Media Markt fined Ft 100 million for “stupid” ad

Leading consumer electronics retailer Media Markt Saturn Holding Magyarország Kft has been slapped with a fine of Ft 100 million (roughly €400,000) by the national consumer protection authority (NFH) for an advertising campaign that poked fun at the intelligence of people who didn’t find reason to celebrate the 10th anniversary of the German-owned firm’s presence in Hungary.

According to Napi Gazdaság, the watchdog said it had received 23 complaints about Media Markt’s slogan “Whoever is not celebrating is stupid.” Following an investigation, the NFH concluded that the ad was in contravention with advertising regulations as its “poor wording” can harm and distort the “value judgment” and “moral development” of children and young people. Outdoor media firms that placed the slogan on billboards were also ordered to pay a much smaller penalty of Ft 2.6 million.

The slogan was initially green-lighted by the local ad industry’s Self-Regulating Advertising Body (Önszabályozó Reklámtestület), but the shower of criticism that followed the campaign’s appearance apparently led it to back down, saying that while the TV commercial version of the ad was just fine, it was not clear what the outdoor ads were advertising.

Meanwhile, in July, a “complaints committee” (Panaszbizottság) of Hungary’s National Radio and Television Board (ORTT) judged that the campaign did not infringe on Hungary’s Media Act. At the time, a written reply from the ORTT to one of the complainants said “judging the style of TV broadcasts, including commercials, does not fall within the Committee’s remit.” Patrik Horváth, then outgoing chairman of the committee, said the ORTT had referred the case to the NFH, saying it was not authorized to adjudicate on it, but it was sent back.

Also in July, Hungary’s Constitutional Court ruled that the ORTT was no longer able to sanction media channels that air “illegal” or “immoral” material beyond refusing to re-license them.

The managing director of Media Markt’s Hungarian operations, Andor Maurer, said he was perplexed by the NFH’s decision, as the firm had specifically asked the industry advertising body to review the ad before it went ahead. He also emphasized that the company was using the same slogan in other countries and that it was deemed unethical in none of these markets.

According to Maurer, the act cited by the NFH is not straightforward, and allows different interpretations, which makes companies defenseless against such judgments. He also stressed that the company will challenge the fine in court, as it considers the penalty unfair, unjustified and excessive.