The Hungarian competition authority (GVH) has issued a new advisory publication focusing on market leadership claims in advertising, which are considered high-risk due to their potential to mislead consumers about a company's competitive position.

Market leadership claims are statements that highlight a company's superiority, popularity, or outstanding market position. These claims can range from general assertions to specific performance indicators, such as 'the most popular service' or 'the lowest prices on the internet.'

The GVH aims to assist both consumers and businesses in understanding the legal implications of such claims. Businesses must ensure that their claims are accurate, substantiated by objective evidence, and not misleading to consumers. The authority emphasizes the importance of distinguishing between subjective and objective statements in advertising.

To lawfully use objective market leadership claims, businesses must meet three criteria: clarity, timeliness, and proof. Claims should be clear about the product or service and the market they refer to, remain true throughout the campaign, and be backed by verifiable evidence.

Additionally, the GVH advises that the interpretation of claims should be based on the average consumer's understanding, not the company's intent. Claims that are obviously exaggerated or figurative may not qualify as market leadership claims but must still be substantiated if they refer to measurable attributes.

For consumers, the GVH provides tips on how to assess the credibility of market leadership claims, such as checking for sources of claims and relying on personal experiences or credible reviews rather than advertising slogans.

More information on market leadership claims can be found on the GVH website under the 'Think Calmly' section, which includes previous advisories and consumer guidance materials.