Competition watchdog initiates proceedings against Fonte Viva, Szentkirályi and Coca-Cola
The Competition Authority suspects that from 9 March 2022, Fonte Viva Ltd. has been misleading consumers with claims such as "100% recycled PET bottle", "100% rePET", "100% rePET bottle from bottle" on the labels of Fonte Natura mineral waters and in its commercial communications promoting the product.
From 18 November 2019, Szentkirályi Hungary Ltd. has promoted the "Get into the Cycle" circular system on the labels and in the commercial communication of Szentkirályi mineral waters and flavoured drinks, under which the "Collect selectively! ", "100% recyclable", "Bottle to bottle, 50% rePET" and similar claims and imagery are also likely to mislead consumers with certain so-called "green claims".
The GVH is also investigating Coca-Cola HBC Hungary Ltd, Coca-Cola Hungary Services Ltd, and The Coca-Cola Company, as it suspects that they are likely to have misled consumers with claims such as "Reuse 100% recyclable PET bottles", "100% recyclable" and similar statements and imagery in their commercial communications on the labels and in their commercial communications of mineral waters and soft drinks sold under the Naturaqua brand from 10 December 2020.
What is common in the likely misleading claims made by these companies is that they refer to the essential characteristics of the products and their impact on the environment.
However, the challenged promotional claims are likely to be unsubstantiated, and the companies are unlikely to have sufficient evidence to justify the environmental benefits of the bottles.
The opening of competition proceedings does not mean that the undertakings concerned have committed infringements. The time allowed for the conduct of investigations is three months, which may be extended twice, each time for a maximum of two months, if justified.
Responding to the announcement, Szentkirályi said that the current proceedings against the company are predominantly investigating sustainability claims used in a 2019 communications campaign. This campaign was already investigated by the GVH in 2020 and it concluded then that the conditions for launching a competition supervision procedure were not met.
Szentkirályi Hungary Ltd. has not received any information as to why the GVH has now decided to initiate proceedings in relation to the campaign 5 years ago, and despite their earlier decision. Szentkirályi Hungary Ltd. will continue to cooperate fully with the GVH during the proceedings and will provide all relevant and available information, the statement reads.
Cover photo (for illustration purposes only): Shutterstock
