(those considered consumer transactions under compulsory traffic insurance, comprehensive insurance, and health insurance)
Subscription agreements
(electricity, water, natural gas, internet, mobile phone services)

If one of the parties is a consumer in these areas, the dispute falls within the jurisdiction of the Consumer Court

Consumer Arbitration Boards: An Alternative Dispute Resolution Mechanism

Consumer Arbitration Boards offer a quick, cost-effective, and accessible solution before resorting to legal action. These boards are administrative in nature and operate under the Ministry of Trade

🔹 Job Description:

They examine and issue binding decisions on disputes between consumers and sellers/providers that fall below a monetary threshold .

🔹 Monetary limits for 2025:

District Arbitration Boards: For disputes up to 104,000 TL,
Provincial Arbitration Boards: For disputes between 104,000 TL and 156,000 TL,
Consumer Courts: Have jurisdiction over disputes exceeding 156,000 TL.

(These figures are increased annually according to the revaluation rate.)

🔹 Application Procedure:

The consumer applies to the arbitration board located in their place of residence or in the seller's location.
Applications e-Government or directly to the provincial/district trade directorates.
Application is free.

🔹 Decision Period:

Arbitration panels finalize applications within 6 months . In exceptional circumstances, this period may be extended by a maximum of 3 months .

Application to the Consumer Court

The parties may appeal the arbitration board's decision to the Consumer Court within 15 days . The court will then decide on the case, with the possibility of further appeal

Furthermore, in disputes exceeding the monetary limit, consumers can directly apply to the Consumer Court. No fees are charged in these courts , and proceedings are subject to a simplified procedure .

Procedural Rules in Consumer Courts

In consumer litigation, a simplified procedural method is generally applied. This method allows cases to be resolved quickly and at lower costs.

The court will examine the case based on the case file if possible . However, a hearing may be held to obtain statements from the parties. The judge may collect evidence ex officio , as these disputes concern public order.

New Trends in Consumer Rights Protection

As of 2025, significant innovations have been introduced in the protection of consumer rights in Türkiye:

Application via E-Government:
All arbitration board applications can now be made digitally, and the process can be monitored transparently.
E-commerce Disputes:
Disputes arising from online sales have increased, and a special "E-commerce unit" has been established within arbitration boards.
AI-Powered Decision Support Systems:
Decision-making processes in consumer arbitration boards are now automated evaluation systems.
European Union Harmonization Process:
Turkey has entered a process of full compliance with EU consumer protection directives by 2025.
This is important for safeguarding consumer rights at the international level.

Consumer Courts in Light of Supreme Court Decisions

The 13th Civil Chamber of the Supreme Court of Appeals, Case No. 2022/3421 E., Decision No. 2023/8754 K., stated:
“Consumer courts have jurisdiction in every dispute where one of the parties is a consumer, and the actual relationship should be the basis for judgment, regardless of the name or form of the contract.”

The 3rd Civil Chamber of the Supreme Court of Appeals, Case No. 2021/2879 E., Decision No. 2022/6124 K.,
stated: "In cases where goods purchased through e-commerce are found to be defective, the decision of the consumer arbitration board is final and enforceable unless overturned by a court."

These precedents clearly demonstrate that the principle of interpretation in favor of the consumer prevails.

The Effectiveness of Consumer Arbitration Boards

According to data from the Ministry of Trade, across Türkiye in 2024:

Over 600,000 applications have been received.
68% of the applications were resolved in favor of the consumer.
The average completion time is around 100 days.

These data show that arbitration panels have become an effective dispute resolution mechanism in practice

Conclusion

Consumer Courts and Arbitration Boards fair market order and consumer safety .
This system strengthens individuals' right to seek redress while simultaneously reducing the workload of the courts.

Consumer law is more than just classical litigation; it's a culture of rights awareness.
When every consumer is informed, not only individual but also societal well-being increases.

Therefore, consumer protection is not merely a matter of law, but the social justice aspect of the law .

Law No. 6502, defective goods, e-commerce, monetary limit 2025, Protection Law litigation process, consumer arbitration board, consumer rights, consumer credit, consumer court, consumer dispute.

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