The mineral water bottling company made significant commitments as a result of the GVH proceedings
The recently concluded procedure of the Hungarian Competition Authority (GVH) may have a serious impact on the communication of green claims related to PET bottles. Fonte Viva Kft., which bottles mineral waters, and MOL Plc., which has owned the company since 2018, have offered a complex commitment package to the GVH Competition Council. The implementation of this will not only ensure the internal compliance and legal communication of the companies in the future, but also support the general awareness of consumers regarding the environmental impacts of bottled beverage products. In view of all this, the Hungarian Competition Authority (GVH) did not establish any violation of the law in the case.
The Hungarian Competition Authority (GVH) In the summer of 2024, the competition supervision procedure was initiated against several companies, including Fonte Viva Kft., due to green claims related to PET bottles.. According to the GVH’s original suspicion, the company may have misled consumers with the claims made on the labels of Fonte Natura mineral waters and in the commercial communications promoting the product.
The company – and its parent company, MOL Plc. – proved during the procedure that during the period under review the bottles they distributed (the label and the cap) were made of 100% recycled PET. However, the GVH raised concerns that the communications under investigation could have created the impression that the entire bottle, including the cap and label, was made of recycled material.
During the procedure, the companies submitted a complex commitment package to the Competition Council of the Hungarian Competition Authority. The companies have committed to:
- the development of their internal processes related to their commercial communication,
- appointment of a compliance expert,
- as well as the development of a detailed internal compliance policy for future commercial communications regarding environmental claims measures.
In addition to these commitments, the companies have also defined substantive educational measures. The companies have committed to creating educational content that covers the environmental impacts of bottled products and the importance of the bottle return process.
When assessing the commitments, the Competition Council of the GVH took into account that they contain substantive and forward-looking elements that can effectively address the GVH’s original The Competition Council further took into account that the commitments go significantly beyond the commercial practices examined in the proceedings and, in addition, through educational measures, they also promote general consumer awareness and general prevention.
In view of all this, the Competition Council of the GVH closed the proceedings without establishing any infringement or lack thereof and required companies to implement the commitments. The GVH will strictly monitor this in the follow-up investigation.
The GVH draws the attention of businesses to the fact that when developing their commercial communication containing green claims, they should always proceed with caution. Green claims must always be clearly and objectively verifiable.
In recent years, the Hungarian Competition Authority has been particularly concerned with the so-called “green claims”. In January 2024, it published a market analysis examining the issue, which highlighted, among other things, that in many cases green advertising messages are unclear and confusing, and a significant portion of consumers are unaware of the exact content and meaning of individual claims and markings. The GVH has summarized its advice to help businesses in its Green Marketing Guide.
The case’s official registration number: VJ/33/2024.
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