4IpaUJbnm

Legal framework
According Hattori and Higashida (2012) in many developed countries, governments regulate
misleading or false advertising and encourage the provision of sufficient information to
allow customers to make informed choices.
The Law on Advertising in Lithuania describe that misleading advertising means advertising,
which in any way, including its presentation, deceives or is likely to deceive the person to
whom it is addressed or whom it reaches and which, by reason of its deceptive nature, is
likely to affect their economic behavior or which, for those reasons, injures or is likely to
harm another person’s capabilities in competition (LR Advertising Act 2 Art. 3 d.). In other
words, it is advertising, which contains false or misleading information, veil fundamental
information, which required for user to make an informed decision. The Law on Advertising
in Lithuania 5 art. 1 says that is direct prohibition of using misleading and comparative
advertising. Misleading advertising can lead unfair competition action, which prohibited by
the Competition act, as well as one of the prohibited comparative for the rule of law,
operators of advertising activity should avoid use information that might be considered as
misleading advertising (Competition Council of Lithuania, 2013).
The Competition Council of Lithuania has the authority to investigate the misleading
advertising cases.. The consumer can inform also non-governmental organizations in order
to get objective opinion of the event. If the complaint is substantiated, the Competition
Council to court, demanding to stop unfair advertising. Each year, Lithuanian businesses pay
hundreds of thousands of euros for misleading advertising. But it noted that Lithuania
complaints are less than the European Union countries. In addition, they have been slow in
defending their consumer rights. Any perceived unfair advertising cases to the competent
authorities often do not inform individual customers and competitors. Competition Council
experts in 2013 examined 300 reports of possible misleading advertising and promotional
activity shall be sent 119 warnings even offering modify or discontinue advertising
potentially misleading dispersion (source: www.15min.lt).
Describing EU laws, in general terms, EU Member States need to ensure that adequate and
effective means exist to combat misleading advertising and to enforce compliance with the
provisions on comparative advertising (Directive 2006/114/EC). Advertising regulations
should protect not only marginal customers from deceptive advertising rather than the
actual or potential purchasers but also small businesses– the mainstay of Europe's economy
– are particularly vulnerable to misleading marketing practices as they lack the resources to
protect themselves.
Member States currently enforce Directive 2006/114/EC on the basis of different national
systems. The crucial difference concerns the possibility of public enforcement. In some
Member States, authorities can take action against rogue traders, while in other Member
States only victims can seek redress. Especially in cross-border advertising such disparities
substantially change the effective level of protection. Enforcement by public authorities
against a trader using misleading marketing practices is possible in countries such as
Bulgaria, France, Italy, Latvia, Lithuania, Romania and the United Kingdom.
198