BKO BP Bank’s advertising campaign of “Max Lokata” time deposit has violated the law by misleading consumers, determined the President of UOKiK and imposed on the company a penalty of over PLN 5.7 million.

The proceedings in this case were instituted in May this year. The Office’s reservations concerned the content of the advertising materials of PKO BP’s “Max Lokata” time deposit. The bank had carried out the advertising campaign of its new product from January to the end of February 2008. The mass media had been sued (the press, radio, internet, television) and leaflets and posters were available in the bank’s branches.

During the proceedings the Office thoroughly analyzed the content of the advertising materials. The bank had been informing consumers that the interest rate of “Max Lokata” was 6% for twelve months. However, it was not until they visited the bank’s branch that consumers could learn that the 12-month period was counted starting from 18 March 2008, not the date of signing the agreement. In UOKiK’s view, the lack of such an important piece of information in most of the advertising materials could have mislead consumers and lead them to take a decision they would not have otherwise taken.

Moreover, the wording used by the bank in the advertising materials created the impression that the information provided was complete. They did not include any markings or references which would indicate that consumers needed to get acquainted with any additional materials. Besides, the expression “without asterisks” which was used suggested that the advertisement contained all the relevant information, including that relating to the advantages which might be expected after signing the agreement. The President of the Office determined that all the means of communication employed in the advertising campaign enabled the bank at least to signal the necessity for consumers to seek further information.

Pursuant to the Act on competition and consumer protection, the President of UOKiK may punish an enterprise which infringes collective consumer interests with a fine of up to 10% of its revenues in the preceding year. In this case PKO BP was punished with PLN 5,712,365.46. Moreover, the bank will have to keep the decision of the President of UOKiK posted on its website for 6 months and have the conclusion of the decision published twice in one of the first five pages of a nationwide daily newspaper.

The proceedings were carried out under the Act on combating unfair commercial practices, which has been in force since December 2007. The unfair market practices listed in the Act include concealing and failing to disclose in a clear, explicit and timely manner the information about a product.

The decision is not final and binding. The enterprise may appeal to the Court of Competition and Consumer Protection.

Additional information:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warsaw, Poland
Tel. (+48 22) 827 28 92, 55 60 106, 55 60 430
faks (+48 22) 826 11 86
E-mail: mcieloch@uokik.gov.pl