Cashless shops are legal – Statement

We are often met by claims from politicians, lobbyists and the media that Norwegian shops that only accept payment by card are breaking the law. It is, however widely held, a misconception. There are no statutory provisions in Norwegian law that impose an obligation on traders to sell goods and services against cash payment. Our Central Bank Act states that cash is a so-called compulsory means of payment in Norway. Despite the fact that the word forced gives strong associations to duty, the Central Banking Act Commission, which drafted the new Central Banking Act, explains that the rule does not imply anything more than “that creditor and debtor in a debt relationship have a mutual duty to accept notes and coins as settlement for a claim , if no agreement has been entered into on another method of settlement”. In other words, there is no doubt that the Central Bank Act’s regulation does not prevent a shop from refusing to enter into an agreement with someone who only wants to pay in cash. There is no disagreement about this in practice either. However, the legal provision that is highlighted by consumer organisations, and in particular the Consumer Protection Authority, is the rule in the Financial Contracts Act which states that a consumer always has the right to “make a settlement” with cash. Here it is important to note that the law only gives the right to settle an obligation that already exists, i.e. pay one’s bills. Nor does the Financial Agreements Act give shops an obligation to sell to those who only want to pay in cash. This understanding of Norwegian law is not particularly controversial in the professional community. It is stated right in the syllabus book used at the law faculties, and I myself have written a peer-reviewed article in the leading Norwegian legal journal Lov og Rett, in which I explain this in detail. The fact that the Ministry of Justice and consumer organizations have expressed a different view on several occasions is probably primarily due to a political desire for a different regulation, in combination with a lack of legal thoroughness. It is very problematic that public authorities and supervision accuse Norwegian companies of breaking the law in public without any basis. It is also a democratic problem when the executive branch tries to bypass the Storting by trying to pressure Norwegian businesses to accept a clearly incorrect understanding of the law. There is also reason to believe that the Consumer Protection Authority and the political leadership in the Ministry of Justice are fully aware that their understanding of the law is not tenable, as they are constantly trying to “strengthen” the right to cash payment. If such a completely general right actually existed, there is of course no reason to strengthen it – it is hardly theoretically possible. When the Storting has again, against the votes of only the Center Party, rejected proposals for such strengthening, it is simply downright indecent to continue to accuse cashless shops of breaking the law. The Norwegian press should be far more critical of these allegations of violations of the law. The press should ask themselves why these alleged offenses are never prosecuted, or have any consequences in other ways. This applies not least in light of the fact that more and more companies are becoming cashless, and the large scale of cash refusals we saw during the pandemic. The constant claims that there is an obligation to sell goods and services against payment in cash are unfortunately an obstacle to an enlightened and necessary public discussion about the place of cash in Norwegian society. Less use of cash can limit the black economy, reduce costs for companies and contribute to innovation in payment solutions. At the same time, there are important questions related to whether a larger amount of cash is necessary from a social security perspective, about the possibility of safeguarding privacy through payment that is not registered anywhere, in addition to the fact that a number of people, especially the youngest and the oldest, do not have the same access to, or mastery of, modern electronic payment solutions as the rest of us. In order for us to have a good democratic discussion about these questions, hopefully with subsequent sensible legislation, it is important that both politicians and the population are aware that there is currently no general right to trade in cash in Norway.



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