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Overview: New rules for sale to consumers

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Legal news
calendar 23 February 2022
globus Denmark

The Danish Purchase Act has been updated, and now considers the number of digital services and products offered to consumers. This expands the consumers’ rights, so they also apply to agreements regarding the sale and delivery of digital content and services. Here, IUNO provides an overview of the important changes. You can also look forward to in-depth newsletters on the changes mentioned.

The new changes will affect companies, providing products and services to consumers, as described in the following sections.

The rules on consumers will also cover digital services

The rules regarding consumers in the Danish Purchase Act now cover digital services and products which contain digital content as well. The rules no longer cover only traditional purchases, but also when a consumer receives a digital service or digital content in exchange for personal information. In this way, purchasing physical products and digital content and services gives the consumer the same rights.

Subscriptions on digital services

When providing a digital service or digital content, such as music and podcasts, the provider must prove that the service or content did not have any shortcomings during the period the product was used or up until two years after the delivery, depending on which of the two periods is the most extensive. The company must be able to document that the provided service did not have any shortcomings in this period. Otherwise, the consumer can claim that the delivered service was faulty at the time of delivery.

Warranties

For products with digital content, the warranty period expires at the same time as the period of delivery. This means that the consumer can exercise their rights in the entire period of delivery, but not immediately after. In case of digital services or content supplied continuously, the consumer can exercise their rights within two months after the period of delivery and during the entire period of delivery.

The rule of presumption

The rules of presumption in section 77 a (3) of the Danish Purchase Act have been changed as well. Prior to the changes, a shortcoming discovered within the first 6 months after delivery would be considered present when it was delivered. Now the period has been doubled, such that any shortcoming discovered within the first year after delivery is considered present at the time of delivery, unless the provider can prove that this was not the case.

From appropriate reduction to proportionate reduction

A change to the Danish Purchase Act, which does not expand the rights of the consumers, is the change from appropriate reduction to proportionate reduction. This essentially means that the consumer can now only receive a reduction in the sales price equal to the actual reduction of value in the product.

Guarantees in commercials

Lastly, the Danish Purchase Act does now explicitly state that guarantees contained in commercials bind the company. This applies even when another guarantee exists if this guarantee gives the consumer less rights.

IUNO’s opinion

The changes to the Danish Purchase Act give the consumers more wide-spanning rights. It is therefore important that you as producers and providers are aware of the changes, and what they might mean for your business.

IUNO recommends that you take note of the new deadlines and try to document the state of your products and services at the time of delivery. You should be particularly aware of what you guarantee in commercials or on your website, so it doesn’t exceed what may reasonably be expected from your product or service. Particularly providers of digital services, or products containing digital content should be aware of the changes in consumer rights.

[Notice on the Danish Purchase Act of 24 September 2021 (https://www.retsinformation.dk/eli/lta/2021/1853)]

The new changes will affect companies, providing products and services to consumers, as described in the following sections.

The rules on consumers will also cover digital services

The rules regarding consumers in the Danish Purchase Act now cover digital services and products which contain digital content as well. The rules no longer cover only traditional purchases, but also when a consumer receives a digital service or digital content in exchange for personal information. In this way, purchasing physical products and digital content and services gives the consumer the same rights.

Subscriptions on digital services

When providing a digital service or digital content, such as music and podcasts, the provider must prove that the service or content did not have any shortcomings during the period the product was used or up until two years after the delivery, depending on which of the two periods is the most extensive. The company must be able to document that the provided service did not have any shortcomings in this period. Otherwise, the consumer can claim that the delivered service was faulty at the time of delivery.

Warranties

For products with digital content, the warranty period expires at the same time as the period of delivery. This means that the consumer can exercise their rights in the entire period of delivery, but not immediately after. In case of digital services or content supplied continuously, the consumer can exercise their rights within two months after the period of delivery and during the entire period of delivery.

The rule of presumption

The rules of presumption in section 77 a (3) of the Danish Purchase Act have been changed as well. Prior to the changes, a shortcoming discovered within the first 6 months after delivery would be considered present when it was delivered. Now the period has been doubled, such that any shortcoming discovered within the first year after delivery is considered present at the time of delivery, unless the provider can prove that this was not the case.

From appropriate reduction to proportionate reduction

A change to the Danish Purchase Act, which does not expand the rights of the consumers, is the change from appropriate reduction to proportionate reduction. This essentially means that the consumer can now only receive a reduction in the sales price equal to the actual reduction of value in the product.

Guarantees in commercials

Lastly, the Danish Purchase Act does now explicitly state that guarantees contained in commercials bind the company. This applies even when another guarantee exists if this guarantee gives the consumer less rights.

IUNO’s opinion

The changes to the Danish Purchase Act give the consumers more wide-spanning rights. It is therefore important that you as producers and providers are aware of the changes, and what they might mean for your business.

IUNO recommends that you take note of the new deadlines and try to document the state of your products and services at the time of delivery. You should be particularly aware of what you guarantee in commercials or on your website, so it doesn’t exceed what may reasonably be expected from your product or service. Particularly providers of digital services, or products containing digital content should be aware of the changes in consumer rights.

[Notice on the Danish Purchase Act of 24 September 2021 (https://www.retsinformation.dk/eli/lta/2021/1853)]

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Aage

Krogh

Partner

Matilde

Grønlund Jakobsen

Associate

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Grønlund Jakobsen

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