Case law

  • Case Details
    • National ID: 12/2012. VJ
    • Member State: Hungary
    • Common Name:link
    • Decision type: Administrative decision, first degree
    • Decision date: 25/01/2013
    • Court: Competition Authority (Budapest)
    • Subject:
    • Plaintiff: Procedure initiated by the Competition Authority
    • Defendant: A global retailer
    • Keywords: advertisement, black list, discounts, material information, misleading omissions, price information, price reductions
  • Directive Articles
    Unfair Commercial Practices Directive, Chapter 2, Section 1, Article 7, 4., (a) Unfair Commercial Practices Directive, Annex I, 5.
  • Headnote
    (1) Constitutes a misleading commercial practice, omitting to mention information on the number of products which are available in a promotional action.

    (2) Constitutes a misleading commercial practice,  not mentioning the original product price when price discounts are offered and advertised.

     
  • Facts
    The Competition Authority placed the defendant under process for its campaign called "Autumn sales" launched in August 2011, during which campaign the defendant sold 23 pieces of garden tools with a discount of 50 %, and later 70 % of the original price.

    In the related newsletter and on the shelves of the store however, solely the final price of the tools was written, thus the costumers could not possibly obtain information on the original price.

    Furthermore, the defendant failed to published in its newsletter the very limited amount of the products in question that was still available in its stores.  

     
  • Legal issue
    The Competition Authority found that the defendant during its "Autumn sales" campaign in 2011 conducted unfair commercial practices against the consumers by concealing information on how limited the amount of the product offered on sale was.

    Further, it was also considered that not mentioning the original price of the product constitutes a misleading omission.

     
  • Decision

    (1) Does it constitute a misleading commercial practice to omit to mention information on the number of products which are available in a promotional action?

    (2) Does it constitute a misleading commercial practice not to mention the original product price when price discounts are offered and advertised?

     

    URL: http://www.gvh.hu/domain2/files/modules/module25/22677AC68FA8F54BF.pdf

    Full text: Full text

  • Related Cases

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  • Legal Literature

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  • Result
    The Competition Authority imposed a fine of HUF 20,000,000 (approx. EUR 66,000) on the defendant.