Case law

  • Case Details
    • National ID: A-858-1702/2010
    • Member State: Lithuania
    • Common Name:link
    • Decision type: Administrative decision in appeal
    • Decision date: 03/01/2011
    • Court: Supreme Administrative Court of Lithuania
    • Subject:
    • Plaintiff: UAB “Saulėgrąžų vaistinė“
    • Defendant: Competition Council of the Republic of Lithuania
    • Keywords: discounts, medicinal products, misleading advertising, special offer, time-limited promotions
  • Directive Articles
    Misleading and Comparative Advertising Directive, Article 3
  • Headnote
    A pharmaceuticals advertising, stating about the price reduction for reimbursable medicines during the specified "happy hours” is considered as misleading advertising, if in fact some of the reimbursable medicines are marketed with 0 percent discount.
  • Facts
    The plaintiff both in its commercial posters and advertising on the radio disseminated the following statements (in Lithuanian): "Happy hours at all “Litfarma” pharmacies on weekdays from 2 pm till 4 pm! Up to 100 percent discount on co-payment of reimbursable medicines and 15 percent discount on all non-reimbursable goods". However, some of the reimbursable medicines were in fact marketed with a regular price (with 0 percent discount).

    The defendant adopted a decision, in which it identified the above-mentioned statements as misleading advertising on the account that not all reimbursable medicines were marketed with (even a minimal) discount and imposed a fine on the plaintiff. The plaintiff disagreed with this decision and filed a claim to the court, requesting annulment of the defendant’s decision.
  • Legal issue
    The court stated that advertising can be regarded as misleading as referred to in Article 3(a) of Directive 2006/114/EC (implemented into Lithuanian law by Article 5(5)(2) of the Law on Advertising) when the information provided in the advertising is vague, ambiguous or the essential information required to make the decision about the transaction to an average consumer is not provided in time.

    If the above-mentioned advertising could be seen as implying a right for the plaintiff to apply 0 percent discount on some reimbursable medicines, it would create an unjustifiable situation allowing the plaintiff to abuse its rights by alluring the customers to come to the plaintiff’s pharmacies and not apply any discounts at all. Since the advertising contained statements about discounts on a certain group of goods (reimbursable medicines) and not contained any exemptions from such statement, an average consumer could have reasonably understood that discounts were applied for all goods in that specified group (reimbursable medicines).

    Taking the above into consideration, the court confirmed that the plaintiff’s advertising was misleading, as not all reimbursable medicines were marketed with the discount during the "happy hours".
  • Decision

    Is the pharmaceuticals advertising, stating about the price reduction for reimbursable medicines during the specified "happy hours", considered as misleading advertising, if in fact some of the reimbursable medicines are marketed with 0 percent discount?

    URL: http://liteko.teismai.lt/viesasprendimupaieska/tekstas.aspx?id=94ed15a0-ff01-463f-b1b8-c7df0c0b32c8

    Full text: Full text

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  • Result
    The court rejected the plaintiff’s claim.