The Hungarian Competition Authority (GVH) has initiated a competition supervision procedure against Peak Advisor Kft., a Budapest-based company. The GVH suspects that the company has engaged in unfair and deceptive commercial practices on its website, creating the impression that it is an official reseller of the Chinese brand Xiaomi.

Since March 20, the GVH has observed that Peak Advisor Kft. may not be adhering to professional diligence requirements regarding the 'In Stock' label for certain products. This is due to deficiencies in its IT systems and inventory errors, which prevent accurate stock data management and verification.

Additionally, the use of the name 'Xiaomishop' and the domain https://www.xiaomishop.hu, along with the display of the Xiaomi logo, is likely misleading consumers about the company's attributes. Between March 20 and January 8, 2025, the company is also suspected of unlawfully displaying a distinctive mark consisting of the Xiaomi logo and the phrase 'Official Partner.'

The GVH believes that these commercial behaviors may mislead consumers and prompt them to make purchasing decisions they would not otherwise make. The initiation of the investigation does not imply that the company has committed a legal violation; it is aimed at clarifying the facts and proving the alleged infringement.

The investigation is set to last three months, with the possibility of two extensions of up to two months each if justified. The GVH emphasizes that the time taken for the client to provide necessary information for fact clarification does not count towards the administrative deadline.

According to data from the National Media and Infocommunications Authority (NMHH), nearly 90% of the Hungarian population uses the internet daily, with most spending significant time on social media and shopping on e-commerce sites. Due to the expansion of the digital space, the GVH has been closely monitoring online commercial practices for years, placing a strong emphasis on consumer protection in e-commerce.