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The Hungarian Competition Authority (GVH) deemed Jewelery TV’s sales practice unfair and imposed a fine of HUF 480 million on the show’s producer, Pénzcentrum writes.
Jewelery TV advertises jewelery that can be ordered over the phone at a significant discount, up to 80-90 percent. An investigation by the Hungarian Competition Authority, which has just been completed, revealed that the jewelery selling practice of the broadcast was unfair to consumers in several respects. In its explanatory memorandum, the GVH states that:
The program operator engaged in aggressive business practices when it falsely claimed that jewelry on display was only available for a very limited time and in quantities at the advertised affordable price, to encourage consumers to buy immediately. Furthermore, as the investigation revealed, the program compared these discounted prices with base prices that were fictitious, had never been used before and could not be considered market prices. The broadcast also misled consumers with unconfirmed claims about certain properties of the jewelry (such as “the Pope’s blessing,” “Princess Diana’s engagement ring,” etc.).
The competition authority imposed a fine of HUF 480 million on Emporia Style Kft., Which operates the program. The company also committed to introducing an internal procedure before the competition authority to prevent future similar infringements, against which the competition authority will continue to take measures to protect Hungarian consumers.
Last year, the company’s net sales were 7.5 billion HUF, and its profit after tax was 545 million HUF.
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