Denmark - The Consumer Ombudsman's priority areas for action in 2010
1. Price marketing
Information about price is an important piece of information for consumers.
The Consumer Ombudsman (Forbrugerombudsmanden) has therefore placed focus on the price information and marketing of traders. By issuing new guidelines on price marketing, the Consumer Ombudsman will, in cooperation with the Danish Consumer Council (Forbrugerradet) and the trade organisations, increase awareness of the new set of regulations among businesses and enterprises. In addition, the Consumer Ombudsman will regularly implement control and enforcement measures to ensure compliance with the guidelines.
2. Litigation of financial cases
The financial crisis has not only affected banks, but also led to heavy losses being incurred by private customers through their investments in securities.
As a result, a number of cases have arisen that raise questions about provision of inadequate or poor advice and guidance. The credit package agreement has, among other things, allocated the Consumer Ombudsman greater resources and wider powers to intervene to protect consumers against aggressive and unfair marketing practices of financial institutions. The Consumer Ombudsman will therefore in close cooperation with, among others, the Danish FSA (Finanstilsynet) focus special attention on cases concerning compensation in connection with, for example, inadequate advice and guidance, unfair contract terms, unjustified charges, etc. and unfair practices in relation to customers.
3. New supervision of payment services
On 1 November 2009, the new regulations laid down in Act on Payment Services (Lov om betalingstjenester) entered into force. The Act contains regulations that are designed to improve customer protection.
The Consumer Ombudsman constantly monitors risks and problems associated with electronic payments. The Consumer Ombudsman will keep a special eye on whether the new consumer protection regulations are complied with in practice. This concerns in particular liability regulations in connection with the misuse of payment instruments (e.g. Dankort (debit card), credit cards and mobile phones), the new regulations concerning information requirements, and payment of refunds in connection with distance sales if the ordered product is not delivered.
4. Levy of unlawful fees and excessive interese charges
The financial crisis places increased focus on "the grey lending market". It is important that marketing activities and loan agreements are carried out and drawn up, respectively, in accordance with legislation, so that consumers are not misled and end up perhaps having to pay excessive interest charges or other charges for many years.
The Consumer Ombudsman will devote special attention to cases where traders levy unlawful fees or, when lending money, provide incorrect information regarding credit costs, with a view to bringing a potential court action regarding the reduction of interest and/or repayment of the overcharged amount.
5. Environmental claims in marketing.
The environment/climate is a highly prioritised political area, and the interest of consumers as well as traders to assume responsibility is growing.
This situation is reflected in, among other things, the large number of products on the market which in various ways are marketed and promoted on their environmental merits. Environmental claims in marketing are therefore of great importance for consumer choice and for fair and equitable competition in the market place. With the new set of guidelines on environmental and ethical claims in marketing, the Consumer Ombudsman will therefore clarify to enterprises and businesses the boundaries for the permissible use of such claims.
6. Marketing practices targeted at children and young people
Today, children and young people are able to buy mobile content services for great amounts of money that end up on their parents' telephone bill.
Through negotiation with the telecom industry, the Consumer Ombudsman will ensure that parents who take out a mobile phone subscription which is used by their under-aged children are afforded better protection against liability for payment of such large amounts. In addition, the Consumer Ombudsman will continue to focus attention on marketing practices involving alcohol, the use of children and young people for sales and marketing purposes - e.g. recruiting friends - direct marketing as well as covert advertising aimed at children and young people.
7. Greater awareness of regulations governing e-commerce - nationally and globally
E-commerce and marketing on the Internet are cross-border in nature, and often so are the problems that arise from utilising the opportunities afforded by the Internet.
An important prerequsite for consumer trust in cross-border distance sales is that intervention is made as far as possible to rectify unfair commercial practices on the Internet. At the same time, the Consumer Ombudsman perceives that many traders are either unaware of or disregard the consumer protection regulations governing online trading, which is detrimental to both consumers and the traders who comply with the regulations.
As a follow-up to the position statement of Nordic Consumer Ombudsmen on online trading, the Consumer Ombudsman will therefore focus attention on communicating and increasing awareness of the regulations among traders in collaboration with the trade organisations and also on implementing control and enforcement measures. The Consumer Ombudsman also prioritises participation in such actions at Nordic, European and global level in cooperation with other enforcement authorities.