• It was supposed to be a promotional campaign called “Get To Know Polish Brand”, a notebook as a gift, discounts worth even tens of thousands of zlotys. There were trade shows with products sold at steep prices.
• President of the Office of Competition and Consumer Protection (UOKiK) Tomasz Chróstny imposed a fine of over PLN 1.2 million on New Life for misleading consumers.
• Financial consequences – PLN 225,000 in total – will also be borne by the CEO of the Company who intentionally contributed to violations of collective interests of consumers and obstructed the performance of an inspection.

[Warsaw, 4 July 2022] New Life seated in Suchy Las near Poznań holds trade shows addressed to people aged 40 or older, including senior citizens, who are a particularly vulnerable group of consumers. After the proceedings and inspection were carried out, the President of UOKiK issued a decision in which he challenged three of the company practices and imposed a fine of over PLN 1.2 million (PLN 1,211,189) on the company.

- New Life intentionally misled consumers in order to get them to come to the show and buy the products on offer. This objective was achieved through a number of manipulations – from concealing the true purpose of the meeting and promises of unreal gifts to giving the impression of a special price advantage. This could affect consumer decisions and induce them to make unnecessary and unprofitable purchases – says Tomasz Chróstny, President of the Office of Competition and Consumer Protection.

Contested practices

1. Misrepresentation of the actual purpose of the meeting. During phone calls, consumers were invited to the “Get To Know Polish Brand” promotional campaign – an advertisement for state-of-the-art appliances of a German manufacturer, promotion of a new chain store selling white goods and brown goods, or a health prevention campaign. Moreover, during a reminder call before the meeting, they were assured that there would be no sales during the meeting. “I will not solicit or persuade you to buy anything. (...) Our meeting is supervised by Advertising Committee, you don’t sign anything, you don’t pay anything for that, whether tomorrow or in the future, and we don’t collect any data from you” – as assured by telemarketers in line with the script. Meanwhile, in reality, there was a trade show at which products from the company’s offer were presented and sold.
2. Misrepresentation of gifts. Telemarketers gave consumers the impression that just for attending the meeting they would receive: a notebook, multifunctional robot vacuum cleaner, automatic coffee maker, or steam mop. In reality, these gifts did not exist.
3. Provision of false information on product prices. New Life’s representatives informed consumers about very high catalogue prices at which, however, the products were never sold. Then they offered large discounts. Thus, using the so-called “vanishing offer” method, they created the impression of a special price advantage. For example, when a representative of UOKiK played the role of “Mystery Shopper” in November 2021, he was offered to purchase a package that included a massage mat and cordless vacuum cleaner for PLN 5,000 plus a tablet, knives, wool underpads, and lanolin as a gift. The price of the mat and of the vacuum cleaner presented during the show amounted to PLN 14,900 and PLN 5,900, respectively. This means that the alleged discount amounted to at least PLN 15,800, not including the “gifts”. According to the findings of UOKiK, New Life had predetermined prices with “discounts” and its margins – relative to the prices for which it purchased the products on offer – were very high.

The President of UOKiK ordered the company to immediately cease and desist the contested practices. Once the decision becomes final, the company will also have to notify all consumers with whom it has entered into contracts about it.

Liability of CEO

The financial penalty for violating the collective interests of consumers will be borne not only by the company, but also its CEO, who intentionally allowed unfair practices. In such a case, the executive faces sanctions of up to PLN 2 million. According to the operative part of the decision “Pursuant to Article 106b(1) and 106b(3) of the Competition and Consumer Protection Act of 16 February 2007 (Journal of Laws of 2021, item 275), the President of the Office of Competition and Consumer Protection imposes on Mariusz Krzysztof Jankowiak – President and sole member of the Management Board of New Life Ltd. seated in Suchy Las – a fine in connection with the intentional violation by the aforementioned Company of the prohibition set forth in Article 24(1) and 24(2)(3) of the aforementioned Act” in the total amount of PLN 175,000. In addition, the CEO of New Life was charged with a penalty of PLN 50,000 for obstructing the inspection, including failure to provide the requested information and documents, failure to appear at the agreed meeting.

- The CEO of New Life must bear the consequences both for causing violations against consumers and for the lack of cooperation during the inspection at his company. According to our findings, these were deliberate actions. The CEO personally approved scenarios for marketing calls, represented the company when concluding the agreement with a firm which invited consumers to the shows and supervised their execution. Executives’ actions may not go unpunished when they allow violations of consumer rights – says Tomasz Chróstny, President of UOKiK.

Legal changes regarding sales at shows

As of 26 May this year, the sale of medical devices away from the business premises, including at shows, has been banned.

In the course of legislative work, further measures were adopted to tackle irregularities occurring e.g. during commercial tours or presentations or at consumers’ houses. The draft legislation prepared by the President of UOKiK, which has already been approved by the Council of Ministers, provides for:

• extension of the deadline for withdrawal from the contract to 30 days for transactions concluded during a tour or an unscheduled visit by an entrepreneur at the consumer’s house;
• prohibition on entering into contracts for financial services with consumers during a demonstration or a tour. This includes, for example, the sale of displayed products in instalments or taking out a loan for them – the contract signed in such cases will be null and void by law;
• the possibility of withdrawing from certain off-premises or distance contracts for health services. This includes so-called contracts involving medical subscriptions;
• prohibition on accepting payments before the expiry of the deadline for withdrawal from the off-premises contract, which is 14 days (shows) or 30 days (a tour and an unscheduled visit by an entrepreneur at the consumer’s house).

Hints and advices for consumers

1. Watch out for potential catches in invitations. Don’t be fooled into thinking it is all about free medical check-up or promotion of a new chain store. Remember that gifts are usually not for free.
2. Don’t take quick or hasty decisions. You have the right to reliable information about the products offered. Ask about their features, compare prices. Don’t let yourself get convinced you must buy the item immediately because you will not have the opportunity to do it later.
3. Be careful when paying in instalments. Carefully read the contract and its attachments, including the “small print”. Check for any hidden additional costs.
4. Request the documents. The seller must give you a copy of the contract, all attachments, and promotion terms and conditions.
5. You can withdraw from the contract. You have 14 days following the receipt of the goods to do it. 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.
6. You can submit a complaint on a defective product. You can ask the seller to repair or replace the goods, reduce the price, and when the defect is significant - to get a refund. The seller is liable under the warranty for defects which occurred within 2 years from the date of delivery of the goods.

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
Trade Inspection Authority – in your province

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