Bulgarian Watchdog Fines Retail Chain Kaufland over Misleading Ad

Business | July 9, 2014, Wednesday // 17:06|  views

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The Competition Protection Commission (CPC) has imposed a BGN 500 000 worth fine on Kaufland for arguing it offers "the lowest prices" in an advertisement.

An inspection carried out by the CPC shows products in the chain stores have largely the same prices as those of competitors, the commission says on its website.

The financial sanction could have exceeded BGN 0.5 M (EUR 0.25 M), but the "mitigating circumstance" that Kaufland changed the advert after proceedings were initiated by the watchdog played into the retailer's hands.

Between 2010 and 2014, the company argued it provided "guarantees" that "no other retail chain" offered lower prices that it did for its own products (branded K-Classic) and this would be in force "day after day, year after year".

CPS believes that to "guarantee" in this case suggests a commitment to consumers that has actually been violated, and also that Kaufland used the term only to attract attention.

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Tags: Kaufland, retail, CPC, competition, advertisement, advert, fine


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