The Market Court of Sweden: loan expenses cannot be a percentage of the loan
Swedish Consumer Ombudsman took a bank named Bank2 to the Market Court because of the unreasonable terms of contract. In its terms and conditions the bank used a definition which charged a customer a percentage of the loan, determined in advance, as loan expenses. The Consumer Ombudsman declared that loan management expenses can be collected from the loan in addition to the interest, but they must be based on the actual administrative expenses of the said loan, such as determining the total value of collateral or opening the loan account. The Market Court agreed with the Consumer Ombudsman and judged the company practise to be unreasonable. The company was ordered, under a threat of 750,000 kroner fine not to use the said terms and conditions.
Wrinkle cream marketing claims to court in Sweden
Sweden’s Consumer Ombudsman has taken the cosmetic company L’Oreal Sverige AB to court for using misleading marketing claims. Different product advertisements have, for example, claimed to decrease wrinkles between 43 and 70 percent, i.e.”wrinkles will almost disappear”. According to the Consumer Ombudsman the company has not been able to sufficiently prove the accuracy of the claims. The Consumer Ombudsman wants the Market Court to forbid this kind of advertising and to determine at the same time what kind of proof is needed to prove this type of claim.
Standardised information box for credit offers in Canada
The government of Canada has taken action in the financial crisis and suggested reforms to credit regulations to improve consumers’ position in the credit market. One suggested reform is a requirement for a standardised information box with all credit and credit card applications. When the necessary information about interests and expenses for example, has a standardised classification everywhere, a consumer would find it easier to compare different credits and credit cards.