THE UNFAIR COMPETITION BY KYIV POULTRY FARM WAS DETECTED
On 03/11/2016, the Kyiv regional department of the Antimonopoly Committee of Ukraine granted limited liability company Kyiv Poultry Farm (Pukhivka, Kyiv Oblast) compulsory recommendations to indicate chicken cooking eggs of the highest category with the information about consumer and other properties that are well documented.
During the investigation, which was conducted by the request of the Antimonopoly Committee of Ukraine, the Kyiv regional department of the AMCU found that TOV Kyiv Poultry Farm produces and sells eggs, the label of which states “with high content of vitamin E, selenium and carotenoids”.
Declared properties on the product label were confirmed by laboratory tests, but the company has implemented its control only after the request of the department head of the AMCU.
That is, from the date of the beginning of the eggs realization (26/06/2015) till 30/09/2016 TOV Kyiv Poultry Farm didn’t carry out any controls abut the availability of the stated consumer characteristics of eggs.
According to the Regulation of the food products marking, the marking and the way through which it is made mustn’t misinform consumers about the ungrounded indication of the information about food product properties, the proof of which he hasn’t.
An average consumer, who sees the words on the label of eggs “with a high content of vitamin E, selenium and carotenoids”, perceives it as the validated information. It can give TOV Kyiv Poultry Farm an advantage over other manufacturers/competitors on the market as such label is able to draw the consumer’s attention and acts as an additional incentive to purchase the entity’s product.
The department established that the actions of Kyiv Poultry Farm, which are to inform potential customers about available consumer product properties without supporting documents for determining the actual yields of vitamins and micro-elements, could provide additional benefits compared with other entities on the market of production and realization of chicken cooking eggs. Their actions have signs of the violation of the Article 15¹ of the Law of Ukraine “On unfair competition” in the dissemination of the misleading information, in particular: dissemination by the entity of the inaccurate information containing data on the properties of consumer goods that can affect the consumer’s intent to purchase entity’s goods.
Taking the above into account, Kyiv department of the AMCU granted compulsory recommendations to TOV Kyiv Poultry Farm in order to eliminate the cause of the law violation on the protection against the unfair competition origin. The company is compelled to report about its results of consideration within 10 calendar days of the day of receipt.
We note once more that the dissemination of incomplete, inaccurate and false information, including advertisement, is the law violation through the unfair competition. Fines for the unfair competition tot up to 5% of the yearly income from the sales revenue (goods, works, services).
This should be considered when planning campaigns.
Our team representatives have ten-year experience. It allows us to render professional legal evaluation of your campaigns and, in its turn, to help to prevent the law violation on protection against unfair competition.