Unfair trading methods

A trading method is unfair when it goes against professional diligence requirements and significantly distorts or probably distorts the economic behavior of the average consumer.

Use of unfair trading methods is forbidden both before and after transaction and also during transaction. This ban consider especially unfair to be trading methods than are misleading or aggressive towards the consumer.

Unfair trading methods are trading methods that present the consumer with wrong information or present correct information in ways that can mislead the customer due to being unclear, impenetrable or ambiguous. Traders must not also refrain from presenting the consumer with information that the consumer must know and that would help make a shopping decision. This primarily means information about the product’s or service’s main characteristics and price or the presence of price advantage, and also information about the maintenance and spare parts related to using the product, but also information about consumer rights, including the right to replace or be compensated for the product.

The Consumer Protection Act has a so-called black list of misleading or aggressive trading traditions the use of which is forbidden always and under all circumstances. The legislation also bans any pyramid schemes where the consumer has to pay money to participate and in return is offered the chance to be compensated on the basis of engaging other consumers in the system etc.

The law also bans the use of aggressive trading methods where the consumer’s freedom of choice is limited by the abuse, force or excessive influence on part of the trader. For example, it is forbidden to create the impression that the consumer cannot leave without signing the contract; to make persistent and unwanted offers through phone, fax or e-mail; to demand that the consumer paid for delivered and unordered products etc.

NB! The ban on a trading method that has been declared unfair does not invalidate the transaction. For example, if the trader presents the consumer with incorrect information about the product then that means using an unfair trading method, which is banned, but this does not invalidate the sales transaction made due to the trading method. The consumer who has incurred damages due to the unfair trading method can file a claim to court and demand compensation. In case of court disputes arising from unfair trading method regulation, the court jurisdiction is assigned on the basis of the legal acts that determine court competence. However, a competent supervision institution does have the right to punish a trader using unfair trading methods.

Last amended: 01-08-2017 00:00 | Compiled by: Consumer Protection Board