Consumer sentiment regarding privacy on user generated content services in the digital economy
Abstract:
One of the key changes in societal trends and lifestyles witnessed over the past few years has been the move on-line of many consumers and the way they have become increasingly sophisticated in their media consumption habits. Have these recent changes to consumer and commercial practices developed in such a way that consumers are (in) voluntarily signing away their fundamental right to privacy?
This project (CONSENT) seeks to examine how consumer behaviour and commercial practices are changing the role of consent in the processing of personal data. While consumer consent is a fundamental value on which the European market economy is based, the way consumer consent is obtained is questionable in popular user-generative/user-generated (UGC) online services (including sites like MySpace, YouTube and Facebook), whose commercial success depends to a large extent on the disclosure by their users of substantial amounts of personal data. There is an urgent need to study and analyse the changes in consumption behaviour and consumer culture arising from the emergence of UGC online services and how contractual, commercial and technical practices and other factors affect consumer choice and attitudes toward personal privacy in the digital economy.
CONSENT's multidisciplinary team intends to carry out a status quo analysis of commercial practices, legal position and consumer attitudes, identifying criteria for fairness and best practices, and then create a toolkit for policy makers and corporate counsel which will enable them to address problem identified in the analysis. CONSENT will advance the knowledge base that underpins the formulation and implementation of policies and corporate procedures in the area of privacy and consumer protection with a view to informing policy-making in the European Union and to contribute to the development of European research communities in these areas.
CBS part:
Interoperability of services - An analysis of the existing legal framework (including in the area of competition and consumer protection law) in order to establish the extent to which service providers in participating member states are required to ensure the interoperability of service.
This task is carried out through the legal analysis of legislation, regulatory, self-regulatory and co-regulatory instruments and case law.
Participating research institutions:
- University of Central Lancashire (coordinator)
- Universita ta Malta
- Copenhagen Business School
- Universiteit Leiden
- Westfaelische Wilhelms-Universitaet Muenster
- Georg-August-Universitaet Goettingen
- Gottfried Wilhelm Leibniz Universitaet Hannover
- Universitatea Babes Bolyai
- Asociatia Pentru Tehnologie si Internet
- Rijksuniversiteit Groningen
- Masarykova Univerzita
- Queen's University Belfast
- Uniwersytet Wroclawski
- Universidad de Leon
- Consiglio Nazionale delle Ricerche
- Laboratorio di Scienze della Cittadinanza
- Universite Paris-Sud XI
- Univerzita Komenskeho v Bratislave
- Law and Internet Foundation
Towards a European Legal Method: Synthesis or Fragmentation
The project examines the extent to which it is possible to identify a coherent legal method (doctrine of the sources of law and their interpretation) that may be applied when analysing EU law and the law of EU Member States within the scope of application of EU law. It looks at what characterises the sources of law and the interpretation methods that are actually used by European legal actors, especially judges and researchers, when analysing what is valid law. It examines the changes in the relative importance of various sources of law that occur in connection with the integration of EU law into national law.
The basic thoughts in the prevailing legal theories in Europe (legal positivism, natural law theories and the institutional theory of law) date back to the time before the EU's creation and were conceived with a view to either national law or public international law. The project examines whether they can also explain the characteristics of EU law that differ from national law and public international law, in particular the pluralistic and flexible approach in EU law to sources of law and interpretation, the combination of an 'internal' (narrow legal dogmatic) and a broader 'external' (economic, sociological, etc.) perspective on law, and the relationship between law and politics including the judiciary's role in majority democracies (Britain and the Nordic countries) and constitutional democracies (the rest of Europe and probably the EU as such.
As part of the project, research conferences will be arranged. The first took place 19 November 2010 with the theme European Legal Method, see
www.cbs.dk/elm1
. A book from the project by Ulla Neergaard, Ruth Nielsen and Lynn Roseberry (eds.): European Legal Method - Paradoxes and Revitalisation, DJØF Publishing 2011 was published in April 2011, see
http://www.djoef-forlag.dk/vare/8757423776.
The second conference within the project 'Towards a European Legal Method: Synthesis or Fragmentation' will take place 18 November 2011 with the theme European Legal Method(s) in a Multi-Layered Legal Order v. Multi-Level Governance, see
http://www.cbs.dk/Forskning/Konferencer/elm2
Research group
The project is a collective research project carried out from 2010-2012 by a research group which consists of:
Project description
The project has received a grant of DKK 1.9 million from the Danish Social Science Research Council. The Research group behind the project did the Blurring Boundaries project 2007-2009.
Juridisk analyse af mænds og kvinders adgang til varer og tjenesteydelser
Formålet med projektet er at fastslå omfanget og rækkevidden af det i Danmark gældende forbud mod kønsdiskrimination ved adgang til varer og tjenesteydelser. Reglerne herom findes dels i regler vedtaget på EU- og folkeretligt niveau, dels i dansk lovgivning. På EU-niveau findes reglerne navnlig direktiv 113/2004/EF om ligebehandling af kvinder og mænd ved adgang til og levering af tjenesteydelser, i art. 21 i EU’s Charter om Grundlæggende Rettigheder, der har traktatrang, og i praksis fra EU-Domstolen. På folkeretligt niveau findes reglerne navnlig i art. 14 i Den europæiske Menneskerettighedskonvention og i CEDAW (FN’s Convention on the Elimination of Discrimination of Women). I Danmark findes de centrale bestemmelser om emnet i ligestillingsloven.
Projektet udarbejdes af professor
Ruth Nielsen
Vækst og værdiskabelse via nye former for innovationssamarbejder og partnerskaber
En række nye innovative modeller for samarbejde mellem farmaceutiske virksomheder og universiteter udvikles i disse år i USA og en række europæiske lande. De nye samarbejdsmodeller skaber grundlaget for et tættere samarbejde på tværs af virksomheder og universiteter, med det mål at styrke innovationskraften. Intentionen er at skabe innovationsprocesser-der-giver-resultater baseret på udvikling af prækompetitive platforme via fælles co-lokaliserede samarbejder eller via samarbejde i forpligtende netværk. Såfremt de nye samarbejdsmodeller er eller bliver succesfulde, vil det skabe konkurrencefordele for de involverede virksomheder. Projektet vil analysere om udenlandske universitets-virksomhedsrelationer og samarbejdsmodeller giver en bedre mulighed for og incitament til innovation end nuværende danske modeller. På baggrund af analysen vil projektet udvikle nye og innovative modeller for samarbejde, som kan implementeres i en dansk kontekst. De nye innovative samarbejdsformer kræver endvidere udvikling af nye aftalekoncepter om deling af resultater mellem universiteter og virksomheder og dertil hørende incitamentsmodeller, som også udvikles i projektet.
Projektet er toårigt (2012-2013) og er delvist finansieret af Forsknings- og Innovationsstyrelsens Åbne Midler.
Projektdeltagere:
Copenhagen Business School, Juridisk Institut (Projektleder),
Christina D. Tvarnø,
lektor, ph.d., Juridisk Institut,
cdt.jur@cbs.dk Bioneer,
Lars. H Pedersen, Forskningschef,lap@bioneer.dk
Medicon Valley Alliance,
Stig Jørgsensen, CEO
stig.jorgensen@mva.org H. Lundbeck A/S,
Peter Høngaard Andersen, VP of Research,
phqa@lundbeck.com Tectra,
Jens Kindtler, Enhedschef,
jwk@regionh.dk Københavns Universitet, Det Farmaceutiske Fakultet,
Sven Frøkær, Dekan,
sf@farma.ku.dk Novo Nordisk A/S,
Kristian Tage Hansen, Director, Strategy and Sourcing,
krth@novonordisk.com
PhD projects
Inger Høedt-Rasmussen is working on the research project: Developing Identity within the Legal Profession
The work is based on the paradigm of constructivism and will include narrative theories. Narrative theories seem essential in search and understanding of the lawyer’s identity and the perception of identity. There is a relation between the perception of law as a moral idea and the constructed identity both of the profession and of the individual lawyer. Development and changes in the philosophy of law make changes in the curriculum necessary. It is a hypothesis that the development from a positivistic perception of law towards a reflective perception leads to requirements for new competences within the profession. The profession is formed and protected in a format that might limit development and innovation. Ruling the profession both nationally and internationally risk to exclude adaptations of new or different competences necessary to deal with challenges and complexities in a globalizing world. Which impact have these facts for the identity of the lawyer acting internationally and cross-cultural? The profession is in transition. The transition will affect the lawyers, who are in search for a value based individual identity, which includes happiness, accountability, democratic responsibility and satisfaction both in personal and in legal life. A holistic practice based on mindfulness might be the moderation of this relation leading to a revitalization of the legal profession.
Gediminas Almantas is working on the research project: Ethics and morality in international business negotiation
The main aim of the research project is to analyze and explore the understanding, role and value of ethics and morality in international business negotiation. Hypothetically, the observance of ethics and morality in the negotiation process may boost the level of trust. A trustful environment enables the negotiators to discover and utilize hidden commercial value, including higher observance of commitments and increased performance. Different ethical and moral standards around the globe, based on cultural and religious principles, as well as historical background and maturity of the society encumber the negotiation process and reduce the negotiation's efficiency. Existing legal tools like the doctrine of culpa in contrahendo are very much nationally orientated and do not provide the needed solution. Other legal instruments on the international level are missing.
The research shall analyze whether soft law is the right solution for the existing problem, and if a self-regulation mechanism might be developed as a tool for the establishment of trust and increasing of efficiency in the negotiation process. The self-regulation mechanism concerned is expected to include an independent ranking system and shall operate on the platform of corporate codes of conduct. The academic analysis shall rely heavily on the theory of corporate social responsibility with emphasis of the role of the corporate code of conducts.
Peter Koerver Schmidt is working on the research project: CFC-regimes in a Danish and an International Perspective
The aim of the PhD thesis is to analyze CFC-legislation from an international and comparative legal viewpoint.
Today many countries have adopted rules on CFC-taxation for the purpose of countering the use by taxpayers of companies domiciled in low tax juristictions that derive income not directly related to the exercise of commercial or industrial activities - passive income. Even though the aim of variuos countries' CFC-legislations are more or less the same - i.e. to curtail the abuse of companies established on an international level for the (sole) purpose of deferring/avoiding taxation - the rules have been designed in diffrent ways. Depending on which type of CFC legislation the country has adopted the CFC rules entail variuos problems and challenges:
- Problems of a legal and technical nature. Very often the CFC rules put in place tend to be higly complex and give rise to problems of interpretation. Further the rules can potentially lead to double taxation and therefore give rise to complicated problems on how to exempt.
- Is the CFC legislation drafted in accordance with EC law? In its decision in Cadbury Schweppes (Case C-196/04) the ECJ held that CFC rules, as a general principle, constitute a restriction on the freedom of establishment within the meaning of Arts. 43 and 48 of the EC Treaty. Such rules can be justified, however, if they apply only to wholly artificial arrangements.
- Is the CFC legislation compatible with the tax trieties the country in question has entered into? In 2003 the commentary on Art. 1 of the OECD Model was altered and it now explicitly states that CFC legislation should be allowed between states that have concluded a tax treaty based on the OECD Model. However, it is not clear whether this statement in the commentary also applies to tax treaties concluded before 2003. Other problems related to applying CFC legislation appears when a country has made an observation or reservation on the commentary to the OECD Model or when the treaty in question is not based on the OECD Model.
The PhD thesis should among other things analyze the above mentioned problems from an international and comparative legal viewpoint and should result in statements de lege lata and de lege ferenda.
Michael Tell is working on the research project: Deductibility of financial interests - Justification, limits and effects in an international perspective
It is especially important for a small country with an open economy to have a robust tax system in a global society. Negligible tax revenue or undesirable incentives in the legislation are signals, which should be evaluated closely. The tax discrimination of costs associated with equity and debt have contributed to a increasing leverage of companies in Denmark and other countries and led to a sharp reduction of some large companies' taxable income in Denmark. In Denmark two new interest limitation rules were imposed by Act No. 540 of 6 June 2007, respectively Corporation Tax Act (SEL) Sec. 11 B and Sec. 11 C, and other countries have also introduced rules for the same purpose. However, the rules differs significantly from country to country. Denmark has chosen to reduce inequality through a reduction of the interest deduction in special cases, while a country like Belgium has introduced a deduction related to equity.
The question is whether the Danish rule's design and layout are best suited for the purpose, particularly in relation to alternatives, including the experience of other countries' respons to the overall problem regarding the lack of tax neutrality in corporate financing. The purpose is therefore to explore:
- the Danish tax rules in this area, primarily the Act on Taxation of Income and Property (SL) § 6, point e, SEL § 11, SEL § 11b and SEL § 11c.
- Rules for similar purposes in other countries eg. Germany, Holland, Belgium and England.
- EU legal implications in connection with the above rules.
- Their impact in relation to the purpose, including in relation to alternative rules.
Katja Joo Dyppel is working on the research project: Taxation of derivatives - a challenge for the Danish income tax system?
Derivative trading is one of the largest businesses in the world - if not the largest. To illustrate, as of April 2007 the turnover in the derivative market (i.e. over-the-counter (OTC) market and exchange traded derivative market) were approximately 5,04 trillion US dollars at a daily basis.
The nature of derivatives makes them well suitable for hedging, speculation and achieving desirable tax results. Depending on the intended use, a derivative can be traded on a stand-alone basis or as an implemented component in a financial instrument. In fact, with derivatives you can have almost any payoff pattern you want.
The Danish income tax system is based on a system of "tax cubbyholes" - a system that specifies an exact tax treatment for a few financial instruments; including some derivatives - forwards, futures and options. However, the Danish notion (terminskontrakter og aftaler om køberetter og salgsretter) is more narrow than what is normally known as forwards, futures and options. Due to the nature of derivatives any given (new) derivative - e.g. swaps, credit default swaps, caps, collars, derivatives based on emission rights etc. - is unlikely to fit squarely into a particular tax cubbyhole. Thus, the appropriate tax treatment of such product is often unclear. If such derivatives are subject to different tax treatment based on the qualification of the tax cubbyholes, it is likely that identical cash flow pattern are subject to unequal tax treatments, i.e. the tax treatment of yield from derivatives depends on in which form the instrument seams to appear in. This can result in inconvenient tax arbitrage opportunities as well as the opposite situation, where net payoffs equal to zero (pre-tax) are subject to tax liabilities. An unclear definition of the tax cubbyholes will moreover increase these inconveniences.
In other words, notwithstanding that specific legislation regarding taxation of derivatives is implemented in Danish domestic tax law, it is, for more than one reason, still of high relevance to make an analysis within this field. Firstly due to the fact that the scope of these provisions does by far covers all derivatives in financial sense, resulting in unclear tax treatment. And secondary due to the ongoing innovation of derivatives resulting in difficulties regarding qualification and taxation of new (or rare) types of derivatives. And thirdly as it is not clear whether complex derivatives are taxed as one or several instruments (bifurcation or integration).
The aim of the dissertation is to elucidate whether the Danish tax treatment of derivatives ensures a due process protection and eliminates inconvenient tax arbitrage possibilities and tax liabilities, i.e. whether the Danish income tax system is sufficient in regard to taxation of new derivatives. In this regard, comparative studies are made for illustration and inspiration purposes, e.g. to highlight general differences in tax systems and specific variations of tax legislation in other jurisdictions.
The outline of the dissertation is firstly to clarify the literature on taxation of new derivatives by identifying the framework of an optimal tax system, e.g. ensuring universality, neutrality, consistency etc. Secondly to analyze the Danish income tax treatment of derivatives - de lega lata - primary governed by Kursgevinstloven §§ 29-33 and Statsskatteloven §§ 4-6. Thirdly to elucidate issues arising in relation to cross-border transactions by analyzing Danish tax treatment in regard to withholding taxes as well as classification of derivatives according to the OECD Double Taxation Convention. And finally based on the theory on optimal taxation of new derivatives to conclude whether taxation of derivatives is an insuperable challenge for the current Danish income tax system or whether reform is needed.
Carina Risvig Hansen is working on the research project: Public contracts that are not covered - or fully covered - by the Public Procurement Directive
When government bodies purchase goods, services and works from the (private) market above a specific value they are obliged to follow the EC public procurement rules. The public procurement directives (Directive 2004/17 and 2004/18) contain detailed rules which overall purpose is the creation of an Internal Market where companies have equal access to gaining these public contracts.
However, a number of contracts are excluded from the Directives. Among those contracts are:
- Contracts which value falls below the thresholds of the Public Procurement Directive
- Contracts that are listed in Annex II B
- Contracts regarding service concessions
When contracting authorities award such contracts the principles of the treaties, however, apply. The overall aim of this PhD Thesis is to analyze what rules apply for contracts that are not covered or fully covered of the Public Procurement Directives - with focus on the three above mentioned types of contracts.
Karsten Duch Lynggaard is working on the research project: The prohibition on financial assistance for purchase of own shares
This thesis is about and examines in detail the extent of the so-called prohibition on a company of providing financial assistance for the purchase by a shareholder of the company’s own shares.
This prohibition on a company of providing financial assistance for the purchase by a current or future shareholder of the company’s own shares is in Danish generally known as the “selvfinansieringsforbud” and hereinafter referred to as the “Ban”, cf. the Danish Companies Act art. 206, sec. 1 (“Selskabsloven” of hereinafter referred to as the “Act”).
The purpose of the Ban is to prevent a company from participating in the financing of its own acquisition detrimental for the company’s creditors and other parties .
The core of the Ban is that it is prohibited for a company to enter a loan agreement between the company and a purchaser of shares in the company enabling the purchaser to pay the sum loaned to the seller as the agreed purchase price for the shares in the company. Such a loan arrangement could circumvent the Acts rules on limitations of distribution of share dividends and would reduce the company’s liquidity and consequently its ability to pay its creditors . It is further in the core of the Ban if the company issues a guarantee to a bank for a loan between the bank and a purchaser of shares in the company.
The giving of financial assistance is banned in order to ensure that those who buy shares in companies do so from their own resources and not from those of the company .
Outside these two examples and clear-cut circumvention arrangements of the Ban, the extent of the Ban is unclear under Danish law .
Partly because of the uncertainty about the precise scope of the Ban, the range on practical situations in which the possibility of there being a financial assistance problem can crop up is huge .
The giving of financial assistance is relevant in many mergers and acquisitions (“M&A”) transactions and in particularly in large M&A transactions where millions or billions of DKK are being paid (and consequently need to be financed) in order to purchase the shares in the relevant company.
Mette Ohm Søndergaard is working on the research project: PhD in law on marketing and sale of food in Denmark
Mette Ohm Søndergaard's PhD is part of a cross-disciplinary project at CBS called FairSpeak 1. An overall purpose of the FairSpeak 1 project is to provide recommendations and guidelines for food labelling fairness including among others a shared frame of reference applicable to future cases of misleading advertising. The PhD project and corresponding thesis focuses on consumer protection and the Community rules regarding misleading advertising and presentation of food packages, with special focus on the names under which food products are sold to consumers.
The subject is important because the majority of decisions when buying food is made in-store causing consumers to rely mainly on information etc. given on the packages. In order for consumers to trust the information, for producers to provide truthful information and for the authorities to control the market an overview of how food packaging can be misleading is necessary.
One of the main objects of the PhD is to analyse and describe the scope of the prohibition against misleading advertising and presentation of food, with emphasis on the rules and case law concerning how to name food products.
The PhD looks closer at naming food products and the difficulties related to the governance structure, the conflicts arising between European legislation and national (Danish) interpretation and enforcement, and the difficulties this brings primarily to the protection of consumers but also to the completion of the internal market.
Here, the preliminary hypothesis is that the general rules on free movement, the rules on labelling, e.g. language requirements, and case law besides forming a complex set of rules leave little "protection" to consumers in regards to generic food products.
Afsluttede projekter
EU-arbejdsretJuridisk Institut ved CBS indgår sammen med otte andre forskningsinstitutter i Norden i et samarbejde om EU og Arbejdsret. Der samarbejdes systematisk og langsigtet om at samordne, udvikle og udnytte nordiske resurser inden for området EU-arbejdsret. Samarbejdsaftalen kan ses her (pdf):
Samarbetsavtal 2008-2011
FairSpeak
The FairSpeak research group at the Copenhagen Business School (CBS) develops tools and methods for analyzing the condensed information found on food labels and for relating it to the ability of different consumers to understand it.
Researchers specializing in language and cognition, knowledge management, consumer behavior, packaging design, marketing and marketing law join efforts in this innovative and interdisciplinary cooperation in order to formulate guidelines to help food manufacturers improve their communication with the consumers through fair food labelling.
The group’s first project on food names and claims “Spin or Fair Speak – when foods talk” (2007-2010) is financed by the Programme Commission on Food and Health under the Danish Council for Strategic Research.
The project targets consumers’ decoding of food names, claims and other immediate verbal and nonverbal design elements on the product packaging during in-store decision making, and the problem of cues and combinations of such which may potentially mislead consumers, in particular with regard to nutrition and health related information.
It aims at developing a new, shared frame of reference for authorities, companies, and consumer organisations to assess whether and how the immediate presentation of a given food product is likely to mislead consumers, while at the same time enhancing the knowledge base of the Danish food industry for creatively integrating the full communicative potential of foods in the development of new, tasty, and healthy products.
The initial empirical input is the corpus of cases on misleading food labelling processed by the Danish authorities. On this basis a typology of conflict scenarios will be established and matched against an integrated theoretical model of consumers’ decoding of a food product’s full semiotic potential in the buying situation. The model is formulated by integrating relevant theory and empirical finding from linguistic, perceptual, cognitive, and food sociological research. Subsequently, selected hypotheses and predictions on actual consumer interpretations and outcomes of design adjustments will be tested empirically by combining for the present purpose a number of empirical tools, including eyetracking, on- and offline interpretation of novel/creative word combinations, questionnaire-based mapping of inference drawing and changes in truth assignments, sensory tests, and qualitative post-shopping and focus group interviews.
Follow-up projects will apply the principles and methods identified by the Danish project to other markets, languages and cultures and develop them further possibly starting with a selection of some of the export markets relevant the Danish companies participating in the FairSpeak project
The FairSpeak Research Group at CBS:
Viktor Smith
, Associate Professor, Ph.D., Center for Language, Cognition and Mentality, Department of International Culture and Communication Studies, CBS
Henrik Selsøe Sørensen
, Associate Professor, MA, Center for Language, Cognition and Mentality, Department of International Culture and Communication Studies, CBS
Jesper Clement
, Assistant Professor, Ph.D., Department of Marketing, CBS
Peter Møgelvang-Hansen
, Professor, Law Department, CBS
Mette Ohm Søndergaard
, Ph.D. Student, Law Department, CBS
Francoise Qvistgaard, MA, project coordinator, Department of International Culture and Communication Studies, CBS
Blurring Boundaries
The project "Blurring Boundaries: EU Law and the Danish Welfare State" is a legal, dogmatic analysis of the intersection of Danish law and EU law on the provision of welfare services with a view to examine how the integration of the Danish welfare state in the EU and its internal market manifests itself at a legal level, in particular, in the case law of the European Court of Justice (ECJ) and in emerging general principles of EU law.
As community law stands at present, there is an increasingly blurred line between state and market. On the one hand, there is a wave of liberalisation and privatisation, which is changing the traditional way of setting up welfare services. At the same time certain basic values and principles, e.g. non-discrimination, equality, social inclusion, and access to essential services are being pursued in the market place, elevating fundamental rights, values and principles from restrictions on state action to general principles of law binding for both the state and private actors on the market.
The term ‘blurring boundaries’ in the project title refers both to the increasingly blurred line between public and private law in regards to welfare services and to the blurring boundaries between EU law and national law on this subject. The main problem areas covered by the project are:
- Internal market law and welfare services
- Fundamental rights and non-discrimination law aspects
- Services of general interest within the meaning of Article 86(2) EC.
2008 "The Lisbon Treaty - a Step Towards Integrating Welfare Functions into EU Law?" See further information about the 2008 conference here . Book related to conference:
http://www.djoef-forlag.dk/vare/8757418985
2009 "The Role of the Courts in Developing a European Social Model - Theoretical and Methodological Perspectives". See further information about the 2009 conference here . Book related to conference:
http://www.djoef-forlag.dk/vare/8757421722
The project has received a grant of DKK 2.8 million from the Danish Social Science Research Council for the period 2007 - 2009.
EU-Asia Link
This research project will establish an EU-Asia inter-university network for teaching and research in public procurement regulation, which is in an embryonic stage or non-existent in the Asian developing countries, through human resource development, curriculum development and institutional development.
The project consists of the University of Nottingham in the UK and the Copenhagen Business School in Denmark, the Central University of Finance and Economics (CUFE), Xinjiang University in China and the University of Malaya.
Research team at the Law Department, Copenhagen Business School, connected to the Asia Link project:
Last updated by Kim Allan Jørgensen 26/01/2012