25 April 2023, Budapest - The Hungarian Competition Authority has concluded that the sports betting advisory site Sport & Tip misleadingly advertised its services as a safe money-making option for consumers. Many influencers and agencies have also been fined for dishonest - and in many cases disguised - advertising.
“Extra safe! We recommend it for people who want to earn money safely and securely in the long term." "You can achieve a 300-400% profit in 30 days with this strategy" - these and similar claims were used by the sports betting advice site Sport & Tip to advertise its services. The recently concluded competition proceedings revealed that the advertisements did not give a true picture of the risks of the service and therefore misled consumers. Not only did the undertaking fail to support the 300-400% profit margin, but it also consistently understated the risks of tipping in general in relation to the profits to be made - misrepresenting the essential features of the service. The advertisements also portrayed the undertaking as a market leader in order to gain consumer confidence, which the undertaking was also unable to justify.
Apart from its own advertisements, the undertaking also commissioned several Hungarian influencers with a large number of followers to promote its service. In several cases they published the unfair advertisements in a disguised manner, without indicating of their remunerated nature. This is also illegal, as in such cases the business relationship between the advertiser and the influencer must be made known to consumers clearly, prominently, unambiguously and in plain language.
In the case, the GVH’s proceeding Competition Council assessed it as an aggravating circumstance, among other things, that the undertaking presented sports betting as a simple and safe way to make money - and even as an investment - despite the fact that it is known to be risky and that excessive use of it can be harmful. Some of the targeted consumers are also particularly vulnerable due to their gambling addiction, which also aggravated the infringement. Taking all this into account, the authority imposed a fine of HUF 9 million on the service provider One Billion Kft. and a total of more than HUF 10 million on the seven influencer agencies and individual entrepreneurs responsible for the infringement.
Official registration number of the case: VJ/23/2021.
GVH Public Service Communications and International Section
Bálint Horváth, Head of Communication +36 20 238 6939
Katalin Gondolovics, Spokesperson +36 30 603 1170