• Unauthorised use of logotypes of known financial
• and insurance institutions and use of a misleading name “Krajowy Fundusz Gwarancyjny” [National Guarantee Fund] – were specific practices challenged by UOKiK.
• The entrepreneur’s actions mislead consumers and aimed to encourage them to make risky financial investments.
• UOKiK imposed a total penalty of PLN 160,000 on KFG and its boss for infringing on the collective interest of consumers.

KFG operates throughout Poland through the websites www.krajowyfunduszgwarancyjny.pl and www.kfgsa.pl.  It encouraged them to invest in financial products of its affiliate Obligacje Społeczne P.S.A. Both companies suggested that they were “bonds” or “social bonds”, when in fact they were interest-bearing loans to be granted by consumers to entrepreneurs. In June 2022, the Obligacje Społeczne company was punished by way of a UOKiK decision.

KFG used the logos of the KNF Board, the Bank Guarantee Fund (BFG), the Insurance Guarantee Fund (UFG), and the Polish Development Fund (PFR) on its website. The use of well-known logotypes could give consumers a misleading impression that the products offered are covered by surveillance or a guarantee scheme. When seeing the logotypes of the KNF Board, BFG, UFG, PFR, the consumer could have assumed that they had been placed with the knowledge and consent of these institutions, which could unduly increase the attractiveness of the presented products. This unlawful practice could have affected customer purchasing decisions and their conviction that the money they invested
in the promoted product is secured.

In addition, KFG uses the name “National Guarantee Fund” on its website and Facebook. This may mislead consumers into thinking that KFG is a statutory entity operating under the Bank Gospodarstwa Krajowego. The creation of such a conviction by the company could increase the credibility of the offer of “social bonds” on the website and further encourage their purchase.

- The unfair practices applied by KFG were doubly harmful. Consumers were misled – the product offered as so-called social bonds was in fact an unsecured high-risk loan. In addition, the entrepreneur has unlawfully used logotypes of institutions which supervise the financial market, care for the safety of participants, provide guarantees and support. This abuse could affect consumers' decisions, increase their interest in the promoted offer and suggest it is safe – says Tomasz Chróstny, President of the Office of Competition
and Consumer Protection.

Penalties on the Company and its President

Both KFG and the sole member of its Management Board who deliberately led to the irregularity will be held responsible for violating the collective interests of consumers. The penalties imposed total almost PLN 160,000. In accordance with the operative part of the decision, “the Office of Competition and Consumer Protection imposes on:

·        KFG Spółka Akcyjna with its registered office in Warsaw, financial penalties of (...)” in total
PLN 89,505

·        "(...) Mateusz Wojciech Kurczka – member of the Management Board acting as the President of the Management Board of KFG Spółka Akcyjna with its registered office in Warsaw in connection with the intentional infringement by an entrepreneur KFG Spółka Akcyjna with its registered office in Warsaw of the prohibition set out in Article 24 (1) and (2) (3) of the aforementioned Act (...)” a penalty of a total amount of PLN 70,000.

- The President of KFG played a key role in the preparation and implementation of the company's strategy. He personally engaged in all aspects of the company's activities. There is no doubt that he was aware of the unauthorised use of the logos of financial institutions and the use of the misleading term "National Guarantee Fund".  Therefore, I have decided to impose the financial penalty for this on him personally - says Tomasz Chróstny, President of UOKiK.

UOKiK notified the State Prosecutor’s Office about KFG activities.

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