E-commerce (Electronic Commerce), also known as eCommerce or e-business, is the exchange of products and services over electronic mediums. Denmark is a world-wide leader in e-commerce, consistently ranking at or near the top of the best countries to conduct e-commerce.

Denmark’s elite e-commerce status is due in large part to its Danish population’s e-readiness (the ability to use Information and Communication Technologies – ICT). Every year the Economic Intelligence Units ranks over 65 countries based on their e-readiness. In the last 5 years Denmark has ranked 1st globally 3 times (2005-2007), 2nd (2004), and most recently tied for 4th (2008).

To be successful in this technologically rich nation it’s important to be acquainted with laws regulating e-commerce in Denmark.

The E-Commerce Act

Denmark’s ECA was enacted in 2002 and is the primary legal scripture for governing e-commerce in the country.

Some important notes of the act include:

• Domestic Control and Mutual Recognition – Any online commercial service supplied by a service provider in Denmark is subject to Danish Law regardless of it’s directive. However, if the service provider is established in another European Union country than it is exempt – even if the commercial service is directed towards Denmark.

• Intervention – Danish authorities can restrict any electronic information if it’s for the detection and prosecution of criminals or the protection of the public health, public security, or consumers.

• Information to be Provided – Service providers in Denmark must provide their name, geographic address, e-mail address, and the Central Business Registrar number (if applicable). Before an online order is processed the service provider should clearly state the steps to complete the contract, whom will fill the contract, the accessibility of the contract, the means to correct errors, the language of the contract, and any code of conduct to which the service provider abides.

• Price Information – Commercial online services must clearly identify any applicable prices, taxes, and delivery costs.

• Identification – All commercial communication in Denmark must clearly identify itself as commercial communication and any promotional offers must be clearly labeled.

• Order Confirmation – The service provider needs to acknowledge the receipt of an order as soon as possible.

The Marketing Practices Act

The other authority in e-commerce law is the Danish MPA of 2000 (amended in 2002) which covers the important topic of spam.

• Unsolicited Communication – The MPA states that a trader is not allowed to sell products, property, labor or services through electronic means to anyone unless they’ve requested it. However, if the trader has received the customers email or other electronic contact from another sale than he can market his product or service as long as it’s similar. This exception is provided as long as the customer can opt out free of charge anytime (before giving their electronic contact details or after subsequent solicitations).

References

http://www.forbrug.dk/english/laws/4/http://www.forbrug.dk/english/laws/the-marketing-practices-act/http://www.lett.dk/doing_business_in_denmark/it_-_e-commerce.aspxhttp://a330.g.akamai.net/7/330/25828/20080331202303/graphics.eiu.com/upload/ibm_ereadiness_2008.pdfhttp://a330.g.akamai.net/7/330/2540/20060424215053/graphics.eiu.com/files/ad_pdfs/2006Ereadiness_Ranking_WP.pdfhttp://graphics.eiu.com/files/ad_pdfs/2005Ereadiness_Ranking_WP.pdf

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