THE AD ON HALF-PRICE FOR EVERYTHING IN BABILONAS RECOGNISED AS MISLEADING

The Competition Council of the Republic of Lithuania completed its investigation concerning the compliance of the advertising statements used by UAB Mulga on the occasion of the sales promotion event at the Panevėžys entertainment and trade centre Babilonas with the requirements of the Law on Advertising. Having assessed the findings of the investigation certain advertising claims, such as „Babilonas” The city of entertainment and trade. Everything half price! You buy one half and we will give you the other! 9 January 2007, the entertainment and trade centre Babilonas – from now on everything half price. You buy one half and we will give you the other <...>.“ For the use of the misleading advertising the Competition Council sanctioned the advertising provider UAB Mulga by subjecting it to a fine of LTL 10,000.

The investigation concerning the advertising published in the Internet website of the entertainment and trade centre Babilonas, the Panevėžys county radio station and the outdoor billboard – the display panel, posters and the press was started on the basis of an application filed by a consumer. The consumer claimed that having visited 10 stores in the entertainment and trade centre Babilonas she could not buy anything for half price contrary to what was announced in the ad, which was also confirmed by cash receipt. The investigation established that in the period from 6 January 2007 until 29 January 2007, UAB Mulga, seeking to promote sales in the entertainment and trade centre Babilonas was disseminating the above advertising statements. Since price is one of the most important and determining factors shaping the buyer‘s decision in selecting goods and services, the statements used in the ads claiming that „everything half price! You buy one half and we will give you the other“ clearly suggested to the consumers that when buying in Babilonas they will be charged only half the price. Despite the advertising, actually the prices for goods were not halved. UAB Mulga was also not able to present to the Competition Council any proof that within the period of the advertising the buyers were actually charged half price and thus substantiate the correctness of the advertising claims. The Competition Council concluded that by using the advertising claims UAB Mulga was misleading its consumers and encouraging their economic behavior.