The Cancellation Act

Act relating to the duty of disclosure regarding and right to cancel distance contracts and off-premises sales (the Cancellation Act) (implementation of Directive 2011/83/EU relating to consumer rights)

Cf. former Acts of 24 March 1972 No. 11 and of 21 December 2000 No. 105  – cf. the EEA Agreement Annex XIX nos. 7a, 7e and 7i (Directive 2011/83).

Chapter 1. General provisions

Section 1. Scope

The Act shall apply to sales of goods and services to consumers where the trader acts in a commercial capacity and the contract is concluded as a distance contract or off-premises contract.

Chapters 2 to 5 and sections 41 and 42 of the Act shall also apply to a party acting in a commercial capacity on behalf of a non-commercial seller or services provider in the situations described in the first subsection.

The Act shall apply to Svalbard and Jan Mayen. The Ministry may nevertheless issue regulations stipulating that all or parts of the Act shall not apply and provide special rules in view of the local conditions.

Section 2. Exclusions from the scope of the Act

The Act shall not apply to

a) contracts relating to the sale of goods and services, apart from financial services, from vending machines and automated business premises,

b) contracts relating to the sale or construction of real property and contracts relating to rights attaching to real property, other than leases. The term “sale of real property” shall also cover the sale of documents of title with an associated right of tenancy or right of occupancy in respect of a residence,

c) contracts covered by the Act relating to contracts regarding a part-time right of use and long-term holiday products, etc (the Timeshare Act),

d) contracts covered by the Act relating to package tours and travel guarantees (the Package Tour Act),

e) contracts relating to passenger transport services. The requirements stipulated in section 16 are nonetheless applicable,

f) contracts concluded with an ecom provider through publicly available pay-phones for the use of these, or concluded for the use of one single telephone, Internet or fax connection established by a consumer,

g) contracts relating to the sale of goods and services, apart from financial services, other than at business premises if the total contract amount, including freight and additional costs, that the consumer is to pay is NOK 300 or less.

Section 3. Non-derogation

No conditions may be agreed on that are less favourable to the consumer than those implied by the provisions of this Act.

Section 4. Relationship with other regulations

The Act is without prejudice to duty of disclosure requirements or requirements relating to the contract that are imposed by other regulations.

Section 5. Definitions

In this Act, the following terms shall have the following meanings:

a) consumer: a natural person who is not primarily acting as part of a commercial undertaking,

b) distance contract: a contract concluded as part of an organised sales or service-provision scheme without the simultaneous physical presence of the trader and consumer and concluded exclusively by means of distance communication,

c) business premises: retail premises where the trader carries out activity on a permanent basis or movable retail premises where the trader carries out activity on a usual basis,

d) off-premises contract: a contract in which the consumer enters into a contract or submits an offer to purchase (order) in the presence of the trader at a place other than the trader’s business premises, as well as a contract concluded at the trader’s business premises or by means of distance communication immediately after the consumer was personally and individually addressed in a situation covered by the first alternative,

e) financial service: any service of a banking, credit, insurance, individual pension, investment or payment nature,

f) durable medium: any instrument that enables the consumer or trader to store information in such a way that the information will be available in an unchanged form in the future,

g) ancillary contract: a contract according to which the consumer receives goods or services in connection with a distance contract or off-premises contract and the goods are delivered or services provided by the trader or a third party on the basis of an arrangement between a third party and the trader,

h) public auction: a sales method according to which goods or services are offered by the trader to consumers who attend or are given the possibility to attend the auction in person, through a transparent, competitive bidding procedure run by an auctioneer and where the successful bidder is bound to buy the goods or services,

i)   digital content: data that is produced and delivered in a digital form.

Section 6. Calculation of limitation periods

When a limitation period expressed in days is to be calculated from the date when an event occurs or an action takes place, the date when the event occurs or the action takes place shall not be regarded as part of the limitation period.

All calendar days are to be included in a limitation period. A limitation period that ends on a Saturday or public holiday is to be extended to the nearest working day.

Section 7. Burden of proof

The trader has the burden of proving that the duty of disclosure stated in sections 8 to 16 has been fulfilled.

Chapter 2. The trader's duty of disclosure regarding distance contracts and off-premises contracts for goods and services other than financial services

Section 8. Duty of disclosure before a contract is concluded

Before a distance contract or off-premises contract is concluded, the trader shall, in a clear and comprehensible manner, provide the consumer with information about:

a) the most important properties of the good or service, to the extent that the method of communication and the good or service are suitable for this,

b) where relevant, the digital content’s functionality, including the relevant technical protection measures,

c) the digital content’s ability to interact with hardware and software which the trader knows about or can reasonably be expected to know about,

d) the trader’s identity, such as the trader’s business name, geographical address and if relevant telephone number, fax number and email address, as well as the identity and geographical address of traders on whose behalf the trader is acting and that the consumer may address any complaints to,

e) the total price of the good or service including taxes, or the method for calculating the price if the nature of the good or service means that the price cannot reasonably be calculated in advance, plus any additional costs relating to freight, delivery, postage, etc, or, if these cannot reasonably be calculated in advance, the fact that such additional costs may be incurred. In the case of contracts without any time limit and subscription contracts, the total price shall include the costs per settlement period and, if a fixed amount is to be paid, also the total monthly costs or the method for calculating the price if the total costs cannot be calculated in advance,

f) the costs of using the means of distance communication when these are not calculated according to the basic rate,

g) the payment, delivery and performance arrangements, delivery deadline and how the trader deals with complaints,

h) the fact that the consumer is entitled to cancel (withdraw from) the contract and that there is a standardised form to use when exercising the right to cancel the contract (cancellation form), as well as the conditions, limitation periods and methods for exercising the right to cancel, cf. section 20 subsections 1 and 2,

i)   the fact that the consumer shall pay the costs of returning the goods if the right to cancel is exercised. If the nature of the goods means that they cannot normally be returned by post, the costs of returning the goods shall be stated,

j)   the fact that a consumer who exercises the right to cancel after requesting service deliveries to start in accordance with sections 12 or 19 is liable to pay reasonable costs, cf. section 26 subsection 1,

k) the fact that, if the contract is covered by the exceptions to the right to cancel stated in section 22, this shall be stated or, if relevant, the circumstances under which the right to cancel may be lost are to be stated,

l)   the legal obligation to deliver goods in accordance with the contract, any after-sales service and any commercial guarantees, as well as the conditions for these,

m) the relevant rules of conduct and where these can be found,

n) where relevant, the duration of the contract and any minimum lock-in period or, for contracts that have no time-limit or are extended automatically, the conditions for cancelling the contract,

o) any deposit or other financial guarantees paid or provided by the consumer and the conditions for these,

p) where relevant, any out-of-court complaints and compensation scheme to which the trader is affiliated, as well as the way in which this can be accessed.

The trader is to be regarded as having provided the information stated in letters h, i and j of subsection 1 if the trader has given the consumer a correctly filled-in form providing information on the right to cancel.

If Norwegian consumers are targeted in a trader’s marketing, the information stipulated in subsection 1 is to be given in Norwegian.

At public auctions, it is sufficient if the information stipulated in letter d of subsection 1 is replaced by corresponding information about the auctioneer.

The Ministry may issue more detailed regulations regarding a standardised cancellation form and stipulating how the duty of disclosure is to be fulfilled, including that information on the right to cancel is to be given through the use of a standardised form providing information on the right to cancel.

Section 9. The effect of a breach of certain parts of the duty of disclosure

Should the trader have failed to disclose additional costs or other costs dealt with in section 8 subsection 1 letters e and i, the consumer shall not be liable for these costs.

Chapter 3. Requirements as to contracts concluded in unsolicited telephone calls

Section 10. Unsolicited telephone sales calls

Before a contract is concluded as a result of the trader making an unsolicited offer in a telephone call, the trader shall confirm the offer in writing on a durable medium after the telephone call has ended. The consumer is not bound until the offer has been accepted in writing and the trader shall inform the consumer of this fact in the confirmation mentioned in the first sentence. The trader must be able to document the consumer’s acceptance.

Subsection 1 does not apply to the sale of newspaper subscriptions or sales by non-profit organisations.

The Ministry may issue regulations stipulating a requirement of registration in the Register of Non-Profit Organisations pursuant to the Norwegian Register of Non-Profit Organisations Act in order to be counted as a non-profit organisation.

 

Chapter 4. Requirements as to off-premises contracts that are not for financial services

Section 11. The contract

Off-premises contracts shall contain the information stipulated in section 8 subsection 1. This information is to be counted as part of the contract and may not be changed unless the parties expressly agree otherwise. The information shall be easy to read and in simple, easy to understand language. If the information is provided in Norwegian, the contract shall be in Norwegian.

The trader shall give the consumer a copy of the signed contract or confirmation of the contract on paper or, if the consumer consents, in some other durable medium. If the consumer has agreed to download digital content and acknowledged that the right to cancel thus lapses, cf. section 22 letter n, this shall also be stated in the contract or confirmation.

Section 12. Requirement that deliveries are to start before the expiry of the cancellation period

Should the consumer want the delivery of services to start before the expiry of the cancellation period, cf. section 21, the trader shall require the consumer to request this expressly on a durable medium.

Section 13. Service contracts that do not exceed NOK 1,500

If the consumer expressly asks for repairs or maintenance work to be carried out, the parties immediately fulfil their obligations pursuant to the contract and the contract sum does not exceed NOK 1,500, it is sufficient if the trader gives the consumer the information stated in section 8 subsection 1 letter d, cf. section 11 subsection 2, as well as information on the price or how the price is to be calculated and an estimate of the total price. The information referred to in section 8 subsection 1 letters a, h and k may be given verbally provided the consumer expressly consents to this.

The confirmation of the contract, cf. section 11 subsection 2, shall contain the information stipulated in section 8 subsection 1.

Chapter 5. Requirements as to distance contracts that are not for financial services

Section 14. The distance contract

Distance contracts shall contain the information stated in section 8 subsection 1 or this information is to be made available to the consumer in simple, easy to understand language in a way that is adapted to the means of distance communication. The information is to be counted as part of the contract and may not be changed unless the parties expressly agree otherwise. If the information is provided on a durable medium, it shall be easy to read.

Section 15. Restrictions on information

Should a contract be concluded using a means of distance communication that has restricted space or time to show information, the trader shall provide the information stated in section 8 subsection 1 letters a, d, e, h and n before the contract is concluded.

The other information stated in section 8 subsection 1 is to be provided in a way that is adapted to the means of distance communication, cf. section 14.

Section 16. Use of electronic communication

If a contract that is to be concluded electronically commits the consumer to pay, the trader shall clearly and in an accentuated form make the consumer aware of the information stated in section 8 subsection 1 letters a, e and n immediately before the consumer places the order.

The trader shall ensure that the consumer expressly acknowledges that the order entails an obligation to pay. If the order is placed by activating a button or other function, the button or function shall be marked in an easily readable manner with the words “order with an obligation to pay” or corresponding text.

Should the trader fail to comply with the provision stated in subsection 2, the consumer will not be bound by the contract or order.

Section 17. Delivery restrictions and means of payment

Electronic trading websites shall state any delivery restrictions clearly and plainly, and at the latest when the order process starts. The means of payment that are accepted shall also be stated.

Section 18. Confirmation that a contract has been concluded

The trader shall give the consumer written confirmation of the contract that has been concluded on a durable medium within a reasonable period after the contract has been concluded and at the latest on the date when the goods are delivered or before the service starts to be provided,.

This confirmation shall contain the information stated in section 8 subsection 1 if this information has not previously been given to the consumer on a durable medium and state that the consumer has given the consent mentioned in section 22 letter n.

Section 19. Delivery start before the expiry of the cancellation period

Should the consumer want the delivery of services to start before the expiry of the cancellation period, cf. section 21, the trader shall require the consumer to expressly request this.

Chapter 6. Right to cancel contracts that are not for financial services

Section 20. Right to withdraw from the contract (right to cancel)

The consumer is entitled to withdraw from the contract (a right to cancel) by giving notice to the trader before the expiry of the cancellation period, cf. section 21. The cancellation period is to be regarded as having been complied with if notice is sent before the expiry of the period.

The notice may be given by filling in a cancellation form or submitting another clear declaration.

Should the trader allow the consumer to give notice pursuant to subsection 2 electronically, the trader shall immediately confirm, on a durable medium, that the notice has been received.

The burden of proving that notice has been given rests with the consumer.

Section 21. The cancellation period

The cancellation period expires 14 days after the date when the service contract was concluded or the date when the consumer takes physical possession of the good. This is:

a) for goods that are ordered together and delivered in several shipments, the date when the consumer takes physical possession of the last good,

b) for goods that consist of several consignments or parts, the date when the consumer takes physical possession of the last consignment or part,

c) for contracts regarding regular deliveries of goods, the date when the consumer takes physical possession of the first of the goods.

A third party, other than the carrier, that the consumer has appointed to take the consumer’s place is counted as being the same as the consumer.

Should the trader fail to give the consumer information on the right to cancel in accordance with section 8 subsection 1 letter h, the cancellation period expires 12 months after the expiry of the original cancellation period, cf. subsection 1.

Should the trader give the consumer information on the right to cancel pursuant to section 8 subsection 1 letter h within 12 months of the date stated in subsection one, the cancellation period expires 14 days after the date when the consumer received this information.

Section 22. Exceptions to the right to cancel

The right to cancel does not apply to contracts for:

a) the delivery of goods which, due to their nature, are mixed with other goods after delivery in such a way that they cannot be separated from each other,

b) the delivery of goods that deteriorate or quickly reach their expiry date,

c) a service, after the service has been provided, if delivery has started with the consumer’s express advance consent and the consumer has acknowledged that the right to cancel will be lost when the trader has fulfilled its obligations pursuant to the contract,

d) the delivery of goods or services whose price depends on fluctuations in the financial market that may take place by the expiry of the cancellation period and cannot be controlled by the trader,

e) the delivery of goods that are manufactured to the consumer’s specifications or have been clearly personalised,

f) the delivery of pharmaceuticals, cf. section 2 of the Norwegian Medicines Act, and medical equipment, cf. section 3 of the Norwegian Medical Equipment Act,

g) the delivery of sealed goods which, for health-protection or hygienic reasons, are not suitable for return and where the seal has been broken after delivery,

h) the delivery of alcoholic drinks at a price which was agreed on the date of the contract if delivery cannot take place until after 30 days and the actual value depends on fluctuations in the market that cannot be controlled by the trader,

i)   urgent repairs or services when the consumer expressly asks the trader to visit the consumer. Additional services or additional goods that are provided at the same time and are not covered by the first sentence are not covered by the exception to the right to cancel,

j)   the delivery of sealed sound or picture recordings or sealed software that the consumer has broken the seal of,

k) the delivery of a newspaper, periodical or magazine, with the exception of subscription contracts for the delivery of such publications,

l)   goods or services that have been concluded at a public auction,

m) the provision of accommodation services for purposes other than housing, goods-transport services, car-rental services, catering services and services relating to leisure activities when the contract stipulates a specific date or specific period when such services are to be provided,

n) the delivery of digital content that is not delivered on a physical medium if the delivery has started with the consumer’s express consent and the consumer acknowledges that the right to cancel is thus lost.

Section 23. The effects of exercising the right to cancel

The parties’ obligations to fulfil the contract lapse if the right to cancel is exercised. In cases where the consumer has made an offer, the offer lapses.

Section 24. The trader’s obligations when the right to cancel is exercised

The trader shall return any payments received from the consumer. If the consumer has expressly chosen a type of delivery other than the standard delivery offered by the trader, the trader shall nonetheless not pay the additional costs that this entailed.

Repayment shall take place without unnecessary delay and at the latest 14 days from the date when the trader received notice of the consumer’s decision to exercise the right to cancel pursuant to section 20. Unless otherwise expressly agreed on with the consumer, repayment is to take place using the same means of payment as that used by the consumer. The consumer shall not pay any kind of charge as a result of the repayment.

The trader may withhold repayment until the goods have been received or until the consumer has documented that the goods have been sent back. This does not apply if the trader has offered to collect the goods.

In the case of off-premises contracts and where the goods have been delivered to the consumer’s home on the date stated in the contract, the trader shall collect the goods at its own expense if the nature of the goods means that they cannot normally be returned using the normal postal service.

If it has been agreed that the goods are to be collected from the consumer and this does not take place within three months of the date when the trader received notice pursuant to section 20, the goods become the property of the consumer free of charge.

Section 25. The consumer’s obligations when the right to cancel is exercised in relation to a contract to deliver goods

The consumer shall, without undue delay and at the latest 14 days after notice pursuant to section 20 was given, send the goods back or hand them over to the trader if the trader has not offered to collect the goods.

The consumer shall only pay the direct costs of returning the goods. The trader shall nonetheless pay these costs if the trader has undertaken to pay them or has not informed the consumer that the consumer is to pay the costs of returning the goods.

The trader may demand that the consumer is to pay for any reduction in value following from the consumer’s handling of the goods that has not been necessary to determine the nature, properties and function of the goods. This only applies if the consumer has received information on the right to cancel, cf. section 8 subsection 1 letter h.

Section 26. The consumer’s obligations when the right to cancel is exercised in relation to a contract to provide services

Should the right to cancel be exercised in relation to services that the consumer has expressly asked the trader to start providing, the consumer shall pay an amount that is in proportion to the services provided up to the date when the consumer gives notice that he/she is exercising the right to cancel. If the total price is unreasonably high, the proportionate amount is to be calculated on the basis of the market value of the services provided.

The consumer’s duty to pay lapses if:

a)      the trader has not provided information in accordance with section 8 subsection 1 letters h and j,

b)      the consumer has not expressly asked for delivery to start before the expiry of the cancellation period in accordance with sections 12 or 19, or

c)      the delivery of digital content that cannot be delivered on a physical medium has started without the consumer’s express advance consent and acknowledgement that the right to cancel is thus lost, or without the trader providing confirmation in accordance with section 11 subsection 2 and section 18 subsection 2.

Section 27. The effects on ancillary contracts if the right to cancel is exercised

Should the consumer exercise his/her right to cancel, all ancillary contracts are revoked at no cost to the consumer. Sections 24 to 26 apply correspondingly.

After receiving the consumer’s notice that he/she will exercise the right to cancel, the trader shall immediately notify third parties that have concluded an ancillary contract with the consumer.

Chapter 7. Rules concerning the duty of disclosure regarding and confirmation of distance contracts and off-premises contracts for financial services

Section 28. Duty of disclosure before a distance contract for financial services is concluded

In reasonable time before a distance contract for financial services is concluded, the trader is to give the consumer information on:

a) the trader’s name, organisation number and main business activity and the trader’s geographical address. If a foreign trader has a representative in Norway or is otherwise represented by another trader in relation to the consumer, the consumer is to be given corresponding information on the representative,

b) any approval schemes to which the trader is subject and information on the relevant supervisory authority,

c) the financial service’s most important properties,

d) any special risks linked to the financial instrument or to activities that are to be carried out. If the price of the service depends on fluctuations in the financial markets, this shall be stated as well as the fact that historical increases in value and returns cannot be used as indicators of future developments and returns,

e) the total price that the consumer is to pay, including commissions, charges and all taxes and duties that are to be paid through the trader and a specification of all the individual price elements. If no exact price can be stated, the basis for the calculations shall be stated,

f) the fact that there may be other taxes and/or costs that are not paid or imposed through the trader,

g) any limits for how long the information is valid,

h) schemes for paying and performing the contract,

i)   any special additional costs debited to the consumer for using the distance communication method,

j)   whether or not the consumer has a right to cancel, the deadline for exercising any right to cancel and the conditions for exercising the right to cancel, including the amount that the consumer may be charged if he/she exercises the right to cancel,

k) how the right to cancel can be exercised, including the address to which notice of the exercise of the right to cancel can be sent, and the consequences of not exercising the right to cancel,

l)   the shortest duration of contracts for regular or recurring financial services,

m) any rights that the contract gives the parties to terminate the contractual relationship early or unilaterally, including any payment imposed by the contract in such case,

n) the name of the member state or member states on the basis of whose laws the trader has contacted the consumer before the contract is concluded,

o) any choice of law or legal venue provisions in the contract,

p) the language or languages in which the contractual conditions and advance information mentioned in this provision are stated, and the language or languages that the trader, with the consent of the consumer, undertakes to communicate in for as long as the contract is valid,

q) the opportunities to resolve any disputes with the trader outside the courts and how consumers may use any such schemes,

r) guarantee funds or compensation schemes that are not covered by Directive 94/19/EC concerning deposit-guarantee schemes or Directive 97/9/EC concerning investor-compensation schemes.

If the distance contract applies to payment services as defined in section 11 of the Norwegian Financial Contracts Act, the trader shall, instead of the information stated in subsection 1 letters a, b, c, e, l, m, o, p and q, provide the information stated in section 15 subsection 2 of the Financial Contracts Act or the information stated in section 23 subsection 1 of the Financial Contracts Act if the payment transaction is an individual one that is not covered by a framework agreement.

The information is to be provided in a clear, understandable manner and in a form adapted to the distance communication method used. Special attention shall be paid to the need to protect persons without any legal capacity to act, such as minors. If the marketing is directed at Norwegian consumers, the information must be in Norwegian. If the trader does not provide all the information in the marketing, it shall be stated where the consumer may obtain this information.

Provided the consumer has expressly given his/her consent to this, the trader may in telephone calls simply provide the information stated in subsection 1 letters a, c, d, e, f and j. The trader shall in such case inform the consumer that more information is available upon request and of the nature of this information. The trader shall in any case provide complete information pursuant to subsection 1 in writing on a durable medium on the date that follows from the rules stated in section 30 subsection 1.

Should several separate transactions of the same type be carried out between the same parties without there being any introductory contract regarding the service, the provisions stated here only apply to the first transaction. Should more than one year elapse between the transactions, the information shall nevertheless be provided once more.

In the case of an unsolicited offer made in a telephone call, the consumer is not bound until he or she has accepted the offer in writing. The trader shall give the consumer written information on this before the consumer is bound by a distance contract. This does not apply to a distance contract for payment services as defined in section 11 of the Financial Contracts Act.

Section 29. Regulations

The Ministry may issue regulations stipulating that the trader has a duty to provide additional information to that stated in section 28.

The Ministry may issue regulations stipulating more detailed provisions on how the duty of disclosure pursuant to section 28 is to be fulfilled.

Section 30. Information and contractual conditions on a durable medium in the case of distance contracts for financial services

In reasonable time before a contract is concluded, the trader shall give the consumer all the contractual conditions and all the information pursuant to section 28 subsection 1 in writing on a durable medium that the consumer has control over. If the contract is concluded at the request of the consumer and a distance communication method is used which does not allow contractual conditions and information to be provided on a durable medium before the contract is concluded, the trader shall fulfil its obligations as soon as the contract has been concluded.

Section 28 subsection 4 applies correspondingly.

Section 31. The consumer’s right to be given a printed copy of the contractual conditions and to change the distance communication method in connection with distance contracts for financial services

The consumer may at any time during the contractual relationship ask to be given a printed copy of the contractual conditions.

The consumer is entitled to change to a different distance communication method unless this contravenes the contract or the type of financial service that is provided.

Section 32. Information on a durable medium relating to an off-premises contract for financial services

In connection with the entry into of an off-premises contract for financial services, the trader shall give the consumer the information stated in section 28 subsection 1 letters j and k in writing on a durable medium that the consumer has control over.

Section 33. Regulations

The Ministry may issue regulations stipulating more detailed requirements as to the fulfilment of the duty of disclosure pursuant to sections 30 and 32, including that information on the right to cancel shall be provided through the use of a cancellation form determined by the Ministry.

Chapter 8. The right to cancel a distance contract or off-premises contract for financial services

Section 34. The right to cancel a distance contract

The consumer is entitled to withdraw from the contract (right to cancel) by giving notice to the trader before the expiry of the cancellation period, cf. subsection 2. For life insurance and individual pension contracts, the cancellation period is 30 days. For other contracts, the cancellation period is 14 days.

The cancellation period starts on the date when the contract is concluded or, in the case of life insurance contracts, the date when the consumer is notified that the contract has been concluded, provided the contractual conditions and information stipulated in section 30 subsection 1 have been received in the prescribed manner. If the duty of disclosure is not fulfilled until after the conclusion of the contract or notification that a life insurance contract has been concluded, the cancellation period starts on the date when the duty of disclosure is fulfilled.

Section 35. Exceptions to the right to cancel a distance contract

The right to cancel does not apply to:

a) services whose price depends on fluctuations in the financial market over which the trader has no influence and which may occur during the cancellation period,

b) travel and baggage insurance contracts or other insurance contracts with a duration of less than one month,

c) contracts which, at the consumer’s express request, have been fulfilled by both parties before the consumer exercises his/her right to cancel,

d) credit that is secured by a charge on real property or rights linked to real property.

Section 36. Exercising the right to cancel a distance contract

Should the right to cancel be exercised, the parties’ duty to fulfil the contract lapses. If any of the parties have fulfilled parts of the contract, restitution must take place.

If the right to cancel is exercised, the consumer may only be ordered to pay for the service that has actually been provided. The amount that the consumer is to pay shall be in reasonable proportion to the extent of the service that has already been delivered compared to the full performance of the contract.

The right to payment requires the performance of the contract to have been started at the consumer’s request and the consumer to have been told the amount that is to be paid in accordance with the rules stated in section 28 letter j, cf. section 30 subsection 1.

The trader shall, as quickly as possible and at the latest within 30 days, repay any amount received from the consumer in connection with the contract, with the exception of any amounts pursuant to subsection 2. The period allowed starts on the date when the trader receives notice that the right to cancel will be exercised.

The consumer shall, as quickly as possible and at the latest within 30 days, return any amount or other assets that he or she has received. The period allowed starts on the date when the consumer sends notice that he/she will exercise the right to cancel.

Section 37. Termination of certain ancillary contracts in the case of a distance contract

If another distance contract regarding services to be delivered by the trader is linked to a financial service, the other contract is to be terminated without any right to payment for this termination if the consumer exercises the right to cancel pursuant to section 34.

Subsection 1 applies correspondingly when the ancillary service is provided by a party other than the party providing the financial service on the basis of a contract between them. The party providing the financial service shall in such case notify the other trader as soon as notice that the right to cancel is being exercised is received from the consumer.

Section 38. The right to cancel an off-premises contract

The consumer is entitled to cancel the contract by giving notice to the trader within 14 days of the information required pursuant to section 32 being received in the prescribed manner. The provisions in section 20 subsections 1 and 3 and section 6 apply correspondingly.

The Ministry may issue regulations stipulating special rules regarding the right to cancel, including stating exceptions to the right to cancel for specific types of services.

Section 39. Exercising the right to cancel an off-premises contract

Should the right to cancel be exercised, the parties’ duty to fulfil the contract lapses. If any of the parties have fulfilled all or parts of the contract, restitution shall take place.

The trader undertakes to repay the amount that the consumer has paid, as well as any amount to cover the costs of returning the goods, at the latest 14 days after the date when notice that the right to cancel will be exercised was received.

If the consumer has received goods in connection with the service contract, the following apply:

a) the costs of returning the goods are to be borne by the trader,

b) the consumer may withhold the goods until he or she has received repayment and, if relevant, an amount equivalent to the costs of returning the goods from the trader,

c) when the consumer has received the amount that the trader is to pay, the consumer shall send or deliver the goods to the trader within a reasonable period,

d) if the goods have been sent in the post or using another independent carrier, they shall be returned in the same way. If the trader has not arranged for suitable return packaging, the provisions in letter e apply,

e) if the goods have been delivered in some other way, they shall be made available to the trader for collection at the site where the goods were received. If the goods have in such cases been delivered to a location other than the consumer’s home, it may be agreed that the goods are to be sent or delivered in another way that does not entail unreasonable inconvenience to the consumer,

f) the consumer is not obliged to receive or redeem goods before they are returned to the trader, but may instead ask the party delivering the goods to return them to the trader, and

g) if the consumer has notified the trader that the goods may be collected in accordance with letter e and this does not take place within three months after this notification has been received, the goods become the property of the consumer free of charge.

The provisions in section 27 subsection 1 sentence 1 and subsection 2 apply correspondingly.

Section 40. Right to cancel a credit contract

Section 51b of the Financial Contracts Act applies to the right to cancel a credit contract.

Chapter 9. Enforcement and sanctions

Section 41. Supervision and enforcement

The Consumer Authority and the Market Council shall supervise that the provisions stipulated in or pursuant to this Act are complied with. The supervision will be conducted in accordance with the rules in sections 32 to 42 of the Marketing Control Act.

Section 42. Infringement penalty

In the event of wilful or negligent infringement of section 8 subsections 1 and 3, section 10 subsection 1, section 11, section 14, section 15, section 16 subsections 1 and 2, section 17, section 18, section 24 subsection 1, section 28, section 30, section 32, section 36 subsection 4, section 39 subsection 2, or of regulations pursuant to section 8 or section 29, which is considered significant or which has taken place repeatedly, an infringement penalty may be stipulated and is to be paid by the party to whom the decision is directed. If an infringement penalty is imposed, section 43 subsections 2 and 3 of the Market Control Act apply correspondingly.

The Ministry may through regulation provide further rules on imposition of enforcement penalty or determining the size of an infringement penalty.

 

Chapter 10. Concluding provisions

Section 43. Entry into force and transitional provisions

The Act applies from the date determined by the King.[1]

The Act only applies to marketing measures and payments made after the Act enters into force and contracts concluded after the Act enters into force.

The Act of 21 December 2000 no. 105 relating to a duty of disclosure and right of cancellation, etc, in respect of distance selling and sales other than at permanent sales outlets (the Cancellation Act) and regulations issued pursuant to it apply to contracts concluded before this Act was repealed.

Section 44. Amendments to other Acts

As from the date when the Act enters into force, the following amendments are made to other Acts:

1. The Act of 21 December 2000 no. 105 relating to a duty of disclosure and right of cancellation, etc, in respect of distance selling and sales other than at permanent sales outlets (the Cancellation Act) is repealed.

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