ACME FINED FOR MISLEADING ADVERTISING

Having assessed in its meeting the findings of the investigation concerning the compliance of actions of UAB Acme with the requirements of the Law on Advertising the Competition Council resolved that the company was using misleading advertising. The Competition Council assessed the advertising statements used by the company which read:„In this DVD you will find an invitation to the film „Valiant“, and a chance to win a poster with signatures of the actors“, „Buy the DVD and you will get a ticket to the „Valiant“ for free". In fact, however, the company used the statements to market the DVD with copy of a film for children „Racing Stripes“. For the use of misleading advertising UAB Acme was fined of LTL 15 000. The campy was obligated to cease the use of the misleading advertising and modify the labels of the remaining DVD packages so that when acquiring the product the buyer would be fully informed of the conditions for the use of the gifts contained in the advertising.

The investigation was started by the Competition Council against the consumer‘s complaint. The investigative actions found out that while advertising the DVD with the film „Racing Stripes“ and offering extra free presents in order to encourage the consumers to acquire the copy of the DVD, the company had omitted part of the information that was necessary in order to avoid misleading of the consumers. Prior to taking a decision to purchase the DVD and benefit from the gifts offered the consumers were not informed as to in which cinema they will be able to watch the film, also they did not know that they would be able to use the invitation only provided they purchase one more ticket to the film. Should the consumers be informed of all terms attached they would be likely to change their minds as to the acquisition of the product.