The Competition Authority (GVH) has initiated competition supervision proceedings against the European operator of the US-based Wish store, Dutch ContextLogic BV. The platform’s business practices are suspected of violating the ban on unfair trade.
According to GVH’s announcement, the procedure was initiated because, on suspicion that the operator had not exercised the required due diligence, it acted when referring to prices and discounts. In other words, it is assumed that it was not possible to purchase the specific product for some of the indicated prices, and the original prices of some products offered at a significant discount may not have been used by the web store before. According to the authority, “instant offers” along with a countdown clock, which promises a discount for a few minutes, can also be misleading – as the expiration of a deadline urging consumers is unlikely to have any real impact on product prices or availability. The study also covers the viability of some notable product features, such as the carat high count of a few hundred forints in jewelry.
The commencement of competition proceedings does not constitute a conclusion that a breach has been committed. The procedure aims to clarify the facts and thus establish the alleged violation. The permissible duration of the procedure should be three months, and it can be extended twice, if necessary, with a maximum of two months each.
