Legal Update: Fines For Disruptive Marketing Practices Doubled and Increased Authority of the Consumer Ombudsman
As from October 6th, 2016, the Consumer Ombudsman will be able to issue cease and desist orders, information orders and orders prescribing traders to provide certain technical aids with immediate effect in cases of minor importance. Compared to the earlier wording of the relevant section of the Marketing Practices Act (Swe. marknadsföringslagen (2008:486)), this is a significant strengthening of the authority of the Consumer Ombudsman, as the provision previously prescribed for the trader having to accept the order in question.
Furthermore, the conditional fine that shall be issued in conjunction with the order, if not deemed unnecessary due to specific circumstances, shall from said date be fixed at not less than SEK 10,000 and not more than SEK 10 million. The fixed minimum level of the fine is thereby doubled; the conditional fine previously ranging between SEK 5,000 and SEK 5 million. The limitation that the fine may not exceed 10 percent of the trader’s annual turnover remains in place.
For further information on the Marketing Practices Act and the applicability of its various provisions with regard to your practice, please do not hesitate to contact the IP & TMT practice at Hannes Snellman.