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GymBeam Fined 100 Million for Misleading Advertising Practices

16.12.2024 | 🇭🇺 Hungarian competition authority

GymBeam has been fined 100 million HUF by Hungary's Competition Authority for multiple violations in its commercial practices, including misleading health claims and deceptive pricing.


The Hungarian Competition Authority (GVH) has imposed a fine of 100 million HUF on GymBeam, a dietary supplement company, after determining that the company engaged in several unlawful commercial practices. The investigation revealed that GymBeam's communication practices did not meet the required professional diligence, as it made numerous health claims about its products that were either prohibited or did not comply with specific regulations.

Between May 1 and November 7, 2023, GymBeam misled consumers by suggesting that certain products were available at discounted prices through the use of crossed-out prices and the slogan 'best prices.' Additionally, starting from May 28, the company failed to disclose certain information regarding the management and filtering of consumer reviews, contrary to legal requirements.

The GVH found that GymBeam's overall communication practices were inadequate, as the company did not ensure that similar systemic issues would not occur. Furthermore, some products were marketed without prior notification to the relevant authorities.

During the proceedings, GymBeam cooperated with the GVH, acknowledged its violations, waived its right to appeal, and committed to implementing a compliance program. This program includes establishing compliance regulations, conducting internal training, and joining the Self-Regulatory Advertising Board (Ă–RT). The GVH took these mitigating circumstances into account when determining the fine.

The GVH also emphasized the importance of adhering to EU regulations regarding health claims related to food products, stating that such claims can only be made if they meet specific conditions and are included in the EU's approved list of claims based on scientific knowledge.

This case highlights the benefits of cooperating with the GVH, as the authority does not primarily aim to impose fines and offers various cooperation opportunities for businesses. Active collaboration can significantly reduce the amount of fines during investigations.

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