The Hungarian competition authority, known as the Gazdasági Versenyhivatal (GVH), has taken action against the Slovak company EC Global SVK s.r.o. for deceiving consumers, particularly parents of young children, through misleading marketing practices. The company was found to have made unverified health claims regarding its Babybeet brand essential oils and balms, promoting them as cosmetic products with supposed health benefits.

In June 2024, the GVH initiated an investigation after noticing that the company’s commercial communications were likely misleading consumers. The investigation revealed that EC Global SVK s.r.o. engaged in unfair commercial practices by advertising its essential oils and balms with baseless health claims, such as enhancing the immune system, aiding better sleep, reducing allergies, treating colds and flu, and alleviating growing pains.

Additionally, the GVH discovered that the company improperly promoted its products through a Facebook profile of a fictitious organization called the “Pediatric Aromatherapy Expert Association,” which lacked a legitimate professional background. This created a false impression that the association was an independent entity endorsing the cosmetic products and essential oils. The company violated not only Hungarian laws but also relevant European Union regulations.

As a result of these violations, the GVH imposed a fine of 14 million HUF on the Slovak company and prohibited any further continuation of such practices. The national competition authority considered the targeting of families with young children as an aggravating factor in this case.

The GVH emphasizes its commitment to scrutinizing businesses and products that target vulnerable groups, such as the elderly, sick individuals, or families with young children. The authority urges companies to ensure that all claims made in their commercial communications are truthful and substantiated.