2/12
19 April 2012
Editorial
The Finnish Consumer Agency and Finnish Competition Authority may be combined ....................2
Enforcement cases
The advertiser must demonstrate social responsibility .....................................................................3
Television company markets channel packages with little information to go on ...............................4
Information on cold weather restrictions for purchasers of smartphones .........................................5
Mobile phone navigation service options .........................................................................................6
World Championships prize dominates advertisement for throat pastilles .......................................6
Excessive charges for postponing debt settlement date abolishes .................................................. 7
Initiatives and position papers
New ways to monitor the Finnish Debt Collection Act proposed ......................................................8
Telecoms need to tell consumers promptly about disruptions to the service ....................................9
Consumer mobility must be guaranteed in the information society ................................................10
Solutions sought to copyright challenges in the digital age ............................................................11
Closer monitoring of house buying ................................................................................................12
International
Drafting of EU’s consumer policy strategy makes progress ...........................................................13
Editorial staff
Responsible Editor-in-Chief: Anja Peltonen Editors: Milla Lahtinen, Laura Salmi, Marjatta Turunen
E-mail: [email protected] Archives and subscription: http://www.kuluttajaoikeus.fi ISSN 1796-5497
Current Issues in Consumer Law 2/2012
19 Apr. 2012
[Editorial]
The Finnish Consumer Agency and Finnish Competition
Authority may be combined
The project comes as no surprise in itself – consumer and competition issues have a common aim: a
viable market. Back in the 1990s, the Consumer Ombudsman had already stressed how successful
consumer protection is the very basis of healthy competition. In competition circles, it had been put
otherwise: healthy competition is the best form of consumer protection.
Whichever way, the consumer benefits from effective competition if the rules are followed: both
consumer and competition law. But competition is not enough in all cases. For example, it does not
guarantee the debtor moderate collection costs, because it is the creditor who decides on the choice of
debt collection agency. That is why there are now statutory arrangements for collection costs set out in
tables.
Greater consumer mobility
This year we are mainly focusing on arrangements that reduce mobility. Practices that restrict mobility
can be found in the terms and conditions of contracts, advertising and customer service procedures. It
is a good thing that there are consumers out there who can both manage their day-to-day affairs and
tell us about these things – for the benefit of consumers everywhere!
Competition works when consumers actively look for something new and contracting parties they
think are better, i.e. when they are mobile in the market. For this to happen, the consumer needs to
have comparable, transparent information, the terms and conditions of contracts do not unfairly
prevent changing the supplier, and different products are not bundled together in a way that restricts
mobility. When to this basic scenario we add the concept of behavioural economics, we see that clear
price information and easy access to existing terms and conditions, including their readability,
encourage an examination of the options available.
Changes to terms play a crucial role
Our main monitoring project on the issue of mobility concerns changes to terms of agreements and
will probably get off the ground towards the end of the year. Where it concerns an agreement that is in
effect indefinitely, any change to the terms made by a company could prompt the consumer to think
about whether the service offered actually continues to meet his or her needs. Major changes to terms
are, in fact, a way of offering a whole new agreement. That is why in this case the company needs to
declare openly that it is terminating the old service and cancel the agreement. The consumer, on the
other hand, must think about whether to continue with the same company on the basis of an agreement
that has been fundamentally changed or to look around for another service provider.
A company may implement more minor changes without consultation as long as there are grounds for
doing so in the terms of the agreement. If other than essential changes to the terms are implemented
with vague messages that ’our service will improve’ or ’you do not need to do anything’, which both
serve to conceal the underlying issue, the company is likely to receive messages of indignation when
the true state of affairs is discovered. However much it hurts, the company has to remember that
competition and mobility are to everyone’s advantage. Honest communications say a lot, and increase
customer confidence. You do not acquire satisfied customers by coercion.
Anja Peltonen
Director, Finnish Consumer Agency
Current issues in consumer law 1/2008, Johan Bärlund’s article on competition and consumer law
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ENFORCEMENT CASES
The advertiser must demonstrate social responsibility
The advertisement for Flush & Go toilet paper encouraged the consumer to flush the centre roll
down the toilet, stressing how easy it was to dispose of. This, however, contradicted the laws on
waste and the guidelines issued by the Finnish water supply companies. According to the
Consumer Ombudsman, the campaign bore all the hallmarks of marketing that was
inappropriate and otherwise unfair.
The key sales promotion feature in the marketing of Lotus Embo toilet paper was how the centre roll
could be flushed away and disposed of easily down the loo. On the roll itself it says in four languages
something like ‘You can flush me down the toilet - 100% guarantee’. An image of the centre roll
floating in the toilet bowl and the wording Flush&Go also strongly suggested that it could be flushed
away. In a TV commercial for the product, a woman just throws it in the toilet. The advertisement’s
sound track emphasised the point that this was the only toilet paper centre roll that could be disposed
of in this way.
The advert gave the impression that throwing biodegradable waste into the toilet is a generally
acceptable practice and crucial for waste management. It exploited the consumer’s typical love of
convenience and tendency to be drawn to simple solutions. But there is nothing environmentally
friendly about flushing away a toilet paper centre tube, and it says a lot about the disposable culture
and an ‘out of sight, out of mind’ attitude.
The Finnish Waste Act and water supply company guidelines
Water supply companies have long worked hard to persuade people not to throw rubbish, biowaste or
anything else unsuitable into the toilet. Although toilet paper centre rolls are indeed made to degrade
in the waste water system, and although it would not even cause any immediate risk of clogging the
pipes, it nevertheless puts a strain on the wastewater system.
From the perspective of the Finnish Waste Act, there is a danger that the centre tubes, owing to the
way the products are marketed, will not end up in the producers’ waste management systems, but
outside them, for the water supply companies to process and pay for. Under the Act, priority
arrangements should, however, always be considered wherever they can be implemented.
Furthermore, having the water supply companies process these objects is contrary to the obligation to
keep waste separate.
The Finnish Consumer Ombudsman took the view that the marketing of the toilet paper made it
questionable as to whether there was compliance with the aims of the Waste Act and the guidelines
issued by the water companies responsible for the water supply and sewerage. It was therefore
inappropriate and otherwise unfair, within the meaning of the Finnish Consumer Protection Act.
Joint responsibility
The Consumer Ombudsman pointed out to the company that advertising should not promote behaviour
which conflicts with the values, rules or guidelines that prevail in society. Nor should it call into
question compliance with society’s laws and instructions. The advertiser must ensure that he
demonstrates social responsibility.
The onus is on any trader to engage in marketing that supports implementation of the legislation on
water supply and sewerage and that on waste disposal in the best possible way. If flushable toilet paper
centre tubes were to be approved, it could lead to other companies starting to develop products that
can be disposed of in the loo.
The company changed the advertising as from the beginning of 2012.
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KUV/9172/41/2011
Current Issues in Consumer Law 2/2012
19 Apr. 2012
Television company markets channel packages with little
information to go on
Marketing regulation also extends to wholesalers if they are targeting consumers directly.
Consumers must be given more information in adverts urging them to buy than in mere image
advertising.
The Consumer Ombudsman has focused attention on advertisements for pay television channel
packages in magazines. The advertisement for the ‘Nelonen Paketti’ channel packages were contrary
to the Finnish Consumer Protection Act and case law.
The channel packages in the advertisements targeted at consumers were identified with product family
codes and channel package logos and product names. They gave monthly charges for fixed-term
subscriptions. This was advertising urging people to buy the product and not the image advertising of
new products.
It was not at all clear from the advertisements what the total charge for the channel packages on a
fixed-term contract were. And the same was true concerning what the service mainly consisted of.
Furthermore, the special offer (6 months for 50% off the normal cost) was highlighted in the
advertisements in such a way that the consumer’s attention might have solely been fixed on the special
offer itself and not the normal use of the service and how much it would cost.
Even the wholesale trade has a responsibility to comply with the Consumer Protection Act
Sanoma Entertainment / Nelonen Media made reference to the fact that it is a wholesaler, which
forwards the channels it packages up to independent operators, which in turn sell them to consumers.
Their consumers in the contractual relationship are only the retailers of pay TV services, i.e. the
operators. The advertising campaign, however, was not undertaken in collaboration with the operators:
the television company itself was responsible for that.
The Consumer Ombudsman’s competence is not simply limited to situations where the issue concerns
retail marketing. The Act’s predatory materials (HE 8/1977) specifically state that regulation also
applies to the wholesale trade and the manufacturer or importer of a product, if they are targeting
consumers directly.
Marketing collaborations between companies can be agreed upon in a number of different ways. When
joint marketing measures are being planned, the relevant parties should ensure at the same time that
they take responsibility for compliance with the Consumer Protection Act.
Sanoma Entertainment has undertaken in future to notify consumers of the total maximum cost to
them for the relevant contractual period when marketing their products.
KUV/10506/41/2011
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Information on cold weather restrictions for purchasers of
smartphones
The Consumer Ombudsman thinks that that the cold weather restrictions on the use of iPhones
and other touchscreen smartphones are essential product information within the meaning of the
provisions on marketing in the Finnish Consumer Protection Act. This means that the consumer
needs to be aware of this information before making the decision to purchase the product.
In the winter of 2011, cases came to light where it was suspected that iPhone equipment had become
damaged in very cold weather, and the guarantee did not cover the costs of repair. Accounts of
suspected defects caused to iPhones by sub-zero temperatures also reached the attention of consumer
advisors. The Consumer Ombudsman has drawn attention to the restrictions on the use of iPhones in
freezing weather, the extent to which the equipment was cold-resistant and how these limitations are
explained to consumers before they purchase these products.
Information on the restrictions on iPhones in cold weather, in the shape, for example, of the details on
ambient temperature in the Finnish-produced Important Product Information Guide is in fact available
to consumers, and they can view the information there or on the internet.
The problem, though, is that consumers will not necessarily be in a position to plough through all the
written documentation prior to making a decision to buy, especially when they are in a shop. The
opportunity to familiarise oneself in more detail with the instructions for use, for example, often only
presents itself after the product is purchased, when the equipment and all the instructions that
accompany it are handed over to the consumer. A condition of the validity of the product guarantee is
that the consumer complies with the operating instructions.
The Consumer Ombudsman was of the opinion that, in such a situation, retailers have a special duty to
ensure that their sales assistants provide customers with guidance on the use of equipment, so that they
are also aware of the restrictions on its use in cold weather.
In Finland, cold weather restrictions are essential information
Under the Consumer Protection Act, in marketing or the customer relationship the essential
information, given the situation, that the consumer needs to make a decision to purchase or any other
decision relating to a product must be provided.
With smartphones, it is the battery and screen that are especially sensitive to the cold and damp. This
has also been the case with the smartphones of other manufacturers besides Apple. The extent to
which consumers are aware of the greater sensitivity to cold weather of smartphones compared with
ordinary mobile phones might well vary, however. One cannot assume that all consumers considering
the purchase of a smartphone would know in advance that their use was restricted in low temperatures.
Given the weather conditions in Finland, the fact that the equipment cannot be used at all in sub-zero
temperatures, according to the instructions, must be regarded as essential information for consumers.
Apple was asked to ensure that the consumer is told about the restrictions in iPhones in cold weather
before they decide whether or not to buy. This they could do by mentioning the fact in its guidelines to
dealers or in some other way.
The Consumer Ombudsman also informed the Finnish Home Electronics Association and FiCom ry
(Finnish Federation for Communications and Teleinformatics) of its decision, asking them to bear it in
mind in other similar situations.
KUV/2423/41/2011
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Mobile phone navigation service options
In the marketing of a mobile phone navigation service, people have not been told that the service
can be used in several different ways. The telephone featured an option as a standard setting
that increased telecommunications costs, but customers could change that by altering the phone
and application settings.
The Consumer Ombudsman has drawn attention to the marketing of the Ovi Kartat navigation service
Nokia was offering for mobile phones. Consumers were offered the service free with certain models.
The navigation application and the maps accompanying it are available to consumers free of charge on
the company’s website. It costs nothing to download them onto a phone if done via a computer.
On the other hand, consumers incur costs for the use of the navigation service in the form of data
transfer charges if this is not prevented by changing the mobile phone and software application
settings.
The consumer can control telecommunication costs
The use of the word ‘free’ has not in itself been misleading in connection with the marketing of the
navigation service. It is an eservice which always requires a telecommunications link if customers
want to use it, or, at least, if they start to use it. When costs were incurred just for the link, they could
be considered to be the direct delivery costs of a consumer good in connection with an eservice.
However, in the marketing, people were not told that the navigation service that came with the phone
equipment could be used in a number of different ways. Telecommunications costs could be saved by
altering the phone and application settings, allowing the consumer to use a more restricted version of
the service.
Consumers were not informed that, in fact, the costs of the service depend on the choices the user
makes. The marketing campaign was at fault in this respect and contrary to the Finnish Consumer
Protection Act.
Nokia promised to change the way it marketed the product and also gave its dealers guidelines on how
to explain the various options available with the navigation service.
KUV/5602/41/2010
World Championships prize dominates advertisement for
throat pastilles
Despite the fact that section 2:14 of the Finnish Consumer Protection Act has been repealed,
enforcement practices regarding the dominance of promotional games continue as before and
monitoring is based on the promotional games guidelines drafted in 2011.
The Consumer Ombudsman has drawn attention to the TV commercial for Mynthon throat pastilles, in
which consumers were urged to buy a box of Mynthon pastilles and take part in a draw, where the
main prize was a ticket to the Ice Hockey World Championships in May 2012. People could only enter
the draw by looking for the prize in the box of throat pastilles on sale.
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A draw and its winnings reduce consumers’ chances of making a reasoned purchase decision
The television commercial was entirely structured around the Ice Hockey World Championships, the
draw, persuasive invitations to take part and the winning ticket. The Consumer Ombudsman took the
view that the advertisement’s priorities were distorted: although the box of throat pastilles was shown
in the commercial, it was largely dominated by references to the draw and the prize, at the expense of
the main product being advertised.
In the established past decisions by the Supreme Court of Finland, the Court has stated that additional
benefits must not be highlighted at the cost of the main product being advertised, and that they should
not dominate a marketing campaign in such a way that a proper comparison of products is made
difficult, thus jeopardising the consumer’s ability to make a rational decision.
The fact that it was so easy to enter the draw, plus the tempting main prize on offer, inevitably led to
consumers acquiring the product, even though they had no real need for it. Boxes of throat pastilles
were consequently purchased because people were after the prize, which is unfair practice under the
Finnish Consumer Protection Act. The draw and its winnings, which dominated the commercial, were
likely to reduce consumers’ chances of making a reasoned purchase decision.
New promotional games guidelines the main guiding principle
It is the trader who is responsible for compliance with the law when marketing his products. If he
discovers that his marketing campaign contravenes the Consumer Protection Act, he himself is
responsible for taking the initiative to discontinue or alter the strategy, according to the Act.
The company assured the Consumer Ombudsman that it would not be showing the Mynthon TV
commercial again or engaging in any similar marketing campaign that would endeavour to divert the
consumer’s attention away from the product and towards a draw and its winnings.
The promotional games guidelines that were drawn up in 2011 cast light on the consumer law aspect
of the case and can be found on the Finnish Consumer Agency’s website. Several organisations in
business and industry were involved in drafting the policy. The purpose of the guidelines is to clarify
the use of lotteries and competitions as marketing tools.
KUV/1112/41/2012
Promotional games guidelines (2011)
Excessive charges for postponing debt settlement date
abolished
The Consumer Ombudsman has intervened in the matter of due date postponement charges
deemed excessive, pursuant to the new provisions on good lending practice in the Finnish
Consumer Protection Act.
Under the terms and conditions issued by Vipster Oy, a company that grants fast loans, the lender has
had the opportunity, before the debt is due to be paid, to postpone the settlement date by 7 to 21 days
by making a payment into his online bank tied to the amount of the loan and the length of the
extension. For example, postponing the settlement date for a loan of 200 euros by 21 days will cost the
lender 32 euros.
Under the provisions on good lending practice in the Finnish Consumer Protection Act, the Consumer
Ombudsman has taken the view that a consumer cannot be charged for postponement of the settlement
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19 Apr. 2012
date any more than could be demanded of him for delaying repayment for an equivalent length of time
on the basis of the Finnish Debt Collection Act.
Under the Act, a creditor has the right to demand a maximum of five euros for a reminder sent no
earlier than 14 days following the date on which the debt is due to be paid. So, under good lending
practice, a consumer cannot be charged anything for postponing a settlement date by less than 14 days.
And a maximum of just five euros can be charged for postponing the settlement date by more than 14
days but less than a month.
The company said it would change its terms and conditions accordingly.
KUV/9313/41/2010
INITIATIVES AND POSITION PAPERS
New ways to monitor the Finnish Debt Collection Act
proposed
Proposals have been put forward by the Late Payment Work Group for reforms to the Finnish
Debt Collection Act. The Finnish Consumer Agency supports the aim to prevent collection
charges from becoming excessive, a debtor’s right to have a voluntary payment scheme stopped,
and the priorities governing the allocation of funds obtained through debt collection operations
under the Finnish Enforcement Code. The option proposed for the Consumer Ombudsman to
have the right to impose a ban on a trader under the Debt Collection Act should also be
supported.
Under the Work Group’s proposal, the Consumer Ombudsman could prohibit a trader from continuing
to abuse good debt collection practice in the context of consumer debt, if the case is not of major
significance in terms of application of the law or otherwise. Unlike normal bans imposed by the
Consumer Ombudsman, this prohibition on the basis of the Debt Collection Act would cease to be in
effect if the trader said he was opposed to the ban. A trader affected by a ban could, if he wished, refer
a decision of the Consumer Ombudsman Agency to the Finnish Market Court.
Better monitoring of debt collection
In its statement to the Finnish Ministry of Justice, the Consumer Agency considers the proposal for a
ban pursuant to the Debt Collection Act important for the effective monitoring of good debt collection
practice. The current resources available for monitoring have made it difficult for the Consumer
Ombudsman to intervene, even in obvious cases of breaches of good debt collection practice,
particularly where it concerns fast loans.
As, according to the proposal, a ban can enter into force swiftly without the need to wait until the
outcome of a Market Court hearing, this is of great significance for the supervisory authority.
Presumably, debt collection agencies would also take more effective monitoring practices into account
when going about their business.
Reasonable charges
In its statement, the Consumer Agency supports the Work Group’s aim to prevent debt collection
charges from becoming excessive, with the result that the obligation to pay them makes the debtor’s
problems even worse.
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The Consumer Agency also supports a proposed regulation regarding the debtor’s right to have a
voluntary payment scheme stopped, with the case being transferred to a legal debt collection
arrangement. If the debtor’s financial situation is such that he or she is unable to manage to pay new
debts associated with the debt collection scheme, on account of an enforcement order, for example, a
request to terminate debt collection is often a sensible option in order to prevent unnecessary debt
collection charges.
Debt collection funds to be allocated to the interest and principal
The Consumer Agency believes that the provision proposed for the Debt Collection Act regarding the
order in which funds are allocated under the Enforcement Code is justified. Under the provision, funds
acquired from debt collection would first be used to pay off the interest, then the capital, and finally
for charges. The current practice has been for them to pay off the charges first, and only then the debt
itself.
Like the Work Group, the Consumer Agency is of the view that the operations of debt collection
agencies should not extend to the collection of public debt. For reasons of protection under the law, it
is important that these debts remain under state control with regard to determination of charges,
collection and enforcement. As for keeping the Ombudsman’s ban on public debt enforcement in
effect, the Consumer Agency proposes, in agreement with the Work Group, that it is the local
authority or other creditor in such situations that is best placed to take into consideration factors
relating to the debtor’s protection under the law.
Telecoms need to tell consumers promptly about
disruptions to the service
The storms that hit Finland at Christmas highlighted the importance of keeping consumers
informed when there are disruptions to services, especially where it concerns electricity
companies. Communications networks and services are also now vital services on a par with
electric power. In a statement to the Finnish Communications Regulatory Authority, the Finnish
Consumer Agency calls for prompt announcements to be made - and that goes for telecom
disruptions too.
The Consumer Agency has issued a statement to the Finnish Communications Regulatory Authority
on a draft order concerning the maintenance of communications networks and services, and
procedures and announcements when there are faults and disruptions. The Consumer Agency regards
the order as vitally important from the consumer’s point of view.
Low threshold for making announcements
Telecoms need to inform users about faults or disruptions to their communications networks and
services lasting more than 60 minutes at one time and affecting at least 250 users.
If there is a fault with, or disruption to, a telephone, text message or internet connection service lasting
more than a week at a time, the telecom must inform users of the fault or disruption, even if it affects
under 250 users.
Ecommunications are easy, so the Consumer Agency believes that there should be as low a threshold
as possible for announcing disruptions. After all, this is a question of services that are absolutely vital
to users.
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When the order was being drafted, telecoms stated that faults lasting only a short while are always
announced these days if they affect significant numbers of users. From the consumer’s point of view,
however, longer disruptions in which the 250 people stipulation is not met can have a dramatic effect.
In such situations customers should be informed as promptly as possible.
The Consumer Agency’ views are in line with the draft order as regards the idea that the user must be
informed about a fault or disruption by the telecom from which the service is acquired, even if the
services are offered on a network rented from someone else.
Direct customer contact also needed
The Consumer Agency is of the opinion that the announcement of a fault lasting more than a week
always calls for careful case-by-case consideration regarding direct customer contact, and, for
example, information that was previously only available on a website is not enough to keep people
informed, at least not usually. Contacting the customer directly should always in any case be
considered on a case-by-case basis, even if the fault lasts less than a week.
Direct customer contact means, for example, a text message, an email, a telephone call or a letter.
The draft order states that it is also important to the user of a service that the telecom is aware of the
problem affecting the service and tries to put things right as soon as possible. The Consumer Agency
also believes that this is a crucial part of keeping customers informed.
Consumer mobility must be guaranteed in the information
society
In its statement to the Information Society Code Consumer Sub-Group, the Finnish Consumer
Agency makes proposals for improving and clarifying the position of the consumer in the
information society. The statement also highlights the flaws that have been detected in
supervisory and monitoring work and which consumers have drawn the Agency’s attention to.
The Information Society Code project, which is based on a Finnish Government Programme, brings
together in one place the key regulations and legal provisions on ecommunications and the supply of
information society services. The aim of the project is to ease and clarify regulation and remove areas
of overlap.
The Consumer Agency believes that regulation that is too detailed easily leads to continual problems
of interpretation. However, quality detailed regulation is needed if the provisions contained in general
laws are not complied with.
Amendments to definitions and scope
According to the statement, the concept of a communications service and the scope of the law need to
be stated more precisely. The rules on packages containing free services or a number of services, for
example, need to be clarified. The legal position of the consumer in an agreement and levels of
consumer protection should be essentially the same, regardless of what communications service a
contract relates to. Simplification would be in the interests of all parties.
The position of residents – be they shareholders in housing associations or tenants – as a user of
communication services should be protected. Housing associations are entering into more and more
contracts for subscriber lines relating to the entire property, paid for as part of the maintenance
charges. As the party to the agreement is the housing association, the resident’s position in the event of
defects or delays, say, is not defined with reference to regulation on consumer protection. Just as bad
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is the fact that consumers can get into a situation where they are tied to just one service provider for
several years.
Support for real consumer decision-making and mobility
The Agency thinks that the requirements for entering into a communications services contract should,
likewise, be unambiguous. It is also important to safeguard the consumer’s right to discover the terms
and conditions of a contract in respect of all sales channels.
Consumer mobility in the market should also be safeguarded. The maximum time for fixed-term
contracts to run should be reduced from the current 24 months. Mobility would furthermore be
promoted if the provisions on giving notice and cancelling were clarified. The consumer’s right to be
released from an agreement should not be made complicated as a result of different interpretations of
the period of notice or penalty-type charges. For that reason, the principles upon which charges for
giving premature notice in a tie-in deal, for example, should be stated more clearly.
The right to free itemised billing and the responsibility telecoms have as organisations that issue
invoices
In its statement, the Consumer agency proposes that the consumer’s right to itemised billing must be
guaranteed with respect to all services. Telecoms, like lenders, must be made clearly responsible under
the law for the services they charge for. The legal protection afforded the bill payer must be the same,
regardless of how they pay. Krista Kiuru, Finnish Minister of Housing and Communications, also
recently adopted a position on this.
In addition, the Consumer Agency, in its statement, highlights the need to clarify the regulations on
changes and errors in agreements, to extend the right of the Consumer Ombudsman to block the
number and to have clearer laws applied by the authorities, among other things.
Solutions sought to copyright challenges in the digital age
In a statement, the Finnish Consumer Agency supports the proposal by the Finnish
Government’s Copyright Committee to improve the reuse of the archive materials of TV and
radio companies and newspapers by extending the ‘contractual licence’ system. However, the
Agency view with certain reservations the idea to restrict internet piracy by blocking access.
In its statement on the Copyright Committee’s report to the Finnish Ministry of Education and Culture,
the Consumer Agency states that it is in favour of improvements to the online availability of works
contained in the archives of TV and radio companies and newspapers and wants it to go ahead with the
proposed extension of the contractual licence system. A contractual licence guarantees proper
compensation to copyright holders for using archive materials, even if no agreement can be made on
rights separately with each of them. The author would in this case, however, have the right to prohibit
reuse of their works.
How can internet piracy be restricted without limiting basic rights?
The other change to the law proposed by the Copyright Council concerns better enforcement of
copyright laws on the internet. It is the view of the Consumer Council that it should be possible to do a
lot more about the problem of internet piracy - the unlawful use and distribution on the internet of
digital content protected by copyright law.
The Agency views with caution, however, the solution proposed by the Copyright Committee in its
report, which is to prevent unlawful online distribution by blocking websites. The Agency believes
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that this will jeopardise the right of everyone to free and mainly unobstructed online communications.
If teleoperators were under an obligation to prevent their internet service customers from accessing
certain websites, it would also compromise their right as consumers to use a service on which they
have agreed terms with the operator.
The Committee’s report is a good starting point for the debate on the unlawful use and distribution of
copyright-protected material on the internet in the context of the social decision-making process. The
Consumer Agency is of the opinion that the Committee’s proposal to reduce the number of problems
caused by internet piracy still needs to be thought through, however.
There were also two matters for consideration connected with the Copyright Committee’s report:
providing recordings of TV programmes as a network storage service and an evaluation of this,
especially from the perspective of private copying, and issues of copyright in connection with
commercial linking in an open information network. As far as these are concerned, the Committee has
made no proposals for measures, and the Consumer Agency does not have anything to say about these
issues at this stage.
Closer monitoring of house buying
The Finnish Ministry of the Environment is presently engaged in a project to improve people’s
security and protection when buying a home. In a statement it issued on an interim report on the
project, the Consumer Agency drew attention to the fact that the report completely ignored the
important role of consumer legal advisors and the Consumer Disputes Board as parties who can
resolve disputes connected with house and property purchases and with estate agents.
Buying a home, whether it is the purchase of a property or buying shares in a housing association, is
one of the most important financial decisions and acquisitions a consumer is ever going to make. That
is why it is worth looking into issues of security and protection from the point of view of both the
vendor and the purchaser.
Clearer areas of responsibility
The Consumer Agency supports the interim report inasmuch as it recommends that prospective buyers
should obtain all the details they can regarding the condition of a property, including any damage or
defects. Furthermore, the contract should clearly state who is responsible for what between the vendor
and the buyer. Unfortunately, though, that is not always the case.
This is evident from the massive number of communications received by consumer legal advisers and
the Consumer Disputes Board. The Consumer Disputes Board also deals with issues of the
responsibility of estate agents and the legality of their approach to acting on client’s instructions, as
well as home and property purchases. The Board is well versed in how the law is to be applied in such
cases.
The advantage of what is being proposed by the Board and Consumer Advisory Services to private
persons who are party to a property sales contract is that the process is free, organised by experts, and
fast. If a district court, for example, were to hear a dispute between parties, it would normally take a
lot longer and would be much more expensive.
The Consumer Agency also drew attention to the fact that the interim report failed to mention the role
of the Regional State Administrative Agencies as the authorities that monitor the activities of estate
agents.
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19 Apr. 2012
Legislation for surveyors
The possible recommendations for action in the interim report by the Ministry of the Environment,
including those concerning the qualifications of property surveyors, legal requirements connected with
the content of survey reports and greater clarity with respect to the content of contracts of sale, are
justified and are proposals worthy of support. The Consumer Agency also supports the proposal that
property surveyors should have compulsory indemnity insurance.
At the same time, however, it is worth considering who should oversee the new legislation. Most
private individuals simply do not have the legal expertise or enough knowledge about structural
engineering to draw up complicated contracts of sale. This applies in particular to purchases where no
estate agent is involved. The professional competence of some estate agents may also be less than
perfect.
INTERNATIONAL
Drafting of EU’s consumer policy strategy makes progress
A public hearing in the European Parliament in February dealt with Parliament’s ideas for a
consumer policy strategy. At the same time, there was news about the consumer policy measures
that the European Commission was embarking on.
A joint consumer agenda proposed by the European Parliament and the Commission seeks answers to
what the economy, especially the internal market, needs to function. The EU’s consumer policy
programme is likely to be ready in early summer 2012.
There were several speeches criticising Europe’s Common Sales Law. The Finnish Consumer
Agency/Consumer Ombudsman has also previously expressed its concern about the draft EU Sales
Law, and believes that the drafting process should be discontinued. Laws and regulations to protect
consumers are already largely harmonised across the EU with regard to cross-border consumer sales.
The new law would make the situation more complicated and could result in the displacement of high
levels of consumer protection. Several new sessions have been held on the subject since February.
Financial and financing services were mentioned in speeches, but there were no generally agreed
conclusions regarding these. For example, Commissioner Dalli referred to consumer mobility in
banking services.
Other matters raised included greater cross-border cooperation by countries in monitoring. i.e. crossborder and enforcement cooperation (CPC), in which the Consumer Ombudsman and Consumer
Agency are involved. Several speakers stressed that legislation alone was not enough – effective, wellresourced monitoring was also required.
Overall, speakers sought a comprehensive approach to consumer issues and stated that the consumer
in the EU’s consumer policy programme must be the focus of attention. At the same time, efforts had
to be made to guarantee consumer confidence in the EU’s internal market.
EU Consumer Agenda
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Current Issues in Consumer Law 2/2012
19 Apr. 2012
The task of the Finnish Consumer Agency is to safeguard and strengthen consumers’ position in society.
The Director General of the Consumer Agency also acts as the Consumer Ombudsman, and the
Ombudsman's tasks are included in the activities of the Agency.
The Consumer Ombudsman's responsibilities are to monitor and enhance the legal position of consumers,
and to ensure that marketing and contractual terms comply with the rules. Matters concerning warranties and
collections from consumers are also within the Ombudsman's jurisdiction. The Ombudsman may also assist
consumers in court.
Additional information: http://www.kuluttajavirasto.fi/en-GB/
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