Tesco has been fined 100m forints (£247,000) by the Hungarian competition authority for publishing misleading information in a promotional pamphlet.
Tesco is expanding into new markets, including Eastern Europe
The regulator, known as GVH, said it investigated a claim that the retailer was selling digital cameras at a cut price and giving memory cards as gifts.
GVH said it found that the discount was less than stated, while the cards were already included in the camera pack.
It also found Tesco had used the wrong photos to advertise a children's toy.
Tesco was not available for immediate comment, and GVH said that the supermarket chain could appeal the decision.
Hungary is one of the company's main markets in Eastern Europe and Tesco boasts that it sells 20 different types of sausage in its local stores.
GVH said that while the offence may seem trivial, it was an example of false advertising that lured consumers into a store, and then put them in an environment in which they were likely to spend money.
It also meant that Tesco gained an unfair advantage over rivals, GVH said.