Legislation
One important task for the National Board for Consumer Policies and the Consumer Ombudsman is to ensure that companies abide by the laws and ground rules which are applicable in the consumer field, and that consumer rights are respected. Consumers should not be subjected to misleading advertisements or unfair marketing practices, nor to dangerous products or inequitable contract terms. There are a number of laws which forbid this. It is the task of the Board and the Ombudsman to take action if companies violate these laws.

The Marketing Act. All statements and promises made in advertising have to be truthful. Companies must be able to substantiate their claims. Misleading or otherwise unacceptable (“unfair”) advertising can be prohibited. Especially important facts must be included in advertisements. The new 1996 Marketing Act contains detailed rules prohibiting certain marketing activities. If a company violates them, it can be ordered to pay a “market disruption fee.” The company may also be required to compensate consumers (or other companies) for the damage caused by its marketing.

The Price Information Act stipulates that consumers must be provided with clear and correct price information on goods and services in shop windows and elsewhere.

The Consumer Contract Terms Act. It is illegal to employ contract conditions which exclusively benefit the seller at the expense of the consumer. This can apply to the terms of a contract of sale, a rental agreement, warranties, order forms, etc.

The Product Safety Act is intended to protect consumers from potentially dangerous goods and services. Dangerous products can be prohibited. The seller must supply the information needed for the prevention of injury. In certain cases, a company may be forced to recall a dangerous product and refund the consumers’ money.

The Consumer Sales Act applies when a consumer purchases a product from a merchant. This Act gives the consumer rights if the product is defective and in case of delayed delivery.

The Consumer Services Act applies when a consumer asks a merchant to carry out work or a service. This Act provides the consumer with protection concerning, for example, repairs, work on property, and storage of items.

The Consumer Credit Act is intended to guarantee that the consumer will be told the true cost of buying on credit, whether in the form of a bank loan, payment in instalments, or credit on account, etc. The consumer must be able to compare the terms of various forms of credit with each other and with cash payment.

The Consumer Insurance Act applies to insurance against damage. This Act includes rules for information, premium payments, settlement of claims, and how insurance is to be renewed.

The Door-to-Door Sales Act. When something is sold over the phone or in the consumer’s home, the consumer is entitled to cancel the purchase within a week of ordering or buying the product. The seller must inform the consumer of this right and supply him with a “second thoughts form.” If the seller does not do so, the agreement will be void.

An intervention by the Board for Consumer Policies or the Consumer Ombudsman often starts when a consumer makes a complaint. The Board usually receives about 3,500 complaints per year, but it can also pursue cases on its own initiative. In most cases, companies agree to put matters right voluntarily. If they fail to do so, the Ombudsman may bring legal proceedings, which may lead to the court issuing 1) a prohibition order, meaning that the company is prohibited from using a particular kind of marketing, imposing inequitable contract conditions, or selling a dangerous product; 2) an information order, which means that the company is ordered to provide important information in its marketing to the consumer; 3) an order to recall a product, compelling the company to repair, replace or take back hazardous goods that have already been sold.

These injunctions are combined with a conditional fine. This is a substantial penalty which the company can be made to pay, if it violates the court order. The Ombudsman may also issue an injunction himself in some cases. This must be approved by the company if it is to be valid.

To a large extent the Consumer Board concludes agreements with individual companies or various parts of the business sector, often with a whole industry, on marketing activities or contract terms. Most conditions used in standard contracts today are the result of such agreements. The Board also encourages self-regulation in various parts of the business community.

Sometimes, the Board issues guidelines, e.g. on such matters as for marketing by companies and for product safety, normally after consultations with the business sector concerned. These are to be regarded as a complement to the laws and a form of guidance for companies.

Health, safety and quality
It should not be necessary for an accident to happen, before dangerous goods are removed from the market. The Product Safety Act makes it possible for the Consumer Ombudsman to require that goods and services that can damage life and health be prohibited. Inflammable clothes and dangerous toys are examples of goods which have disappeared from the market after the Ombudsman’s intervention.

The National Board for Consumer Policies strives to ensure that products are of good quality and as safe as possible from the time of their introduction. It can help companies test their products to obtain information about possible defects in order to help make improvements. The Board can also take the initiative to carry out tests of goods at specialized test laboratories. Safety is a factor which is tested at the same time as other aspects of product quality. For example, it is important that personal safety equipment such as buoyancy jackets and helmets, is not only safe but functional for the user. In this way, the Board is able to influence product development.

Standardization is an important part of the Consumer Board’s preventive activities. The Board takes an active part in international work, putting forward consumer demands for safety and good product quality.

The Board is responsible for checking that products sold on the market—regardless of whether they are imported or produced in Sweden—satisfy certain established safety requirements. Among other ways, this is done by spot checks at shops and warehouses, often with the assistance of municipal consumer advisers.

To make well considered purchases, consumers need access to hard facts. The Consumer Board assists them by carrying out comparative product testing. Which goods offer the best value for money? In the laboratory, the Board tests how well items of household equipment work, how safe they are, how noisy they are, and the impact they have on the environment.

The Board tests expensive and complex items of household equipment such as washing machines and other household appliances, as well as other basic consumer goods.

If test results show that a product has serious defects or that claims made in advertising are unfounded, the Consumer Ombudsman can—on the basis of the Product Safety Act and the Marketing Act—demand that the manufacturer correct these shortcomings. The test results often lead to a company improving its product.

Protection of the environment
There has been an increasing focus on the negative effects of consumption on the environment. At central government level, it is primarily the National Environmental Protection Agency and the National Chemicals Inspectorate that are responsible for the environment. The role of the National Board for Consumer Policies includes examining environmental claims in advertising and the impact of the product on the environment.

The Consumer Board provides ideas as to how households can change their consumption patterns and also produces study material for schools on consumer and environmental issues. The Board takes part in the work of the Environmental Labeling Board with its Nordic Swan label for products that are preferable from an environmental point of view.

Increased environmental awareness on the part of consumers has led companies to use environmental arguments in their advertising. The Board and the Ombudsman take action against advertising that claims that a product is especially environmentally friendly when this is not the case.

Household use of energy also places a burden on the environment. The Board measures the energy consumed by different types of household appliances such as refrigerators, freezers, washing machines and stoves, to enable consumers to take this aspect into consideration when making purchasing decisions.

Household finances
Many people are hard hit by unemployment, debts and cutbacks in public-sector benefits. Helping households to get as much as possible for their resources (time, money and work) is an important task for the Consumer Board. The Board calculates reasonable living costs and estimates the food bill for different types of households. In this context, the Board carries out local surveys of food prices. The Board also monitors price trends, makes proposals and coordinates state subsidies to shops in sparsely- populated areas.

The Consumer Board monitors the credit market and disseminates knowledge about the costs of borrowing money in order to help prevent people from accumulating excessive personal debt.

Many households need help to get their finances back in order. Budgeting advice, provided by the municipal consumer advice centers, has been shown to be effective. In certain cases, consumers who are heavily indebted may have their debts partially or totally written-off in accordance with the provisions of the Debt Reconstruction Act.

Knowledgeable consumers
Knowledge and information are essential if consumers are to be able to protect their interests. The Consumer Board publishes manuals, reports, study materials, legal information, fact sheets, market reviews, etc. Most of the Board’s publications are available from the municipal consumer advisers.

To provide advice to individual consumers is the task of the municipal consumer advice centers all over the country. The Consumer Board plays an important role in supporting these activities, for example by training consumer guidance officers and keeping them continually informed, answering their questions and giving them advice.

The Board gives financial and other support to non-governmental voluntary organizations working with consumer issues, with the aim of increasing consumers' knowledge, involvement and influence.

The Board also supports schools in their work of disseminating knowledge on consumer affairs. It produces study material and arranges or participates in in-service training for teachers. The Board provides financial support for projects which aim at strengthening young people in their role as consumers.

The most important direct channel to consumers is the consumer magazine Råd & Rön (Advice and Results) which is published once a month by the Consumer Board. It covers a broad range of consumer issues, everyday law, environmental issues, foodstuffs, household finance and many other topics. Råd & Rön publishes test results in important product areas.

International activities
Sweden’s EU membership and increased international trade have had a major impact on the Swedish consumer. The National Board for Consumer Policies works increasingly on the European level, not least with regard to standardization. Sweden is among the countries which have made the most progress in these areas, and it is important to safeguard these advances while working together with others to make further progress.

This work entails cooperation with other European consumer agencies, organizations and networks in order to create the best possible consumer protection thoughout the EU. For years, the Board has participated in the Nordic Council of Ministers’ Civil Servants Committee for consumer issues. It also takes part in the OECD Consumer Affairs Committee and the international umbrella organization for consumer movements, Consumers International, as well as with the Bureau of Consumers’ Union (BEUC) in Brussels. The Consumer Board is a member of the European organization for coordination of consumer goods testing, IT.

The National Board for Consumer Complaints A consumer wishing to obtain redress for deficiencies in goods or services can lodge complaints with the National Board for Consumer Complaints (Allmänna reklamationsnämnden). This Board is called upon not only to examine such complaints but also to issue recommendations to sellers and producers to amend any abuses which may have recurred. In this way the public has access to a tribunal which can handle disputes between buyer and seller in a cheaper and easier fashion than the regular courts. Disputes can be brought before the Board at no cost to the consumer. Membership of the Board is equally divided between consumer and business representatives, with a judge presiding as chairman. The Board hears some 6,500 cases yearly. Most of the big trade organizations have undertaken, on their members’ behalf to ensure that the Board’s recommendations are followed. Surveys show that th Board’s recommendations are followed in about 75% of all cases.

This fact sheet is part of the SI’s information service. It can be used as background information on condition that the source is acknowledged.

March 1996
Classification: FS 81 p Qc
ISSN 1101-6124

Fact Sheets on Sweden