The Antimonopoly Committee of Ukraine (AMCU) has fined Aktifarm LLC, the importer of the dietary supplement Kadvan, 955,000 UAH (apr. 20 947 USD) for disseminating misleading information. The case was opened in connection with false statements about the product’s properties that the company placed on the packaging, the package leaflet and its own website.
In particular, consumers were told that taking Kadvan was recommended to support the recovery of bone tissue after injuries and fractures, to strengthen bone tissue, to protect blood vessels, the heart and the brain, and to counteract the development of diabetes and its complications.
To substantiate the claimed properties, Aktifarm LLC provided the Committee with research materials on vitamin K2 and its effect on certain human organs. However, the AMCU found that these scientific sources did not show that the dietary supplement itself had the properties at issue in the case. The Committee took into account the product’s full composition, which, in addition to vitamin K2 (menaquinone MK-7), includes excipients: medium-chain triglyceride oil, gelatin as the capsule shell and glycerin as a humectant.
The Ministry of Health of Ukraine also expressed its position. In its assessment, the use of statements relating to easing the course of diseases, as well as references to such information in respect of the dietary supplement Kadvan, may give consumers the impression that it has therapeutic properties and suggest a link between the product and a person’s state of health.
During the proceedings, the Committee also conducted a consumer survey. Its results showed that the disseminated information could influence consumers’ intention to purchase the product, and that the claimed properties of the dietary supplement could be perceived as characteristic of a medicinal product.
In view of this, the AMCU concluded that Aktifarm LLC could obtain unlawful competitive advantages, in particular over manufacturers and sellers of medicinal products, not through its own achievements but by disseminating false information about its product. The Committee found these actions to constitute a violation of Article 15-1 of the Law of Ukraine “On Protection against Unfair Competition” in the form of dissemination of misleading information.
During the proceedings, the company informed the AMCU that it had stopped disseminating the disputed information, updated its website and started selling the product in updated packaging.
The decision confirms the AMCU’s consistent practice regarding the labelling of dietary supplements. Manufacturers and importers should carefully check whether available scientific data supports the properties of the specific product, taking into account its full composition, rather than only individual ingredients. Claims that consumers may perceive as therapeutic create a significant risk of a fine under unfair competition legislation.