The Hungarian Competition Authority (GVH) has initiated a competition supervision procedure against iHerb Netherlands BV and its American parent company, iHerb LLC. The investigation is based on suspicions that the companies have unlawfully used health-related claims in the advertising of their food products and dietary supplements, misleading consumers about the legality of their sales.

According to the GVH, starting from November 2024, the companies are likely to promote certain dietary supplements and food products with health claims that violate sector regulations, such as 'contributes to the maintenance of heart and brain health' and 'helps neutralize free radicals.' Additionally, they are accused of attributing properties to their products that suggest they can prevent, treat, or cure human diseases, such as 'Herbal pain reliever' and 'Targets pain where it starts, effectively delivering ginger to relieve mild pain.'

The GVH also noted that the companies' commercial communications likely do not meet the required professional diligence standards, as their communication design and publication mechanisms are based on inappropriate legal frameworks and unchecked machine translations. This raises concerns that the companies may not adequately prevent the aforementioned potential legal violations, thereby misleading consumers.

The initiation of the competition supervision procedure does not imply that the companies have committed a legal violation. The procedure aims to clarify the facts and prove the alleged infringement. The duration of the procedure is three months, which can be extended twice for up to two months each if justified.

The GVH emphasizes the importance of examining market signals related to health and therapeutic claims in the advertising of food products, particularly dietary supplements, and conducting competition supervision procedures in this area. Based on extensive procedural experience, the authority has observed that companies frequently use such messages but often make mistakes and legal violations in their formulation.