The Hungarian competition authority, known as GVH, has fined Lidl Hungary Commercial Ltd. 48 million HUF for misleadingly claiming to be the 'cheapest grocery chain' in its advertising. This decision follows a previous ruling in February 2024, where Lidl was also found in violation but was granted a retrial by the Supreme Court.

In the recent proceedings, the GVH concluded that Lidl's advertising suggested that its products were objectively the cheapest compared to competitors, a claim that required substantiation from independent research. The authority determined that this constituted a misleading market-leading assertion.

During the retrial, Lidl cooperated with the competition authority, acknowledged the violation, and agreed to implement corrective measures in its pricing communications. As a result, the GVH imposed a reduced fine of 48 million HUF, recognizing Lidl's cooperation and the narrower scope of the violation.

The GVH emphasized the importance of careful advertising practices regarding pricing claims, highlighting that companies must possess objective data to support any assertions of market leadership. The authority has also released guidance to assist businesses in compliance and to inform consumers.

This case serves as a reminder that cooperation with competition authorities can lead to reduced penalties and quicker resolutions in legal proceedings.