Lidl under investigation in Hungary

The Economic Competition Authority (GVH) launched an investigation against Lidl in Hungary. They suspect that Lidl misleadingly claimed in its advertising campaigns that it is “the cheapest grocery chain” in the country.

Is Lidl really the cheapest grocery chain?

From 13 February on, Lidl has been advertising its offerings in an allegedly misleading manner, claiming that it is the cheapest chain on the domestic market. However, this might not be the case. GVH experts are now investigating whether these claims are well-founded. From the first of July, the price monitor operated by GVH shows exactly which retail chains offer the most favorable prices in each product category on a given day.

According to the GVH, the survey carried out by Pénzcentrum indicated in the commercial communication that it is probably not suitable for the objective, factual verification of the market leadership claim of the company subject to the procedure. As a result, the national competition authority initiated a competition supervision procedure against Lidl Hungary due to the presumed violation of the prohibition of unfair commercial practices towards consumers.

Lidl responded to the accusations

Responding to the GVH’s announcement, Lidl Hungary stressed that it cooperates with the authority in all respects and provides the requested information relevant to the subject in full. The company explained that it based its advertising campaign on joint research by pénezcentrum.hu and the University of Debrecen.

More than 17,000 consumers were interviewed during the 2-month survey, ranking the store chains based on the most favourable prices they offer without specifying the product categories.

According to the company’s point of view, it informed consumers in accordance with the law both about the research conducted independently from Lidl and about the nature of the advertising claim, the company told MTI.

Three-month investigation procedure underway

The initiation of the competition supervision procedure does not mean that the company has committed the violation. The procedure is aimed at clarifying the facts and, thereby proving the alleged violation. The duration of the procedure is three months, which can be extended twice, each time by a maximum of two months, in justified cases.

Source: napi.hu