A Polish court has upheld a significant $38.5 million fine against discount retailer Biedronka for misleading advertising related to its “Anti-Inflation Shield” promotion, marking a major victory for the country’s consumer protection agency. The Office for Competition and Consumer Protection (UOKiK) initially levied the penalty after determining Biedronka failed to substantiate claims promising to refund price differences to customers. The ruling underscores increasing regulatory scrutiny of promotional practices amid ongoing concerns about rising costs of living in Poland.
Polish discount retailer Biedronka, owned by Jeronimo Martins Polska, has been hit with a substantial fine of 160 million złoty (approximately $38.5 million USD) for misleading advertising related to its “Anti-Inflation Shield” promotion. The penalty, initially levied by the Office for Competition and Consumer Protection (UOKiK), has been upheld by a Polish court, signaling a significant win for the regulatory body and a setback for the retailer. The case centers around claims that Biedronka failed to adequately substantiate its promise to refund customers the difference if they found lower regular prices for a basket of 150 frequently purchased products at competing stores.
UOKiK triumphs: Fine against Biedronka owner upheld
The court’s decision, announced on December 12, fully supports UOKiK’s findings and the imposed financial penalties. “The court agreed with the findings of the President of UOKiK. It fully shared the findings and arguments of the President of the Office regarding the identified practices and the monetary penalties imposed on the company,” UOKiK stated in a social media post. The regulator argued that customers were unable to realistically benefit from the promotion as advertised, with consumer complaints surfacing on platforms like Facebook. These concerns were factored into the final decision and subsequently affirmed by the court. Biedronka customers voiced their frustrations online regarding the promotion.
Biedronka faces a 104 million złoty penalty for separate promotional issues, according to recent reports.
Biedronka responds: Claims promotion saved Polish consumers millions
Jeronimo Martins Polska has issued a statement expressing its disappointment with the court’s ruling. “In our opinion, this is a very sad day for Polish consumers and for the level of competitiveness of the Polish market.” The company argues that it was penalized for technicalities, specifically the implementation of a paper-based promotion regulation in a digital environment. However, the retailer maintains that its commitment to maintaining prices on 150 popular products for 79 days during a period of high inflation—exceeding 20%—resulted in significant savings for Polish consumers. The decision underscores the increasing scrutiny of promotional practices by regulatory bodies in the face of rising consumer prices.
Biedronka employee appeals to customers to avoid adding to workload.
