Heavier fines in e-commerce

According to the Consumer Conditions Scoreboard 2017, published by the European Commission on 25 July, the rapid expansion of e-commerce entails not only a higher level of consumer consciousness, but also special attention from the regulators. The consumer protection authorities of the EU and the member states are using heavier fines and other measures (e.g. publishing the names of online stores that break the rules) to make e-commerce businesses comply with the regulations. For instance in the case of large companies the fine can reach the HUF 2 billion sum in Hungary. For SMEs the maximum fine is HUF 2 million or in special cases 5 percent of their annual net sales.

Data from the Central Statistical Office (KSH) show that since 2010 the volume of e-commerce grew by 38 percent every year in Hungary. Péter Ihász, legal expert of Faludi Wolf Theiss is of the opinion that the special attention authorities are paying to e-commerce enterprises results in a stricter policy in the consumer protection practices of member states. This creates a challenge for those businesses which realise the majority of their turnover online, as they don’t only have to comply with the Civil Code and the consumer protection law, but also with the special rules referring to e-commerce service providers. //