OREANDA-NEWS. October 20, 2008. The Federal Antimonopoly Service (FAS Russia) recognized that "TECHNOPLEX Factory" Ltd. (Ryazan) was engaged in unfair competition by misleading consumers about the manufacturer of heat-insulating slabs made from the "TECHNOPLEX" extrusion-type polystyrene foam. Accordingly, FAS Russia issued a determination to eliminate the violations, reported the press-centre of FAS Russia.

"PENONPLEX SPb" Ltd. is involved in manufacturing and distribution of heat-insulating slabs from the extrusion-type polystyrene in the Russian Federation. The goods are sold in orange packaging with the verbal label in black letters - "the PENONPLEX effective heat insulation".

"TECHNOPLEX Factory" Ltd. manufactures heat-insulating slabs from "TECHNOPLEX" extrusion-type polystyrene, which are sold in orange packaging with the verbal label in black letters - "effective heat insulation from the "TECHNOPLEX" extrusion-type polystyrene foam".

The products of "PENONPLEX SPb" Ltd. were introduced to the market in the Russian Federation long before "TECHNOPLEX Factory" Ltd. started circulating its products.

To establish whether "TECHNOPLEX Factory" Ltd. violated the Federal Law "On Protection of Competition", FAS Russia asked the "All-Russian Centre for Public Opinion Research" (VTsIOM) OJSC to conduct a survey in order to clarify if consumers were misled about the manufacturer of heat insulation slabs from the "TECHNOPLEX" extrusion-type polystyrene foam.

The target group of the survey included actual and potential buyers of heat insulation slabs for civil construction. The survey revealed that considerable number of the respondents (38%) could have believed that heat insulation slabs from extrusion-type polystyrene foam "PENONLEX" and "TECHNOPLEX" were made by the same manufacturer. According to the survey, one third of the respondents (34%) can confuse these heat insulation slabs.

Upon considering the explanations and the evidence presented by both manufacturers, as well as taking into account the findings of the VTsIOM survey, FAS Russia found that "TECHNOPLEX Factory" Ltd. violated Clause 2 Part 1 Article 14 of the Federal Law "On Protection of Competition".

Clause 2 Part 1 Article 14 of the Federal Law "On Protection of Competition" prohibits unfair competition, particularly, misleading about the nature, means and location of manufacturing, consumer properties, quality and quantity of the goods or the goods' manufacturers.