A Danish court fined children's toy retailer HappyHello A/S 400,000 kroner for deceptive marketing practices. The Næstved court ruled the company misled customers on its Littlehappy.dk website.
The Consumer Ombudsman brought the case after receiving complaints about hidden subscription schemes. Customers purchased toys and children's books at attractive prices without clear disclosure about automatic recurring subscriptions.
Torben Jensen, Denmark's Consumer Ombudsman, stated that companies must market subscriptions as clearly as individual products and prices. He emphasized consumers should never doubt they're purchasing ongoing subscriptions.
The company faced charges for similar practices on its now-closed Happyhello.dk website. It also misled consumers through Facebook advertising and Google Shopping listings.
HappyHello A/S has appealed the ruling to Denmark's Eastern High Court. The court considered the company's multiple violations of marketing laws when determining the fine amount.
This case highlights ongoing challenges with subscription traps in Danish e-commerce. Consumer advocates have repeatedly warned about companies burying subscription terms in fine print.
What are hidden subscriptions? Automatic recurring charges that activate when customers make one-time purchases, often without adequate warning.
Why do companies use them? They create predictable revenue streams, but consumer protection agencies consider them deceptive when not properly disclosed.