Foodora Fined Over 35 Million HUF for Misleading Consumers
The Hungarian Competition Authority imposes significant penalties on Foodora for misleading advertising practices and procedural delays.
The Hungarian Competition Authority (Gazdasági Versenyhivatal, GVH) announced on Friday that Foodora, a popular food delivery app, has been fined over 35 million Hungarian Forints (approximately €95,000) for misleading consumers regarding its promotional offers.
This penalty originates from a promotional campaign in the autumn of 2023, where Foodora advertised a discount of 2,000 HUF and free delivery.
However, the company failed to clarify that these offers were applicable only to orders exceeding 6,000 HUF.
In addition to the advertising fine, the GVH also imposed a procedural fine of 20 million HUF due to Foodora's delays in the investigative process.
The company has reportedly paid this additional fine.
The national competition authority closely monitors the commercial activities of food delivery services.
The GVH further investigated whether Foodora adequately informed consumers about the fees charged for system usage between June 14 and June 20, 2024.
Taking into account the costs associated with the advertising campaign, the GVH's Competition Council ultimately levied a total fine of 35.2 million HUF on the company.
The GVH emphasized the importance of compliance with data reporting obligations, urging businesses under investigation to fulfill their responsibilities accurately and in a timely manner.
Furthermore, the GVH highlighted that if a business promises a price discount conditional upon certain criteria, it must clearly communicate these conditions alongside the discount offer to consumers.
This penalty originates from a promotional campaign in the autumn of 2023, where Foodora advertised a discount of 2,000 HUF and free delivery.
However, the company failed to clarify that these offers were applicable only to orders exceeding 6,000 HUF.
In addition to the advertising fine, the GVH also imposed a procedural fine of 20 million HUF due to Foodora's delays in the investigative process.
The company has reportedly paid this additional fine.
The national competition authority closely monitors the commercial activities of food delivery services.
The GVH further investigated whether Foodora adequately informed consumers about the fees charged for system usage between June 14 and June 20, 2024.
Taking into account the costs associated with the advertising campaign, the GVH's Competition Council ultimately levied a total fine of 35.2 million HUF on the company.
The GVH emphasized the importance of compliance with data reporting obligations, urging businesses under investigation to fulfill their responsibilities accurately and in a timely manner.
Furthermore, the GVH highlighted that if a business promises a price discount conditional upon certain criteria, it must clearly communicate these conditions alongside the discount offer to consumers.
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