ADVERTISING STATEMENTS BY MIKROVISATOS TV RECOGNISED MISLEADING

The Competition Council acknowledged the advertising statements published by UAB Mikrovisatos TV claiming “On extra TVs enjoy the digital TV at no charge" to be misleading advertising. For the use of misleading advertising UAB Mikrovisatos TV was fined to LTL 10,000.  The company was also obligated to cease the use of misleading claims, i.e., terminate the use of the advertising statements that have been recognised to constitute misleading advertising, where such actions were still continued.

The investigation concerning the advertising statements proliferated by UAB Mikrovisatos TV, a digital TV provider, in fliers and a number of publications was initiated by the Competition Council on the basis of a consumer's complaint.  In the opinion of the complainant the statement “On extra TVs enjoy the digital TV at no charge” was misleading since in order to be able to watch digital channels on extra TVs it was necessary to acquire a digital TV attachment for LTL 170 for each extra TV set, pay the card activation fee or a subscriber’s fee.

When assessing the infringement the Competition Council referred to the provision established in Article 7(18) of the Law on Prohibition of Unfair Business-to-Consumer Commercial Practices which stipulates that commercial practices are in any case presumed misleading when a product description contains claims as "gratis", "free" or similar, if a consumer has to pay anything other than unavoidable costs related to acquisition, collecting or paying for delivery of the product.

In the opinion of the Competition Council the relevant provision of the Law on Prohibition of Unfair Business-to-Consumer Commercial Practices explicitly defines the costs that are to be treated as unavoidable. Such costs shall be the charge related to the collection of an item or a payment for its delivery, such as transportation, mail or courier service or similar charges upon the consumers. The said provision of the Law cannot be explained by expanding it, therefore any expenses on the part of a consumer who wishes to watch the digital TV on extra TV sets (related to the acquisition of the TV attachment) cannot be attributable to unavoidable expenses within the meaning of Article 7(18) of the Law on Prohibition of Unfair Business-to-Consumer Commercial Practices.

The Competition Council hereby reminds that the version of the Law on Prohibition of Unfair Business-to-Consumer Commercial Practices that came into effect in February 2008 clearly defines the cases in which the commercial practice is considered to be misleading without a need to prove it; therefore when promoting their activities the undertakings should duly take into consideration the statutory definitions of misleading commercial activity.