• Did Solgar Polska dictate prices of dietary supplements on retailers?
• Could consumers buy these products at lower prices?
• UOKiK has initiated proceedings in this matter. It brought charges against both the company and the managers.

Over 70% of Poles take dietary supplements, and more than 50% take them every day*. Last year, the value of this market exceeded PLN 4.5 billion, and in 2020 it is going to reach PLN 5 billion**.

The Office initiated proceedings regarding price fixing on the dietary supplements market. UOKiK pays special attention to the protection of competition in dynamically developing markets, such as the dietary supplements market. We have initiated proceedings against Solgar Polska. We also brought charges against two managers from that company who could be directly responsible for the findings in questions, says Michał Holeksa, the Vice President of UOKiK.

Solgar Polska is a distributor of dietary supplements such as vitamins, herbs and micronutrients produced by the American company called Solgar. They are sold both in stationary stores, mainly in pharmacies, and on-line. The Office conducted a search at the company’s headquarters and obtained evidence, including e-mail correspondence that the enterprise could have set minimal resale prices of dietary supplements with its contractors - retailers. As a result, consumers could not buy these products at lower price than the top-down price.

This illicit practice could have started in 2010. Solgar Polska monitored how set prices were applied and intervened if the supplements were sold at lower prices. First, the company’s representatives asked retailers to adjust their prices, then they denied them the possibility of ordering supplements on preferential terms, and in some cases cooperation agreement were terminated. The Office has information that retailers themselves watched their rates and informed Solgar Polska if any of them used lower prices.

Anti-monopoly law prohibits setting minimum or fixed resale prices by entrepreneurs operating at various levels of trade, such as a producer-wholesaler or distributor-seller. While suggesting prices is permissible, sellers must be free to shape their own pricing policy. In the case of Solgar Poland, however, it could have been different. Prices could only be suggested on paper, while in practice retailers could not sell supplements at lower prices, says the President of UOKiK, Marek Niechciał.

Any enterprise participating in a fraudulent scheme might be given a fine of up to 10% of its turnover, while managers involved in the collusion might be fined up to PLN 2 million. As the practice in question could have an impact on trade between EU countries, the Office conducts proceedings in connection with the violation of both Polish and EU regulations.

Severe fines can be avoided thanks to the leniency programme. It gives an enterprise and managers involved in a fraudulent scheme an opportunity to turn state’s evidence in exchange for leniency in sentencing. allows them to completely avoid or reduce the fine. The programme is dedicated to those who will provide evidence or information about the existence of a secret and deceitful agreement and will cooperate with UOKiK. Enterprise and managers interested in the leniency programme are encouraged to contact the Office. UOKiK lawyers can be reached at 22 55 60 555 and they will answer all questions regarding leniency applications, including anonymous ones.

If you know anything about a secret agreement in your former or current company, please notify UOKiK. The Office runs a programme aimed at obtaining information from anonymous persons aware of practices restricting competition. Contact us at 22 55 60 500 or at the following e-mail address: sygnalista@uokik.gov.pl. All data on the whistle-blower programme can be found at http://konkurencja.uokik.gov.pl/

*http://centrumprasowe.pap.pl/cp/pl/news/info/128337,,raport-cheers-nawyki-zywieniowe-polakow-2018-

**https://www.bankier.pl/wiadomosc/Suplementy-diety-to-rynek-wart-ponad-4-mld-zl-4115810.html

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL