Contractual penalty in consumer contracts

In the decision No. 32 ICdo 86/2015 of 28.02.2017, the Supreme Court has decided that it is inadmissible to impose contractual penalties on consumers in annexes of the consumer agreement, as in the general terms and conditions. In the relevant case, there was only a reference to the annexes in the contract itself. The regulation of the contractual penalty was, however, included in general terms and conditions. According to the Supreme Court, this is a vague definition of the contractual penalty which is difficult for the consumer to understand and therefore void.