- Professional News
- 21 May 2014
New webshop legislation under way
On 13 June 2014, an amended Consumer Contracts Act will enter into force in Denmark introducing stricter requirements for businesses as well as increased consumer protection.
When the amended Danish Consumer Contracts Act (forbrugeraftaleloven) enters into force on 13 June 2014, businesses selling goods or services online must renew their webshop terms and conditions in order to comply with the new rules.
The two most important amendments to which businesses should pay attention are:
Extended duty of notification
Before and after the purchase, the consumer must receive various notifications (up to 22 different kinds). According to the amended Act, non-compliance with the extended duty of notification, such as failing to inform consumers about their extended right to cancel contracts as well as legal remedies, may result in a penalty or extend the consumer’s right to cancel the contract by up to 12 months, allowing the consumer to return the used goods without any deduction of loss of value.
Extended right to cancel contracts: Return of used goods
Consumers will have a right to cancel contracts even in cases where the product is used to a degree that is not accepted by physical shops, such as wearing a pair of trousers to a party or watching the FIFA World Cup on a new TV before returning the goods. The business must only deduct the loss of value when repaying the purchase price. The Act lays down that the valuation must be individual and objective and, as a result, webshop terms and conditions cannot lay down that the value of used goods is DKK 0. Many businesses will most likely find it a challenge to assess the value of used goods as well as handle the returning of used goods.
In addition to providing the right information in the right way, businesses must find the right approach to assessing the value of used goods and their potential resale.
Consumer Ombudsman focus area
The Danish Consumer Ombudsman has announced that, as from June 2014, he will pay special attention to online sales.
Businesses selling goods or services online are therefore recommended to review and update their webshop terms and conditions to ensure compliance with the new rules.
Other acts, such as the E-commerce Act (e-handelsloven), the Act on Processing of Personal Data (persondataloven) and the Marketing Practices Act (markedsføringsloven), also lay down webshop requirements. As a result, businesses may benefit from an all-round compliance check of their websites.