Abolition of the prohibition against coupons and "purchase required" competitions

Date 14 jun. 2011

 

On 1 June 2011, the Danish Parliament adopted a number of amendments to the Marketing Practices Act, so that the special prohibitions against coupons and “purchase required” competitions are abolished from 1 July 2011.


Background to the amendment

In Denmark, a prohibition against using coupons and “purchased required” competitions has existed for the last 16 years.


However, in two decisions from 2009 and 2010, The EU Court of Justice determined that the Danish prohibition is against the EU-directive on unfair commercial practices according to which no general prohibitions against the use of specific promotional measures may be introduced. Based on this, on 1 June 2011, the Danish Parliament decided to abolish the prohibitions in the present Sections 10 and 11 of the Marketing Practices Act with effect from 1 July 2011.


Furthermore, the Parliament has decided to further specify Section 9 of the Marketing Practices Act to ensure that promotional measures, including coupons and price competitions, are marketed in a way that makes the bargain terms clear and easily accessible to the consumer. Moreover, Section 9 determines that no material information must be left out, including information on the value of any additional benefits which are suitable to noticeably distort the consumer’s economic behaviour.

  

Reintroduction of the prohibition

Despite the fact that the Danish Parliament has just voted in favour of an abolition of the special restrictions of Sections 10 and 11 of the Marketing Practices Act, a majority of the Parliament will strive to have the prohibition reintroduced. The Ministry of Economic and Business Affairs has indicated that the Parliament should work actively and unambiguously to have the EU Directive on unfair commercial practices changed into a minimum directive so that the regulation in this area is left to the individual member state to decide to a large extent. If such change of the directive is implemented, Denmark will be able to reintroduce the special prohibitions against coupons and “purchase required” competitions in Denmark.

 

See the adopted bill here:

http://www.ft.dk/samling/20101/lovforslag/L160/som_vedtaget.htm#dok

 


If you have any questions or require additional information on the amendment, please contact Attorney Dan Moalem (dmo@mwblaw.dk) or Assistant Attorney Sofie-Amalie Gregaard Brandi (sab@mwblaw.dk).

 

The above does not constitute legal counseling 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 a reader’s use of the above as a basis of decisions or considerations.