The Hungarian Competition Authority (GVH) has closed its investigation into Lidl Hungary due to concerns over misleading pricing claims. Lidl has proposed a comprehensive set of commitments to strengthen its internal procedures regarding price claims, which are expected to enhance price competition in the retail market.

Initiated in the summer of 2024, the investigation focused on Lidl's slogan 'Lidl: Champion of Low Prices,' which was suspected of misleading consumers. The GVH conducted a thorough fact-finding process, requesting data from Lidl and engaging in multiple discussions with the company.

During the investigation, the GVH found that Lidl had developed a detailed methodology and internal regulations for its pricing practices, involving external experts to ensure compliance with legal standards. The company based its main campaign message on average prices from 62 product categories tracked by the Price Monitoring system.

To ensure compliance in the future, Lidl has committed to clearly referencing the Price Monitoring system in its communications and has introduced two conditions for its pricing claims: it will only claim to be the lowest price if its average basket value is at least 2.5% lower than the second cheapest retailer, and it will only make monthly claims if it was the cheapest for more days than the second retailer.

The GVH believes these commitments will eliminate potential violations and ensure future compliance, while also stimulating competition and potentially lowering prices for consumers. The authority has mandated Lidl to implement these commitments without determining any violations.

The Price Monitoring system, launched on July 1, 2023, in collaboration with the government, originally tracked 62 product categories and has since expanded to 140 categories, allowing consumers to monitor prices of over 5,000 food and household products across various retail chains. The GVH previously noted that the system has led to a significant reduction in gross margins for retailers, benefiting consumers.