Mandatory instructions have been issued to a number of business entities for violating the requirements of competition legislation by engaging in unfair competition.

The Antimonopoly and Consumer Market Control Agency under the President of the Republic of Azerbaijan (the Agency) continues its comprehensive measures to prevent cases of unfair competition. Following complaints received by the Agency, a preliminary investigation was conducted, in accordance with competition legislation, concerning six business entities — Baku Electronics LLC, ABC Telecom LLC and Trust Lux LLC, as well as the individuals Parviz Mammadhuseyn oglu Guliyev, Vusal Nariman oglu Gurbanov and Dadash Azadali oglu Valiyev — and signs of unfair competition were identified. Cases were initiated against these business entities on signs of violation of competition legislation, and the relevant decisions were adopted on the consideration of the cases.

At the conclusion of the consideration of the cases, it was established that Baku Electronics LLC had used information capable of misleading consumers in advertising and selling household appliances and electronics under the YOSHIRO brand; that, although the actual countries of manufacture of the products are China and Uzbekistan, expressions such as “Japanese tradition” and “Japanese quality” had been used in advertising and on packaging, creating the impression that they were manufactured in Japan; and that unfair advertising had also been used by presenting advantages of the products that do not correspond to the truth, thereby violating the requirements of the Competition Code.

It was also established that ABC Telecom LLC had used information capable of misleading consumers in selling electric heaters under the HOFFMANN brand; that, although the actual manufacturer is a Chinese company, expressions and images relating to Germany had been used on the packaging, creating the impression that they were manufactured in that country; and that this violated the requirements of the Competition Code.

As for Trust Lux LLC, although the actual country of manufacture of a number of sanitary and plumbing products bearing the Y.A.Ş trademark is China, information relating to Türkiye, a map image, a barcode and expressions in Turkish had been used on the packaging, creating the impression that they were manufactured in that country; consumers had also been misled by providing untrue information about the origin and characteristics of the products, and these cases were assessed as violations of the requirements of the Competition Code.

In addition, entrepreneur Parviz Mammadhuseyn oglu Guliyev engaged in unfair competition and violated the requirements of the Competition Code by unlawfully using the ZAGAR BAKU trademark, which belongs to another entrepreneur, in advertising at the premises where he operates and on social media.

Another entrepreneur, Vusal Nariman oglu Gurbanov, engaged in unfair competition by unlawfully using the AUX trademark, which is protected (registered) in accordance with legislation in the territory of the Republic of Azerbaijan, in selling counterfeit air conditioners called AUXs, and entrepreneur Dadash Azadali oglu Valiyev did so by unlawfully using, without justification, the geographical indication IVANOVKA on the labels of the dairy products he produces and sells; thereby both violated the requirements of the Competition Code.

Mandatory instructions have been issued to the above-named business entities to eliminate the identified cases of unfair competition and not to repeat them.

Taking into account the signs of a criminal offence in the sale by entrepreneur Vusal Nariman oglu Gurbanov of the air conditioners called AUXs that are considered counterfeit, the case materials have been referred to the Prosecutor General’s Office of the Republic of Azerbaijan in accordance with its jurisdiction.

It should be noted that information on the investigations conducted into signs of violation of competition legislation in connection with unfair competition actions and on the cases initiated has been posted on the Agency’s official website.

The Agency calls on entrepreneurs to act in accordance with legislation, to refrain from unfair competition and to provide consumers with correct information about goods and services, and also recommends that consumers pay attention to the origin, quality and characteristics of goods and services when purchasing them.

Business entities that encounter violations of the requirements of competition legislation may apply to the Agency, in accordance with the requirements of the Competition Code of the Republic of Azerbaijan, through its official website (https://competition.gov.az/az/page/muraciet/erize-sikayet-teklif) or by email (office@competition.gov.az).