The Danish Marketing Practices Act amended

Date 24 jun. 2020
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A number of amendments to the Danish Marketing Practices Act will enter into force on 1 July 2020, in several instances extending the limitation periods for complaints about misleading advertising to five years.


The Danish Marketing Practices Act’s Section 5(1) and Section 6(1) contain the general ban on misleading actions or misleading omissions.

 

The limitation period for asserting such misleading advertising is ordinarily two years, but in a number of cases this has effectively meant that the Consumer Ombudsman has been unable to sanction the misleading advertising in that it has only become known after the expiry of the period of limitation.

 

With a view to improve the options to address and enforce misleading advertising going forward, the limitation periods have been prolonged from two to five years within the following areas:

  • Real estate
  • Credit agreements to finance or secure real estate
  • Current contractual relationships with a fixed price indication

These three areas have seen cases of the consumer only being able to become aware of any misleading advertising after the expiry of the limitation period. Examples include the purchase of project apartments, where misleading advertising was only discovered after the completion of the property, e.g. that the amount of square metres did not match the amount promised. Similarly, with housing credit agreements, certain housing loans have been marketed with a fixed price during the term of the loan, where later the contribution rate was raised. In relation to contractual relationships, there are examples of the price having been marketed as fixed “perpetually” and irrespective thereof having been raised after the expiry of the limitation period.

 

The purpose of the extension of the limitation periods is to improve the Consumer Ombudsman’s ability to enforce in certain areas in which misdirection may cause significant financial consequences to the consumers. The purpose of the extension is thus to ensure even better consumer protection.

 

Going forward, the provision will be included in the Danish Marketing Practices Act’s Section 39(a) and will become effective 1 July 2020. The provision will apply retrospectively.

 

 

If you have any questions or would like more information about the above, please do not hesitate to contact Partner Pernille Nørkær (pno@mwblaw.dk) or Junior Associate Louise Dolmer (ldo@mwblaw.dk).


The above does not constitute legal counselling and Moalem Weitemeyer Bendtsen does not warrant the accuracy of the information. With the above text, Moalem Weitemeyer Bendtsen has not assumed responsibility of any kind as a consequence of any reader’s use of the above as a basis for decision or considerations