WARNING TO ERGO LIETUVA FOR MISLEADING ADVERTISING

Having concluded the investigation according to the application of AB Lietuvos draudimas concerning the compliance of the advertising broadcasted by UADB ERGO Lietuva with the requirements of Article 5 of the Law on Advertising, the Competition Council passed a decision – the advertising statement used by ERGO Lietuva „The most reliable insurance company ERGO Lietuva ...“ recognised to constitute a misleading advertising. Having regard to the fact that the company on its own initiate ceased the broadcasting of the misleading advertising, – i.e., the advertising statement did not incur any material damage to the interests protected by the Law on Advertising, the Competition Council sanctioned the insurance company ERGO Lietuva by an administrative measure – the warning.

Ordered by UADB ERGO Lietuva, starting from 23 May 2006, for one month the television channels LNK and TV1 and the radio station M-1 plius were broadcasting the advertising of Elton John concert that included the statement "The most reliable insurance company ERGO Lietuva presents...“. In the opinion of the Competition Council the use of such advertising statement could mislead the users of the advertising concerning the reliability of the company and affect their economic behaviour, i.e., actions and decisions related to the acquisition of the insurance coverage. Insurance services are specific and an advertising user must have significant specific expertise to be able to verify the reliability of an insurance company or at least to compare it with other insurance companies. The legal acts of the Republic of Lithuania do not provide for any specific criteria for the reliability of a company rendering insurance services, therefore the company’s image plays a significant role; the insurance company ERGO Lietuva was seeking to create its image employing methods prohibited by the Law on Advertising.