GVH: at least 70 out of every 100 forints spent goes to multinationals

When contacted by Economx, Csaba Balázs Rigó stated:

“the national competition authority is on the side of the Hungarian people, i.e. the consumers. Multinational retail chains dominate the Hungarian FMCG market with a gross turnover of 8,400 billion forints. At least 70 out of every 100 forints spent is spent by multinationals. Therefore, of course, the Hungarian Competition Authority also monitors their commercial activities with special attention. We take action against unjustified price increases and unfair commercial practices. You can feel the cold breath of the GVH, even in the summer season.”

Almost every retail multinational is currently under competition supervision for prohibited price fixing or unfair commercial practices, or for misleading consumers.

Therefore, the statements of the National Trade Association, which also includes them, cannot be interpreted as anything other than a kind of pressure attempt, which must be firmly rejected – said the president.

He added:

“It is clear from the GVH’s investigations and the data from the online Price Monitor operated by the office that the margin reduction has helped Hungarian families and pensioners, resulting in falling prices for the vast majority of the affected products.”

Among the previously closed cases, it was highlighted that in February this year, Lidl “hit its ankle” because of the “whole grain” label, resulting in a GVH fine of 186 million forints because the raw material of the affected baked goods was made from whole grain flour in only a third of the ratio.

The same company received a 90 million forint penalty from the competition authority a year earlier for misleadingly communicating that it was the cheapest food chain, they added.