The Bulgarian Act on Protection of Competition, 2008, as amended ("APC") encompasses various prohibitions on behavior detrimental to the competition between companies. In particular, promotional games, as well as activities consisting in promoting the sale of one or more products by offering another product for free or for a fictitious price, and when the requirements of the APC have not been met, could consititute unfair competition. Further, unfair competition aimed at soliciting customers and resulting in the termination or breach of previously concluded contracts or in the prevention of conclusion thereof with competitors is forbidden.
Offering of gifts
In particular, unfair soliciting of customers occurs when goods are offered as an add-on to other goods that are being sold for free or for a fictitious price. The aforementioned prohibition does not apply when:
- advertising materials are being offered, and their value does not exceed 10% (ten per cent.) of the value of the sold goods to which they is added, provided that the advertising company is clearly identified;
- the offered add-ons are (pursuant to the commercial practice) accessories to the goods being sold or the services being provided;
- goods or services are discounted when larger quantities are sold.
Promotional games
It is also forbidden to make a transaction when something is offered or promised together with the transaction, and receiving the item depends on solving problems, puzzles, questions, riddles or playing games with cash or object prizes, etc. and where the value of the offered item is considerably higher than the value of the sold goods. The regulator has determined that the value would be "considerably higher" when it is 100 (one hundred) times more than the value of the main sold goods or the difference in their values is more than 15 (fifteen) times the minimum wage in the country.
Selling below cost
Forbidden is the sale for a continuous period of a significant amount of goods, at prices that are lower than the expenses for their production and realization. The Bulgarian Competition Protection Commission would determine the criteria “considerable quantities” and “continuous period of time” on a case-by-case basis.
Misleading advertising
Any advertisement which in any way, including by the manner of its presentation, misleads or may mislead the persons it targets or reaches and thereby possibly influences their economic behaviour, and thereby harms or may harm a competitor, will be considered misleading. In classifying advertisements as misleading, the price or the pricing method and the terms and conditions of the delivery of the goods and services will also be taken into consideration.
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