This Order concerns traders, including online operators, operating activities in the trade in or purchase ofsecond-hand goods, sale of second-hand goods by online auctions, lending of money against pledges or thenegotiation of such loans (pawnbroking activities)

Order on trade in second-hand goods and pawnbroking activities

According to Section 2 of the draft Act on trade in second-hand goods and pawnbroking activities, coveredtraders established in Denmark (both service providers in general and information society services) are subjectto licence requirements from the police as a condition for operating their activities. Under Sections 1(4) and13(1) of the proposal, the Minister for Justice may lay down detailed rules on the exercise of activities andpermitted contractual terms. Furthermore, Section 12(2) of the proposal provides that fines may be imposed forinfringements of the Order.

The draft Order on trade in second-hand goods and pawnbroking activities will implement the relevant enablingprovisions.
This Order lays down detailed rules on:
* the types of economic activities that are subject to police supervision (Section 1 of the Order, which is laiddown pursuant to Section 1(3) of the draft Act);
* licence holders must, in certain situations, require customers’ identification (Section 2 of the Order, which islaid down pursuant to Section 13(1) of the draft Act);
* exercise of pawnbroking activities, including that the pawnbroker may not enter into an agreement wherebythe loan is to be repaid within 3 months and that the pawnbroker may not receive higher interest on sums lentthan 1.5 % per commenced month (Chapter 3 of the Order, to be laid down pursuant to Section 13(1) of thedraft Act);
* penalties for infringements of certain provisions of the Order (Section 9 of the Order, which is laid downpursuant to Section 12(2) of the draft Act).
With regard to Directive (EU) 2015/1535 (the Information Procedure Directive), a draft Order on trade insecond-hand goods and pawnbroking activities is notified.
Article 8a of Directive 93/13/EEC (on unfair terms in consumer contracts) is also notified of the above-mentioned draft Order, in particular Sections 3 and 4 of the Order on contractual terms of pawnbrokers.