Promotional traps, part 2: questions of responsibility

By: trademagazin Date: 2014. 12. 14. 05:39

One of the most debated sections of the new Civil Code is the following: if a head of company causes damage to a third party acting in the position of head of company, the company head can be held responsible for the damage together with the legal personality.

 Dr. Szűcs László ügyvéd Réti, Antall és Társai Ügyvédi Iroda – PwC Legal


Dr. Szűcs László
ügyvéd
Réti, Antall és Társai
Ügyvédi Iroda – PwC Legal

This provision refers to damage caused in non-contractual relationships between the company and the third party. In the last few months we often came across promotions and marketing campaigns where the applying of this section in the Civil Code was considered. If promotions aren’t organised with adequate care, they can become hotbeds of legal problems. For instance practically all major retail chains operate websites or Facebook pages where consumers share their opinion on products or services. These opinions may damage the reputation of third parties or the content they upload may break copyright laws, and in such cases the retailer who operates the website or profile can be held liable. These problems make it absolutely clear that consumers must be informed about the rules of using them before promotion or communication start on these platforms. As the next step, the company operating the website has to make sure that any content that breaks the law can be removed from the platform, because if such content isn’t removed, those who suffer damage because of it have the right not only to sue the company operating the website, but the head of the company as well. The head of the company can be held liable even if the website and the campaign implemented there is operated not by the company itself but an agency commissioned with the job. Based on the information above, we recommend that company heads pay special attention to promotions where consumers are given a free hand in shaping the content of online platforms related to the campaign

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