The Hungarian Competition Authority has launched a follow-up investigation into the Wish e-commerce marketplace
The Hungarian Competition Authority (GVH) is investigating whether Wish, one of the world’s largest e-commerce marketplaces, has fulfilled its commitments made in 2023.
The competition authority indicated in its statement on Monday that the operators of the California-based platform offered a complex compensation package during the previous competition supervision procedure, including financial compensation for approximately 100-150 thousand Hungarian customers in order to avoid the fine.
The GVH 2023 concluded its investigation into Wish’s operators in February. The procedure was initiated because the platform operators probably did not act with the expected professional care when developing and monitoring the Wish marketplace’s price and discount display practices.
According to the GVH’s suspicion, certain prices of merchants selling on the marketplace may have been untrue, certain products were advertised with unrealistically high discounts and false claims, and consumers were urged by a countdown clock to accept certain “instant offers”.
The platform’s California-based and European, Netherlands-registered operators offered a complex compensation package during the procedure to remedy the objectionable practices.
Wish has committed, among other things, to providing a 1,500 forint refund (credit credit) to every Hungarian user who clicked on the instant offer and made a purchase on the platform in 2021. The compensation affected approximately 100-150 thousand consumers.
The companies also undertook to launch a campaign to increase consumer awareness and to introduce more effective, independently audited measures to monitor traders selling on their marketplaces.
The companies also undertook not to use the discount display practice and their “instant offers” criticized by the GVH.
The competition authority emphasized that in each case, the undertakings offered by the companies and made mandatory by the GVH are examined in detail, by ordering a follow-up investigation. fulfillment.
The prescribed obligations must be fulfilled accurately and completely, and must be properly and within the deadline. In case of incomplete fulfillment or failure to provide proof, the Competition Council of the Hungarian Competition Authority may impose a significant fine on the enterprise concerned.
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