SPLIUS PUNISHED FOR MISLEADING ADVERTISING

On 28 June, the Competition Council (Konkurencijos taryba, KT) imposed a fine on SPLIUS (SPLIUS) for misleading advertising. The fine had been reduced to LTL 10,000 (EUR 2,896) since the undertaking admitted its infringement.

KT carried out an investigation, having received a complaint of TEO LT, AB,according to which the advertisement, wherein SPLIUS offers to purchase the services of the internet, digital and cable television under conditions favourable to consumers may be misleading.

During the investigation the KT determined that from 1 September 2012 till 31 October 2012 SPLIUS, an undertaking that provides services of electronic communications in the regions of North and West Lithuania, had been promoting a campaign Autumn Campaign whereby the undertaking offered to purchase its services under the conditions favourable to consumers.

In the advertisement next to the offer of digital television services the following statements were indicated: Digital TV for free (till 1 November), High definition television for free, next to the offer of cable television was stated free till 1 November.

The KT determined that the description of services as being free was misleading because the consumers who wanted to use these services had to conclude fixed term contracts and to pay the fees determined by the undertaking. It is important to note that the aforementioned conditions were not indicated in the advertisement.

The KT also acknowledged that the statements concerned with the prices of the services, i.e. the statement in the advertisement for the internet services from LTL 5 per month + router for LTL 1, the statement in the advertisement for digital television services recording receiver just LTL 1 and the statement in the advertisement for cable television services the elderly – from LTL 6 per month and from LTL 6 per month, were misleading. The aforementioned statements were admitted to be misleading as they failed to inform consumers about the contract obligations and about the fact that the fees indicated in the advertisements are valid only for a certain period of time which having passed higher fees are applied.

Even though in some advertisements an additional statement there are additional conditions was indicated, according to the KT, this does not eliminate the possibility to mislead consumers, since when choosing certain SPLIUS services under the conditions, indicated in the advertisement, consumers, based on the advertisement text only, cannot imply that there are specific additional conditions for purchasing the services concerned.

Notice

Misleading advertising means advertising which in any way, including its presentation, misleads or is likely to mislead the persons to whom it is addressed or whom it reaches and which, by reason of its misleading nature, is likely to affect their economic behaviour or which, for those reasons, harms or is likely to harm another person’s capabilities to compete (Law on Advertising, Article 2(4)).

Communication division