The President of the Polish competition authority has determined that CK Investments violated consumer protection laws by promoting 'investment bonds' as a safe and guaranteed investment option. The company is required to pay a fine of 1,249,395 PLN for employing unfair practices that misled consumers regarding the security of their capital.

CK Investments, which operates in the real estate sector, began offering these investment bonds in July 2019, marketing them as a simple and quick investment alternative to traditional bank deposits, government bonds, or investment funds, promising high and stable returns.

However, the authority clarified that the term 'investment bond' is not recognized in Polish law and was created by the company to attract capital that would typically be sourced from banks or through financial instruments. The misleading promotion included assurances of guaranteed returns, which were found to be unfounded.

The investigation revealed that the funds raised from the sale of these bonds were primarily used to finance the company's business activities. The authority emphasized that if consumers had not been misled, they might have made different decisions regarding their savings.

The decision is not yet final, as CK Investments has the right to appeal to the Court of Competition and Consumer Protection. If the decision is upheld, the company must inform its website visitors and send written notifications to all consumers who purchased the bonds between July 8, 2019, and January 1, 2023.

Additionally, the Polish competition authority is investigating other companies involved in similar practices, including Credit Royal and Assay Management, which have also faced warnings and penalties for using investment bonds inappropriately.