COURT CONFIRMS THAT GUEST HOUSES CANNOT BE ADVERTISED AS APARTMENTS

Vilnius Regional Administrative Court (Court) has rejected the complaint by Kauno būstai and upheld the Competition Council‘s EUR 6,300 fine for the dissemination of misleading advertising.

In its judgment the Court notes that neither in the course of the Council’s investigation nor during the litigation process has Kauno būstai succeeded in proving the advertising claims that the real estate objects it was selling in the resort town of Palanga were apartments.  

The Court has upheld the Council’s findings that from September 2016 to February 2017 Kauno būstai advertised non-residential premises as residential apartments. The real estate objects in question consisted of guest houses and recreational facilities. The Court has agreed with the Council that the collected evidence went against the hypothetical possibility, put forward by Kauno būstai, of having residential premises (apartments) set up in the non-residential complex of buildings. The buildings were in a location exposed to high levels of noise, and the planning restrictions allowed only the construction of short-term accommodation facilities.

The Council reminds that real estate advertisements must contain clear and accurate indications about the type of premises and buildings that are being sold, as it is stated in the building permit or real estate registry.