Intellectual Property Law

Denmark: the World?s E-Commerce Hub and Its Legal Framework

By IBLS Editor

Denmark is one of the leading e-commerce users in the European Union (?EU?).  In 2004, it ranked first in e-commerce among the EU Member States.  An Economist Intelligence Unit report in 2006 considered Denmark the first best place in the world for e-commerce.   According to a research from the ?Center for Research on Information Technology and Organizations? (CRITO), Denmark?s e-commerce strategy is centered in the rapid adoption, implementation, and exploitation of e-commerce in all sectors of the economy.  B2B is the most successful e-commerce model developed in Denmark; contrary to B2C which has reported a slower progress, the CRITO report points.  The highly evolved information technology (?IT?) sector and its dissemination among Danish residents is another reason for the ranking of Denmark as top e-commerce hub.  Over 80% of Danish residents have Internet connections and cell phones.  Electronic banking is the most common form of banking in Denmark.  With this impressive place in the world?s e-commerce market, it is important to know Denmark?s E-commerce Legal framework.    

Denmark?s E-commerce Framework

Denmark?s E-commerce Act 227 (?ECA?) was enacted on April 2002 and it constitutes Denmark?s E-commerce Legal Framework.  ECA is applicable to all services in the information society and they are defined as ?any service that has a commercial purpose... and is delivered online at an individual?s request of a recipient of the service.?

Mutual Recognition of ISPs

 According to this Act, information society services provided by a service provider (?SP?) established in Denmark (it could be a natural or legal entity) must comply with the Danish law within the coordinated area (coordinated area is defined as the information society area and their applicable regulations, including EU Directives).  This rule applies even if the information society services are received by Danish residents or by residents of any other European Union Member State.  Yet, an exception applies if the SPs are established in other EU Member State; in this case, the SPs are not required to comply with the Danish regulations within the coordinated area. 

Despite this legal reciprocity for other EU SPs, the Danish government may restrict information society services rendered in Danish by SPs established in other Member States when it is necessary for public policy like prevention of criminal activity, including protection against minors; public security; and consumer protection.  

Requirements for ISP under Danish Law

According to ECA, ISPs in Denmark must provide the following information: (i) complete name of the service provider; (ii) the physical address where the SP is located; (iii) an e-mail address where the ISP can be contacted; (iv) the Central Business Register- CBR, if any; (v) affiliation to any supervisory authority if any; (vi) prices of the information society services, including information about taxes and delivery costs if applicable. 
For those SPs are providing professional services over the Internet, they must provide in addition to the above requirements: (i) the name of the professional association or similar institution to which the SP is registered; (ii) details on the professional title and the Member State where it was granted; (iii) reference to the professional rules applicable to the SP.

These are important requirements for those non-Danish professionals that are expanding their commercial/professional offerings in Denmark through the use of websites or any other online service. 

Marketing, Commercial Communications, & E-contracts

SP offering services in Denmark must label their commercial communication as such.  The sender of the commercial communication must be clearly identifiable; and the terms and conditions of any discount, gifts, or prizes must be clearly stated and accessible by the recipient of the commercial communication. 

E-commerce contracts celebrated by SPs must comply with certain requirements according to ECA.  First, they must follow each step prerequisite to conclude a contract under Danish law; second, the e-contract must include the means to identify and correct input errors; third, it should state whether the e-contract will be accessible; fourth, it must include the language of the conclusion of the contract.  SP are obliged to acknowledge receipt of e-orders without undue delay. 

Besides these contractual rules, the SP has to include the code of conduct to which it is subject and how those codes can be reviewed electronically. 

Full post as published by IBLS Internet Law Blog on March 16, 2008 (boomark / email).