Changing consumption habits, changing consumer protection rules

This article is available for reading in Trade magazin 2024/2-3

In this context, the government’s new “pro-active” consumer protection policy has made access to consumer protection a priority. The legislator aims to encourage voluntary compliance and facilitates effective action against infringements.

The two main pillars of the “reform” are the updating of the rules on conciliation bodies and dispute resolution, and increasing the consumer protection fines.

By amending the law, the legislator aims to make the existing consumer protection system work more efficiently, thereby encouraging voluntary compliance and facilitating effective action against infringements

Reforming how conciliation bodies operate

Guest writer:
Dr. Gergely Ficsor 
lawyer, member
Réti, Várszegi és Társai
Law Office PwC Legal

Guest writer:
Dr. Zsófia Straubinger 
lawyer, member
Réti, Várszegi és Társai
Law Office PwC Legal

Guest writer:
Dr. László Szűcs
lawyer, member
Réti, Várszegi és Társai
Law Office
PwC Legal

In Hungary the system of conciliation bodies has been in operation for almost 25 years – a unique feature in the EU. The main objective of conciliation is to encourage consumers and commercial businesses to reach a settlement in consumer disputes. If the agreement reached complies with the law, it is approved by a decision of the conciliation body. As of 1 January 2024, if the value of the claim the consumer wishes to enforce doesn’t exceed HUF 200,000, the conciliation panel may issue a binding enforceable decision even in the absence of a declaration of submission by the business. The commercial enterprise may ask the court to overrule the binding decision if it disagrees. However, in this case the burden of proof is no longer on the consumer, but on the retailer. Another positive development for consumers is the introduction of online hearings as a priority. Under the new rules, the consumer will still have the right to request a face-to-face hearing with physical presence, but in the absence of such a request, the conciliation body will – as a general rule – hold an online hearing. Let’s not forget that consumers can still only turn to a conciliation body if they have tried to settle their dispute directly with the business concerned and have been unsuccessful.

This change is expected to increase the number of consumers referring to arbitration bodies

Much bigger consumer protection fines

Regular internal audits and continuous policy review can reduce consumer protection risks

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