About You to pay millions in compensation over misleading marketing

In addition, the company must pay a fine of 505 million Forint to the Hungarian treasury, according to a procedure by the Competition Authority (GVH). About You used misleading advertising and placed consumers under psychological pressure. The company acknowledged the violations and is paying each affected customer 1,750 Forint. All buyers from the period between December 31, 2022, and December 31, 2024, will benefit.

In July 2023, the GVH initiated proceedings against CCC, Answear, and About You for misleading price displays. CCC and Answear improved their practices through commitment declarations. The Competition Authority found that About You employed misleading business practices. The price and discount system did not ensure that consumers received accurate information about discounts. Furthermore, the company applied psychological pressure on consumers by displaying a digital countdown clock showing the remaining campaign time down to the second. Throughout the purchasing process, there were indications of limited product availability. These techniques significantly restricted consumers’ freedom of choice and behavior as well as their ability to make informed decisions.

The platform operator initially defended its position but admitted the legal violations during the proceedings and subsequently cooperated with the GVH. To reduce the fine, the company committed to developing a comprehensive consumer protection compliance program. Customers whose bank details are on file will have the compensation transferred directly to their accounts, while others will receive it in the form of About You Coins. Consumers have one year to claim the compensation, which is automatically credited upon a purchase.

Artificial intelligence was used to assist in the translation of parts of the original German text.