The law has been passed: double quality will be punishable

By: Trademagazin Date: 2020. 12. 02. 10:56

Dual quality will be sanctioned as unfair commercial practices from May 2022, after Parliament passed an amendment to the Consumer Protection Act without a vote on Tuesday, the Ministry of Innovation and Technology (ITM) called attention to.

Minister of Innovation and Technology László Palkovics emphasized in the statement that it is not permissible for anyone to treat Hungarian customers as secondary, and discrimination against domestic consumers is unacceptable. The same product must be of the same quality regardless of whether it is sold in Budapest, Vienna or Berlin.

– Hungary took the first steps to eliminate the double quality of products that can be purchased in the European Union in 2017. The initiative has now become an EU directive, which we were among the first to incorporate into national law a year before the transposition deadline, László Palkovics emphasized.
Under the amendment, it is unfair commercial practice for a product to be marketed in one Member State in the same way as a product marketed in another Member State in terms of its brand name or appearance, but with significantly different composition or other characteristics. Differences justified by legitimate and objective factors must be communicated to the purchaser.

Under the regulations that will come into force in May 2022, double quality will be sanctioned. The fine that can be imposed can reach up to 5% of the manufacturer’s sales revenue, in the case of multi-companies it can be up to HUF 500 million.

The ITM and the Consumer Protection Authority check the dual quality of non-food products. In the case of food, the National Food Chain Safety Office may act. During the one and a half year preparation period, manufacturers and distributors can comply with the legal obligation through voluntary measures.
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