Denmark - Trade Promotion and Advertising Denmark - Trade Promotion
- Introducing a new product or company into the Danish market is often a costly affair. U.S. and foreign parent companies are expected by their Danish agents to cover, in full or in part, advertising and promotion expenses. Several large American and international advertising agencies maintain offices in Denmark. Companies in Denmark spend nearly USD2 billion annually on advertising. Internet display and paid searches are the largest mediums, followed by television. The code of conduct for advertising in Denmark is, in some areas, more conservative and consumer protection-oriented than that of the United States. In other areas it is more liberal. For example, nudity per se is not considered obscene, and it is seen in some Danish advertising. On the other hand, TV commercials for tobacco and medicine are not allowed. Commercials appealing directly to children are subject to legislative restrictions. The rules and regulations for advertising and marketing are determined in the "Markedsforingsloven" (the Marketing Practices Act). In July 2000, Denmark introduced ‘opt-in’ requirements for unsolicited commercial electronic mailings. The Consumer Ombudsman oversees compliance with the Marketing Practices Act. He may take action on his own initiative or based on complaints by third parties. However, he will not be consulted for prior approval or rulings on planned campaigns. Examples of typical cases for Consumer Ombudsman action are those involving misleading statements and unfounded claims of a product's qualities.
- The Danish market is the only one in Europe in which public channels, operated by the two public broadcasters, DR (Danmarks Radio) and TV2, still attract more than half of average daily audiences. Since January 2012, TV2 has been a subscription only channel, while DR1 still functions as free of charge.
- Generally, the types of advertising media that exist in the United States also exist in Denmark. Television commercials, however, are more restricted. Under Danish rules, they cannot interrupt a program and may be shown only in assigned blocks between programs. Only one of the two national stations, TV2, carries commercials. The other, DR, is a public service station and does not carry commercials although it does allow certain restricted types of program sponsorship. The main foreign players in Denmark are Modern Times Group and SBS. These stations are broadcast via satellite from the United Kingdom, and are not subject to Danish advertising law.
- Besides these two companies, other larger media companies like Discovery Communications, Disney, MTV Networks as well as a few others also have a presence in Denmark.
- There are a range of foreign TV channels available in Denmark. These channels are not under the jurisdiction of the Danish authorities and none of these have any public service-obligations whatsoever. Only the TV channels originating from Denmark are under Danish jurisdiction and some of these do have public service-obligations.
- TV can either be transmitted by cable or satellite or broadcast as digital terrestrial TV. Stations that only transmit on cable or satellite, are not required to have a license, but must register with the Radio and Television Board if they want to transmit in Denmark. To broadcast digital terrestrial TV in Denmark a company is required to have a license from the Radio and Television Board, as there is a limited amount of available space for broadcasting DTT. The requirement applies to both nationwide and local stations.
- The two most important terrestrial multiplexes are controlled by Digi-TV (a company jointly owned by DR and TV2). They transmit, free of charge, seven national public channels and around 180 local community and/or non-commercial channels, some of which were launched in January 2012. The other three multiplexes are operated by Boxer TV (subsidiary of the Swedish Boxer group) and form the DTT pay-TV platform that complements the free service.
- The multi-channel pay-TV market is still dominated by cable operators, of which there are still a large number in Denmark, although You-See A/S (TDC group) virtually controls the market with around 1.40 million subscribers. After YouSee are Stofa (Sweden’s TeliaSonera group), which has about 400,000 subscribers, and Canal Digital (Norway’s Telenor group), which has around 60,000 subscribers. Canal Digital also distributes a satellite package, which competes with Viasat (the MTG group). The two packages are in direct competition in Denmark as they are in the three other Nordic markets.
- Key links and more details: http://mavise.obs.coe.int/country?id=10
- Laws against misleading advertisements differ widely from member state to member state within the EU. To respond to this issue in the internal market, the Commission adopted a directive, in force since October 1986, to establish minimum and objective criteria regarding truth in advertising. The Directive was amended in October 1997 to include comparative advertising. Under the Directive, misleading advertising is defined as any "advertising which in any way, including its presentation, deceives or is likely to deceive the persons to whom it is addressed or whom it reaches and which, by reason of its deceptive nature, is likely to affect their economic behavior or which for those reasons, injures or is likely to injure a competitor." Member States can authorize even more extensive protection under their national laws.
- The EU’s Audiovisual Media Services Directive (AMSD) lays down legislation on broadcasting activities allowed within the EU. Since 2009, the rules allowing for U.S.-style product placement on television and the three-hour/day maximum of advertising has been lifted. However, a 12-minute/hour maximum remains. The AMSD is currently under revision. The European Commission is aiming to extend the scope of the Directive to video-sharing platforms which tag and organize the content. The Commission is also aiming to provide more flexibility about the 12-minute/hour maximum restriction. Children’s programming is subject to a code of conduct that includes a limit on junk food advertising to children. Following the adoption of the 1999 Council Directive on the Sale of Consumer Goods and Associated Guarantees, product specifications, as laid down in advertising, are considered as legally binding on the seller.
- The EU adopted Directive 2005/29/EC concerning fair business practices in a further attempt to tighten consumer protection rules. These rules outlaw several aggressive or deceptive marketing practices such as pyramid schemes, "liquidation sales" when a shop is not closing down, and artificially high prices as the basis for discounts in addition to other potentially misleading advertising practices. Certain rules on advertising to children are also set out.
Key Links:
Medicines
- The advertising of medicinal products for human use is regulated by Council Directive 2001/83/EC, as amended by Directive 2004/27/EC. Generally speaking, the advertising of medicinal products is forbidden if market authorization has not yet been granted or if the product in question is a prescription drug. Mentioning therapeutic indications where self-medication is not suitable is not permitted, nor is the distribution of free samples to the general public. The text of the advertisement should be compatible with the characteristics listed on the product label, and should encourage rational use of the product. The advertising of medicinal products destined for professionals should contain essential characteristics of the product as well as its classification. Inducements to prescribe or supply a particular medicinal product are prohibited and the supply of free samples is restricted.
- Key Link: Health and Medicine
Nutrition & Health Claims
- On July 1, 2007, a regulation on nutrition and health claims entered into force. Regulation 1924/2006 sets EU-wide conditions for the use of nutrition claims such as “low fat” or “high in vitamin C” and health claims such as “helps lower cholesterol.” The regulation applies to any food or drink product produced for human consumption that is marketed in the EU. Only foods that fit a certain nutrient profile (below certain salt, sugar and/or fat levels) are allowed to carry claims. Nutrition and health claims are only allowed on food labels if they are included in one of the EU’s positive lists. Food products carrying claims must comply with the provisions of nutritional labeling Directive 90/496/EC and its amended version Directive 1169/2011.
- In December 2012 a list of approved functional health claims went into effect. The list includes generic claims for substances other than botanicals which will be evaluated at a later date. Disease risk reduction claims and claims referring to the health and development of children require an authorization on a case-by-case basis, following the submission of a scientific dossier to the European Food Safety Authority (EFSA). Health claims based on new scientific data will have to be submitted to EFSA for evaluation but a more simplified authorization procedure has been established.
- The development of nutrient profiles, originally scheduled for January 2009, has been delayed. The original proposal has been withdrawn. In October 2015 the European Commission released a new roadmap on the potential development of nutrient profiles and botanicals. To obtain stakeholders’ inputs, two consultations and an external study was launched in mid-2017. The European Commission is now assessing the opportunity to proceed with a proposal and then potentially draft it. Nutrition claims, in place since 2006, can fail one criterion, i.e. if only one nutrient (salt, sugar or fat) exceeds the limit of the profile, a claim can still be made provided the high level of that particular nutrient is clearly marked on the label. For example, a yogurt can make a low-fat claim even if it has high sugar content but only if the label clearly states “high sugar content.” A European Union Register of nutrition claims has been established and is updated regularly. Health claims cannot fail any criteria.
- USEU/FAS website and in the USDA Food and Agricultural Import Regulations and Standards EU 28 2017
- Key Link: EU Register of Nutrition and Health Claims
- In 2015, the EU adopted a new regulation on novel foods (2015/2283) amending the provision of food information to consumers (1169/2011). Novel foods and food ingredients must not present a danger for the consumer or mislead him and should not differ from the ingredients that they are intended to replace to such an extent that normal consumption would represent a nutritional disadvantage for the consumer. It is important to mention that the European Commission may decide, on its own initiative or upon a request by a Member State, by means of implementing acts (a sort of decree), whether or not a particular food falls within the definition of novel food. More information can be found on the Commission's website. Most provisions of this new Novel Foods Regulation become applicable on January 1, 2018.
- Detailed information on the EU’s new food labeling rules can be found on the USEU/FAS website at EU Labelling Requirements and in the USDA Food and Agricultural Import Regulations and Standards EU 28 2017
- Key link: Provision on Food Information
- Directive 2002/46/EC harmonizes the rules on labeling of food supplements and introduces specific rules on vitamins and minerals in food supplements. Ingredients other than vitamins and minerals are still regulated by Member States.
- Regulation 1925/2006, applicable as of July 1, 2007, harmonizes rules on the addition of vitamins and minerals to foods. The regulation lists the vitamins and minerals that may be added to foods. This list was most recently revised in 2014. A positive list of substances other than vitamins and minerals has not been established yet, although it is being developed. Until then, member state laws will govern the use of these substances.
- Key Link: Labelling Nutrition Supplements
- The EU Tobacco Advertising Directive bans tobacco advertising in printed media, radio, and internet as well as the sponsorship of cross-border events or activities. Advertising in cinemas and on billboards or merchandising is allowed, though these are banned in many Member States. Tobacco advertising on television has been banned in the EU since the early 1990s and is governed by the Audiovisual Media Services Directive. A 2016 revision to the legislation includes the requirement for bigger, double-sided health pictorial warnings on cigarette packages and possibility for plain packaging along with health warnings, tracking systems.
- Key link: Tobacco Products