A FINE FOR THE ADVERTISING ON LAND PRICES

The Competition Council on the basis of the findings of the completed investigation passed a decision concerning the compliance with the requirements of the Law on Advertising of the commercial ads produced by UAB Žemės vystymo fondas 18 and UAB Žemės vystymo fondas. The investigation had been launched with a view to assessing the advertising statements claiming „now the land is most expensive. Some years later after the European Union ceases to subsidise, the land will become half price". The resolution of the Competition Council obligated the advertising provider to cease the use of the misleading advertising in the commercial and publish, in an established manner and within an established term, the corrective statements in that effect. Having established that the advertising had been used for the interests of both  UAB Žemės vystymo fondas 18 and UAB Žemės vystymo fondas, the two advertising providers were jointly subjected to a fine of LTL 19,000.

The Competition Council had started the investigation upon receipt of complaints from a number of natural persons. The investigation established that the advertising inducing to sell the land to Žemės vystymo fondas was disseminated starting from early April, 2007, by announcing it on the I national radio program, the National television program (LTV), Marijampolė TV, KTV plius and Splius channels. Having considered all the circumstances established in the course of the investigation the competition authority resolved that the statement to the effect that the land prices at the moment are the highest while they will do down after the European Union stops subsidising them, may mislead the consumers. The currently effective legal acts of the European Union do not provide for the termination of the provision of direct support beyond 2013. Furthermore, the advertising provider could not produce any evidence that the termination of the EU support will cause the lowering in the prices on land. Therefore the statements contained in the commercial to the effect that at present the farmers can receive the highest price on land while they will get half price after the EU terminates subsidising are misleading.