The Hungarian Competition Authority (“GVH”) recently participated in a joint investigation led by the European Commission and national consumer protection authorities from different EU Member States, Norway, and Iceland. The investigation focused on the practices of online businesses selling used products, aiming to assess their compliance with EU consumer protection regulations. The findings reveal that while many European traders fail to adequately inform consumers of their rights, Hungarian businesses generally adhere to regulations. However, some deficiencies were identified, which are discussed in more detail in this article. 

I. Scope and key findings of the investigation

The investigation, coordinated by the European Commission, involved 356 online traders selling used products across 25 EU Member States, Norway, and Iceland. The primary goal was to evaluate their compliance with EU consumer protection laws.

The investigation revealed that approximately 40% of traders did not inform consumers about their right to withdraw from a purchase. Additionally, 57% failed to provide the legally mandated minimum one-year warranty. While a significant portion of traders (34%) made environmental claims about their products, 20% of these claims were not substantiated, and 25% were found to be false or misleading.

II. The GVH's analysis

The GVH conducted a rapid analysis of 12 Hungarian businesses selling clothing, accessories, electronics, and furniture. The findings indicated that most Hungarian traders provided proper information regarding consumer rights. However, some issues were noted:

1. Withdrawal rights: In 25% of cases, information about the 14-day withdrawal right was missing from the website.
2. Warranty period: 16% of websites listed a warranty period that was shorter than the legally required one year.
3. Product condition: While businesses clearly marked products as used, one-third did not provide clear information about the condition of the products.
4. Environmental claims: One-third of businesses made claims about the environmental benefits of purchasing used products but did not substantiate these claims.

III. Recommendations for companies

To improve compliance and consumer trust, we recommend companies focus on the following:

• Clear communication of consumer rights: ensure that all information regarding withdrawal rights and warranty periods is prominently displayed and easily accessible on websites.
• Substantiation of environmental claims: any environmental or sustainability claims should be backed by evidence to avoid misleading consumers (see our article in this topic). This will enhance credibility and consumer confidence.
• Transparency in product condition: provide detailed and accurate descriptions of the condition of used products to help consumers make informed purchasing decisions.

If you need more information or further guidance in this area, please contact Gabor Kutai and Kinga Kálmán.

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