Tourists beware: popular Budapest taxi company defrauded customers?

The Economic Competition Authority has initiated an investigation against one of the most popular Budapest taxi service providers due to an alleged violation of the prohibition of unfair commercial practices towards consumers. The competition office objects to several things in the Budapest taxi company’s communication.

The Hungarian Competition Authority is investigating the misleading advertising of this popular Budapest taxi company

According to the Economic Competition Authority, City Taxi, a private taxi company “misled consumers regarding the essential characteristics of the business and its commitments related to the passenger taxi service it provided,” the agency writes in a press release.

The competition supervision procedure was initiated due to two allegations. According to the office, since 10 January 2024, the service provider:

• used the adjective “Hungarian” – without additional context – and thus likely mislead consumers regarding the essential characteristics of the business;
• used the term “price guarantee” and thus likely gave the wrong impression that the company’s pricing was unique and provided on a voluntary basis, despite the fact that fare prices are based on a legal requirement.

Since the Budapest taxi company carried out the potentially deceptive marketing practice through a national radio station, it was justified for the Competition Authority to take action.

It is important to note that officials highlight that the initiation of the procedure does not mean that City Taxi has committed a violation of the law for certain: the purpose of the procedure is simply to clarify the facts and prove (or disprove) the allegations against the taxi company.

Three months are available to collect evidence and to complete the investigation, which can be extended twice, both times by a maximum of two months, in justified cases.