Businesses that flagrantly breach central consumer protection rules now face higher fines than before. There is currently a cap on such fees of up to four per cent of annual turnover or NOK 25 million, whichever is higher.
The upper limit of the misdemeanor fee is now defined in the new regulation to the Marketing Act, the Right of Withdrawal Act, the Package Travel Act and the Transparency Act. It is only a matter of the maximum amount and in each individual case it is yet to be determined how high the fee should be.
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– Gross violations of the rules consumer protection may involve, for example, repeatedly requesting payment from consumers without their consent. They may also involve attempts to mislead consumers. The risk of higher fees will have a greater deterrent effect to keep companies from breaking the rules. This will provide even stronger consumer protection, says Consumer Minister Kjersti Toppe.
In the past, there was no upper limit for the offense fee. IN Norway's practice was to charge relatively moderate fees. Fines for breaking the law have traditionally ranged from several hundred thousand to as much as NOK 1,2 million. Under the new rules, serious and systematic violations of the law can result in fines of up to four percent of turnover or NOK 25 million. The highest amount is taken as the basis.
Penalties are intended to be effective and act as a deterrent
The change in regulations is part of the implementation of the EU Modernization Directive. There are no specific requirements that would increase fees, but the Directive requires penalties to be effective and dissuasive. This means that fees, especially where they are directed to large enterprises, should be of a certain size.
The Regulation also implements the requirements of the Public Administration Act regarding the upper limit of fines for breaking the law. New rules apply from today.
