ABBL
Association des Banques et Banquiers, Luxembourg
The Luxembourg Bankers' Association
Luxemburger Bankenvereinigung
In Luxembourg, the legal provisions relating to unfair commercial practices are set down in the consumer code. This code consolidates all Luxembourg legal and regulatory texts relative to consumption with a view to providing consumers with a more coherent and concise presentation of consumer protection provisions.
What is considered as an unfair commercial practice?
A commercial practice is unfair if it meets the following criteria:
- it is contrary to the requirement of professional diligence, and
- it materially distorts or is likely to materially distort the average consumer’s economic behaviour.
Moreover, there are measures foreseen to prevent the exploitation of particularly vulnerable consumers.
Types of unfair commercial practices
1. Misleading actions
2. Misleading omissions
3. Commercial practices considered unfair under all circumstances
4. Aggressive commercial practices
1. Misleading actions
A commercial practice is deemed misleading
- if it contains false information and is therefore untruthful, or
- if in any way, including overall presentation, deceives or is likely to deceive the average consumer, even if the information is correct, and
- if it causes or is likely to cause the average consumer to take a transactional decision that he would not have taken otherwise.
2. Misleading omissions
A commercial practice is considered to be a misleading omission
- if it omits material information that the average consumer needs to take an informed transactional decision;
- if it hides or provides material information in an unclear, unintelligible, ambiguous or untimely manner;
- if it fails to identify its commercial intent if not already apparent from the context.
3. Commercial practices considered unfair under all circumstances
The misleading commercial practices below are considered unfair under all circumstances (non-exhaustive list – for the complete list, please consult the law on unfair commercial practices).
- Display a certificate, a label of quality, or similar trust marks without having received such an endorsement.
- Falsely stating that a product will only be available for very limited time, or that it will only be available on particular terms for a very limited time.
- Stating or otherwise creating the impression that a product can legally be sold when it cannot.
- Using editorial content in the media to promote a product where a trader has paid for the promotion without making that clear in the content or by images or sounds clearly identifiable by the consumer (advertorial).
- Making a materially inaccurate claim concerning the nature and extent of the risk to the personal security of the consumer or his family if the consumer does not purchase the product.
- Passing on materially inaccurate information on market conditions or on the possibility of finding the product with the intention of inducing the consumer to acquire the product at conditions less favourable than normal market conditions.
- Describing a product as "gratis", "free", "without charge" or similar if the consumer has to pay anything other than the unavoidable cost of responding to the commercial practice and collecting or paying for delivery of the item.
4. Aggressive commercial practices
A commercial practice is considered aggressive if the average consumer’s freedom of choice or conduct is significantly impaired, via harassment, coercion or undue influence.
In order to determine whether a commercial practice uses harassment, coercion or undue influence the following elements are taken in consideration:
the timing and location of the practice, as well as its nature and its persistence;
the use of physical and verbal threats;
the knowing exploitation by the professional of any misfortune of circumstance of such gravity as to impair the consumer’s judgement;
any onerous or disproportionate non-contractual barriers imposed by the professional when the consumer wishes to exercise his contractual rights;
any threat to take an action that cannot legally be taken.
(non-exhaustive list – for the complete list, please consult the law on unfair commercial practices)
What to do if you’ve become a victim of an unfair commercial practice?
Any person can submit a request to the President of the District Court, who can order the suspension of unfair commercial practices.
More On
Isitfair - Campagne de l'UE pour la protection des consommateurs
Want to know the next steps?
Last udpate January 2012
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