MISLEADING ADVERTISING CLAIMS IN THE PUBLICATION EUROKOMPIUTERIAI

The Competition Council of the Republic of Lithuania examined the findings of the completed investigation concerning the compliance of the advertising claims in the publication Eurokompiuteriai (March-May, 2005) and passed the resolution on the issue. The advertising claim published in the said publication running “Buy hire-purchase and get a 33% computer value refund as the instalments will be spread over 2-3 years” was recognised misleading within the meaning of the Law on Adverting. A pecuniary fine of LTL 6.000 was imposed upon UAB Euroinvesticijos for the use of misleading advertising statements in its publication Eurokompiuteriai. When imposing the fine for the infringement the Competition Council made allowance for the measures timely implemented by UAB Euroinvesticijos aimed at preventing consequences possibly arising from the use of the said advertising statement.

The investigation was initiated against the complaint lodged by the community of Antakalnis neighbourhood.

The investigation concluded that the advertising statement used in the publication Eurokompiuteriai could mislead the users of the advertising concerning the final price of the computers and have an impact upon their economic behaviour, - decisions or actions related to the acquisition of a computer. The publication indicated that the offer is valid for March-May 2005, therefore the advertising users could have justifiably expected the offer to be open until at least the end of May 2005. The user could reasonably expect that upon acquisition of the computer in a store of UAB Euroinvesticijos in May under a hire-purchase agreement for a 2-3 years period he would be entitled to the refund of 33% of the value of the computer. In fact, the user acquires the entitlement to the refund only after payment of the full price of the computer that is to happen in 2007 or even 2008. In accordance with the effective provisions of the Law on Income Tax of the Republic of Lithuania a resident having acquired, in the course of three years, one PC unit with the software and (or) the Internet access and the required equipment has a right to deduct the respective amounts from the annual taxable income only provided the amounts have been paid within the period from 1 January 2004 until 31 December 2006.