Bulgarian Watchdog Fines 2 Retail Chains for Misleading Advertising

Business | January 2, 2014, Thursday // 16:48|  views

Photo by BGNES

The Commission for Protection of Competition (CPC)  has penalized two retail chains, Billa Bulgaria EOOD and Lidl Bulgaria EOOD & Co, for misleading advertising

According to a media statement published on the website of the anti-trust watchdog, Lidl's slogan "Best of Bulgaria, Best of Europe" may have a negative impact on the competitive environment on the market and on the economic behavior of consumers.

The CPC says that the claim "the best" is interpreted in the context of the products displayed, thereby implying that these items, as well as this retail chain, are the best.

The CPC notes that Lidl fails to provide relevant evidence such as surveys, comparative analyses, tests, awards of products, etc to substantiate the claim in the advertisement.

Lidl faces a fine of BGN 370 859 and must stop the infringement and publish the CPC decision in 2 national dailies within a week at its own expense.

Billa Bulgaria has been penalized over the advertisement "Lowest Price, Guaranteed by Clever."

The CPC informs that it detected cases where products of the "Clever" brand were sold at higher prices than comparable products at other retailers.

The anti-trust watchdog states that there were cases when Billa Bulgaria EOOD did not reduce the price of the "Clever"-brand product, contrary to the claim stated in the advertising campaign.

According to the anti-trust watchdog, consumers are thereby tricked into believing that by buying products of the "Clever" brand they always pay the lowest possible price compared to similar items sold at rival retail chains.

Billa Bulgaria has been fined BGN 483 000 and will have to publish the decision of the CPC in two national dailies at its own expense.

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Tags: Billa Bulgaria, Lidl, Commission for Protection of Competion, anti-trust, fine

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