The tightening of the mall ban affects a narrower circle, but it can still put a burden on retailers

By: Trademagazin Date: 2025. 08. 25. 15:26

According to a recent analysis by international law firm Taylor Wessing, the amendment to the retail regulation known as the mall stop will ultimately apply to a much narrower range of businesses than previously planned. Under the regulation, which will come into effect on September 17, only new owners and tenants who would use a floor area larger than 400 square meters to sell daily consumer goods will need to apply for a change of use permit.

Such products include food, perfumes, drugstore goods, household cleaning products, chemical goods and sanitary paper products – in other words, everything that a consumer typically consumes, uses up or replaces within a year. The regulation applies to stores whose sales generate the majority of their turnover.

The previous version of the draft would have required a permit for the purchase or rental of all retail premises larger than 400 square meters, regardless of their profile. The current version therefore applies only to large food stores and similar stores, with the majority of retail units exempt from the new regulation.

Despite the legal restrictions, experts say the amendment could still pose a serious administrative burden for retailers and operators. The law firm warned that the change could cause uncertainty and additional costs in the market.

Based on the Mall Stop Act, the construction of any store larger than 400 square meters was previously subject to a permit, and the Ministry of Construction and Transport justified the current amendment by saying that the scope of activities subject to permits needed to be clarified.

Retail players, however, are criticizing the process. Tamás Kozák, Secretary General of the National Trade Association, previously told Hvg.hu that the ministry did not consult with those affected, and moreover, the draft was posted on the social consultation website in a way that was difficult to identify. According to him, the impact of the amendment is extremely broad, covering almost everything, and may also affect daily operations – while in reality there is nothing to justify the tightening.