THE STATEMENT OF THE „LABAS“ SERVICE ACKNOWLEDGED MISLEADING

The Competition Council decided to acknowledge an advertising statement of the “Labas“ by Bitė Lietuva, UAB running “Get 10 cents for each minute of an incoming call from other networks“ to constitute misleading advertising. For the use of misleading advertising Bitė Lietuva, UAB was subjected to a fine of LTL 20,000. The company was also obligated to discontinue the use of the misleading advertising where the actions were still continued.

When imposing the fine the Competition Council also considered the significant duration and the scope of the infringement (the advertising statements have been disseminated in the national dailies, via the TV channels, radio stations, outdoor advertising facilities, cinema houses and the internet), as well as the aggregating circumstance – the infringement was committed repeatedly within one year from the earlier imposition of the fine for the violation of the Law on Advertising. The alleviating factors were also considered – the company having committed a violation, of his own accord, barred the way to harmful consequences resulting from the violation.

Having considered all circumstances as described in a consumer’s complaint and other ones established in the course of the investigation the Competition Council concluded that the advertising statement “Get 10 cents for each minute of an incoming call from other networks“ is incorrect. The statement of the “Labas“ service presumes that for each minute of a call received from another network a consumer is awarded a bonus of 10 cents. However, in respect of calls from a fixed telecommunications network the bonus has not been generated until 18 July 2008, and no bonus is being generated in respect of any calls from other than the Lithuanian network. This advertising statement could potentially mislead consumers and affect their economic behaviour, i.e., decisions and actions in relation to the acquisition and the use of the “Labas“ service provided by Bite Lietuva, UAB.

Representatives of Bitė Lietuva, UAB in principle agreed with the findings of the investigation and acknowledged an infringement of the Law on Advertising.