Natural Pharmaceuticals Fined Over 5 Million PLN for Misleading Supplement Sales
The Polish competition authority has imposed a fine of over 5 million PLN on Natural Pharmaceuticals for deceptive marketing practices related to dietary supplements, including misleading claims about free samples.
27.09.2023 | Polish competition authority
The President of the Polish competition authority has levied a fine exceeding 5 million PLN against Natural Pharmaceuticals for violating collective consumer interests. The authority identified seven deceptive practices that could mislead consumers and manipulate their decision-making processes.
Among the misleading tactics, the company advertised free samples of dietary supplements but instead sent bills for a year's supply along with a subscription. The authority emphasized the importance of transparent communication for consumer safety, highlighting that the company's marketing strategies were based on manipulation and misleading information.
Natural Pharmaceuticals misrepresented its customer base by claiming 'over a million satisfied customers' for a specific product, while this figure referred to all customers of the company. Additionally, the company suggested that its products were endorsed by national health campaigns and misused the authority of public institutions in its marketing materials.
Consumers were often unaware that they were signing up for a paid subscription when they ordered what was advertised as a free sample. The company employed deceptive interface designs, known as 'dark patterns,' which led consumers to unintentionally subscribe to paid services.
The total fine imposed on Natural Pharmaceuticals amounts to 5,196,840 PLN, with an additional 110,000 PLN penalty for the company's CEO, Carl Jonas Törnquist, for knowingly allowing these violations. The company is required to inform all consumers who have been clients since February 14, 2017, about the decision and to publish a statement on its website and social media.
The decision is not yet final, as the company and its CEO have the right to appeal to the Court of Competition and Consumer Protection.