Act on Certain Consumer Contracts1
Act No. 451 of 9 June 2004
Part 1
Scope and Definitions of the Act
1. The Act applies to consumer contracts, cf. Section 3, and to traders’ communications with a view to concluding such contracts.
2. The Act does not apply to:
1) insurance contracts covered by the Act on Insurance Contracts and communications with a view to concluding such a contract, cf. Section 6, Subsection 2, no. 3,
2) contracts that are concluded by means of automatic vending machines or similar machines,
3) contracts on the use of publicly available telephones or other means of telecommunication, where the contract with the telecommunications provider is concluded by using the means of communication, and
4) auction sales that are organised so that a major part of the bidders are normally present at the place of the auction, unless the purchase is concluded away from business premises under circumstances as stated in Subsection 2, no. 2, a and b.
(2) Parts 3 and 4 of the Act apply to:
1) distance contracts, cf. Section 4, and
2) contracts concluded away from business premises for the purchase of goods, for services or for continual delivery of goods or services, where the contract is concluded or the consumer has made an offer
a) in connection with the trader’s visit to the consumer’s residence or workplace or another place to which there is no public access, unless the contract concerns a product or service in connection with which the consumer has expressly requested a visit by the trader,
b) during an excursion, meeting, presentation, etc. arranged by the trader,
c) at a public place or at an exhibition, trade fair, etc., unless there is a purchase at which the product and the purchase sum are exchanged at the same time as the conclusion of the contract, or
d) in connection with the trader’s visit to the consumer’s residence or workplace or another place to which there is no public access, if the visit was agreed at a meeting as stated in b or c.
(3) Parts 6 and 8 of the Act apply to distance contracts, cf. Section 4.
3. In this Act, a consumer contract means a contract that a trader concludes as part of his business when the other party (the consumer) is principally acting in a non-business capacity.
(2) The trader has the burden of proof that a contract that the person in question has concluded is not a consumer contract.
(3) Under conditions otherwise the same as in Subsection 1, the Act also applies to contracts for goods and services from non-traders, if the contract is concluded or arranged for the seller or service provider by a trader. The Act also applies to traders’ communications with a view to concluding such contracts.
4. Distance contracts are contracts for goods, services or continual delivery of goods or services, where the contract
1) is concluded using distance communication, i.e. communication whereby the consumer and the trader do not physically meet, and
2) is concluded as part of a distance marketing system operated by the trader.
5. A financial service means any bank, credit, insurance, individual pension, investment or payment service.
Part 2
Prohibition of Unsolicited Communication, etc.
6. Traders may not, without a prior request to do so, communicate in person or by telephone with a consumer at his residence or workplace or another place to which there is no public access with a view to obtaining, immediately or subsequently, an offer or acceptance of an offer to conclude a contract.
(2) Subsection 1 does not apply to communications by telephone concerning
1) ordering books,
2) subscribing to newspapers, weeklies and periodicals,
3) brokering insurance contracts and
4) subscribing to rescue services or ambulance transport with a company with which one or more municipalities have concluded contracts for the performance of rescue and extinguishing work in the event of fire.
7. A promise made by a consumer in connection with a trader’s communication in contravention of Section 6 is not binding.
8. If a trader sends or delivers a product to a consumer without the consumer having previously requested it, the consumer may keep the product at no charge unless the product was sent or delivered by mistake. If a trader performs a service for a consumer without the consumer having previously requested it, the consumer may not be placed under an obligation to pay for it.
Part 3
Duty of Disclosure
Scope of the Duty of Disclosure
9. The trader has a duty to give the consumer information in accordance with the rules in this Part in connection with distance contracts and contracts concluded away from business premises as stated in Section 2, Subsection 2, no. 2.
(2) The rules in this Part do not apply to
1) purchases of food and other goods for general household use that are purchased in public places, markets and fairs, or that are to be delivered to the consumer at his residence or workplace as part of organised, regular delivery of goods,
2) contracts for accommodation, transport, board, including service and catering, and recreational leisure activities, including entertainment events, sports events and similar cultural events, if
a) the contract states the date on which or the specific period within which the service in question is to be performed, and
b) the contract was not concluded away from business premises under the circumstances stated in Section 2, Subsection 2, no. 2, a and b,
3) contracts for the construction of buildings,
4) contracts that grant a right to use real property and contracts that are covered by the Act on Consumer Contracts, granting a right to use real property on a timeshare basis, and
5) contracts for other rights to real property, with the exception of distance contracts concerning financial services or the letting of real property.
Contracts Concluded away from Business Premises
10. For contracts concluded away from business premises, as covered by Section 2, Subsection 2, no. 2, the trader must, at the meeting with the consumer, provide clear written information on the right of withdrawal and the name and address of the person or company in relation to whom or which the right of withdrawal may be exercised, cf. Subsection 2.
(2) In the following cases, the information must be provided when the product is delivered or on the first delivery to the consumer:
1) For the purchase of goods, apart from goods that are produced or adapted to the consumer’s individual requirements, or
2) when subscribing to newspapers, weeklies and periodicals or continuous book publications of an extent not established in advance.
Distance Contracts concerning Goods and Non-financial Services
11. Before a distance contract for a product or a non-financial service is concluded, the trader must provide the consumer with information on
1) the trader’s name, principal business activity, physical address and, if the trader is a foreign trader who has a representative in Denmark, or if the supplier is represented in some other way by another person, relevant information on this representative, including his physical address,
2) the nature and main characteristics of the product or service,
3) the total price of the product or service, including fees, costs, including any delivery costs, VAT and all other taxes, including taxes or costs that are not paid by the trader or are imposed by the trader, or, if an exact price cannot be stated, the basis for calculating the price,
4) terms of payment, delivery or other performance of the contract, any period of interminability and any right of the parties to terminate the contract prematurely or unilaterally, including information on any conditions for this,
5) whether there is a right of withdrawal under this Act,
6) any specific additional costs for the consumer in connection with the use of the means of communication in question, if such additional costs are imposed, and
7) how long the information applies, including how long the product or service is offered at the price stated.
(2) If voice telephony is included in the means of distance communication, the consumer must also, at the start of each call from the trader, be informed of the identity of the trader, the name of the person with whom the consumer is in contact, that person’s connection with the trader and the commercial purpose of the communication.
(3) The information in Subsection 1 must be provided in reasonable time before a contract is concluded, and the information must be clear and comprehensible. It must be clearly stated that the information is provided with a view to concluding a contract, and the information must be provided in a manner that is suitable, considering the means of communication used, and takes minors into particular consideration.
12. If a distance contract is concluded for a product or a non-financial service, the information stated in Section 11, Subsection 1, nos. 1-5 must be provided to the consumer on paper or on another durable medium to which the consumer has access, unless the consumer has already received the information in this manner.
(2) The trader must also provide information on the following in the manner stated in Subsection 1:
1) the conditions for the use of any warranty commitment and repair and maintenance service and
2) any right of withdrawal under this Act and the start and duration of the cooling-off period, plus the conditions for and procedure in connection with the exercise of the right of withdrawal, including the address to which any notification of withdrawal must be sent, and, to the necessary extent, the rules in Section 18, Subsection 4, Paragraph 1, and Section 20, Subsection 3.
(3) The information stated in Subsections 1 and 2 must be provided as soon as possible after conclusion of the contract. In connection with purchases of goods that are to be delivered to the consumer, the information must be provided at the latest on delivery.
(4) Subsections 1 and 2 do not apply to contracts for services that are ordered and performed using the same means of distance communication, where
1) the service is delivered complete and at once,
2) the payment for the service is collected by the provider of the means of communication used,
3) the price of the service does not exceed DKK 75 and
4) the consumer is aware of the price of the service and the right of withdrawal.
(5) In the cases stated in Subsection 4, the consumer must, however, on request, be provided with information on a physical address to which the consumer can communicate any complaints.
Distance Contracts concerning Financial Services
13. Before a distance contract concerning a financial service is concluded, the trader must provide the consumer with the information stated in Section 11, Subsection 1. In addition, information must be provided on
1) the CVR number, if the trader is registered in the Central Business Register, and otherwise the relevant ID number in a commercial register or similar public register in which the trader may be registered, plus, if the trader is affiliated to any approval schemes, information on the relevant supervisory authority,
2) whether there is a right of complaint and, if there is, the complaint procedure, including information on a physical address to which the consumer can communicate any complaints,
3) the start and duration of the cooling-off period and the conditions for and procedure in connection with the exercise of the right of withdrawal, including the address to which any notification of withdrawal must be sent,
4) any special risks in connection with the service as a consequence of the special nature of the service or as a consequence of the operations that must be implemented; the consumer must also be informed if the price of the service depends on fluctuations on financial markets and if historical yield cannot be used to predict future yield,
5) the amount that may be charged to the consumer under Section 22, Subsection 1,
6) any governing law or legal venue clause in the contract,
7) the language in which the contract terms and prior information are made available and the language in which the supplier undertakes to communicate during the term of the contract, and
8) whether there is a guarantee fund or other guarantee scheme.
(2) If voice telephony is included in the means of distance communication, the consumer must, at the start of each call from the trader, be informed of the identity of the trader, the name of the person with whom the consumer is in contact, that person’s connection with the trader and the commercial purpose of the communication. In addition to this, the trader may, with the consumer’s consent, provide no more than the information stated in Section 11, Subsection 1, nos. 2, 3 and 5, and Section 13, Subsection 1, nos. 3-5. The trader must inform the consumer that more information is available and state the nature of this information. The full duty of disclosure under Subsection 1 must be met in connection with notification on a durable medium in accordance with Section 14.
(3) Section 11, Subsection 3, applies correspondingly.
(4) If, within the past year, the trader has concluded one or more contracts with the same consumer of the same nature, Subsections 1-3 apply only to the first contract.
14. Before a contract on a financial service is concluded, the information stated in Section 13, Subsection 1 must be provided to the consumer on paper or on another durable medium to which the consumer has access. The consumer must also have been informed of the contract terms in the manner stated.
(2) If the contract is concluded at the consumer’s request using a means of distance communication that does not allow the information to be provided in the manner stated in Subsection 1 before the contract is concluded, this obligation must be met immediately after conclusion of the contract.
(3) If the information stated in Section 13, Subsection 1 was provided to the consumer in connection with a previous contract of the same nature, cf. Section 13, Subsection 4, the trader’s duty of disclosure under Subsections 1 and 2 is met if the trader has ensured that the consumer still has access to the information and contract terms on paper or another durable medium.
Common Rules for Distance Contracts
15. At all times during the contractual relationship, the consumer has the right to be provided with the contract terms on paper on request. The consumer may also change the means of distance communication used unless that would be incompatible with the contract concluded or the nature of the product or service supplied.
Authority to Issue Administrative Regulations
16. The Minister of Justice may establish further rules on the content and form of the duties of disclosure that follow from Sections 10-15. The Minister of Justice may also establish rules on further information that the trader must provide.
Part 4
Right of Withdrawal
Scope of the Right of Withdrawal
17. The consumer may withdraw from the contract in accordance with the rules in this Part (Right of Withdrawal) in connection with distance contracts and contracts concluded away from business premises as stated in Section 2, Subsection 2, no. 2.
(2) The rules in this Part do not apply to
1) the cases stated in Section 9, Subsection 2,
2) financial services covered by the Act on Mortgage Loans and Mortgage Bonds, etc.,
3) contracts for securities or financial services if the price of the security or service depends on fluctuations on the capital market over which the supplier has no influence and which may occur during the cooling-off period, and
4) games and lotteries.
(3) The Part does, however, apply to the contracts stated in Subsection 2, nos. 3 and 4, if the contract was concluded away from business premises under the circumstances stated in Section 2, Subsection 2, no. 2, a and b.
Cooling-off Period and Its Calculation
18. If the consumer wants to exercise the right of withdrawal, the consumer must use the procedure that follows from Section 19, Subsections 1 and 2, within a period of 14 days. For contracts for individual pension schemes, the period is 30 days.
(2) The period is calculated from the latest of the following times:
1) The date on which the contract is concluded if the contract concerns a service or a product that is to be produced or adapted to the consumer’s individual requirements. In other cases, the date on which the consumer has received the purchased object or the first delivery, or
2) the date on which the consumer has received the information that the trader must provide, in accordance with Part 3, on paper or another durable medium.
(3) For distance contracts for goods, the period expires at the latest 3 months after the date on which the consumer received the product, the first consignment of it or the first delivery. For distance contracts for non-financial services, the period expires at the latest 3 months after the conclusion of the contract.
(4) For distance contracts for non-financial services or goods that are to be produced or adapted to the consumer’s individual requirements, the right of withdrawal applies only until the implementation, production or adaptation begins, where the consumer has given prior consent to the trader to start the implementation, etc. before the expiry of the cooling-off period. However, this limitation to the right of withdrawal does not apply if the contract in question concerns continual delivery and has been concluded during or in connection with the trader's communication by telephone with the consumer without the consumer's prior request.
(5) For distance contracts for financial services, the right of withdrawal applies only until the contract has been performed in full by both parties following the consumer's express consent.
(6) If a consumer has a right of withdrawal under Section 17, Subsection 1, cf. Section 2, Subsection 2, no. 2, a, and if the contract concerns a service or a product that is to be produced or adapted to the consumer’s individual requirements, it may be agreed that the trader’s performance is to start at a specified time within 14 days after the conclusion of the contract and that the right of withdrawal must be exercised, if at all, before the start. However, this applies only if the consumer, when he requested the trader’s visit, knew or should have known that the service or product in question fell within the area of activities of the trader. If the consumer wants to exercise his right of withdrawal, notification of this must have reached the trader before the time stated in Paragraph 1.
(7) If the last day for exercising the right of withdrawal falls on a public holiday, a Saturday, Constitution Day, 24 December or 31 December, the period ends on the following working day.
Procedure for Exercising the Right of Withdrawal
19. Before the expiry of the cooling-off period that follows from Section 18, the consumer must notify the trader that the consumer wants to exercise the right of withdrawal, cf. Subsection 2. To comply with the deadline, it is sufficient for the notification to have been sent before the expiry of the period, where it is sent on paper or another durable medium to which the recipient has access.
(2) For distance contracts for goods, where the trader has not undertaken to collect the product from the consumer if the consumer exercises his right of withdrawal, the consumer must, before the expiry of the cooling-off period, return the product received to the trader or give it back to him. It is sufficient for the consumer, before the end of the period, to have delivered the product received to a carrier who has undertaken to forward it to the trader. The consumer must pay the costs of returning the product to the trader. However, if the trader has supplied a replacement product under the contract, because the product in question as a whole could not be supplied, the trader must pay the costs of return.
(3) The consumer may also exercise his right of withdrawal by not receiving or accepting a product sent by the trader.
Conditions for Exercising the Right of Withdrawal for Contracts concerning the Purchase of Goods
20. The right of withdrawal is subject to the product received being delivered to the trader at his business premises in materially the same condition and quantity as when the consumer received it. For distance contracts for goods, where the trader has undertaken to collect the product from the consumer if the consumer exercises his right of withdrawal, and for purchases of goods away from business premises, the right of withdrawal is subject to the consumer keeping the product received at the disposal of the trader in materially the same condition and quantity as when the consumer received it.
(2) If the product has been damaged or its value has been reduced without the damage or reduction in value being due to negligence or lack of care by the consumer, the consumer retains his right of withdrawal.
(3) Provided that the consumer has been made expressly aware of this, the right of withdrawal does not apply to
1) goods that have been taken into use if it is obvious from the nature of the product that use entails a reduction in the product’s sale value, and
2) sealed audio or video recordings or computer software, if the consumer has broken the seal.
Legal Effects of Exercising the Right of Withdrawal
21. If a consumer withdraws from a contract covered by Section 2, Subsection 2, no. 2, or from a distance contract concerning a product or a non-financial service, the trader may not assert any claims under the contract against the consumer.
(2) If the consumer has fully or partially paid for the product or service, the trader must repay the amount received when the consumer withdraws from the contract.
(3) For distance contracts for goods, where the trader has not undertaken to collect the product from the consumer if the consumer exercises his right of withdrawal, repayment must be made as soon as possible and at the latest 30 days after the trader has received the product and had the opportunity to examine it.
(4) In other cases, repayment must be made as soon as possible and at the latest 30 days after the consumer’s notification of withdrawal has reached the trader. If the contract concerns a product and the seller does not collect the product within 3 months after the seller has been notified by the buyer that the buyer is withdrawing from the contract, the product accrues to the buyer at no charge. The consumer may withhold the product received until the charge or the part of it that has been paid is repaid.
22. If a consumer withdraws from a distance contract concerning a financial service, the consumer may have to pay for that part of the service that has already been supplied under the distance contract if
1) performance of the contract began before the end of the cooling-off period at the express request of the consumer, and
2) the trader substantiates that the consumer was informed about the right of withdrawal and the amount to be paid, cf. Section 13, Subsection 1, no. 5.
(2) The amount that the consumer may have to pay under Subsection 1 must be reasonable in relation to the scope of the service already supplied, compared with full performance of the distance contract.
(3) If the consumer has fully or partially paid for the service, the trader must repay the amount received, less any amount under Subsection 1, when the consumer withdraws from the contract. Repayment must be made as soon as possible and at the latest 30 days after the consumer’s notification of withdrawal has reached the trader.
(4) The consumer must, as soon as possible and at the latest 30 days after sending notification of withdrawal, return any amount or property that the consumer may have received from the trader.
Part 5
Termination of Associated Contracts
23. If the consumer withdraws from a contract under the rules in this Act, any associated credit agreement that the consumer has concluded with the trader or that covers the agreed payment fully or partially on the basis of a contract between a third party and the trader is terminated.
(2) If the consumer withdraws from a distance contract concerning a financial service, any associated distance contract for services that are to be supplied by the trader or by a third party on the basis of a contract between the third party and the trader is also terminated.
(3) If an associated contract is terminated under Subsection 1 or 2, the consumer may not, for this reason, be ordered to pay any fee or compensation to the contracting party.
Part 6
The Trader's Performance of Distance Contracts for Goods and Non-financial Services
24. Unless otherwise agreed, the trader must, in connection with distance contracts for goods and non-financial services, supply its product or service at the latest 30 days after the date on which the consumer placed his order or made his offer.
(2) If the trader is in breach of the contract on account of delay because the agreed product or service as a whole cannot be supplied, the consumer may cancel the contract, irrespective of whether the delay is of material importance to the consumer, and the trader must notify the consumer hereof. Contract terms under which the consumer bears the risk for it not being possible to supply products or services as a whole are not binding.
(3) If the consumer cancels the contract under Subsection 2, the trader must repay any prepaid amounts as soon as possible and at the latest 30 days after the trader has received the consumer’s notification of the cancellation.
(4) Subsection 1 does not apply to the contracts stated in Section 9, Subsection 2, nos. 1-3 and 5. Subsections 2 and 3 do not apply to the contracts stated in Section 9, Subsection 2, nos. 3 and 5.
Part 7
Right to Terminate Contracts for Running Services, etc.
25. For contracts for a running obligation for the trader, against payment, to supervise or maintain real or personal property, to carry out security or rescue services, to provide teaching, to carry out bookkeeping, accounting or auditing activities, to provide care of the body or to provide other similar services, the consumer may, when 9 months have passed since the conclusion of the contract, terminate the contract with 3 months’ notice to the end of a month.
(2) With the same notice, the consumer may, when 3 months have passed since the conclusion of the contract, terminate a contract for subscription to newspapers, weeklies and periodicals and for continuous book publications of an extent not established in advance. The same applies to contracts for the purchase of a set of books, under which the individual volumes are to be supplied gradually, if the contract was concluded or the consumer made an offer away from business premises as stated in Section 2, Subsection 2, no. 2.
(3) A contract covered by Subsections 1 and 2 that is concluded using a standard form must contain a provision that clearly states the notice with which and, if relevant, the time from which the contract may be terminated by the consumer. The provision must not be incompatible with the consumer’s right to terminate the contract under Subsections 1 and 2.
26. If, at the time at which notice of termination is given, the consumer has paid for a period after the time of termination of the contract in accordance with the notice of termination, the payment for this period must be repaid immediately.
Part 8
Certain Governing Law Agreements
27. In the event that a contract specifies that the legislation in a country outside the European Economic Area is to govern the contract, the consumer may, in distance contract matters that are regulated in European Parliament and Council Directive 97/7/EC on the protection of consumers in respect of distance contracts and European Parliament and Council Directive 2002/65/EC concerning the distance marketing of consumer financial services, also relay on mandatory provisions in the legislation on this in a country within the European Economic Area, provided that, without the governing law agreement, the legislation of this country would have governed the contract.
Part 9
Other Provisions
28. The Act may not be derogated from to the detriment of the consumer.
29. Non-compliance by the trader with Section 6, Subsection 1, and Section 25, Subsection 3, is punished with a fine. A fine is also the punishment for anyone who is guilty of gross or frequently repeated non-compliance with
1) the duty, under Part 3, to disclose the right of withdrawal, or
2) the duty of disclosure under Section 13, Subsection 1, no. 4, Section 13, Subsection 2, cf. Section 13, Subsection 1, no. 4, and Section 14, Subsection 1, cf. Section 13, Subsection 1, no. 4.
(2) Companies, etc. (legal persons) may incur criminal liability under the rules in Part 5 of the Penal Code.
30. This Act enters into force on 1 October 2004.
(2) The Act applies to consumer contracts concluded after the commencement of the Act.
(3) The Act on Certain Consumer Contracts, cf. Consolidated Act no. 886 of 23 December 1987, is repealed. However, the Act will continue to apply to consumer contracts concluded before the commencement of this Act.
31. The following amendments are made to the Act on Insurance Contracts, cf. Consolidated Act no. 726 of 24 October 1986, as amended most recently by Section 1 of Act no. 434 of 10 June 2003:
1. The following is inserted after Section 33: “I a. Rules on the Duty of Disclosure and Right of Withdrawal, etc.
Introductory Provisions
34. The rules in this Part apply to consumer insurance, cf. Section 2, Subsection 4.
(2) The rules may not be derogated from to the detriment of the consumer.
34 a. In this Part, a distance contract is a consumer insurance contract which
1) is concluded using distance communication, i.e. communication whereby the parties do not physically meet, and
2) is concluded as part of a distance marketing system operated by the insurance company.
34 b. The insurance company may not, without a prior request to do so, communicate in person with a consumer at his residence or workplace or another place to which there is no public access with a view to obtaining, immediately or subsequently, an offer or acceptance of an offer to conclude a contract.
(2) A promise made by a consumer in connection with an insurance company’s communication in contravention of Subsection 1 is not binding.
34 c. If an insurance company performs a service for a consumer without the consumer having previously requested it, the consumer may not be placed under an obligation to pay for it.
The Insurance Company’s Duty of Disclosure
34 d. The insurance company must give the consumer clear, written information on the right of withdrawal under Section 34 i. The information must be provided at the latest on delivery of the insurance terms, cf. Sections 34 e and 34 f concerning distance insurance contracts.
34 e. For distance insurance contracts, the insurance company must inform the consumer about
1) the company’s name, principal business activity, physical address and, if a foreign insurance company has a representative in Denmark, or if the company is represented in some other way by another person, relevant information on this representative, including his physical address,
2) the CVR number and that the insurance company is subject to the supervision of the Financial Supervisory Authority; for foreign companies, the relevant ID number in a commercial register or similar public register in which the company may be registered, plus, if the company is affiliated to any approval schemes, information on the relevant supervisory authority,
3) the nature and main characteristics of the insurance service,
4) the total price of the insurance service, including fees, costs, including any delivery costs, VAT and all other taxes, including any taxes or costs that are not paid via the company or are imposed by the company, or, if an exact price cannot be stated, the basis for calculating the price,
5) terms of payment, delivery or other performance of the contract, any period of interminability and any right of the parties to terminate the contract prematurely or unilaterally, including information on any conditions for this,
6) whether the consumer is entitled to withdraw from the contract and, if he is entitled to do so, information on the start and duration of the cooling-off period and the conditions for and procedure in connection with the exercise of the right of withdrawal, including the address to which any notification of withdrawal must be sent,
7) any specific additional costs for the consumer in connection with the use of the means of communication in question, if such additional costs are imposed,
8) how long the information applies, including how long the product or service is offered at the price stated,
9) whether there is a right of complaint and, if there is, the complaint procedure, including information on a physical address to which the consumer can communicate any complaints,
10) any special risks in connection with the insurance product or service as a consequence of the special nature of the product or service or as a consequence of the operations that must be implemented; the consumer must also be informed if the price of the product or service depends on fluctuations on financial markets and if historical yield cannot be used to predict future yield,
11) any governing law or legal venue clause in the contract,
12) the language in which the contract terms and prior information are made available and the language in which the insurance company undertakes to communicate during the term of the contract, and
13) cover under the Act on a Guarantee Fund for General Insurance Companies or any other guarantee schemes.
(2) The information in Subsection 1 must be provided in reasonable time before a contract is concluded, and the information must be clear and comprehensible. It must be clearly stated that the information is provided with a view to concluding a contract, and the information must be provided in a manner that is suitable, considering the means of communication used, and takes minors into particular consideration.
(3) If voice telephony is included in the means of distance communication, the consumer must, at the start of each call from the insurance company, be informed of the company’s name, the name of the person with whom the consumer is in contact, that person’s connection with the company and the commercial purpose of the communication. In addition to this, the company may, with the consumer’s consent, provide no more than the information on the right of withdrawal and the information stated in Subsection 1, nos. 3, 4, 6 and 10. The company must inform the consumer that more information is available and state the nature of this information. The full duty of disclosure under Subsection 1 must be met in connection with notification on a durable medium in accordance with Section 34 f.
(4) If, within the past year, the insurance company has concluded one or more contracts with the same consumer of the same nature, Subsections 1-3 apply only to the first contract.
34 f. Before a distance contract is concluded, the information stated in Section 34 e, Subsection 1 must be provided to the consumer on paper or on another durable medium to which the consumer has access. The consumer must also have been informed of the contract terms in the manner stated.
(2) If the contract is concluded at the consumer’s request using a means of distance communication that does not allow the information to be provided in the manner stated in Subsection 1 before the contract is concluded, this obligation must be met immediately after conclusion of the contract.
(3) If the information stated in Section 34 e, Subsection 1 was provided to the consumer in connection with a previous contract of the same nature, cf. Section 34 e, Subsection 4, the insurance company’s duty of disclosure under Subsections 1 and 2 is met if the company has ensured that the consumer still has access to the information and contract terms on paper or another durable medium.
34 g. At all times during the contractual relationship and upon request, the consumer has the right to be provided with the contract terms on paper for distance insurance contracts. The consumer may also change the means of distance communication used unless that would be incompatible with the contract concluded or the nature of the service supplied.
34 h. The Minister of Justice may establish further rules on the content and form of the duties of disclosure that follow from Sections 34 d-34 g. The Minister of Justice may also establish rules on further information that the company must provide.
Right of Withdrawal
34 i. The consumer may withdraw from an insurance contract in accordance with the rules in Sections 34 j and 34 k (Right of Withdrawal). The right of withdrawal applies irrespective of whether the term of the insurance has started, but only until the contract has been fully performed by both parties in accordance with the consumer’s express wishes.
(2) There is no right of withdrawal for contracts that concern travel and luggage insurance policies or equivalent insurance policies with a limited term of a maximum of 1 month (short-term insurance) unless the insurance is part of another type of insurance.
(3) There is also no right of withdrawal for contracts for insurance products or services if the price depends on fluctuations on the capital market over which the insurance company has no influence and which may occur during the cooling-off period.
34 j. If the consumer wants to exercise his right of withdrawal, the consumer must notify the insurance company of this within a period of 14 days. For contracts for life insurance and individual pension schemes, the period is 30 days.
(2) If a consumer withdraws from a distance insurance contract, the period is calculated from the latest of the following times:
1) The date on which the contract is concluded or, for life insurance contracts, the date on which the consumer was notified of the conclusion of the contract, or
2) the date on which the consumer has received the information that the insurance company must provide, in accordance with the rules on duty of disclosure (Sections 34 d-34 f), on paper or another durable medium.
(3) In other cases, the period is calculated from the latest of the following times:
1) The date on which the consumer was notified that the insurance contract was concluded, or
2) the date on which the consumer received clear, written information on the right of withdrawal.
(4) To comply with the withdrawal deadline in Subsections 1-3, it is sufficient for the notification to have been sent before the expiry of the period, where it is sent on paper or another durable medium to which the recipient has access.
(5) If the last day for exercising the right of withdrawal falls on a public holiday, a Saturday, Constitution Day, 24 December or 31 December, the period ends on the following working day.
34 k. If the consumer withdraws from the contract under Sections 34 i and 34 j, the insurance company may not assert any claims concerning the contract against the consumer, cf. Subsection 2.
(2) If a consumer withdraws from a distance contract for which the cooling-off period is calculated in accordance with Section 34 j, Subsection 2, no. 2, the consumer may be ordered to pay for that part of the product or service supplied to the consumer after a period of 14 days from the conclusion of the contract. For contracts for life insurance and individual pension schemes, this period is 30 days from the conclusion of the contract.
However, this is subject to
1) the insurance company substantiating that the consumer was informed of the right of withdrawal and the method of calculating the amount to be paid, in accordance with Section 34 f on a durable medium, and
2) the amount that the consumer is ordered to pay being reasonable in relation to the scope of the product or service already supplied, compared with full performance of the contract.
(3) If the consumer has paid fully or partially, the insurance company must repay the amount received, less any amount under Subsection 2, when the consumer withdraws from the contract. Repayment must be made as soon as possible and at the latest 30 days after the consumer’s notification of withdrawal has reached the company.
(4) The consumer must, as soon as possible and at the latest 30 days after sending notification of withdrawal, return any amount or property that the consumer may have received from the company.
Termination of Associated Contracts
34 l. If the consumer withdraws from a contract under the rules in this Part, any associated credit agreement that the consumer has concluded with the company or that covers the agreed payment fully or partially on the basis of a contract between a third party and the company is terminated.
(2) If the consumer withdraws from a distance contract, any other distance contract associated with the contract for services that are to be supplied by the company or by a third party on the basis of a contract between the third party and the company is also terminated.
(3) If an associated contract is terminated under Subsection 1 or 2, the consumer may not, for this reason, be ordered to pay any fee or compensation to the contracting party.
Certain Governing Law Agreements
34 m. If a contract specifies that the legislation in a country outside the European Economic Area is to govern the contract, the consumer may, in distance contract matters that are regulated in European Parliament and Council Directive 2002/65/EC concerning the distance marketing of consumer financial services, also rely on mandatory provisions in the legislation on this in a country within the European Economic Area, if, without the governing law agreement, the legislation of this country would have governed the contract.”
2. Section 97 a is worded as follows:
“97 a. Apart from the cases covered by Part I a, the policyholder is entitled to withdraw from a contract concerning life insurance at the latest 30 days after the policyholder received the insurance terms.
(2) However, the period is calculated from the time at which the policyholder received notification that the insurance contract was concluded if the policyholder received the insurance terms before this time.
(3) If the last day for exercising the right of withdrawal falls on a public holiday, a Saturday, Constitution Day, 24 December or 31 December, the period ends on the following working day.
(4) Subsection 1 does not apply to
1) life insurance that covers a risk that only extends over an agreed period of a maximum of 1 month (short-term insurance) unless the insurance is part of another type of insurance,
2) life insurance that is taken out as group insurance or other collective insurance, where the insurance contract is concluded between the company and a representative of the policyholder, and
3) life insurance products and services if the price depends on fluctuations on the capital market over which the insurance company has no influence and which may occur during the cooling-off period.
(5) If the policyholder withdraws from the insurance contract under Subsection 1, the policyholder is released from all obligations under the contract.
(6) The provisions in Subsections 1-3 and 5 may not be derogated from to the detriment of the policyholder.”
3. Section 134, Subsection 1 is worded as follows:
“Non-compliance by the insurance company with Section 3 a and Section 34 b, Subsection 1, is punished with a fine. A fine is also the punishment for any company that is guilty of gross or frequently repeated non-compliance with
1) the duty, under Sections 34 d-34 f, to disclose the right of withdrawal, or
2) the duty of disclosure under Section 34 e, Subsection 1, no. 10, Section 34 e, Subsection 3, cf. Section 34 e, Subsection 1, no. 10, and Section 34 f, Subsection 1, cf. Section 34 e, Subsection 1, no. 10.”
32. The following amendment is made to the Act on Taxation of Pension Schemes, etc. (the Pension Taxation Act), cf. Consolidated Act no. 816 of 30 September 2003, as amended by Section 3 of Act no. 190 of 24 March 2004 and Section 1 of Act no. 317 of 5 May 2004:
The following is inserted after Section 22 A:
“22 B. If a contract has been concluded for a pension scheme and the policyholder or account holder withdraws from this contract under Section 17 of the Act on Certain Consumer Contracts or Section 34 i of the Act on Insurance Contracts, repayment of the amount received is not regarded as a taxable payment, nor is there any right to deduct or disregard the contributions to or premiums for the pension scheme.
(2) The Minister of Taxation may establish further rules on the duty of pension institutions to report the amount paid in and the amount repaid under Subsection 1.”
33. This Act does not apply to the Faeroe Islands and Greenland. Sections 1-31 of the Act may, by Royal decree, be implemented for these provinces with the derogations dictated by the special conditions in the Faeroe Islands and Greenland.
Given at Christiansborg Palace on 9 June 2004
Under Our Royal Hand and Seal MARGRETHE R.
/ Lene Espersen
1
The Act implements Council Directive 85/577/EEC of 20 December 1985 to protect the consumer in respect of contracts negotiated away from business premises, European Parliament and Council Directive 97/7/EC of 20 May 1997 on the protection of consumers in respect of distance contracts and European Parliament and Council Directive 2002/65/EC of 23 September 2002 concerning the distance marketing of consumer financial services and amending Council Directive 90/619/EEC and Directives 97/7/EC and 98/27/EC.