Consumer protection news: what to expect in 2024?

More effective law enforcement

In June 2023, the domestic regulation of “representative actions for the protection of the collective interests of consumers” entered into force, the aim of which is to curb the illegal commercial practices of businesses. Based on the new rules, if a violation affects a wide range of consumers, the designated organizations are entitled to take legal action against the offending company on behalf of and for the benefit of the entire range of consumers concerned. In Hungarian law, it will therefore be possible to file a class action in the event of consumer protection violations. The authorized organizations can also initiate measures aimed at ending the infringement and remedying the infringement (e.g. payment of compensation, exchange of the product or refund of the purchase price).

“It is interesting that, based on the Government’s consumer protection portal, so far – in addition to the organizations already authorized by law (e.g. prosecutor’s office, Hungarian National Bank, Economic Competition Authority) – a total of only one private organization has received such a designation and thus the possibility of a group lawsuit. It is significant, however, that based on the portal’s information, the first lawsuit under the new rules was already filed in December 2023 by the public prosecutor’s office against a major online trading company: the subject of the case is the termination of the unjustified delivery fee imposed by the trading company and its reimbursement to consumers.

– said Zoltán Marosi, co-head of DLA Piper Hungary’s competition law group.