NORWAY
Annual Report on Consumer Issues
1999
I. Institutional developments
The Norwegian Government presented in 1999 a White Paper on the long-term framework of consumer policy and possible consequences for the organisation of the consumer institutions. The White Paper explores and discusses the goals and objectives of consumer policy, the underlying relationship between consumption and the environment, as well as consequences for the consumer with regard to the increasing globalisation and the development of information and communication technology (ICT). Furthermore, the report highlighted the relations between consumer policy and other aspects of government policy.
II. Electronic commerce
In 1999, the Norwegain Government presented a White Paper on the major policy objectives and challenges related to electronic commerce. The White Paper spelled out several strategies for a national policy regarding e-commerce. It is strongly emphasised that the development of electronic commerce be in accordance with social and societal considerations such as security, privacy and consumer protection, with a special view to the protection of children and younger people. Furthermore, the government stressed that, as a minimum, the level of consumer protection already appling to traditional forms of commerce must apply to electronic commerce.
There have been several initiatives to promote and integrate the consumer perspective in electronic commerce. In 1999, the national Consumer Council and representatives of businesses established a voluntary and independent label (N-safe) that guarantees consumers in the electronic marketplace a certain level of protection. Businesses allowed to display the "net" label are subject to strict requirements based on objective assessments. The label helps consumers identify serious businesses and helps to establish trust in the marketplace. The "net" label is a voluntary label and clarifies duties and responsibilities for both the consumer and the business. The label shall, inter alia, assure consumers that businesses have a satisfactory level of consumer protection and secure methods of payment. What is more, businesses must follow specific requirements for the registration and treatment of personal information regarding marketing practices. Currently, steps are being taken to expand the "net" label on a Nordic basis.
By the end of 1999, approximately half of the Norwegian population had access to the Internet, and about one-third were regular users.
III. Advertising and marketing practices
The Consumer Ombudsman (CO) is an independent administrative body with the responsibility of supervising the Marketing Control Act as well as certain parts of the regulatory framework governing advertising in broadcasting.
The CO dealt with a number of cases arising from the Internet in 1999, covering both marketing activities and cases regarding contract terms. In its assessment, the CO stressed the importance of following the guidelines established by the Nordic Consumer Ombudsmen in their position paper on trading and marketing on the Internet and in similar communication systems. Almost every site investigated by the CO caused concerns relating to the Marketing Control Act.
The new forms of payment services, and particularly the Internet, comprise an ever-expanding market. The CO has kept an active eye on the new payment services which have been introduced on the market in 1999. It is important to ensure that marketing is balanced, i.e. that it not only focuses on new, efficient methods, but also clearly states information on, for example, prices and risks.
The CO took part in an International Internet Sweep Day arranged by the International Marketing Supervision Network (IMSN). The aim of this survey, in which authorities from more than 25 countries participated, was to inspect the information content of e-commerce sites on the Internet. The CO held the presidency of the network and organised a IMSN Conference in Oslo in the autumn of 1999.
In the course of the year, the CO dealt with several cases involving businesses that illegally advertised subscriptions and club memberships directly to children and young people. The CO also conducted inspections of marketing targeted at children and young people via the Internet. Marketing through this medium is mixed with entertainment and the collection of personal information to a greater degree than in other media. The CO’s position regarding the collection and registration of personal information from children is that children under the age of 15 may not give such information without the consent of their parents.
Work on the "Guidelines on the Consumer Ombudsman’s Practice: Marketing in relation to Children and Young People" was completed during the spring of 1999. The guidelines include principles stating: i) that it should be easy to distinguish advertising from other material; and ii) that commercial entities should not take advantage of the fact that children and younger people can be influenced more easily than other consumer groups; their credulity, trust and inexperience should not be abused.
For a further exploration of the Consumer Ombudsman’s practice in 1999, see Consumer Ombudsman and the Market Council - Annual Report 1999.
IV. Consumer education
It is essential to make children and young people aware of what it means to be a consumer and this should be done as early as possible. In the school area, the focus has been on personal economy, advertising, consumption and the environment. The Consumer Council, in co-operation with the advanced teaching colleges, has been working to strengthen the coverage of these subjects in schools.
In co-operation with the National Centre for Teaching Aids/School-net, the Consumer Council has introduced consumer information on the Internet. School-net is targeted to teachers and pupils in the compulsory primary and secondary school (ten-year) as well as secondary education schools at advanced level. Consumer education is treated as a separate subject within Economics and Information Processing.
V. Complaints and redress handlings
Most complaints and disputes in connection with purchase of goods and services are handled by the Consumer Council, which seeks to arrive at an amicable settlement between the parties. The Consumer Council handles approximately 140 000 inquiries from consumers, and is in contact with 7-8% of Norwegian households annually.
The Consumer Council has also entered into co-operation agreements with some trade organisations concerning the establishment of complaints committees. The objective is to have the various trades take responsibility – including financial liability – for the handling of disputes that arise as a direct consequence of their activity. The Consumer Council stipulates certain requirements, which are designed to ensure a satisfactory procedure in the committees.
In 1999 special complaints committees were established in the following areas:
The prerequisite for having a case dealt with in a committee is that the consumer must have taken the matter up with the other party without arriving at a satisfactory solution. If a solution is not found, the consumer may contact the Consumer Council county office.
VI. Commercialisation and children
The increasing commercialisation of childhood and youth culture in Norway has been highlighted through a public debate on the consequences of how children and younger people are affected as consumers. In 1999, the government appointed a commission to investigate possible initiatives to reduce commercial pressures on children and younger people, and to enlighten and inform youth in order to make them better prepared to face increasing commercial influences. The commission will propose measures that seek to reduce the amount of marketing directed towards children and younger people. It will also propose measures concerning the shape and content of advertising and marketing. The use of regulation as an instrument will be assessed and evaluated against other measures such as voluntary ethical guidelines and other forms of self-regulation among businesses.
VII. International developments
As a member of the European Economic Area (EEA), Norway is part of the internal market and implements EU legislation that is relevant for the EEA. Norway and the other EFTA countries will from 2000 onwards participate in the EU general framework for community activities in favour of consumers.
VIII. Research
Using a multidisciplinary approach, the National Institute for Consumer Research (SIFO) has established itself in recent years as a centre of expertise on research into the food distribution process. Research on the distribution process includes evaluation of the consequences of the change in the structure and form of distribution channels. With increased interest in nutritional issues, questions relating to food and consumption are receiving ever greater attention. Central projects at SIFO include consumers' perception of food and health risks, consumer confidence in products and producers, and a comparative study of eating habits in the Nordic countries.
Research into the public services has become an area of priority at SIFO. Central issues are the consequences for the consumer of privatisation and deregulation. The attitude of the public towards public administration, as well as that of the administration towards the public, is also an area where important questions are raised.
The relationship between consumption and the environment is currently a major field of interest at SIFO. A catalogue of green alternatives in all the major areas of consumption has been developed and the price of establishing a green lifestyle has been estimated. The most significant areas of consumption, as regards environmental impacts, are transport, food, and energy use.
Latest update 25 January 2001