• Over PLN 3.5 million – this is the sum of penalties imposed by President of UOKiK Tomasz Chróstny on 6 companies which violated consumer rights during commercial demonstrations and on the CEO of one of the said companies who obstructed the audit process.
• The presentation organisers used to mislead consumers - inter alia, sellers concealed the actual purpose of the meeting, failed to meet the promises concerning gifts, lured consumers with fictitious promotions and limited the right to complain or withdraw from the contract.
• Senior, take UOKiK’s advice and do not let be deceived during the presentation.

The President of the Office of Competition and Consumer Protection has been consistently fighting against unfair practices which occur during commercial demonstrations. Companies lure consumers, most often seniors, under the pretext of, for example, free medical check-ups or by tempting them with expensive gifts. Participants in such meetings are often manipulated, misled into believing that they have been given a truly unique bargain. As a result, they walk out with useless devices purchased at manyfold inflated prices. Moreover, the organisers of commercial demonstrations often make it difficult to consumers to withdraw from the contract, and once it happens - they used to return money with a significant delay.

- We have identified a significant number of irregularities and unfair practices at commercial demonstrations, including limiting the rights of consumers, misleading them or exerting pressure on them. This is all the more reprehensible since the victims are most often seniors, a particularly vulnerable social group. I imposed financial penalties on further six companies infringing consumers’ rights for the total amount of over PLN 3.5 million. As consumers, we should be extremely vigilant at commercial demonstrations and not succumb to emotion, manipulation, persuasion or deceptive sales techniques – says Tomasz Chróstny, President of UOKiK.

Sanctioned entrepreneurs and CEO

1.    Kiddy Island Polska sp. z o.o. limited partnership from Poznań – PLN 1,667,360.

2.    Rademenes Pro sp. z o.o. from Mrowino (Wielkopolskie Province) - PLN 628,208. In addition, the CEO of this company was fined with PLN 50 thousand for obstructing the audit.

3.    Paulina Jaworska and Dawid Kubis - partners in a Premium Group civil partnership from Bolewice (Zachodniopomorskie Province) operating under the names of Grays company from Bolewice and Trading and Service Company (FHU) from Grodzisk Wielkopolski - PLN 416,366.

4.    Robert Dymkowski conducting business activity under the name Farma Snu in Wiry (Wielkopolskie Province) - PLN 378,630.

5.    Hanna Ludwikowska and Paweł Piechowiak - partners in Remeso Life civil partnership from Nowy Tomyśl (Wielkopolskie Province) - PLN 306,724.

6.    SMED sp. z o.o. from Bydgoszcz – PLN 88,410.

Contested practices

• Misleading as to the purpose of the meeting (Farma Snu, Kiddy Island, Remeso Life, SMED). In the invitations, entrepreneurs used all sorts of excuses to trick consumers into attending the demonstrations. For example, they would provide the following as the main purpose of the meeting: free medical check-ups or premiere of new products in preventive health care, while the real purpose was to present the company’s regular offer and sell its products.
• Suggesting a fictitious price advantage (Rademenes Pro, Remeso Life). The sellers misled consumers about the actual price of the products. They were referring to the sales at the shows as a unique opportunity, while it was their regular sales offer.
• Misleading as to the gifts (Farma Snu, Remeso Life). Consumers were assured that for mere participation in the meeting they would receive eye-catching gifts, e.g. a multifunctional food processor, a steam vacuum cleaner or a voucher for a hotel stay. However, in reality the gifts turned out to be less valuable than advertised (e.g. a basic blender or a set of knives instead of a multifunctional food processor), they were part of the purchased sets or required additional payment (in order to use the voucher you need to buy meals in the hotel).
• Misleading consumers as to the organisation of the demonstration (Kiddy Island). Occasionally, the company provided false information to build its credibility and inspire consumer confidence, e.g. that the meeting was funded by a non-existent “sponsor”. The rules for organising the draw were also presented incorrectly.
• Limiting the consumer’s right to withdraw from the contract (Farma Snu, Premium Group, Remeso Life, SMED). A consumer who purchased goods at the demonstration has the right to withdraw from the contract within 14 days. The sanctioned companies misled consumers to discourage them from doing so. For example, they illegally claimed that it was impossible to withdraw from a contract in the case of promotional goods. An invalid condition was also included that if the consumer cancels the contract, they must send back the gifts received and the receipt. One company illegally charged PLN 500 for providing “training” in the use of a magnetotherapy device.
• Delays in returning money (Premium Group). According to the regulations, the seller is obliged to return the money immediately, no later than within 14 days of receiving the contract withdrawal statement, it may possibly wait until the consumer sends back the purchased goods. Meanwhile, in 88 out of 101 cases, Premium Group returned the money with a delay that ranged from a few days to even a year, usually more than a month, despite customers having sent the goods back.
• Limiting the right to complain (Premium Group). There were also attempts to mislead the consumers about the complaint procedure, by stating for example that the consumer is obliged to inform the seller about the non-conformity of the goods with the contract within two months from the moment of disclosing the non-conformity. However, according to the law, the seller is generally liable under the warranty if the physical defect is discovered before the expiration of two years, and during this time, consumers cannot be limited by the deadline for claiming the defect.

Financial penalty for obstruction of audit

Under the regulations, the President of UOKiK may impose a penalty of up to 50 times the average salary on a person holding a managerial position at an entrepreneur if he or she obstructs the audit process. This was the procedure followed in the case of the CEO of Rademenes Pro company. Despite repeated calls, he failed to provide the requested information or documents, such as sample contracts with consumers or proof of purchase and photographs of gifts offered for participation in the demonstrations. As it was stated in the judgement, “a fine of PLN 50,000 (say: fifty thousand zlotys) is imposed on Piotr Paweł Wesoły - CEO of RADEMENES PRO sp. z. o.o. with its registered office in Mrowino, for obstructing the audit procedure (...)”.

How to avoid being duped at the presentation?

• Watch out for potential catches in invitations. Do not get deceived it is all about free medical check-up or lecture. Remember that gifts are usually not for free - consider if they are worth your time and risking temptation.
• Do not take a hasty decision. You have the right to reliable information about the products offered. Ask about their properties, compare prices. Do not let yourself get convinced you must buy the item immediately, because later you will not have the opportunity.
• Be careful when buying on instalment basis. Read carefully the agreement and attachments, including the text written in “small print”. Check if there are any hidden additional costs. If you sign blank promissory notes, make sure they include “not to order” clause or an equivalent expression.
• Request the documents. The seller must give you a copy of the agreement, all attachments, and promotion terms and conditions.
• You can withdraw from the contract. You have 14 days following the receipt of the goods to withdraw. If the seller did not inform you about it, this period is extended to 12 months. Within 14 days after sending a statement of withdrawal from the contract, you must send the product back at your own expense.
• You can submit a complaint on a defective product. If the equipment breaks down (of course not by your fault), you can ask the seller to repair or replace the goods, reduce the price, and even when the defect is significant - to get a refund. The seller shall be liable under the warranty for defects which occurred within 2 years from the date of delivery of the goods.
• Where to look for help? In case of doubts or problems, call the consumer helpline: 801 440 220 or 22 290 89 16, send an email to: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE], contact the consumer advocate or the Trade Inspection.

Consumer support:

Phone: +48 801 440 220 or +48 22 290 89 16 – consumer helpline
Email: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE]
Consumer advocates – in your town or district

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: [SCODE]Yml1cm9wcmFzb3dlQHVva2lrLmdvdi5wbA==[ECODE]
Twitter: @UOKiKgovPL