When the EU Modernization Directive is implemented in Norway, there will be major changes to several central consumer protection laws.
– It is important for entrepreneurs to familiarize themselves with the changes. They must become familiar with their obligations and rights as consumers, and ensure that they are respected. In the event of a violation of the law, companies will take greater risks than before, says Trond Rønningen, director of the Norwegian Consumer Protection Authority.
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The changes update current consumer protection laws to better fit into the everyday life of the modern and digital consumer. They must also ensure that supervisory authorities can enforce and respond to regulations more effectively.
Being a consumer must become easier, and businesses must ensure they adapt to new regulations and make the necessary changes to their practices.
Here's an overview of the most important changes we're talking about you must know, which will come into force from October 1.
New rules regarding door-to-door sales
For those involved in door-to-door sales, there are now clearer regulations on how these types of sales can be conducted. Consumers now have the right to legally reserve the right to refuse unsolicited door-to-door sales, for example by placing an appropriate sign or sticker stating that door-to-door sales are prohibited during certain hours.
The right to reservation does not apply to fundraising for charities unless they are considered entrepreneurs.
There is also a mandatory extension of the payment deadline to 14 days in the case of door-to-door sales if the amount exceeds CZK 1500. This is an additional right to the consumer's right to withdraw from the contract. The right of withdrawal is extended to cases where the service has been delivered or when purchasing personalized goods, for example goods with a name engraved.
Price marketing
The price information regulations are amended so that clearer rules now apply to the marketing of price reductions on goods. Under the new rules, traders must in such cases always disclose the lowest price charged in the last 30 days before marketing.
User reviews from consumers
To ensure the credibility of consumer reviews online, new rules are being introduced to ensure that user reviews are genuine. First of all, an obligation is introduced to inform about the activities undertaken by the entrepreneur, so that user opinions come from real consumers who have used or purchased goods or services. Additionally, several practices are prohibited. From now on it will always be prohibited:
- state that user reviews are genuine, without implementing reasonable measures to prevent false reviews
- Reporting or being responsible for someone or something submitting false user reviews or recommendations
- purposeful presentation of mentions and messages on social media in marketing
In addition to clear prohibitions that will make it easier to enforce the rules against those trying to cheat, the rules should motivate companies to take good and effective measures to ensure that user reviews come from real consumers.
Online trading platforms
It is sometimes difficult for consumers to know who they are transacting with and what their rights are when trading on online marketplaces. As a result, several new information requirements are being introduced to make it safer to buy online from third parties. These requirements mean, among other things, that anyone offering online trading platforms must disclose the criteria ranking of offers in the results search, regardless of whether the seller is a business or not. As well as that consumer protection rules do not necessarily apply if the seller is a private person. In addition, it must be clear how the marketplace provider and the seller allocate responsibility between them, for example where one party is responsible for shipping and the other for the quality of the goods and any complaints.
Changes to the right of withdrawal in the case of digital content
For some types of digital content it is desirable to have access immediately, even if the right of withdrawal expires after the contract has started. For example, in the case of purchasing/renting a movie or microtransactions in games. The change in the law now allows digital content to be excluded from the right of withdrawal if the consumer expressly agrees to the delivery of the content before the relevant withdrawal period expires. However, entrepreneurs must remember to confirm that the contract was concluded in accordance with the law, so that the right to withdraw from the contract does not apply.
Effective sanctions
For companies to comply with the law, it is important that sanctions are effective and dissuasive. The Norwegian Consumer Protection Authority is now empowered to impose fines for breaking the law in more cases than before. The Office will be able to impose penalties for violations of the prohibition of hidden advertising and unfair contract terms in the Marketing Act and violations of additional provisions of the Act on the right to withdraw from a contract.
A maximum limit on the amount of penalties for violations of the law will be introduced. This cap will be 4% of annual turnover or 25 million kroner, whichever is higher. The same limitation applies to those who contributed to the violation of the law.
The role of the Consumer Protection Office
The Consumer Protection Office will enforce and provide explanations regarding the new regulations. In the future, we will, among other things, update thematic pages and information materials so that both entrepreneurs and consumers have access to up-to-date information on regulations. We will also prioritize providing support and explanations to specific industries that are particularly affected by these changes. There are also many other regulations beyond those mentioned that will be important to familiarize yourself with.
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Source: Office of Consumer Protection
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