Case law

  • Case Details
    • National ID: A-1352-624/2016
    • Member State: Lithuania
    • Common Name:link
    • Decision type: Administrative decision in appeal
    • Decision date: 04/04/2016
    • Court: Supreme Administrative Court of Lithuania
    • Subject:
    • Plaintiff: UAB “Natural Pharmaceuticals”
    • Defendant: State Consumer Rights Protection Authority
    • Keywords: advertising, commercial offer, misleading actions, misleading price, pharmaceuticals, price indication, transaction decision, unfair commercial practices
  • Directive Articles
    Unfair Commercial Practices Directive, Chapter 2, Section 1, Article 6, 1. Unfair Commercial Practices Directive, Chapter 2, Section 1, Article 6, 1., (d)
  • Headnote
    Non-disclosure of a total yearly price of the product cannot be considered as an unfair commercial practice, if accurate monthly and daily prices of that product were duly disclosed and the consumer was aware from the advertising that it was a yearly package for which the consumer would have to pay a particular price every month.
  • Facts
    The plaintiff disseminated the advertising, in which if offered the consumers to purchase a one year package of food supplements “OmegaMarineForte+” by paying LTL 14.95 for the first month and LTL 29.90 for the following eleven months. The advertising also stated that the food supplement package costs only LTL 0.96 per day. However, the advertising did not provide a total yearly price of the whole package. The total yearly price of the package was indicated only in the documents sent together with the package itself and the invoice for the first month.

    The defendant adopted a decision, in which it found that the plaintiff engaged in unfair commercial practices, in particular, misleading actions, due to the failure to disclose a total yearly price of the package and imposed a fine on the plaintiff. The defendant concluded that the plaintiff’s commercial practices would likely have caused the average consumer to take a transactional decision that he would not have taken otherwise.

    The plaintiff did not accept the defendant’s line of argumentation and applied to the court requesting annulment of the defendant’s decision.
  • Legal issue
    The court firstly decided that the plaintiff’s commercial practices cannot be qualified as misleading actions because misleading actions require giving false or otherwise deceiving information. Since a total yearly price was not disclosed to the consumers in advertising materials, the court noted that such practices can only be considered in the light of misleading omissions.

    Nevertheless, the court elaborated that in order to determine misleading omissions one should prove that material information was hidden or otherwise provided in an unclear, unintelligible, ambiguous or untimely manner and therefore could have made an average consumer to make a transactional decision he would not have made otherwise.

    Since the monthly price and the daily price were properly disclosed to the consumer and the consumer had to pay invoices sent to him on a monthly basis and had a right to withdraw from the contract within fourteen days after the delivery of a yearly package, the court decided that the plaintiff did not engage into unfair commercial practices.
  • Decision

    Can a non-disclosure of a total yearly price of the product be considered as an unfair commercial practice, if accurate daily and monthly prices of that product were duly disclosed to the consumer?

    URL: https://www.e-tar.lt/portal/lt/legalAct/44f751b0025a11e6b9699b2946305ca6

    Full text: Full text

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  • Result
    The court upheld the plaintiff’s claim.