Peru fines Bitel over $13,000 for misleading student discount ads

Peru's National Institute for the Defense of Competition and the Protection of Intellectual Property (Indecopi) has fined telecommunications company Bitel more than S/51,000 (approximately $13,800) for deceptive advertising practices. The company falsely promoted a 50% discount on postpaid plans for university students, promising the offer would last their entire academic careers.

The misleading campaign, which targeted university students through digital platforms and on-campus activations, led consumers to believe the discount would be permanent throughout their studies. However, an investigation by Indecopi's Commission for the Defense Against Unfair Competition revealed that the discount was only valid for six months. This significant discrepancy between the advertised benefit and the actual terms constituted an act of deception.

Indecopi's ruling, detailed in Resolution No. 033-2026/CCD-Indecopi, highlighted that the advertising pieces disseminated on social media platforms like Instagram, Facebook, and TikTok failed to clearly state the promotion's limited duration and necessary restrictions. This omission was particularly impactful given the campaign's focus on a young, digitally-engaged audience.

As a consequence, Bitel was fined a principal amount of 5.59 UIT (Tax Units) for deceptive acts. Additional fines were imposed for violations related to five specific advertising pieces, bringing the total penalty to 9.28 UIT, equivalent to approximately S/51,040. Indecopi also ordered Bitel to immediately and permanently cease the questioned advertising campaign and any future promotions that do not clearly disclose their terms and conditions. The company has also been added to Indecopi's Registry of Infringers.