Henrik e

The Danish Consumer Ombudsmans Experience

Self- and co-regulationKLKLKL |24 November 2014 THIRD COP PLENARY MEETING, BRUSSELS

About the Danish Consumer Ombudsman (DCO)

Traditional enforcement tools

Co-regulation in a nutshell: Negotiated Guidelines, etc.

Self-regulation: Influence and surveillance

Questions

Agenda

24 November, 2014 THIRD COP PLENARY MEETING I BRUSSELS

Founded in 1975 to monitor compliance with the Marketing Practices Act

Independent, public enforcement authority appointed by the Government for a period of six (+ three) years

Must fulfill the requirements to become a judge

The Ombudsman title is protected by law

The DCO is free to exercise his supervisory functions as believed to be most beneficial to collective consumer interests

DCO is on the Budget (2.5 3 millions euros pr. year)

Complaints can be lodged free of charge

The Danish Consumer Ombudsman Institution

24 November, 2014 THIRD COP PLENARY MEETING I BRUSSELS

Prohibitions and injunctions administrative or in court

Warnings and undertakings

Criminal proceedings and administrative fines

Actions for damages / collective redress

Test cases

Advance indications

Traditional Enforcement Tools

24 November, 2014 THIRD COP PLENARY MEETING I BRUSSELS

Section 24 of the Marketing Practices Act:

Following negotiation with [] organisations, the Consumer Ombudsman will seek to influence the conduct of traders by the preparation and issue of guidelines []

Why Guidelines?

Many complaints from consumers (and attention from the media)

Asked for by the sectors and their organisations

General problems call for general solutions (e.g. green claims)

Co-regulation - Negotiated Guidelines, etc.

24 November, 2014 THIRD COP PLENARY MEETING I BRUSSELS

Provides for legal security and clarity when legislation is unclear, cf. Commission Guidelines (e.g. the UCP and CRD directives)

Contents negotiated with consumer and business organisations:

High degree of compliance and support

Shared ownership of the final result consensus on interpretation

Clear and uniform rules foster equal, fair and transparent competition

Cost reducing for traders

Competition on relevant parameters to the benefit of consumers

Guidelines: Purpose, Advantages and Impact

24 November, 2014 THIRD COP PLENARY MEETING I BRUSSELS

Guidelines for Price Information in Marketing

Background:

Many complaints on misleading price comparisons (was-now, save, reductions, etc.)

Conflict of interest:

Consumers should be able to rely on promotions which indicate savings

Business needs saving messages to sell their product, but must not be misleading

Firm guidelines were asked for by both consumers and business

24 November, 2014 THIRD COP PLENARY MEETING I BRUSSELS

Negotiated Guidelines: Examples

A common understanding of a normal price and other comparison terms was found

Observance of the individual assessment in the UCP Directive:

Compliant practices are not misleading - Guidelines may be used as an advance indication

If non compliant, the assessment should be made individually

Outcome of the guidelines

Remarkable decline in complaints

Sample control showed that most companies comply with the guidelines

Proper competition on prices and not creativity in bluff savings

24 November, 2014 THIRD COP PLENARY MEETING I BRUSSELS

Challenge: How to ensure fair and trustworthy price comparisons?

Background: Increasing use of environmental claims and green wash

Purpose:

Protection against misleading and unethical marketing

Relevant and reliable information

Safeguard real and fair competition between traders

General directions as to the use of green marketing claims

Outcome:

Compliance to the benefit of serious traders doing the needed green investments

Competition in merits and not green wash

24 November, 2014 THIRD COP PLENARY MEETING I BRUSSELS

Guidance paper on environmental and ethical marketing claims

Only limited tradition for self-regulation in Denmark

Sector wise self-regulation only reliable

if strong commitment with sector members

firm surveillance and enforcement by the self-regulatory bodies

Enforcement of the Marketing Practices Act by the DCO will take over in case of no or weak supervision of the self-regulatory body

24 November, 2014 THIRD COP PLENARY MEETING I BRUSSELS

Self-regulation kept an eye on

Marketing of alcoholic beverages must comply with good practice in the Marketing Practices Act

Common understanding between the Consumer Ombudsman and the Alcohol Advertising Board of good practice

o Responsible behaviour, in particular regarding children and young people

Enforcement and supervision procedure agreed by the Consumer Ombudsman and the Board

oMutual information of cases

oAgreement on case handling

24 November, 2014 THIRD COP PLENARY MEETING I BRUSSELS

Marketing of alcoholic beverages:

Undertaking from the Danish tele companies to the DCO:

Service providers will comply with consumer protection legislation

o Including agreements with the DCO in specific areas:

oE.g. mobile contents to children, payments via overcharged sms-services, adequate price information

The telecom industry supervises compliance with the agreement

Sanctions in case of non-compliance (expulsion and fines)

The agreement is not approved but influenced by the DCO

Vivid document open for future updates

24 November, 2014 THIRD COP PLENARY MEETING I BRUSSELS

Framework agreement within the Telecom industry

Thank You! - Questions?

Henrik e