Hungarian Competition Authority Fines Lidl Over Misleading Whole Grain Claims
The Economic Competition Authority investigates Lidl's marketing practices following complaints from diabetic consumers.
The Hungarian Economic Competition Authority (Gazdasági Versenyhivatal, GVH) initiated an investigation into Lidl Hungary in response to complaints from diabetic consumers regarding the company's marketing practices.
According to the Central Statistical Office (KSH), over one million individuals in Hungary live with diabetes, making the nutritional content of food products particularly significant for this demographic.
The GVH stated that it is essential for businesses to ensure that their commercial communications are accurately framed, particularly considering how vulnerable groups, such as consumers with medical conditions, may interpret claims made about food products.
The authority emphasized its commitment to protecting diabetic consumers through this legal action.
The GVH's investigation revealed that Lidl marketed several bakery products as whole grain, despite these items containing less than the legally required percentage of whole grain flour, which is mandated by Hungarian law.
Specifically, only approximately 30-33 percent of the flour in the questioned products was whole grain, while the remainder consisted of lower-cost, refined flour that is considered less healthful.
As a result, Lidl was fined 186 million forints (approximately €500,000).
In response to the fine, Lidl condemned the penalty, attributing responsibility to its suppliers.
The company stated that it seeks to comply with all relevant regulations and consumer demands, adding that the suppliers of the affected products had guaranteed the legality of the whole grain labeling in their contracts.
However, the GVH expressed concern about Lidl's reliance on supplier statements in its defense.
They referenced Article 8 of the European Parliament and Council Regulation (EU) No. 1169/2011, which stipulates that the food business operator responsible for food information is the operator whose name or trade name appears on the product.
In its ruling, the GVH prohibited Lidl Hungary from continuing the unlawful marketing practices related to whole grain products.
Furthermore, the GVH's president, Csaba Balázs Rigó, proposed to review and potentially extend legal requirements concerning the labeling of whole grain products.
The authority also indicated that it is examining the marketing practices of other retail chains regarding whole grain product information.
According to the Central Statistical Office (KSH), over one million individuals in Hungary live with diabetes, making the nutritional content of food products particularly significant for this demographic.
The GVH stated that it is essential for businesses to ensure that their commercial communications are accurately framed, particularly considering how vulnerable groups, such as consumers with medical conditions, may interpret claims made about food products.
The authority emphasized its commitment to protecting diabetic consumers through this legal action.
The GVH's investigation revealed that Lidl marketed several bakery products as whole grain, despite these items containing less than the legally required percentage of whole grain flour, which is mandated by Hungarian law.
Specifically, only approximately 30-33 percent of the flour in the questioned products was whole grain, while the remainder consisted of lower-cost, refined flour that is considered less healthful.
As a result, Lidl was fined 186 million forints (approximately €500,000).
In response to the fine, Lidl condemned the penalty, attributing responsibility to its suppliers.
The company stated that it seeks to comply with all relevant regulations and consumer demands, adding that the suppliers of the affected products had guaranteed the legality of the whole grain labeling in their contracts.
However, the GVH expressed concern about Lidl's reliance on supplier statements in its defense.
They referenced Article 8 of the European Parliament and Council Regulation (EU) No. 1169/2011, which stipulates that the food business operator responsible for food information is the operator whose name or trade name appears on the product.
In its ruling, the GVH prohibited Lidl Hungary from continuing the unlawful marketing practices related to whole grain products.
Furthermore, the GVH's president, Csaba Balázs Rigó, proposed to review and potentially extend legal requirements concerning the labeling of whole grain products.
The authority also indicated that it is examining the marketing practices of other retail chains regarding whole grain product information.
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