GVH fines eMAG operator HUF 200 mln

Retail

Hungary's Competition Office (GVH) said yesterday that it is fining Dante International SA and Extreme Digital - eMAG, the operators of online marketplace eMAG, HUF 200 million for persistently unfair sales promotions, according to penzcentrum.hu.

GVH examined the campaign management practices of hundreds of sales campaigns of the eMAG webshop, dating back to July 2014. The procedure revealed that eMAG did not develop internal rules during the campaigns that would ensure that the actual, typical price of the product was displayed as the "original" price: instead, the crossed-out prices were in place only occasionally, for a very short time.

The operators of eMAG cooperated with GVH and committed to implement a package of measures to redress the infringements.

Accordingly eMAG will stop misleading promotions, reshape its pricing and display practices, and will enforce this from its market partners. In addition, consumers who have made purchases in the last 12 months will each receive a coupon discount worth HUF 3,000, for a total of approximately HUF 1.08 billion.

The group also undertakes to promote the online commercial presence of Hungarian companies for HUF 2.88 bln. It will support its partners with commission reductions, education, and advertising and logistics services, among other things. Dante International SA and Extreme Digital - eMAG have agreed not to challenge GVH's decision in court.

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