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Newsletter from the Danish Consumer Ombudsman

The newsletter this month contains features on the Danish ban on tobacco advertising as well as price quotes in the airline business.

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Focus on the Danish Tobacco Advertising Ban

However, this does not apply where the advertising activity is targeted to people in the trade, signs and other types of display of tobacco products at outlets where tobacco is sold.

The judgments passed while the ban has been in effect have been related to regular advertising of tobacco products in e.g. advertising material, or the use of tobacco as a gimmick in a marketing campaign promoting other products. All charges have resulted in fines. That was until recently.

Two tobacco judgments

Two sentences passed in October 2006 changed that picture. One cemented the Act with a resounding effect - the other went completely against the grain.

A local tobacco giant was acquitted for having had cigarettes displayed in cafes and bars. The logo was replaced with names popular 20 years ago and marketed with an ‘available at the counter’. The Court stated that the temporary change of design did not breach the Act – although the change was clearly intended to attract potential buyers. The display of the cigarettes, the Court further stated, was covered by an exemption set out in the tobacco ad ban.

These counts, among others, prompted the previous DCO to contact the Danish health authorities. In a letter to the Danish Health Agency, he said that this judgement in effect eroded the notion of advertising. Tobacco producers were now given a free rein to use not only packaging as a means to get more attention, but also the public space in general – as well as the Internet. In actual fact: a circumvention of the ban.

The other judgment was a landmark victory for the Consumer Ombudsman. At the core of the issue were two full-page ads running in the Danish printed media during the late summer of 2004, both of which warned readers about potential damages caused by smoking.

See the news article from a major Danish newspaper about the two judgments and general background information (in English)

See the news release concerning the Philip Morris judgment

Airlines must quote total price for fares on the Internet

'This is not fair practise', says the Danish Consumer Ombudsman.

A consumer was unable to find the actual price of the fare in the first image presented by an airline company on its website. He complained to the Consumer Ombudsman who acted immediately. A known and general problem in the airline business, he decided to investigate the matter thoroughly.

The Consumer Ombudsman has now informed airline companies operating on the Danish Market that according to the Marketing Practises Act it is not acceptable to keep the actual, full price undisclosed until the middle of an online order placement. Nor is it considered adequate to state the price inclusive of all costs immediately after indicating the price of the fare exclusive of all extra charges – not even if the prices are indicated in the same display or image. That said, the letter went on, once having stated the total price airlines were free to itemise the total price and individual charges and taxes.

The Consumer Ombudsman is of the opinion that the price exclusive of fees and taxes is irrelevant for the consumer and her price estimation. To use this price in one’s marketing campaign only serves the purpose of enhancing the commercial effect of the general message. It might also give potential consumers the impression that a particular price is highly advantageous compared to prices charged by other businesses.

What does the law say?

Section 13 of the Marketing Practises Act sets out that on offering services for sale electronically where it is possible to place an order, a business must indicate the total price inclusive of all fees, charges, VAT, taxes etc. Violations are punishable by fine.

Section 13 on price information was incorporated into the new Marketing Practises Act introduced this summer. The objective behind price information is to provide the consumers with correct price information presented in a clear, relevant and transparent manner. Price indications make it possible for the consumers to compare different products of the same sort and offered for sale by different traders. Correct price indications thereby facilitate fair competition in the market.

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