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Competition and Consumer Authority wants tougher measures on dishonest advertising

The current model for dealing with fraudulent advertising no longer works, according to the Competition and Consumer Authority. At present, companies can continue a marketing campaign even if it violates the law, as a Market Court judgment is often handed down after a marketing campaign has ended.

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Image: Kuopion Matkailupalvelu

The Finnish Competition and Consumer Authority (FCCA) says that inappropriate marketing that breaches the law should lead to market disruption charges payable by companies.

"The Consumer Ombudsman needs to have a means for addressing companies who are engaging in actions that have already caused consumers to suffer," says Päivi Hentunen, Director of the FCCA.

The authority says that the problem lies in the slow action of the Market Court. Generally, companies have already finished their marketing campaign by the time the Court gets around to handing down a judgment.

The Authority's own judgments don't carry sufficient weight to enforce a marketing ban. If the company contests the ban, then the matter is transferred to the Market Court and the company can act as they wish while legal proceedings are ongoing. 

The Ministry of Justice says that a number of companies have found this loophole and consciously exploit it. In the summer the Ministry plans to launch an inquiry and set up a task force to deal with the issue.

Legislative Director Antti Leinonen, does not however, promise further changes to the law.

"Work has just begun. First you have to sort out the current situation and problems. After that the working group will broadly go through a range of different options," Leinonen says.

Entrepreneurs on board with demands

The Federation of Finnish Enterprises brooks no objection. According to the FFE dishonest operators also disadvantage honest entrepreneurs.

However, the FFE does have its own list of demands. Legal Affairs Manager Janne Makkula says that entrepreneurs themselves need to be protected.

"Each year, 140,000 private entrepreneurs must fight against becoming the target of dishonest advertising," Markkula says. "We've estimated that it causes many millions of euros in damage to businesses."

While the law protects the rights of consumers, Makkula says that entrepreneurs themselves are left out in the cold.