Record breaking fines in the FMVG sector again

The Business Competition Authority (GVH) has made a major effort to fight misleading advertising last year. The number of complaints recorded by the Authority was higher than ever. The number of procedures initiated by the Authority was roughly the same as it had been a year earlier. 74 violations of relevant legislation were proved and total fines imposed amounted to HUF 2,248 million, which is less than it had been in 2006. Most cases involved misleading advertising. Total fines imposed in the 69 cases amounted to HUF 1,226 million. Owing to the large number of complaints, a series of inspections were carried out among banks and airlines. The FMCG sector is an area where misleading advertising is a recurring problem, in spite of substantial fines. Health benefits of products are frequently exaggerated and advertisements in the leaflets of major retail chains are also often misleading. Promotional leaflets of hyper markets are targeted by GVH on a regular basis. Some units of retail chains are often unaware of promotions communicated to consumers and stocks of promoted products are sometimes absent altogether. Fines imposed are increasing as many companies had already been fined for such offences in the past. The record fine of 2007 was HUF 100 million, imposed on one of the hyper market chains, because some of its units had failed to have any stock of the IT equipment advertised at a discounted price.