COMPANY LITSOFT WARNED FOR ITS MISLEADING ADVERTISING STATEMENT

Having assessed the findings of the completed investigation the Competition Council acknowledged the advertising statement “JOHN DEERE 8530 (2007, 330 AL, ILS, „Autopower“, „Climatrac“, new) – LTL 0 plus VAT“ to constitute a misleading advertising. For the use of misleading advertising Litsoft, UAB was subjected to an administrative sanction – the warning issued by the Competition Council. The sanction was imposed having considered minor significance of the infringement – the advertising containing a misleading statement was published on merely two occasions in the weekly for farmers “Ūkininko patarėjas“.

The investigation was opened according to the application filed by Dojus agro, UAB. The applicant claimed that the statements published in the newspaper advertising tractors “New Holland“ and “John Deere“ with the manufacturer’s warranty and indicating the terms for the acquisition of the tractors from Litsoft, UAB, might constitute a misleading advertising, since Dojus agro, UAB was the only entity authorised to provide the manufacturer‘s warranty to the tractors advertised. Furthermore, the price is the tractor indicated in the statement – LTL 0 plus VAT – was incorrect.

In the course of the investigation the Competition Council established that manufacturers grant the warranty to each new tractor manufactured by them therefore Litsoft, UAB, having legitimately acquired the tractors from foreign companies with the manufacturer‘s warranty indicated that in its advertising statements. Litsoft, UAB had assumed an obligation to perform itself a warranty technical maintenance of the tractors under warranty at no charge. At the time the advertising statements were published the company was carrying out a promotion action, and the consumers who opted to acquire tractors in the company under leasing agreement were eligible for certain discounts, which exactly the company was advertising, and the statements were truthful.

However, the advertising statement contained incorrect information running “JOHN DEERE 8530 (2007, 330 AL, ILS, „Autopower“, „Climatrac“, new) – LTL 0 and VAT“, since tractors were not sold for the price indicated. Having assessed all circumstances and facts established in the course of the investigation the Competition Council arrived at a conclusion that the advertising statement in question, by virtue of the incorrect information contained therein, could mislead an average advertising user and affect his economic behaviour while choosing a suitable tractor seller. Litsoft, UAB claimed that by the statement the company was using it merely sought to inform consumers that for the purpose of the acquisition of a tractor, a zero down payment   was required and only the VAT was required from the full price of the tractor.  The company assumed that a consumer, having seen the statement shall in no way get an idea that he was able to acquire a tractor for the price indicated.