Financial Penalties as New Sanction for Breaches of the Alcohol Advertising Ban

Since 1975, Norway has had a strict ban on alcohol advertisement, which prohibits (i) advertisement of alcohol, (ii) advertisement of other goods with the same brand or characteristics as alcohol (e.g. non-alcoholic beverages marketed under the same trademark as alcoholic beverages) and (iii) including alcohol in the marketing of any other goods or services.

The ban has been practiced strictly, in the sense that any association to alcohol in marketing through pictures, phrases or otherwise often suffice for the marketing to fall within the scope of the ban. The Norwegian Supreme Court has concluded that the term “Duggfrisk Drikke” (“Dewy Drinks”) in advertisement is considered alcohol advertisement. The Directorate of Health has suggested that a campaign consisting of a picture of an upside-down popsicle resembling a beer may fall within the scope of the ban. The same applied to a campaigns’ obvious reference to alcoholic beverages as “you know what”. Consequently, terms such as “Happy Hour” and “A pint” in ads will be prohibited as such terms have clear associations to alcohol.

Several Norwegian influencers have throughout the years received reactions from the Directorate of Health after posting pictures of sponsored items or services such as clothes or hotel stays while drinking champagne or beer (or non-alcoholic drinks resembling champagne or beer, such as apple juice in champagne glasses).

The relevant sanction has previously been rectification incentivized by compulsory fines. The new sanction may involve financial penalties as high as 4 % of the company’s annual turnover or up to 20 times the basic amount of the National Insurance Scheme (which as of 28 May 2024 corresponds to NOK 2 480 560, app. EUR 213 104), providing the Directorate of Health with a most anticipated sanction. Decisions on financial penalties may be appealed to the Market Council.