• President of UOKiK Tomasz Chróstny issued a decision regarding Jeronimo Martins Polska.
• The company misled consumers with regard to the conditions, benefits and availability of the rules and regulations of the campaign “Tarcza Biedronki antyinflacyjna”.
• The penalty imposed is over PLN 160 million.

Complicated rules, disproportionate benefits and limited availability of rules and regulations - this is how the practices of Jeronimo Martins Polska, proven by the President of UOKiK, can be summarised in the nationwide campaign conducted in the chain's shops from April to June 2022 called “Tarcza Biedronki antyinflacyjna”. It was advertised on a large scale with the slogan “Jeśli na naszej liście 150 najczęściej kupowanych produktów znajdziecie produkt w niższej cenie regularnej w innym sklepie, zwrócimy wam różnicę” [If you find a product on our list of 150 most frequently purchased products at a lower regular price in another store, we will return the difference to you]. It was intended as the entrepreneur’s response to an increase in the inflation rate.  Advertising messages were formulated in such a way as to attract the attention of consumers who rely on low product prices, and to give them the impression that the products offered are the cheapest on the market. Following the procedure, the President of UOKiK issued a decision declaring that Jeronimo Martins Polska was in breach of the collective interests of consumers.

Marketing promises vs. reality

Firstly, it was not enough to find an item that was more attractively priced - it had to be purchased in both shops and to meet the numerous and non-obvious additional conditions indicated in the rules and regulations. It specified, among other things, specific competing shops and purchase dates, the need to take a photo of the product labels, to keep receipts, to report it electronically and to send a set of documentation by post at one’s own expense. Secondly, Biedronka declared that it would reimburse the difference in price, suggesting that the reimbursement would be in the form of cash for any use. Meanwhile, consumers were supposed to get an e-code valid for only 7 days with the value of the difference (i.e., for example, a dozen or a few dozen groszy) for purchases in the chain's stores. The third contested practice concerns the availability of the rules and regulations which described all the rules of the campaign. They were supposed - according to the advertising material - to be displayed in the shops but were nowhere to be found. Biedronka employees could print them and make them available only at the request of interested customers, which in practice made it impossible to read the rules and regulations in the store.

Jeronimo Martins Polska did not register any notification which would meet the requirements of the rules and regulations of “Tarcza Biedronki antyinflacyjna”. The Company was approached by consumers who found products cheaper than in Biedronka, but nevertheless chose not to complete the formalities indicated in the rules and regulations.

- Jeronimo Martins Polska promoted the campaign which in advertising materials violated collective interests of consumers. A misleading marketing message to attract crowds of consumers to the Biedronka chain’s stores was about the basic terms of the offer - what they should do, what they can gain and where they can find the rules of the campaign. Catchy slogans attract attention, but entrepreneurs must remember that consumers are entitled to full and accurate information, the content and delivery of which are not misleading. Advertising cannot therefore be a false decoy for consumers. In the meantime, Biedronka’s customers were not able to take advantage of the promotion on the terms and conditions set out in advertising messages by the entrepreneur. Consumers expressed their negative perception of the campaign on social media, including on the Company’s Facebook profile. Their voices were taken into account in the decision issued - says Tomasz Chróstny, President of UOKiK.  

The Company was penalised for three practices used during the promotion of the campaign. In total, the owner of the Biedronka chain must pay more than PLN 160 million in penalties (PLN 160,923,767). The President of the UOKiK also imposed on Jeronimo Martins Polska an obligation to publish a statement about the decision of the President of UOKiK on the Company’s website, on Biedronka’s Facebook profile, in designated TV stations and in the chain’s stores. The decision is not final.

This is not the first penalty imposed on Jeronimo Martins Polska. The President of UOKiK has previously questioned practices such as discrepancies in prices at the checkout and on the shelf or mislabelling of the origin of fruit and vegetables, among others. Both decisions were confirmed by the Court of First Instance.

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