The final months of 2024 brought noteworthy developments in consumer protection in Hungary, ranging from efforts to curb misleading sales practices to new rules addressing child protection in advertising. With changes spanning enforcement actions, legislative amendments, and institutional reforms, these developments raise intriguing questions about their potential impact on businesses and consumers alike. 

     I.  Latest guidance by the GVH: spotlight on consumer risks

The Hungarian Competition Authority (GVH) has sounded the alarm about both recurring consumer pitfalls during Black Friday and timeshare transactions.

• Black Friday pitfalls: consumers are increasingly vulnerable to deceptive discounts, hidden charges in online purchases, and aggressive marketing tactics during sales periods. The GVH has responded with educational materials, including leaflets and videos, to help consumers navigate these challenges.
• Timeshare transactions under scrutiny: for a long time a contentious issue, timeshare deals often target elderly individuals with misleading claims, pressuring them into signing unfavourable agreements in exchange for questionable benefits, such as discount vouchers. During parliamentary debates in late 2024, the GVH advocated for criminal penalties and pre-approval requirements for such agreements, signaling a tougher stance on this front.

It will be interesting to see whether stricter consumer education initiatives are sufficient to effectively deter these infringing practices.

     II.  Child protection: advertising under the microscope

New regulations (Act XLIX of 2024), effective as of 1 January 2025, aim to shield children from potentially harmful advertising practices, including:

• A ban on alcohol ads around content aimed at minors.
• Restrictions on advertisements that depict goods in harmful or unsafe ways to children.
• A prohibition on product placement in content targeting children under the age of 14, particularly on video-sharing platforms.

Advertisers and platform operators will need to quickly adapt their practices to meet these heightened standards. Video-sharing providers are required to update their terms and conditions accordingly.

     III. New consumer protection authority: a centralized approach

With a set of legislative amendments, the National Trade and Consumer Protection Authority (NKFH) will operate as an independent body, taking over various functions from the Ministry of National Economy as of 1 January 2025. 

The NKFH's mandate includes:

• Shaping consumer protection policies and legislative proposals.
• Coordinating inspections across Hungary.
• Issuing professional guidelines, inspection and sampling plans as well as overseeing enforcement actions.

This institutional reform reflects a broader effort to improve coordination and efficiency in safeguarding consumer interests, especially in addressing systemic market behaviors. 

     IV. Looking ahead

As 2025 approaches, businesses operating in Hungary continuously face strong consumer protection legislation and enforcement priorities. While the GVH will retain its authority to initiate competition control proceedings for nationwide consumer protection issues affecting relevant markets, increased cooperation and coordination with the NKFH is expected. Online safety and transparency remain key consumer protection objectives. 

Only time will tell whether these changes will set the stage for more empowered consumer protection or whether the complexities of compliance will create new hurdles for businesses.

If you need more information or further guidance on consumer protection issues, please contact Gábor Kutai or Kinga Kálmán. 

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