Finland

Status

Adopted

Explanatory note re status

The Parliament has adopted the acts implementing the Omnibus Directive into Finnish law.

The new rules have entered into force on 1 January 2023.

The following laws will be amended/updated:

• Consumer Protection Act (“kuluttajansuojalaki” KSL)
• Act on Certain Powers of Consumer Protection Authorities (“Laki kuluttajansuojaviranomaisten eräistä toimivaltuuksista”)

Implementation Act

Act amending the Consumer Protection Act (“laki kuluttajansuojalain muuttamisesta”)

Act amending the Act on Certain Powers of Consumer Protection Authorities (“laki kuluttajansuojaviranomaisten eräistä toimivaltuuksista annetun lain muuttamisesta”)

(Envisaged) Implementation Date

The new rules have entered into force on 1 January 2023.

Approach to implementation

Amendments to existing laws (see "Implementation Act").

Next steps

N/A

A. Amendment to Unfair Contract Terms Directive (Directive 93/13/EEC)

What penalties can be imposed for infringements of consumer rights related to consumer contracts? 
Has the option to limit the penalties been implemented? 

According to the Act amending the Act on Certain Powers of Consumer Protection Authorities (Sec. 16a), a fine may be imposed on a trader who, to the detriment of consumers, intentionally or negligently, continues utilizing, in marketing or customer relations, such unfair commercial practices within the meaning of the Consumer Protection Act that are prohibited by a court order or by the prohibition of the Consumer Ombudsman.

A fine may also be imposed on a trader who continues to use an unfair contract term within the meaning of Consumer Protection Act which is prohibited by a court order or by the prohibition of the Consumer Ombudsman.

Finland has made use of the option provided for in the Omnibus Directive to limit the fines nationally to situations where the terms of contract are defined in national law as expressly unreasonable in all circumstances, or where the seller or supplier continues to use the terms of contract which have been found to be unreasonable in a court order or in the prohibition of the Consumer Ombudsman.

The criteria for the imposition of the fines in the Act on Certain Powers of Consumer Protection Authorities, Sec. 18 are as follows: The amount of the fine is based on an overall assessment. The following criteria shall be taken into account when imposing the fine:

1. the quality, extent, severity and duration of the infringement;
2. the benefit achieved by the infringement if this information is available;
3. the actions of the trader to mitigate or repair the injury;
4. any previous infringements of the trader relating to consumer protection regulations;
5. the penalty imposed on a trader for the same cross-border infringement in another Member State if information of such a penalty is available through the mechanism established by the Cooperation Regulation; and
6. any factors other than those referred to in paragraph 1 (1) – (5).

The amount of the fine shall not exceed 4% of the turnover of the year before the end of the infringement.

B. Amendments to Price Indications Directive (98/6/EC)

I. What obligations must traders now comply with when advertising price reductions to consumers?

These obligations are included in Chapter 2 Sec. 11 of the Act amending the Consumer Protection Act.

When marketing the goods at a discount or reduced price, marketing must also indicate the lowest price at which the goods have been marketed during the 30 days preceding the price reduction. If, in a continuous marketing campaign of up to 60 days, the price reduction is gradually increased, the lowest price at which the goods have been marketed in the 30 days preceding the first price may be reported.

However, the obligations above shall not apply to rapidly perishable foods.

II. What penalties can now be imposed for infringements of consumer rights related to the indication of the prices of products offered to consumers? What criteria have been established for the imposition of the fines?

The following provision is included in the Act amending the Act on Certain Powers of Consumer Protection Authorities (Sec. 13 para. 1): a fine may be imposed on a trader who, to the detriment of consumers, intentionally or negligently, violates or neglects the obligation under Chapter 2, Sec. 11 of the Consumer Protection Act, to declare the lowest price before the price reduction notice for the goods, at which they are marketed.

The criteria for the imposition of the fines in the Act on Certain Powers of Consumer Protection Authorities, Sec. 18 are as follows:

The amount of the fine is based on an overall assessment. The following criteria shall be taken into account when imposing the fine:

1. the quality, extent, severity and duration of the infringement;
2. the benefit achieved by the infringement if this information is available;
3. the actions of the trader to mitigate or repair the injury; and
4. any previous infringements of the trader relating to consumer protection regulations.
5. the penalty imposed on a trader for the same cross-border infringement in another Member State if information of such a penalty is available through the mechanism established by the Cooperation Regulation; and
6. any factors other than those referred to in paragraph 1 (1) – (5).

The amount of the fine shall not exceed 4% of the turnover of the year before the end of the infringement.

C. Amendments to Unfair Commercial Practices Directive (2005/29/EC)

I. What are the implications of "digital services and content" now being considered "products" under the Unfair Commercial Practices Directive?

The definition of consumer goods and services in Chapter 1 Sec. 3 in the Consumer Protection Act already covers digital services and digital content. Therefore there is no need for national amendment actions in this respect.

II. What changes for traders who offer goods and services of different traders or consumers on their website that are displayed in a certain order when searched by a consumer ("rankings")?  

If the consumer is given the opportunity to search for consumables provided by different traders or individuals on the basis of a search word, expression or other information, information on key variables that determine the order of the commodities presented shall be kept at the disposal of the consumer, as well as information on the relative importance of these key variables compared to other variables. This information must be available directly from the page that presents the search results and in the easily accessible web interface (Act amending the Consumer Protection Act Chapter 2 Sec. 8d).

This provision does not apply to online search engine providers referred to in Art. 2 para. 6 of Regulation (EU) 2019/1150.

III. What are the transparency obligations that traders who operate online marketplaces where other traders and consumers can sell goods and services must comply with now?

According to Chapter 2 Sec. 8 para. 2 of the proposed Act amending the Consumer Protection Act, marketing must indicate whether the third entity providing the commodity is a trader or another entity (according to its declaration) when offering a consumer commodity in an online marketplace at a certain price.

IV. Are there any new provisions for consumer protection against unfair practices in doorstep selling and commercial excursions?

Finland has not acted towards implementing the option in Art. 3 para. 5 of the Directive. For example, problems with off-premise sales concern, first and foremost, issues relating to the withdrawal of off-premises contracts and therefore no regulation is considered necessary, for example, on what time of day off-premises sales can be carried out.

However, although no restrictions on the conduct of off-premises sales are provided for, it should be noted that sales by telephone or off-premises sales on Sundays or holidays or late at night or early in the morning may constitute aggressive commercial practises within the meaning of the Consumer Protection Act.

V. What transparency obligations must traders who publish consumer reviews now comply with?

The trader has the obligation to inform consumers whether the trader has verified that the published consumer reviews come from consumers who have in fact used or purchased the consumer good, and any information on how the trader has ensured this.

VI. What must traders who market a good, in one Member State, as being identical to a good marketed in other Member States, while the goods have a different composition ("dual quality"), consider now?

Traders marketing “dual quality” goods must consider the new addition to Chapter 2 Sec. 6 of the Act amending the Consumer Protection Act. This addition to the provision stipulates that untrue or misleading information may concern the similarity of a good with the goods marketed in other Member States, although the goods being marketed differ significantly in composition or characteristics - unless justified by legitimate reasons.

VII. Under what conditions and with what effects are legal remedies now available to consumers who have been harmed by unfair commercial practices?

According to Chapter 2 Sec. 15a of the Act amending the Consumer Protection Act, legal remedies will be made available for consumers under the following conditions:

If a trader has used unfair, misleading or aggressive practices and the use of the practices can be expected to have influenced the purchase decision made by the consumer, the consumer has the right to demand a reasonable price reduction.

A trader who intentionally or negligently violates or neglects the prohibition of unfair practices is liable to compensate the consumer for the damage caused by the actions. Similarly, the trader is liable to compensate for any damage caused by the trader's deliberate or negligence using misleading or aggressive practices.

VIII. What penalties can be imposed for infringements of consumer rights by unfair commercial practices?

The following penalties can be imposed according to the new amendments to the Act on Certain Powers of Consumer Protection Authorities.

A fine may be imposed on a trader who, to the detriment of consumers, wilfully or negligently violates or neglects the obligation under Chapter 2 Sec. 8d of the Consumer Protection Act to keep available information on key variables of the search query results, or an obligation under Sec. 8e to provide information on consumer reviews (Sec. 16 para. 1(1)).

According to the Act amending the Act on Certain Powers of Consumer Protection Authorities (Sec. 16a), A fine may be imposed on a trader who, to the detriment of consumers, intentionally or negligently, continues utilising, in marketing or customer relations, such unfair commercial practices within the meaning of Consumer Protection Act that are prohibited by a court order or by the prohibition of the Consumer Ombudsman. A fine may also be imposed on a trader who continues to use an unfair contract term within the meaning of Consumer Protection Act which is prohibited by a court order or by the prohibition of the Consumer Ombudsman.

The criteria for the imposition of the fines in the Act on Certain Powers of Consumer Protection Authorities, Sec. 18 are as follows: The amount of the fine is based on an overall assessment.

The following criteria shall be taken into account when imposing the fine:

1. the quality, extent, severity and duration of the infringement;
2. the benefit achieved by the infringement if this information is available;
3. the actions of the trader to mitigate or repair the injury; and
4. any previous infringements of the trader relating to consumer protection regulations.
5. the penalty imposed on a trader for the same cross-border infringement in another Member State if information of such a penalty is available through the mechanism established by the Cooperation Regulation; and
6. any factors other than those referred to in paragraph 1 (1) – (5).

The amount of the fine shall not exceed 4% of the turnover of the year before the end of the infringement.

D. Amendments to Consumer Rights Directive (2011/83/EC)

I. What are the implications of "goods with digital elements" and "digital services and content" now falling within the scope of the Consumer Rights Directive? Must traders consider any new information requirements?

Two new definitions have been added in Chapter 6 Sec. 8 para. 1 (4) and (5) of the Consumer Protection Act. First, an online marketplace is defined as a service which provides the consumer with the possibility of concluding distance sales agreements with traders other than the marketplace provider or individuals, and the service is utilizing a website, app or other program or component thereof used or used on behalf of the marketplace provider. Secondly, An online marketplace provider will be defined as a trader providing consumers with an online marketplace.

A trader shall provide the consumer clearly and understandably the following information before concluding an agreement unless this information is otherwise contextually expressed:

1. an indication of defect liability for goods, digital content and digital services and, where appropriate, an indication of the availability and conditions of post-trade services and guarantees; and
2. where appropriate, the functionality of goods containing digital elements and digital content and service, including applicable technical protection, and the compatibility of such goods insofar as the trader knows about it or may reasonably be assumed to know about it. (Proposed amendments to Consumer Protection Act, Chapter 2 Sec. 8a para. 1 (6) and (8)).

II. Do the national provisions that transpose the rules under the Consumer Rights Directive also apply when consumers "pay" for the provision of digital content or services with personal data?

According to Chapter 1 Sec. 2 para. 2 of the Act amending the Consumer Protection Act, the provisions of Chapters 3 (concerning the regulation of contract terms), 4 (concerning mediation and interpretation of contracts) and 6 (concerning off-premise and distance sales) of the Act also apply to consumer goods contracts under which the consumer discloses or undertakes to disclose personal data to a trader, unless the trader handles personal data disclosed by the consumer solely in order to supply the commodity or fulfil legal requirements.

The provisions of Chapter 2 (concerning marketing and practices in a customer relationship) of the Act apply to the supply, sale and other marketing of consumer goods even when the trader's intention is for the consumer to disclose or undertake to disclose personal data, and the trader does not process the personal data obtained exclusively for the purposes referred to above.

III. What new information obligations and formal requirements must traders comply with for distance or off premise contracts with consumers?

According to the new additions to Chapter 6 Sec. 9 para. 1 (4), (6), (14) and (20) of the Consumer Protection Act, the consumer must be provided with the following information before concluding an off-premise or distance sales contract:

1. the trader's telephone number and email address and, where appropriate, information on an electronic means of communication by which the consumer can communicate quickly and efficiently with the trader, enabling the consumer to save the exchange of communication with the trader;
2. the total price of consumables with taxes or, if the exact price, due to the nature of the commodity, cannot reasonably be calculated in advance, the criteria for determining the price and, where appropriate, the information that the price has been determined individually on the basis of automatic decision-making;
3. an indication of legal liability for goods and digital content and digital services; and
4. where appropriate, the functionality of goods containing digital elements as well as digital content and service, including applicable technical protection and compatibility of such consumables as far as the trader knows about it or may reasonably be assumed to know about it.

In addition, a few more requirements have been added in the Act amending the Consumer Protection Act in relation to withdrawal rights. First, if the transmission of digital content electronically shall be initiated before the end of the withdrawal period, the confirmation shall also include the prior consent of the consumer that the performance of a non-digital content service may commence before the expiry of the potential withdrawal period and approval for the loss of the right to withdraw (Consumer Protection Act Chapter 6 Sec. 13 para. 3).

The second addition to the Consumer Protection Act Chapter 6 Sec. 15 para.1 provides that if a payment obligation is imposed on the consumer in the contract, the performance of a non-digital content service may commence before the expiry of the potential withdrawal period, provided that the consumer has made an explicit request in this regard and has given its approval that he/she no longer has the right to withdraw after the trader has fulfilled the contract in its entirety. In off-premises sales, the request must be made in a permanent way.

Finally, Finland would make use of the written confirmation procedure that is optional under the Directive. According to the proposed Chapter 6 Sec. 12a, if the trader offers the consumer a consumable on the phone and the consumer then declares his desire to conclude a contract with the trader, the trader shall, after a telephone conversation, submit the offer he/she has made in writing or in any other permanent way to the consumer. The consumer shall be informed at the time of submission of the offer that if he/she does not accept that offer in a permanent way, the consumer is not bound by the contract and is not obliged to pay the commodity or return or retain it. These requirements do not apply if the consumer has contacted the trader on his own initiative or if the trader has contacted the consumer at his express request.

A similar requirement for the written confirmation procedure has also been added to distance sales of financial services, in Chapter 6a Sec. 11b of the Consumer Protection Act. The new provision is similar to above, except for the following: If a consumer wishes to invoke the non-binding option regarding the contract, he must inform the trader of it within one year of the conclusion of the contract. If the contract expires after the consumer relies on it as being non-binding, the trader shall, without delay, and no later than 30 days after receipt of the notification, return the payments received.

IV. Which additional specific information requirements apply for contracts concluded on online marketplaces?

The following information requirements will apply according to the Chapter 6 Sec. 9a of the Act amending the Consumer Protection Act.

If a contract is concluded in an online marketplace, the marketplace provider shall, prior to the conclusion of the contract, provide the consumer with the following information in a clear, understandable manner that is suitable for remote communication:

1. information on key variables that determine the order of the commodities presented as well as information on the relative importance of these key variables compared to other variables (see C. II.);
2. information whether the third entity providing commodities, according to its declaration, is a trader or another entity, and if the third party is not a trader, the information that the rights under consumer protection law do not apply; and
3. where appropriate, information on the distribution of contractual obligations between the third party providing the consumer commodity and the online marketplace provider.

V. In case of a withdrawal by the consumer: What must traders consider with regard to the use of content (other than personal data) created or provided by the consumer when using digital products provided by the trader?

Traders must consider the following new amendments to the Consumer Protection Act (Chapter 6 Sec. 17a para. 2).

In case of a withdrawal by the consumer, the trader shall refrain from using content created or dispensed by the consumer when having used the digital content or service, except when:

1. the content in question is not usable other than in the context of the digital content or service provided by the trader;
2. that content relates solely to the consumer's activities when using the digital content or service provided by the trader;
3. the trader has combined the content with other information from which it cannot be separated or its separation would cause unreasonable effort; or
4. the consumer has created the content together with other consumers and other consumers may continue to use that content.

VI. What are the new provisions for the expiry of / exceptions from the consumer's right of withdrawal?

The provisions for the expiry of the consumer's right of withdrawal are included in Chapter 6 Sec. 15 and Chapter 6 Sec. 16 of the Act amending the Consumer Protection Act.

If the consumer is subject to a payment obligation in the contract, the delivery of digital content by electronic means may be initiated before the expiry of the possible withdrawal period if the consumer has given their express prior consent that the completion of the contract begins during the withdrawal period, and if the consumer has given his/her approval that he/she thus forfeits his/her right to withdraw. The trader shall provide a confirmation of the consumer's prior consent and approval.

Unless otherwise agreed, the consumer does not have the right of withdrawal if:

• the service has been fully completed and, if the consumer is subject to a payment obligation in the contract, the fulfilment of the contract has commenced after the consumer made the request that the performance of the service may be started before the end of the possible withdrawal period and has given its approval to the loss of his or her right to withdraw when the trader has fully fulfilled the contract; or
• the delivery of digital content electronically has begun and, if the contract imposes a payment obligation on the consumer:

(a) the consumer has given its prior consent to the commencement of the contract during the withdrawal period;

(b) the consumer has expressed acceptance that the right of withdrawal is absent in such a case; and

(c) the trader has provided the consumer with the confirmation including the prior consent and approval of loss of the withdrawal right of the consumer.

VII. What penalties can be imposed for infringements of consumer rights?

Finland has implemented the penalty provision in the Act amending the Act on Certain Powers of Consumer Protection Authorities.

According to the proposed Sec. 13 para. 1(2), A fine may be imposed on a trader who, to the detriment of consumers, intentionally or negligently violates or neglects, the provisions of Chapter 6 Sec. 11 and 12 of the Consumer Protection Act (38/1978) concerning the provision of prior information in off-premises or distance sales, provisions of Sec. 13 concerning the confirmation of information, and obligations relating to the return of performance pursuant to Sec. 17 (2)-(4) or obligations under Sec. 17a (1)-(3) when the consumer withdraws from the contract of digital content or service.

According to the proposed Sec. 15 para. 1(6): if a trader charges the consumer costs greater than the actual expenses, they may be subject to a fine.

According to the proposed Sec. 16 para. 1(2): a fine may be imposed on a trader who, to the detriment of consumers, intentionally or negligently, violates or neglects the obligation under Chapter 6, Sec. 9 of the Consumer Protection Act to provide information prior to the conclusion of off-premises or distance sales contract, the disclosure obligation of an online marketplace provider under Sec. 9a or the obligation under Sec. 10 to provide the consumer with certain other information.

The criteria for the imposition of the fines in the Act on Certain Powers of Consumer Protection Authorities, Sec. 18 are as follows: The amount of the fine is based on an overall assessment.

The following criteria shall be taken into account when imposing the fine:

1. the quality, extent, severity and duration of the infringement;
2. the benefit achieved by the infringement if this information is available;
3. the actions of the trader to mitigate or repair the injury; and
4. any previous infringements of the trader relating to consumer protection regulations.
5. the penalty imposed on a trader for the same cross-border infringement in another Member State if information of such a penalty is available through the mechanism established by the Cooperation Regulation; and
6. any factors other than those referred to in paragraph 1 (1) – (5).

The amount of the fine shall not exceed 4% of the turnover of the year before the end of the infringement.

E. Optional Provisions and Deviations

Has the Member State transposed a provision which is optional under the Omnibus Directive or made use of a deviation possibility provided for therein?

Finland has made use of the following options provided for under the Omnibus Directive:

• Art. 6a Price Indications Directive: The obligation to indicate prices (See B. I. above) will not apply to rapidly perishable foods.
• Art. 8b para. 2 Unfair Contract Terms Directive: Finland would make use of the possibility provided for in the Omnibus Directive to limit penalties nationally to situations where the terms of contract are defined in national law as expressly unreasonable in all circumstances, or where the seller or supplier continues to use the terms of contract which have been found to be unreasonable in a court order or in the prohibition of the Consumer Ombudsman. (See A. Above).
• Art. 16 para. 2 Consumer Rights Directive: According to the bill, Finland would make use of the option provided for in the Directive. The consumer would have the right to withdraw from the distance sales contract provided for in Sec. 14 (without limitations) if the contract is concluded at the time of a home visit made by the trader without the consumer's request (proposed addition to Chapter 6 Sec. 16 para. 3 of the Consumer Protection Act).
• Art. 8 para. 6 Consumer Rights Directive: Finland will, according to the proposed amendments to the Consumer Protection Act, make use of the written confirmation procedure that is optional under the Directive (See D. III. above).

Noteworthy points arising from legislative changes

N/A

Notable case law and/or enforcement action

N/A