1 
 Extract of Act No  2 of 9 January 2009 relating to the Control of Marketing 
and Contract Terms and Conditions, etc. (the Marketing Control Act)  
 
 
Chapter 6 Protection of the interests of traders  
 
Section 25 Good business practice  
No act shall be performed  in the course of trade which conflicts with good business 
practice among traders.  
 
Section 26 Misleading business methods  
It shall be prohibited in the course of trade to use an incorrect or otherwise misleading 
representation which is likely to influence  the demand for or supply of goods, services or 
other products. In this chapter, “representation" shall mean any form of announcement or 
statement made orally, in writing or otherwise, thus including descriptions, pictures, 
demonstrations, the form, size o r type of packaging, etc.  
The Ministry may by regulation issue more detailed provisions relating to comparative 
advertising.  
 
Section 27 Insufficient guidance, etc.  
It shall be prohibited in the course of trade to use any representation which is likely to 
influence the demand for or supply of goods, services or other products when the 
representation must be considered unfair because it does not provide reasonable or sufficient 
guidance or introduces irrelevant matters.  
 
Section 28 Trade secrets  
A person who  has obtained knowledge or possession of a trade secret in connection 
with an employment or business relationship or a position of trust shall not exploit the secret 
unlawfully in the course of trade.  
The same shall apply to any person who has obtained kno wledge or possession of a 
trade secret through another person’s breach of a confidentiality obligation or otherwise 
through the unlawful act of another person.  
 
Section 29 Technical aids  
A person who has been entrusted with technical drawings, descriptions , formulas, 
models or similar technical aids in connection with an employment or business relationship or 
a position of trust shall not use these unlawfully in the course of trade.  
The same shall apply to any person who has obtained possession of technical  
drawings, descriptions, formulas, models or similar technical aids through the unlawful act of 
another person.  
 
Section 30 Copying the products of another person  
It shall be prohibited in the course of trade to use copies of distinguishing marks, 
products, catalogues, advertising materials or other produced items in such a manner and 
under such circumstances that the use must be considered an unfair exploitation of the efforts 
or results of another person, and to present a risk of confusion.  2 
  
Secti on 31 Application of incorrect geographical descriptions to wines and spirits  
It shall be prohibited in the course of trade to apply a geographical description to a 
wine or spirit which does not originate from the geographical location designated by the 
description. This shall apply even if the actual place of origin is also stated, or if the 
geographical description has been translated or is followed by an expression like “kind", 
“type", “imitation", or something similar.  
Chapter 9 Penalties and civil law sanctions  
Section 48 Penalties  
Any person who with intent materially violates Section 6 fourth paragraph, cf. first 
paragraph, regulations issued in pursuance of Section 6 fifth paragraph, Section 11, Section 
13, Section 15, Section 20 second paragraph, Sections 26, 27, 28, 29 or 30 is liable to fines, 
imprisonment for a term of up to six months, or both, unless a stricter penal provision applies. 
Accessories shall be liable to the same penalties.  
Negligent material infringement of section 7 or section 8,  see also section 6, fourth 
paragraph, see also first paragraph, section 11, first paragraph, section 26 or section 27 shall 
be subject to fines, imprisonment of up to six months, or both, unless a stricter penal 
provision applies. Accessories shall be lia ble to the same penalties.  
In the assessment of whether an infringement is material, particular emphasis shall be 
given to the scope and effects of the infringement and the degree of guilt. If the person or 
business has previously been ordered to pay a fin e or infringement penalty for infringement of 
this Act or regulations issued pursuant to this Act, penalties pursuant to the first and second 
paragraphs may be applied even if the infringement is not material.  
A person who intentionally or negligently brea ches a decision made pursuant to this 
Act shall be subject to fines, imprisonment of up to six months, or both, unless a stricter penal 
provision applies. Accessories shall be liable to the same penalties.  
No penalty shall be imposed in relation to an infr ingement committed by a sales 
assistant, office assistant or similar subordinate employee if the infringement has essentially 
resulted from that person’s dependent relationship with the trader.  
No penalty shall be imposed in the event of an infringement of  section 28 if 
knowledge or possession of the trade secret was acquired in a position of employment or trust, 
or through a breach of duty in such position, and more than two years have elapsed since the 
position ceased to exist.  
 
Section 48 a  Penalties and  civil law sanctions for the unlawful use of geographical 
descriptions   
Any person who uses a geographical indication in breach of Sections 25, 26 or 31 or 
aids and abets thereto is liable to fines or imprisonment for a term of up to one year.  
 If especially aggravating circumstances exist, the penalty shall be fines or 
imprisonment for a term of up to three years. When assessing whether especially aggravating 
circumstances exist, particular importance shall be attached to the loss inflicted on t he 
aggrieved person, including any damage to this person's commercial reputation, the gain 
procured by the offender, and the extent of the offence in other respects.    
 A public prosecution will only be instituted if the aggrieved person so requests unles s 
this is required by the public interest.  
The provisions concerning sanctions against infringements of trademarks in the 
Trademarks Act Chapter 8 , except for  Sections 60 , 61 and 61 a, apply correspondingly to the 
use of geographical descriptions in breach of Sections 25, 26 or 31.  3 
  
Section  48 b Compensation and damages for violation of certain provisions in Chapter 6  
For intentional or negligent v iolation of Sections 28, 29 and 30, the offender shall pay 
the aggrieved party:  
a) compensation corresponding to a reasonable licence fee for the exploitation, as well as 
damages for any loss resulting from the violation that would not have arisen in 
connection with licensing,  
 
b) damages for any loss resulting from the violation, or  
c) comp ensation corresponding to the gain obtained as a result of the violation.  
The compensation and damages are determined on the basis of the provision in letters a to c 
that is most favourable for the aggrieved party.  
       The first paragraph applies corr espondingly to aiding and abetting.  
       The first and second paragraphs apply correspondingly to violations of Sections 
25 and 26 that consist of copying another person's product, distinguishing mark, advertising 
materials or other produced items.  
 
Section 49 Rules relating to criminal procedure  
The prosecuting authority shall not prosecute infringement of section 28, section 29 or 
section 30 unless the aggrieved party so requests. The same shall apply to infringement of 
section 26 or section 27 when  the act consists of injurious statements about another trader or 
about matters which concern that trader specifically.  
The prosecuting authority may in connection with criminal proceedings apply for a 
court order to secure the cessation of the unlawful ac t and to prevent its repetition.