TEZ TOUR UAB FINED FOR MISLEADING ADVERTISING

In its regular meeting the Competition Council examined the findings of the investigation concerning the compliance with the requirements of Article 5 of the Law on Advertising of the advertising statements published by Tez Tour UAB in the advertising catalogues “Egypt. May–October 2007. Hurghada“, “Egypt. Grand Canary 2007-2008“ and the internet website www.travelman.lt about the hotel Sultan Beach in the Egyptian city Hurghada. The advertising statements reading “Sultan Beach“ 3+ star hotel“, „Hotel country category – 4 star“ were recognised to be misleading. The travel agency Tez Tour UAB was obligated to cease the use of the misleading advertising, and include into the contracts with the customers who have booked a stay in the Sultan Beach hotel an individual item indicating a correct category of the hotel, and further to negate the misleading advertising statement in an established manner. For the infringement of the Law on Advertising the Competition Council imposed upon Tez Tour UAB a fine in the amount of LTL 30,000.

In the opinion of the Competition Council the misleading statements used by the infringing company concerning the category of the hotel could affect the consumers choosing the tour operator and the hotel for their accommodation in the country of destination and have an impact upon the decisions and the behaviour of the consumers related to their choice, i.e., affect their economic behaviour.

The investigation was conducted on the basis of a customer’s complaint. Having arrived to the hotel Sultan Beach in Hurghada the customers found out that the category of the hotel is lower than indicated in the advertising material.

The Competition Council imposed the fine having considered a significant scope of the proliferation of the advertising statements and the aggravating circumstance – a repeated infringement of the Law on Advertising in the course of one year. In February 2008, the Competition Council acknowledged the statements published by Tez Tour UAB to constitute misleading advertising and sanctioned the company LTL 20,000. The company had appealed this decision of the Competition Council to court. The Vilnius Regional Administrative Court acknowledged the Resolution of the Competition Council to be lawful and substantiated.