THE RIVNE ECONOMIC COURT OF APPEAL CONFIRMED THE UNFAIR COMPETITION OF CONFECTIONERY FACTORY LAGODA
On 20 November 2016 the Rivne Economic Court of Appeal upheld the decision of the Vinnytsia Oblast Economic Court, which rejected the appellation of PrAT Confectionery factory Lagoda about the annulment and cancellation of the decision of the administrative body of the AMCU about the recognition of company’s actions as the unfair competition, implement of fine and fulfilment of obligations.
On 28/12/2015 the administrative body of the Vinnytsia regional department of the Antimonopoly Committee of Ukraine made a decision about the violation of the legislation on protection of the economic competition by pPrAT CF Lagoda. According to this decision company’s actions were qualified as unfair competition through the dissemination of misleading information. The fine amounted to 204 ths. hryvnas and, in addition to it, the company was obliged to stop the violation. Thus, in September 2009 PrAT Lagoda produced cookies “Ladushki useful carrot cookies”, “Ladushki useful lemon cookies”, “Ladushki useful honey cookies”. On the packages of cookies the company disseminated the following phrase: “We care about the health and proper development of the child”, and “Every child loves delicious sweets, and every mother dreams of these sweets to be helpful. TM “Zagora” took care of their little sweet tooth, and of their mothers by creating cookies “Ladushki”.
The regional department found that during the production of cookies “Ladushki useful carrot cookies”, carrots or its derivatives (juice, etc) weren’t used. Beta-carotene is included into the composition of cookies, and which, as turned out, were made by the microbiological method. During the investigation of the case the company changed the title of the cookies for “Ladushki useful cookies with beta-carotene”.
Also the regional department found that to the actual name of cookies company added word “useful” without permit.
On the request of the Vinnytsia regional department PrAT CF Lagoda didn’t provide evidences (findings of the competent authority, the results of clinical examinations, etc.) of the usefulness of cookies for the children’s category of consumers and for which age group, and for their mothers; the positive effect of cookies on the health of a child and for which age group; the positive effect of cookies on correct development of a child and for which age group.
The company provided the information that they produce cookies for the general range of consumers. Consequently, the use of words “child” and “useful” on the packaging was unreasonable.
On 04/10/2016 the Vinnytsia Oblast Economic Court and on 30/11/2016 2016 the Rivne Economic Court of Appeal dismissed the settlement of the plaint of PrAT CF Lagoda.
So! Do not indicate the information on the packaging of food for which you do not have supporting documents. Avoid using in the title of the product or on its packaging the information on the nature of origin, which could mislead consumers.