On 25 September 2024, the Norwegian Consumer Protection Authority, Forbrukertilsynet, decided on an infringement fee of NOK 450,000 for the fast fashion company, Lager 157's, failure to respond to an information request. This is the first case in which the Norwegian Consumer Protection Authority has imposed an infringement fee for a breach of the Transparency Act. Is it a sign that the Norwegian Consumer Protection Authority is taking a stricter line compared to the past?
The Norwegian Consumer Protection Authority has now made the first decision on infringement fees for breaches of the rules of the Transparency Act. The specific case concerns the company’s insufficient processing of information requirements. According to the Transparency Act, anyone with a written request has the right to information from a business about how the business handles actual and potential negative consequences. Such information requirements must be responded to by the business initially within three weeks.
The company was imposed an infringement fee of NOK 450,000 for, in two cases, not having given a written response to information requests within the deadlines set in the Transparency Act.
It follows from regulations on the assessment of infringement fees etc. here that businesses in the event of significant or multiple breaches of the Transparency Act can issue an infringement fee of up to four per cent of the trader's annual turnover or up to NOK 25 million. In the decision, the imposed infringement fee of NOK 450,000 corresponds to around 0.2% of the company’s turnover for 2023 - but also around 5% of their positive operating result.
According to the Norwegian Consumer Protection Authority the company in question has complained about the decision to the Norwegian Consumer Protection Authority. The last word is therefore not necessarily said and written in the matter.
All businesses under the Transparency Act must adhere to due diligence, reporting, and information requirements. Until now, the Norwegian Consumer Protection Authority (NCPA) has mainly provided guidance, even for non-compliance cases, which may have led some businesses to take the rules lightly.
With the Act now in effect for over two years, stricter inspections by the Forbrukertilsynet seem likely. However, the recent NOK 450,000 fine against Lager 157 is not necessarily a sign of a new enforcement approach but rather a response to multiple breaches, including a second violation after prior guidance.
First-time cases may still be handled through dialogue, depending on the severity of the infraction. We are closely monitoring this case and awaiting the outcome of the company’s complaint.
The decision details can be found here.
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