Misleading Advertising as an Act of Unfair Competition

Advertising is one of the key tools in business activity – it helps reach customers, builds brand image, and influences purchasing decisions. However, the line between effective marketing and manipulation can be thin. When an ad contains false statements, omits key facts, or distorts the reality of a product or service, it becomes misleading advertising. Under Polish law, such practices constitute an act of unfair competition, as they harm both consumers and honest competitors, disrupting fair market rules.

What is misleading advertising?

Misleading advertising is any marketing message that, through its content, form, or omissions, creates or may create a false impression about a product, service, or business. It can relate to price, quality, availability, or effects of use. Such advertising is prohibited because it deceives consumers and distorts competition by prompting decisions they would not otherwise make.

Legal definition under Polish law

According to Article 16(1)(2) of the Act on Combating Unfair Competition (1993), misleading advertising is an act of unfair competition if it misleads customers and may affect their purchasing decisions. It is assessed from the perspective of an average consumer, and both false statements and true but incomplete or ambiguous claims may qualify.

The law and case law distinguish several types of misleading ads:
False advertising – containing demonstrably untrue claims (e.g., “safe for pregnant women” when containing alcohol).

Incomplete advertising – highlighting only positive features while omitting harmful ones.
Deceptive advertising – based on half-truths or vague statements.
Obvious advertising – presenting a common feature as unique (“bread without preservatives”).
Comparative advertising – unfairly favoring one product over another.
Imitative advertising – mimicking another brand’s style or packaging to cause confusion.

Where to report misleading advertising

Such practices may be reported to:

The Office of Competition and Consumer Protection (UOKiK) – handles cases affecting collective consumer interests; may impose fines or order the withdrawal of ads.

Trade Inspection – investigates local cases, especially everyday consumer goods.
Municipal or County Consumer Ombudsman – offers free assistance and can act on behalf of a consumer.

Advertising Ethics Commission – evaluates complaints under the Advertising Ethics Code; although it cannot impose fines, its decisions carry reputational weight.
Reports can also be submitted through a legal representative.

Sanctions

UOKiK may fine a business up to 10% of its previous year’s turnover, and individuals managing the company up to PLN 2 million, for misleading advertising or other unfair practices. The authority may also require publication of a correction or halt further use of the ad.

Independently, consumers or competitors may bring civil actions seeking:
cessation of the misleading ad,
removal of its effects (e.g., publication of a correction),
damages, restitution of unjust gains, or
payment to a public cause (e.g., consumer protection).

When is an ad an act of unfair competition?

Three elements must be proven:

The communication is an advertisement.
It is capable of misleading consumers.
It may influence their purchasing decision.

Courts assess deception based on the specific circumstances and the perception of the average consumer—more cautious in expensive or rare purchases, less so in everyday goods. The burden of proof for the truthfulness of advertising claims lies with the advertiser accused of unfair competition.

Stay informed with the latest legal developments at Global Law Experts