Temu Fined 1.3 Billion Forints by Hungarian Competition Authority for Unfair Business Practices, Consumers to Receive Unified Cash Compensation
Former customers of Temu in Hungary will receive cash refunds as part of a penalty decision by the Hungarian Competition Authority (GVH) against the platform's operating company for unfair business practices. The GVH stated that the company operating the Temu online platform must refund at least 882 million Forints to consumers and pay a fine of 437 million Forints to the Hungarian central treasury, totaling over 1.3 billion Forints. Hungarian consumers who shopped through Temu between November 2023 and September 2024 are eligible for a one-time cash compensation of 2000 Forints.
In March 2024, the GVH initiated a competition supervision procedure against Whaleco Technology Limited, Temu's European operator, suspecting it of engaging in unfair business practices and misleading consumers in several respects. During the investigation, the GVH identified a series of issues with Temu: creating the illusion of "discounts" by striking through original prices; being unable to prove the authenticity of significant discounts such as "up to 95%" and admitting that such discounts were not always available; labeling products as on promotion even when no actual discount was offered; publishing urgent messages to exert psychological pressure on consumers through content and visual presentation; and using misleading statements related to environmental and sustainability issues.
According to the GVH, Temu's operating company chose to cooperate with the regulator during the proceedings, has stopped several business practices identified as illegal or improper, and pledged to implement a comprehensive consumer protection plan. As part of the settlement, the company agreed to issue a 2000 Forint cash compensation to all Hungarian consumers who shopped on Temu between November 2023 and September 2024. Affected consumers will receive an email containing an activation link through which they can submit their bank account information or choose other secure and widely used payment methods to receive the refund.
If the total amount refunded to consumers does not reach 882 million Forints, Temu's operator must pay the difference to the Hungarian central treasury in the form of a fine. In addition, the GVH imposed a separate fine of 437 million Forints on the company, which will also be paid to the state treasury. The GVH emphasized that this case reflects the regulator's continued focus on the marketing and pricing strategies of online marketplaces, especially in areas involving false discounts, excessive pressure, and "environmental" advertising.
This is not the first time the GVH has taken similar action against large online retailers or platforms. As early as November 2025, online fashion retailer About You was required to pay compensation to hundreds of thousands of customers for using deceptive promotional methods and influencing consumer decisions by creating psychological pressure. From the GVH's perspective, the Temu case continues the trend of strengthening regulation of e-commerce platforms and sends a signal to the entire industry: false offers, emotional manipulation, and unsubstantiated sustainability claims can lead to high financial costs and mandatory consumer compensation obligations.