In January 2024, the Hungarian Competition Authority (HCA) launched a competition investigation against Lidl Hungary following suspicions that the company engaged in misleading commercial practices in relation to several bakery products labeled as “whole grain.” The HCA ultimately found that the labeling and commercial communication of four products marketed as whole grain misled consumers based on the products’ actual composition. As a result, the authority imposed a fine of HUF 186 million (approx. EUR 465,000) on the company.
The core of the investigated conduct was that the products in question contained a significant proportion of refined wheat flour, while the “whole grain” designation led consumers to expect a higher proportion of whole grain flour and associated health benefits. According to manufacturing documentation, the whole grain flour content in these products typically ranged between 29% and 32%, whereas the HCA found – based on market practices and professional sources – that the use of the “whole grain” label is generally justified only when the whole grain flour content exceeds 50%.
During the proceedings, the HCA employed extensive, multi-channel data collection methods as no statutory requirements exist regarding the mandatory whole grain content of whole grain labelled products. It requested direct information on the composition and manufacturing data of the products, conducted online searches to map out the composition of competitors’ similar products, and reviewed recipes available on consumer-facing cooking websites. The HCA also considered the relevant provisions of the Hungarian Food Codex, maintained by the Ministry of Agriculture, particularly the requirement that “whole grain bread” must contain at least 60% whole grain flour. Although Lidl argued that this requirement does not apply to the products in question – as they are not marketed as bread but as smaller bakery goods – the HCA assessed that consumers could still reasonably expect a higher whole grain content based on the labeling.
In addition to comparing market offerings, the HCA also took into account the results of a non-representative consumer survey, which showed that nearly half of respondents believed that a bakery product labeled as whole grain should be made exclusively from whole grain flour. The investigation also included various scientific and dietary sources, including guidelines from the Ministry of Human Resources and clinical dietetic literature, all confirming the crucial role such product labeling plays in consumers’ health-conscious decision-making.
The HCA found that the product names and marketing – including in leaflets, in-store materials, and online advertisements – conveyed a message that was capable of misleading consumers. The authority highlighted that the “whole grain” designation is seen by consumers as synonymous with healthiness and is influential in shaping purchasing decisions.
According to a public statement released on March 10, 2025, the HCA has launched new investigations against three additional food retail chains – Spar, ALDI, and Tesco – based on similar suspicions. The HCA suspects that these companies may also have engaged in potentially misleading commercial practices concerning certain in-store baked products marketed as whole grain. It is believed that consumers may similarly be misled regarding the flour composition used in these products.
The HCA’s proceedings clearly demonstrate that in enforcing consumer protection standards, it forms its position based on a comprehensive assessment of market practices, consumer expectations, and relevant professional guidelines. In cases where there is no relevant binding regulation for a given product category—such as bakery goods—the HCA examines how a particular designation is understood within the market context and by the average consumer.
The article was originally published on the Global Advertising Lawyer Alliance (GALA) blog.
