Control over online stores is tightening
The consumer protection authority has already been giving priority to online stores in 2024, and based on the latest announcement by the Minister of National Economy, these inspections will only increase from next year. In addition, a top consumer protection authority will be established from 2025, whose primary goal will be to ensure consumer protection in the online space. As an online store operator, it is therefore a good idea to prepare for the main practices and shortcomings that the authority will be looking for. With the help of an expert from Jalsovszky Law Firm, we will explain the details.
During 2024, both the consumer protection authorities and the Hungarian Competition Authority actively inspected online stores and online marketplaces. In the first half of the year alone, the consumer protection authority conducted nearly 300 inspections – mostly by conducting test purchases.
While consumer protection fines are currently moderate, the GVH’s fines are already high. In the case of booking.com, for example, the authority imposed a fine of HUF 382.5 million, objecting to the company’s unlawful communication practices and psychological influence on consumers. Previously, the Elittárs dating service and two web stores selling Elf Bar products were also fined more than HUF 100 million. According to the authority’s decision, Elittárs falsely gave consumers the impression that its service was suitable for conducting matchmaking activities without purchasing a subscription. The two web stores were fined by the GVH because they deceptively maintained the appearance that Elf Bar products could be legally ordered to Hungary.
Experience has shown that the authorities’ findings can be divided into a few, well-defined categories.
Consumer opinions, evaluations
Consumer opinions play a significant role in the online marketplace in determining what product or service someone chooses.
“It is not surprising that the authorities therefore pay special attention to ensuring that these reviews are real and that their placement is not misleading. It is also expected that the service provider displays both positive and negative opinions, and that the evaluation criteria and methodology are made clear to consumers”
– explains attorney Zoltán Tarján.
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