Consumer Authorities
The Finnish consumer authorities are:
the Consumer Ombudsman
the Advisory Council on Consumer Affairs
the Competition and Consumer Authority
the Consumer Disputes Board
Consumer Advisors (centres in magistrates)
the National Consumer Research Centre
the European Consumer Centre
the Provincial Boards
the Provincial Boards
the general courts
The rights of the consumer in Finland are mainly monitored by the Consumer Ombudsman and the Competition and Consumer Authority. Consumer Ombudsman has drafted various guidance related to marketing and other issues that the entrepreneurs should get acquainted to.
Matters usually come to the authorities’ attention through notifications made by competitors or customers. The main task of the Consumer Ombudsman is to monitor the legality of the marketing activities and the terms and conditions of trade and debt collection when it comes to activities aimed at consumers. The monitoring is done mainly on generic level. Consumer Ombudsman deals with an individual consumer’s case only if this is important in respect of the application of law and the general interest of all consumers.
In practice an individual consumer turns often to the Consumer Advisor for consultation. The Consumer Advisor assists consumers in their disputes with traders. The decisions of the Consumer Advisors are only non-binding recommendations.
A consumer may request that a dispute regarding purchase of consumer goods to be determined by the Consumer Disputes Board. A company does not have this right. The decisions of the Consumer Disputes Board are non-binding recommendations. There is thus no possibility for appeal. Although the decisions are non-binding, a failure to abide may result in bad publicity for the company. The Consumer Disputes Board publishes a list of all companies who fail to observe the recommendations of the board. In practice most companies observe the recommendations. A consumer may begin the proceedings in a general court (district court in first instance).
Obligation to negotiate
If the Consumer Ombudsman becomes aware of an unlawful act, the Ombudsman must primarily seek to persuade the trader to voluntarily refrain from continuing the unlawful activity. Only if it is impossible to reach a solution through negotiations and the unlawful activity continues, the Ombudsman may resort to other measures. The most common measure is to issue a prohibitory injunction with a threat of fine. The trader must pay the fine only if he continues the prohibited action. Injunction is issued depending on the case by the Ombudsman or the Market Court. The Market Court is the only legitimate entity to order on the payment of the fine. The Consumer Ombudsman can ask the Market Court to order the fine in cases where the Ombudsman has already determined on the prohibition injunction.
Prohibition imposed by the Consumer Ombudsman and the Market Court
In cases other than those requiring a preliminary ruling, the Consumer Ombudsman may impose an prohibition on a trader. The prohibition may be subject to a notice of a penalty payment fine and may also be imposed on a person employed by the trader. A temporary prohibition may be issued if, because of the rapidity of the proceedings or the scale of the case or for any other reason, it is necessary to prevent the conduct as a matter of urgency. The person subject to the prohibition may bring the matter before the Market Court, but cannot appeal the decision directly to the Consumer Ombudsman.
The Consumer Ombudsman can also request the Market Court to prohibit a trader from continuing its unlawful conduct if the trader does not change its conduct despite negotiations. A prohibition may also be granted on a temporary basis. The market court may impose a conditional fine as an enforcement measure. The decision of the Market Court can be appealed to the Supreme Court by both the Consumer Ombudsman and the prohibited trader. An appeal requires a permission to appeal granted by the Supreme Court.
Intervening in unlawful online content
In exceptional cases, the Consumer Ombudsman has the right to intervene in online content that violates consumer protection rules, such as a website, an image or a social media post. These cases include situations where the collective interest of consumers could suffer significant damage. The provisions are permanent or temporary and will remain in force until the case is finally resolved. The Consumer Ombudsman can reinforce the provisions by imposing a notice of a penalty payment. If the addressee of an order does not comply with an order reinforced by a penalty payment, the consumer ombudsman can apply to the market court for enforcement of the fine. The addressee of an order may appeal to the Market Court against an order other than a time-limited order within 30 days of being notified of the order. If the order is not appealed, it remains permanent.
Other rights of the Consumer Ombudsman for the Ombudman’s supervisory function
The Consumer Ombudsman also has the right of inspection in the performance of his supervisory duties. In such cases, the Consumer Ombudsman may carry out an inspection at the premises of the trader, and the Consumer Ombudsman has the right to obtain official assistance from the police in carrying out the inspection.
The consumer ombudsman can also carry out test purchases, on the premises of the trader and online. The Ombudman’s representative can impersonate the consumer, and the Ombudman’s representative has the same right of withdrawal as a consumer would have. When using a false identity, the consumer ombudsman must inform the trader as soon as possible without jeopardising the performance of the supervisory task.
Group Actions
In case several consumers have claims against the same trader that can be resolved by a common decision, the Consumer Disputes Board can deal with the claims as group complaint. Group complaint is initiated by the Consumer Ombudsman. The Consumer Ombudsman can self-initiate the group complaint. There is no need for a consumer request. The Consumer Ombudsman can also assist the consumers in fulfilling the recommendation of the Consumer Disputes Board. In case the recommendation is not followed, the Consumer Ombudsman may initiate the proceedings in general court as group action.
Group action is possible e.g. when a dispute concerns a claim for defective goods or interpretation of the terms and conditions of sale as well as sale and marketing of investment instruments. However group action cannot be initiated in disputes regarding the issuing of shares and public takeover bids. Only the Consumer Ombudsman can initiate the group action and act for the consumers in court. A consumer has to register to the group in order to take part on the group action.
The Provincial Board carries out price comparisons and supervises price markings and consumer credits.