THE COMPETITION COUNCIL IMPOSED A SANCTION FOR THE ADVERTISING OFFERING A DISCOUNT TO SURCHARGES FOR ONLY SELECTED MEDICINES

The Competition Council examined the advertising statement broadcasted on the radio by the pharmacy UAB Saulėgrąžų vaistinė running „In all Litfarma vaistinė pharmacies from 2.00 to 4.00 p.m. every working day – “happy hours“ of up to 100 percent discount to surcharges of compensated medicines and 15 percent discount to all non-compensated products. Litfarma vaistinė – ready to listen to and advise You.” The advertising statement to the extent it was related to granting discounts for surcharges of only selected medicines - was recognised to constitute misleading advertising. For the infringement of Article 5 of the Law on Advertising – the use of misleading advertising UAB Saulėgrąžų vaistinė was subjected to LTL 3,000 fine.  The company was also obligated to immediately cease using the misleading advertising, i.e., not to use the advertising statement that was recognised misleading in case the actions were still continued.

The investigation was started by the Competition Council in response to a complaint lodged by a consumer who, having heard on the radio that within the “happy hours“ Litfarma vaistinė pharmacies were applying a special 100 discount to the surcharge for compensated medicines arrived to the pharmacy within the advertised hours and purchased compensated medicines; however, no discount was grated as advertised.

In the course of the investigation it was determined that the advertising aired on the radio was incomplete. The discounts of up to 100 percent for a specific category of medicines (surcharges of compensated medicines) were advertised without including any reservation to the effect that the discounts were offered only to the medicines included into the list of the promotion action. The list of the medicines included into the special promotional list was made available to consumers at the pharmacy stores. In the opinion of the Competition Council with no indication of the reservations concerned or other information necessary to avoid misleading consumers omitted, having arrived at a Litfarma vaistinė pharmacy within the indicated time span could reasonably expect to be granted at least a minimum discount to the surcharge for compensated medicines. Being incomplete the advertising could mislead (and actually did) advertising consumers and have an impact upon their economic behaviour thus promoting them to purchase specifically in Litfarma vaistinės run by the UAB Saulėgrąžų vaistinė.

When imposing the fine for the infringement of the Law on Advertising the Competition Council considered a relatively short duration of the infringement (the ad was aired for 8 days on the Pūkas radio station and the Lithuanian national radio channel), also that the discount was refused for a comparatively small portion of compensated medicines. In that connection the competition authority examined the statements of other ads published by the same company which were not found misleading or infringing the requirements of the Law on Advertising.