UOKiK fines HRE Investments and subsidiaries for withholding information

The President of the Office of Competition and Consumer Protection (UOKiK) has imposed fines totaling PLN 4.21 million on HRE Investments and nine affiliated companies for failing to provide requested information during an investigation into practices affecting consumer rights. The companies delayed their responses and ultimately submitted the required documents late.

UOKiK President Tomasz Chróstny emphasized the importance of swift action in consumer protection cases, highlighting that businesses are legally required to cooperate fully and submit requested documentation on time. Companies that ignore these obligations risk financial penalties of up to 3% of their turnover.

The highest fine, PLN 3.2 million, was imposed on HREIT S.A., with additional penalties ranging from PLN 42,000 to PLN 179,000 for other companies in the group, including Apartments Barona, South Star Development, West Star Development, and BDC Development.

These decisions are not yet legally binding, and the companies have the right to appeal to the Court of Competition and Consumer Protection.

The penalties stem from a broader UOKiK investigation into HRE Investments’ business practices, which resulted in rulings against three companies last year. The regulator found that consumers had been unlawfully encouraged to invest in shares of real estate development projects, which were misleadingly marketed as safe and highly attractive investments, without adequately disclosing potential risks.

Two managers were also sanctioned in connection with the case. UOKiK continues to monitor compliance within the HRE Investments Capital Group to ensure consumer rights are protected.