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EUROPE, MIDDLE EAST & AFRICA: SWEDEN

Marketing of consumer credits in Sweden
Authors: Michael Plogell & Monika Vulin, Wistrand

Two recent cases from the Market Court seem to indicate a less protectionist attitude towards consumers when it comes to marketing of consumer credits. In both cases the plaintiff has been the Consumer Ombudsman (“KO”), a local activist, and he lost in both cases.

The first case involved newspaper and TV advertisements for Eurocard. The theme of the marketing was that holders of a Eurocard could buy products on the same day that the advertisement was posted.  In the commercial the Eurocard seemed to attract products to it like a magnet.  KO argued that the marketing implied that a holder of a Eurocard could buy products without considering any of the private financial consequences of purchasing. The Court disagreed with KO and deemed the marketing fair.

The second case involved a newspaper advertisement for Citibank in which Citibank marketed unsecured loans to consumers.  KO argued that the advertisement encouraged consumers to make hasty decisions to borrow money since there was focus on the swiftness of the granting loans procedure.  The main text of the ad was, “borrow up to SEK 200 000” and “get an answer in 30 seconds”.  The court did not find the advertisement unfair because the advertisement only stated that an answer would be given in 30 seconds and not the loan itself and that consumers could understand this when reading the advertisement.