Act on Consumer Purchase

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From 1st July 2002 a buyer’s rights and obligations are governed by a new Act on consumer purchases. The Act is applicable to all purchases you make of goods as a private person as from 1st July 2002, as long as the seller is a professional seller.

Publisert: 19.03.2003 14:09

The Act also applies to delivery of water and purchase of claims or rights.

The Act is also applicable when you buy something from a private individual who makes use of a professional intermediary, e.g. in connection with purchase of a second-hand car in a shop dealing with used cars. In such cases you can choose to advance your possible claim directly to the intermediary instead of the seller, if you were not clearly told that the firm in question was only an intermediary.

A fundamental principle of the Act on Consumer Purchase is that the seller is not permitted to give you inferior terms than provided by this act. If the seller has his own specific sales conditions, they are only valid if they make you better off than the conditions of the Act.

If the sales agreement is entered into prior to 1st July 2002, your rights and obligations are governed by the Act on the Sale of Goods of 13 May 1988. You will find a summary of this act on http://forbrukerportalen.no.

What can you demand from the commodity?

The Act on Consumer Purchase stipulates that the commodity shall be as you have agreed upon with the seller. If you have informed the seller that the commodity is intended for some special use, you may claim that the commodity is fit for the purpose. You are entitled to a commodity with the qualities and durability the seller has informed you of upon the purchase, through advertisements, on posters, packing etc.

If you have not agreed upon anything special, the Act on Consumer Purchase stipulates that you are entitled to a commodity which

• has the same properties and durability as goods of equivalent standard
• has the same properties as a sample or model you have looked at
• is of equivalent quality and standard as the seller has informed you of either directly or through marketing
• meets with public safety requirements
• is properly packed
• is free from charges
• has an operating manual in an understandable language.

If the commodity is not in accordance with what you have agreed upon, or what you may claim according to the law, the commodity is defective. This means that you may claim that the seller re-delivers, repairs, gives you a price reduction, cancels the purchase and/or gives you compensation. (Below you will find more details on what you may claim).

The act states that all defects that arise within the first six months shall be regarded as (factory)flaws, if not the seller establishes other proof . That is, the seller has the burden of proof that the defect is not caused by him. After the first six months as a main rule, you as buyer have the burden of proof. Be aware that it is enough also in such cases that you point out to the seller that the commodity is not in accordance with the agreement or the requirements of the law. The seller then has a duty to look into the matter, i.e. a duty to examine the cause of the defect. If the seller does not find the cause, or the cause is rooted in poor quality, it is a defect.

Not all defects of a commodity are defects according to the Act on Consumer Purchase. Defects having arisen because of wear and tear, or defects relating to unwarrantable or irregular usage cannot be reckoned as flaws. If the seller finds that this has caused the defect, you yourself have to pay for the repairs. NB! The seller may only charge you for the repairs or the examination if it is agreed upon beforehand and you have caused the defect yourself.

Please note that when you buy second-hand things, the seller often sells it “as is”, “as presented”, “as demonstrated” or with similar reservations. The intention is here to restrict your rights. Even if such a reservation has been made, it is a flaw if the commodity is in poorer condition than you could expect from what has been said, the price and age of the thing. It is also a flaw if the seller has kept back information of importance, or the commodity lacks the qualities the seller has promised.

What are you entitled to if the commodity suffers from a defect?

If the commodity suffers from a defect, you can claim that the seller gives you a new equivalent thing (re-delivery), or that the seller straightens/adjusts the defect. You have a right to choose between a new commodity or repair of the defective one. The seller can only claim to repair the commodity if it is impossible to procure a new one (e.g. that the commodity has gone out of production), or if it will entail unreasonable costs to procure a new one. This means that you cannot claim redelivery of commodities which are expensive and tend to fall much in value (e.g. cars and motor cycles), whereas it will be just a matter of routine to claim redelivery of mass-produced commodities which are at stock (such as mobile telephones, clothes etc.).

Either the seller procure a new commodity or mends the defect, you may claim that this is done without expenses for you, that is, you will get compensation for all expenses you have had in connection with having the defect mended.

If you choose that the seller shall repair, or the seller is entitled to repair, you can as a main rule claim a substitute commodity in the meantime if it takes more than one week to have the defect mended. Also note that according to the Act on Consumer Purchase the seller has only two chances to correct the same defect. If he fails to do so, you can claim a price reduction or cancellation of the purchase.

The reduction in price shall be equivalent to the object’s reduced value. If the commodity is only worth half as much with the defect, you can claim a 50 % price reduction. If the defect is not immaterial, you can instead of price reduction claim to have the purchase cancelled. In that case you must return the commodity to the seller, while the seller must refund you the purchase amount plus penalty interest from the time of complaint.

If you have suffered a financial loss, you can in addition in some cases claim compensation from the seller. Be aware that you have an obligation to reduce the loss, and that you cannot get compensation for losses in business.

When do you have to complain – periods for entering complaints

If you discover that there is something wrong with the commodity, you must notify the seller within reasonable time. It will always be sufficient enough to complain within two months after you discovered the defect, but in practice as quick a reaction as possible would serve both you and the seller best.

Besides having to complain within reasonable time, you must keep the deadlines. The main rule says that the complaint must be lodged within two years at the latest from the date you took over the commodity. The period allowed is, however, 5 years if the commodity is intended to last considerably more than two years. This is relevant for for instance capital goods like furniture, cars, radio/TV-sets and builders’ supplies. Be aware that the seller may have allowed you longer time-limits than the act stipulates. We recommend you to acquire written documentation as to when you complained and what was the problem, so that there will be no doubt that the complaint was made in time.

What rights do you have in case of delay?

There would be a delay if the seller does not deliver the commodity at the appointed time. In case of delay you may claim either that the seller deliver or you can hold back the payment until delivery.

If the delay is considerable, you may cancel the purchase, that is, you can withdraw from the agreement and claim to be refunded what you may have paid. You are also entitled to have an additional interest on overdue payment from the settlement date. When delay occurs, you may present a reasonable extra time-limit to the seller. If he does not deliver within this time-limit, you can cancel the purchase.

If you have suffered a financial loss, you can in some cases claim compensation from the seller. Be aware that you have an obligation to reduce the loss, and that you are not entitled to compensation for losses in trading activity.

Payment

The commodity should be paid for in cash if nothing else is agreed. You do not have to pay until you have received the commodity, provided it is not arranged for advance payment. Such an agreement ought to be avoided. If no price is agreed upon, you have to pay what was current price for this type of commodity at the time the contract was entered into. If you receive a bill from the seller, you must give notice within reasonable time if you are not willing to accept the stipulated purchase amount in the contract.

The seller cannot demand that you pay extra fees in addition to the purchase amount, for instance for issue and dispatch of the bill, unless this was clearly agreed upon at the time of purchase.

Cancellation and goods returned

The Act on Consumer Purchase allows you the right to cancel the order during the period before you receive the commodity. Cancellation implies that you are spared from paying the purchase amount, but you have as a main rule to cover a possible loss the seller might suffer because of the cancellation. The two of you can agree upon a standard cancellation fee, which must not go beyond the seller’s actual loss.

If you have already taken over the commodity, you are basically not allowed to cancel. This means that you must pay the purchase amount even if you do not want to keep the commodity.

Exceptions apply if:

• you are entitled to cancel the agreement
• the terms that give the right to repent after the Act on the right to repent a sale of goods are fulfilled (this is only relevant if the purchase has taken place out of shop or other permanent sales outlet)
• you have agreed upon a special return right with the seller (e.g. depositing, home approval, trial purchase)
• you have agreed with the seller that you can change in the commodity, or if such right follows from custom in this specific trade or for this type of commodity

The Consumer Council renders help in complaints cases

The Consumer Council handles complaints from you as a consumer. As a main rule, you must yourself take the matter up with the seller, but you can seek advice with the Consumer Council before doing so. If you fail to come to an agreement with the seller, the matter can be put before the Consumer Council. You do so by sending a letter about the problem to the county consumer council. They will help you prepare the complaint.

If the local consumer council decides to handle the case, we will try to reach an out-of-court settlement. The Consumer Council is, however, no court of justice and cannot force any of the parties to accept a suggestion for solution of a dispute. If the Consumer Council fails to reach at an amicable solution, both you and the seller can claim that the case is put before the Consumer Disputes Commission.

The Consumer Disputes Commission

The Consumer Disputes Commission’s decision has the same effect as an ordinary court ruling, and recovery of the claim can be made by help of the authorities. Not all kinds of cases can be handled by the Commission. Only disputes in connection with purchase of movables for personal use, disputes concerning craftsmen’s services and disputes after the Act on the right to repent a sale can be brought before the Commission. The handling of the case in the Commission is free.

The local consumer office will give you information on how to proceed in order to have a complaint case handled by the Consumer Disputes Commission. We also refer to the Consumer Council’s folder “Handling of complaint cases in the Consumer Council and the Consumer Disputes Commission”.

You will find the address and telephone number of the local consumer offices in the telephone book or on the Consumer Council’s web sites: http://forbrukerportalen.no.