Hungarian Competition Authority fines illegal e-cigarette distributor nearly HUF 190 million

The Hungarian Competition Authority (GVH) has imposed a HUF 189 million fine on the Slovak company Airbox for giving consumers the false impression that it was legally distributing electronic cigarettes and electronic devices imitating smoking on its website, despite the ban on distance selling in Hungary. In the course of the proceeding, the GVH also blocked the Slovak company’s website. The national competition authority is urging consumers to be aware that illegally distributed tobacco products ordered on the internet from foreign websites can have harmful effects on health. The GVH urges consumers to always be cautious and to buy tobacco products only from authorised retail outlets.

Hungarian Competition Authority fines illegal e-cigarette distributor

In early February 2024, the GVH launched a competition supervision proceeding against Airbox s.r.o., as it found that the Slovak-based company was engaging in a likely misleading communication practice on its Hungarian-language website about the marketability of its products in Hungary.

In the course of the procedure, the Hungarian Competition Authority found that between June 2022 and February 2024, the company gave the impression to the Hungarian consumers on its website that it was legally distributing electronic cigarettes and electronic devices imitating smoking. In Hungary, under the legislation in force, flavoured electronic cigarettes and electronic smoking devices are prohibited from being marketed and the online distance selling of the tobacco products concerned is also prohibited. The GVH found that Airbox had engaged in unfair commercial practices. The Competition Council of the GVH imposed a maximum fine of HUF 189 million on the Slovak company.

Following the opening of the proceeding, the Hungarian Competition Authority immediately acted to protect Hungarian consumers and ordered the blocking of the Hungarian access to the website concerned. The Competition Council of the GVH may block certain digital content (e.g. websites) if this is necessary to prevent the risk of serious harm in view of the extensive consumer exposure. The increased powers will allow the national competition authority to act more effectively in the interest of Hungarian consumers.

The Hungarian Competition Authority has already taken strict action against two Slovak companies for selling electronic cigarettes and Elf Bar products, which are popular among minors and therefore extremely dangerous, on their Hungarian-language websites. Investigations revealed that the companies had misled Hungarian consumers into believing that their products could be legally distributed, and the proceedings in both cases ended with the highest fines possible.

In connection with the case, the GVH emphasises once again that it is extremely important that consumers, especially children and minors and their parents, are aware that in Hungary the sale of the above-mentioned products over the internet – and even their possession, i.e. the purchase of them online – is illegal and may therefore lead to legal consequences.

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