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GVH Fines Premium Pázsit for Unsubstantiated Market Claims

02.12.2024 | 🇭🇺 Hungarian competition authority

The Hungarian Competition Authority (GVH) has fined Premium Pázsit Kft. for failing to substantiate its claims of market leadership and product uniqueness.


On December 3, 2024, the Hungarian Competition Authority (GVH) announced that Premium Pázsit Kft. could not provide evidence to support its claims regarding the uniqueness and market leadership of its products. The GVH emphasized the importance of substantiating market claims, as they can significantly influence consumer decisions.

The investigation, initiated in December 2023, was prompted by suspicions that Premium Pázsit made potentially unfounded claims about its products' uniqueness and special quality. The company advertised its products with statements such as 'First in Hungary for artificial turf maintenance machines!' and 'The largest stock in Hungary,' which the GVH found misleading.

The GVH concluded that these market leadership claims were misleading to consumers, as they lacked proper substantiation. During the investigation, Premium Pázsit attempted to retroactively support its claims, but the evidence provided was insufficient.

As a result of the violations, the GVH imposed a fine of 2.3 million HUF on Premium Pázsit. The authority considered the prolonged use of these strong claims as a serious aggravating factor, while acknowledging that the company largely ceased using the misleading statements following the investigation.

The GVH warns that businesses must only publish advertisements that they can substantiate with factual evidence. If substantiation is objectively impossible, companies should refrain from making such claims, especially categorical market leadership statements.

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