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Office of Competition and Consumer Protection

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Czarna Perła investment - decision of the President of UOKiK

< previous | next > 20.05.2022

Czarna Perła investment - decision of the President of UOKiK
  • The President of UOKiK has issued a decision against CGA Invest, a company which developed and sold units in the Czarna Perła condo hotel in Sienna.
  • Misrepresenting the safety of the investment in the unit, the amount and frequency of profits, as well as failing to provide important information about the financing model – such practices, among others, were questioned by the President of the Office.
  • CGA Invest will offer compensation to consumers.

CGA Invest Sp z o.o. has developed the Czarna Perła condo hotel in Sienna, in the Stronie ¦l±skie municipality. A condo/aparthotel investment provides the option to purchase a commercial unit, which the owner can use for a designated part of the year and that is rented out the rest of the time. The lease is usually managed by a specialist company (the so-called "operator"), with whom the lease agreement is usually concluded for a period of 5 to 15 years, with the possibility of extension. The operator shares the profit with the property owner by paying, for example, the rate of return specified in the agreement.

The Office's doubts in the case of offering the purchase of a unit in the Czarna Perła investment were aroused by:

The information about the safety of the investment. In advertising materials it was described as follows: "Certainty and profitability of investment", "Condo purchase is a safe form of investment," etc. Meanwhile, the company did not have any measures in place to protect buyers' payments, so the investment in the property was subject to a higher level of risk. We remind you that persons purchasing commercial units in a condo/aparthotel are not protected by the provisions of the so-called Developers Act.

Failure to provide important information about the financing model – consumers were not informed that the construction of the condo hotel was being financed entirely by their payments. CGA Invest did not intend to use its own funds.

Misleading information about the amount of profits and how often they are earned. The company used advertising materials in which it declared higher and more frequently paid out profits than the models used when concluding agreements with consumers indicated. Despite the fact that, according to the advertisements, the profit was supposed to result from the amount invested by the consumer, in the agreements the actual basis for its calculation was exclusively the net price of the unit – i.e. the investment amount minus the 23% VAT rate.

False information about the company that will enter into the rental agreement with the consumer. In the reservation agreements and preliminary sales agreements, the company informed that it would be the operator of Czarna Perła. In reality, another entity entered into rental agreements with the consumers.

"Failure to inform consumers about such important aspects as the financing of the investment entirely with their funds or the smaller financial benefits may have influenced their decision to conclude the agreement. Perhaps consumers would not have done it if they had been given reliable and truthful information about the investment. I would like to remind you that before you invest in a condo or an aparthotel, you should read the terms of the offer very carefully and be aware of the risk," says Tomasz Chróstny, President of UOKiK.

CGA Invest has agreed to change its practices and will compensate the consumers. Those who were interested in CGA Invest's offer but did not conclude an agreement, as well as those who still own a condo hotel unit or have sold it, can expect compensation. See what you can expect:

  • Persons who were interested in the offer to buy a unit but did not do so will receive a number of discount vouchers, e.g. for a stay in the Czarna Perła facility, for a ride in the cable car, for a ski pass. The first 130 people can expect this.
  • Persons who still own a unit, but also those who have sold it: they will be able to benefit from a stay at the Czarna Perła facility, which the company will finance.

Details can be found in the decision at uokik.gov.pl.

Consumer support:

Tel. 801 440 220 or 22 290 89 16 – consumer hotline
 Email: [SCODE]cG9yYWR5QGRsYWtvbnN1bWVudG93LnBs[ECODE]
Consumer Ombudsmen – in your town or county

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

Attached files

 

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