Ukrainian Bottled Water Producers Fined for Misleading Advertising
The Ukrainian Antimonopoly Committee has recently fined two Ukrainian bottled water producers, LLC Izumrud LTD and PJSC Novomoskovsk Mineral Water Plant, for violating the local competition legislation by making unsubstantiated claims about their products’ health benefits.
Both companies have ceased making misleading claims. However, due to multiple factors including the fact that one company admitted to violating the law and the other didn’t, PJSC Novomoskovsk Mineral Water Plant received a EUR 47,000 (USD 49,000) fine, while LLC Izumrud LTD received a significantly higher EUR 425,000 (USD 440,000) fine.
PJSC Novomoskovsk Mineral Water Plant made false claims on the labels of its “Bon Boisson” water (available in 0.75L and 1.5L bottles in still, slightly sparkling and sparkling varieties), such as “the highest pH level of all natural waters in Ukraine accelerates metabolism”, “powerful antioxidant effect” and “boosts immunity”. Similar statements were made on the company’s social media pages.
LLC Izumrud LTD made similar claims about its “Buvette №3 Vital” water, stating that it “accelerates metabolism”, “detoxifies the body”, “gives skin a radiant glow”, and “stimulates metabolism, cleansing, and nourishment”. The statements appeared on product labels as well as the company’s website.
Under Ukrainian law, health-related claims used for advertising products must be supported by relevant scientific research. In this case, neither company could provide evidence to support its assertions. The Ukrainian Antimonopoly Committee ruled that such misleading representation could influence consumer purchasing decisions, giving these two companies an unfair advantage over companies advertising products that actually have proven health benefits.