SALES: “SUSPECTED CASES” OF MISLEADING ADVERTISING CAN NOW BE REPORTED BY E-MAIL TO THE ANTITRUST AUTHORITY AT DPIC@AGCM.IT “TEN GOLDEN RULES” FOR CONSUMERS IN THE FIGHT AGAINST MISLEADING ADVERTISING
PRESS RELEASE
PRESS RELEASE
SALES: “SUSPECTED CASES” OF MISLEADING ADVERTISING CAN NOW BE REPORTED BY E-MAIL TO THE ANTITRUST AUTHORITY AT DPIC@AGCM.IT
“TEN GOLDEN RULES” FOR CONSUMERS IN THE FIGHT AGAINST MISLEADING ADVERTISING
The Italian Competition Authority, in pursuing its responsibilities in the area of misleading advertising, has now set up a specific e-mail address, dpic@agcm.it, where consumers can report cases of presumed misrepresentation. The initiative coincides with the start of the summer sales season in retail shops and aims to provide consumers with an aid in reporting possible abuses and improprieties. Based on reports received, the Misleading Advertising Directorate of the Antitrust Authority will look into cases where there is a sound legal basis to do so and, when appropriate, will launch formal investigations with the aim of verifying the truthfulness of the advertising message reported by consumers. The e-mail address will remain valid, too, for the later phases in the battle against misleading advertising; the Authority has recently set up a specific directorate to strengthen its response in this area. The new law which came into force in April gives the Competition Authority greater powers both in investigations and in the adoption of measures to counter the phenomenon of misleading advertising. Specifically, the ability to apply penalties has been strengthened, with the power to levy fines, according to the seriousness and duration of the offence, of from 1,000 to 100,000 euros, with a minimum of 25,000 euros when the advertising may damage children and adolescents or induce consumers to use dangerous products.
Furthermore, there has been a complete overhaul of regulations governing non-compliance with the Authority’s decisions, an area which previously involved a judge of the criminal court. From now on, instead, the Authority may intervene directly in the case of an advertiser who has not complied with a ruling against it, imposing fines and, if the non-compliance continues, shutting down its business for a maximum of 30 days.
As to its greater investigative powers, the Authority has the right to obtain a copy of the advertisement, if necessary by way of the Guardia di Finanza [Customs and Excise Police]. In addition, there is the power to levy fines in the case of non-compliance with a request for information or documentation which is necessary for the carrying out of the investigation, the fines being increased where false information is supplied.
The role of the consumer, however, remains fundamental: the Authority can bring its powers to bear only on the basis of a complaint. For this reason, the Authority wishes to draw attention to the “Short Guide for the Consumer” (which is to be found on the website www.agcm.it). This is a handy reference reminder of the rules for judging the truthfulness of an advertisement, the checks carried out by the Authority and the possible actions which may be taken.
As well as the texts of the regulations on misleading advertising and comparative advertising, the “Short Guide” also includes a few simple examples which should help consumers discern the difference between a correct advertisement and a misleading advertisement.
In order to assist the consumer further, a short list of precautions has been provided: these are the “ten golden rules for consumers” which should always be remembered so as to avoid unpleasant surprises. This advice may turn out to be particularly useful for bargain-hunters during the sales.
TEN GOLDEN RULES FOR CONSUMERS
Rome, 9 July 2005