The definition of the Danish Consumer Ombudsman institution [DCO] and its field of responsibility is laid down in the Danish Marketing Practises Act.
The institution was founded in 1975. The Consumer Ombudsman himself is appointed for a period of 6 years by the Minister of Economic and Business Affairs. The institution is an independent authority which means that the Ombudsman can prioritise the institution's work and activities according to resources and needs.
The current Consumer Ombudsman is Mr Henrik Saugmandsgaard Øe, who took office 1 November 2006. Henrik Øe is the fourth consumer ombudsman since 1975.
The DCO also supervises compliance with the Danish Act on Payment Services, the Act on legal Counselling, the E-commerce Act, the Ban on Tobacco Advertising Act as well as a number of civil law provisions following from other consumer protection legislation.
The Marketing Practices Act
The concept of marketing covers a wide range of activities: marketing is when a business or trader advertises or launches marketing campaigns or provides information about a certain product to consumers. It is also an example of marketing when agreements or contracts are made. Finally, after-sales activities, e.g. collection of debts etc., are also considered part of marketing.
What constitutes fair marketing practises is subject to change over time and the development in society in general. However, the following principles laid down in the Danish Marketing Practises Act remain beyond dispute:
- Marketing activities must not be unreasonably intrusive, aggressive or offensive
- It is considered an offence to make use of misleading information in order to induce consumers to buy a product or service
- The Marketing Practices Act also applies to the form and contents of a guarantee, distribution of commercial messages and the contents of manuals
- Business and trade must act according to the principles of good marketing practises – in other words, unfair and unreasonable conduct of business is likely to conflict with the act.
As a basis, business, trade and media must all comply with the act. However, certain areas in specific sectors are also overed by special legislation. Special legislation applies alongside the Marketing Practices Act with regard to marketing activities carried out in connection to foodstuffs, pharmaceuticals, health services and radio and television commercials. Marketing activities carried out by financial institutions are as a basis subject to the Financial Business Act.
The DCO at work
The DCO investigates specific complaints as well as cases of a wider public importance concerning marketing activities and payment instruments. He does not, however, settle individual disputes between consumers and traders as such, but he can negotiate settlements on behalf of consumers. The Consumer Complaints Board or one of the private complaint boards, authorised to look into cases in a particular area, typically investigates individual cases.
Most complaints and enquiries come from consumers, but interest organisations, traders, law firms etc. also make up a substantial part of the incoming queries.
When investigating complaints, the DCO takes the following aspects into consideration:
• The relevancy of the complaint, i.e. does the core of the problem affect many consumers, and has it resulted in many complaints;
• The gravity of the case for the individual consumer;
• The generality of the problem, i.e. whether the problem cuts across different trades or sectors.
In 2009 the DCO investigated a total of approximately 4,400 written complaints and enquiries.
The DCO also issues guidelines and guidance papers concerning specific or more general marketing issues on a regular basis, and traders can obtain an advance indication concerning the legality of contemplated marketing activities.
Legal powers
The DCO is invested with legal powers to handle infringements in court.
Violation of some the provisions of the Danish Marketing Practises Act are punishable by fine, although a more severe penalty may be imposed for the same act under other laws. Violations of section 3 on misleading information as well as section 4 on covert advertising and section 8 concerning marketing targeted to children and young people are punishable by fine.
The DCO is authorised by law to bring civil and criminal actions on behalf of complainants, but he may also request the police to initiate investigation and prosecution to bring a charge against a trader. Further, the DCO has the authority to issue an interim injunction in situations where it is crucial to sustain a case against a trader as awaiting a court order would otherwise make the whole purpose of bringing an action for injunction fail.
Staff and organisation
As of 1 January 2010, 17 lawyers, along with a head of legal division, a communication officer, 3 higher executive officers and a student assistant aid the DCO in his daily work. The Danish Competition and Consumer Agency, located in Copenhagen, puts staff and other resources at his disposal, and the section is physically situated in the agency as well.
DCO staffers are divided into a number of staff sections headed by a member of that section. A management group, consisting of senior advisers, charts out priorities and focus areas in cooperation with the ombudsman.
Staff sections include:
- Telecom and internet
- Contracts
- Price marketing
- Children, young people and ethics
- Financial sector
- Communications and web
- Office administration
- Proceedings and litigation
Vision
- We want both consumers and businesses to have confidence in our work
- We are visible, influential and respected
- We strengthen the dialogue and cooperation with businesses and organisations
- We prevent potential problems in the market
- Efficient law enforcement is our hallmark
- Cross-border marketing activities are included in our supervisory tasks
- We organise our supervisory tasks and make optimal use of our resources compared to our objectives