Advertising, Marketing & Promotion Comparative Guide

1 Legal framework

1.1 What are the main legislative and regulatory provisions that govern advertising in your jurisdiction?

Advertising is regulated in Hungary by way of statutory rules and self-regulation. The statutory rules (mainly acts of Parliament, but also decrees of the government and of ministers) that govern advertising cover:

• advertising law;
• consumer protection law;
• competition law;
• data protection law; and
• IP law.

There are also special rules for certain sectors, such as pharmaceuticals and food.

Statutory rules relating to commercial practices (including advertising) are included in:

• the Unfair Commercial Practices Act (Act XLVII/2008 on the Prohibition of Unfair Business-to-Consumer Commercial Practices);
• the Advertising Act (Act XLVIII/2008 on the Basic Requirements and Certain Restrictions of Commercial Advertising Activities); and
• the Competition Act (Act LVII of 1996 on the Prohibition of Unfair and Restrictive Market Practices).

These acts implement EU directives that relate to advertising.

There are also rules and requirements that relate to specific products or media. The most important include:

• the Medical Product Act (Act XCVIII/2006 on the General Provisions Relating to the Reliable and Economically Feasible Supply of Medicinal Products and Medical Aids and on the Distribution of Medicinal Products); and
• the Media Act (Act CLXXXV/2010 on Media Services and Mass Media).

Advertisers must also take into consideration the statutory IP rules in order to avoid unlawful use or infringement of third parties' IP rights. Such rules are set out in:

• the Copyright Act (LXXVI/1999); and
• the Trademark Act (XI/1997).

In addition, there are rules specific for certain product types/industries set forth at EU level which are directly applicable in Hungary (eg, food, cosmetics).

Beyond the legal rules, self-regulation plays an important role (please see question 1.3).

1.2 Which bilateral or multilateral instruments or treaties with effect in your jurisdiction (if any) have particular relevance for advertising in your jurisdiction?

As Hungary is a member state of the European Union, the legal framework is significantly influenced by EU regulations and agreements. These include:

• primary laws, such as the foundational treaties; and
• secondary laws, which encompass regulations, directives, decisions and international treaties established or signed by the European Union.

The harmonisation of laws across EU member states – especially concerning aspects of the internal market – necessitates a strong focus on upholding and improving consumer protection standards. Consequently, various secondary laws have been enacted that address general advertising regulations. These cover matters such as:

• unfair commercial practices;
• comparative advertising;
• price indications; and
• commercial communications relating to specific products such as pharmaceuticals and food.

The European Commission also issues guidelines and the jurisprudence of the European courts contributes valuable insights, providing a comprehensive resource for understanding and navigating advertising-related legal matters in Hungary.

1.3 What industry codes or guidelines have relevance for advertising in your jurisdiction?

Self-regulation in the field of advertising is well established in Hungary. The main self-regulatory bodies are:

• the Hungarian Advertising Association (MRSZ); and
• the Self-Regulatory Advertising Board (ÖRT).

The ÖRT is the Hungarian member of the European Advertising Standards Alliance. The Hungarian chapter of the Interactive Advertising Bureau operates within the MRSZ.

The basic instrument of self-regulation is the Hungarian Code of Advertising Ethics, which is approved and used by a number of self-regulatory bodies, including the MRSZ and the ÖRT. The code was published by the MRSZ in 1981 and is based on the code of the International Chamber of Commerce; it was most recently amended in 2023. The signatories to the code are companies active in Hungary across a number of sectors (eg, food, soft drinks, alcohol, pharmaceuticals, fast-moving consumer goods, automotive industry, financial products).

In addition to the code, some industries have developed their own self-regulatory guidelines. For example, the pharmaceutical sector has specific self-regulatory instruments that govern advertising within their domains. These industry-specific guidelines provide additional rules and standards tailored to the unique characteristics and concerns of those sectors.

1.4 Which bodies are responsible for implementing and enforcing the advertising regime in your jurisdiction? What is their general approach in doing so?

The main bodies are:

• the local consumer protection authorities acting as consumer protection authorities with general competence; and
• the Hungarian Competition Authority (HCA).

The HCA has jurisdiction if the commercial practice could affect competition. As a general rule, this is the case if the commercial practice is carried out via:

• a media service provider providing national media services;
• a periodical distributed nationwide;
• a daily newspaper distributed in at least three counties;
• direct marketing targeted at consumers in at least three counties; or
• sales promotions undertaken in at least three counties.

In addition, the Hungarian National Bank has jurisdiction in relation to the specific rules on financial services advertising.

The bodies responsible for enforcing consumer rights typically do so by:

• supervising the markets;
• adopting infringement decisions; and
• imposing obligations and/or issuing fines on businesses which are not in compliance with the applicable legislation.

In terms of self-regulation, complaints in respect of advertising may be filed with both the MRSZ and the ÖRT by consumers and competitors. Sanctions applied by these bodies include requests for the removal and amendment of the unethical advertising. However, sanctions imposed by the bodies bind the parties concerned in the complaint procedure only if they are members of the respective body. Non-compliance with decisions of these bodies may result in termination of their membership; but otherwise, compliance is not legally enforceable as such. Nevertheless, market players tend to comply with the decisions of such self-regulatory bodies.

In addition, the ÖRT will advise on whether an ad complies with the advertising ethical rules in written form upon the request of advertisers, agencies or the media. This service is also frequently used by advertisers.

2 Authorisation and clearance

2.1 Do advertisers need any kind of licence or authorisation in order to operate in your jurisdiction?

No.

2.2 Do ads require any kind of clearance before they can be released in your jurisdiction?

No.

3 General advertising regime

3.1 What general rules and requirements apply to ads in your jurisdiction?

The basic requirements which apply to ads and to all types of commercial communication are as follows:

• Truthfulness and honesty: Ads must be truthful, honest and transparent. They should not be misleading or aggressive. Any claims made in an ad should be substantiated and accurate.
• Identification of advertising: Ads must be clearly recognisable as such. It should be apparent to consumers that they are viewing an ad and not editorial or independent content.
• Comparative advertising: If an ad makes comparisons with competitors, these comparisons must be fair and based on objective criteria. The use of trademarks or other distinctive signs of competitors should comply with specific rules.
• Protection of minors: Ads should not exploit the credulity, lack of experience or sense of loyalty of minors. There are specific rules regarding the advertising of alcohol and tobacco products to minors.

In addition, special rules apply for certain products and sectors, such as:

• tobacco;
• alcohol;
• pharmaceuticals;
• financial services; and
• food.

3.2 What rules and requirements apply to puffery in your jurisdiction?

The basic principles of the Unfair Commercial Practices Act are as follows:

• All claims in ads:
• • must be true;
  • must not contain false or untrue information; and
  • must not mislead consumers; and
• The advertiser must be able to substantiate the factual statements.

However, according to the Unfair Commercial Practices Act, the common and legitimate advertising practice of making exaggerated statements or statements which are not meant to be taken literally (puffery or hyperbole) will not be treated as a commercial practice that is likely to materially distort economic behaviour. Therefore, obviously subjective attributes (eg, "The best movies on our channel!") or creative slogans (eg, "Red Bull gives you wings") do not need substantiation.

3.3 Under what circumstances must claims in ads be substantiated?

Substantiation is essential for all claims (except for obviously subjective attributes or creative slogans). Substantiation must be secured by the advertiser prior to publication of the ad.

At the request of the competent authority, the advertiser must provide proof to verify the authenticity of any commercial communication. In the event of the advertiser's failure to comply, the claim in question will be considered as untrue and, as such, misleading.

The overarching principle of substantiation is that the stronger and more sweeping a factual statement, the stricter the rules that apply to substantiation. For example, in the case of superlative statements, such statements must be substantiated against all competitors and competing products available on the relevant market.

3.4 What rules and requirements apply to the use of the following? (a) Test results; (b) Survey results and (c) Testimonials.

(a) Test results

Substantiating an ad with scientific test results involves complying with various requirements to ensure the credibility and accuracy of the claims being made. When using scientific test results to support advertising claims, the following key requirements must be considered:

• The test or study must be conducted using rigorous and scientifically sound methods. This includes adhering to recognised scientific and research standards.
• The test must be relevant to the specific advertising claim. The test conditions and parameters should directly relate to the attribute or characteristic being promoted in the ad.
• The methodology used in the test should be documented. This includes details about how the test was designed, executed and analysed.
• The test results should be recent and relevant. Outdated or irrelevant test data may not be a valid basis for advertising claims.

(b) Survey results

When substantiating an ad with the results of a survey, it is essential to adhere to specific requirements to ensure that the survey results are reliable and can be used to support advertising claims.

The main requirements are as follows:

• The survey must be conducted in a transparent and honest manner. Any misrepresentation of survey results is not allowed (eg, the survey should not selectively report results).
• The survey methodology should be rigorous and appropriate for the claims being made and should be documented. This includes details about:
• • sample size;
  • sampling methods;
  • data collection techniques; and
  • statistical analysis.
• The survey results should be recent and relevant. Outdated survey data may not be a valid basis for advertising claims.
• The survey sample should be representative of the relevant consumer group.
• The questions asked in the survey should be clear, unambiguous and relevant to the advertising claim. Leading questions or biased language should be avoided.

(c) Testimonials

Testimonials are evaluated as being part of the ad and as claims made by the advertiser, which means that factual statements made in them must be true and verifiable. This also means that testimonials may not serve to verify claims, even if they are true and honest.

3.5 What rules and requirements apply to the protection of minors?

There are specific rules and requirements in place to protect minors from potentially harmful or inappropriate advertising content. These rules are designed to ensure that:

• advertising does not exploit or harm children; and
• children are shielded from content that may not be suitable for their age group.

Key rules and requirements related to the protection of minors in ads, which apply in addition to the general rules applicable to ads, include the following:

• Ads must not directly exhort minors:
• • to purchase a product or service; or
  • to persuade their parents or guardians to buy the product for them.
• Ads should not contain content that is likely to be harmful to the physical, mental or moral development of minors. This includes avoiding:
• • explicit violence;
  • sexual content; and
  • any content that promotes discrimination, hatred or intolerance.
• Special rules apply to the use of product placement in audiovisual media content to ensure that it does not have a direct influence on children.
• Some products, such as alcohol and tobacco, are subject to additional regulations regarding advertising to minors. These restrictions may vary between EU member states.
• In case of digital nature of advertising, advertisers should be aware of rules concerning online advertising targeting minors, which includes rules on data protection and online behavioural advertising.
• Special rules apply to advertising during children's programming.

3.6 Are certain forms of advertising prohibited in your jurisdiction?

As a general principle, according to the Advertising Act, advertising is prohibited for all goods whose production and marketing are against the law (eg, drugs and other psychotropic materials).

Also, advertising is prohibited if it:

• encourages violent behaviour or endangers personal or public safety or behaviour that is harmful to the environment or nature; or
• may harm the physical, intellectual, emotional or moral development of children and adolescents.

Subliminal advertising is also prohibited.

In addition, the advertising of specific products and services is specifically prohibited, such as:

• sexual services;
• dangerous dogs;
• animal fights;
• human organs or tissues; and
• abortion and institutions carrying out abortion services.

The Advertising Act allows the advertising of gambling. However, it is prohibited to invite children or juveniles to participate in gambling.

Alcoholic beverages may be advertised. However, ads for alcohol must not be targeted at, or feature, children or juveniles.

The advertising of tobacco products is completely forbidden, even indirectly. However, this prohibition does not apply to professional ads addressed exclusively to distributors of tobacco products.

The advertising of prescription pharmaceuticals for consumers is prohibited, while that of over-the-counter pharmaceuticals is governed by specific regulations.

The Unfair Commercial Practices Act also contains a blacklist of market practices which should be considered as unfair by their very nature, such as making persistent and unwanted solicitations by telephone, fax, email or other remote media or equivalent means of communication, except in circumstances and to the extent justified to enforce a contractual obligation.

4 Misleading advertising

4.1 On what grounds will an ad be found to be misleading in your jurisdiction? How does the process unfold?

Pursuant to the Unfair Commercial Practices Act, prohibited unfair commercial practices include misleading and aggressive commercial practices.

A commercial practice can be regarded as misleading if it:

• involves false information or deception regarding the product or service advertised (eg, the existence or nature of the product, the main characteristics of the product, the price); or
• omits material information that is necessary for the average consumer to make an informed decision and, as a result, causes the consumer to make a transactional decision that he or she otherwise would not have made.

The authorities responsible for enforcing the Unfair Commercial Practices Act have differing administrative procedures and rules governing them, but they generally follow the same underlying structure. The authorities initiate their procedures either ex officio or following reports (complaints) from consumers or other third parties. The authorities carry out investigations and also involve companies which may be responsible for the infringement of consumer rights.

These investigations are often announced publicly, drawing attention to possible wrongdoings by the businesses that are subject to the investigations.

4.2 If an ad is found to be misleading, what are the consequences for the advertiser?

If an infringement is established, the authorities:

• will order the business:
• • to cease the conduct in question; and
  • if necessary, to restore the lawful status; and
• may impose fines that may be large enough to have a general deterrent effect:

The maximum fine that the Consumer Protection Authority may impose is 5% of the annual net turnover of the company but at most HUF 2 billion (approximately €5.1 million). The maximum fine that the Hungarian Competition Authority (HCA) may impose is 13% of the annual net turnover of the company or its group.

In administrative proceedings before the HCA, companies may offer commitments to remedy the HCA's concerns and the HCA can make these commitments legally binding through a decision. In proceedings before the Consumer Protection Authority and the Hungarian National Bank, companies may conclude a public contract with the relevant authority.

Businesses proposing commitments typically want to avoid a negative decision by complying with the relevant rules as interpreted by the HCA. Thus, one of the main purposes of the commitment regime is to close the proceedings of the HCA without any declaration of the infringement.

In case of a public contract, the company undertakes to cease the infringement and to comply with the relevant statutory requirements as set out in the public contract.

In both cases, in case of non-compliance, the authorities may reopen the case and apply sanctions.

4.3 Can the advertiser appeal the decision? If so, what is the process for doing so?

Yes. Decisions of administrative authorities passed in consumer protection matters are subject to judicial review carried out by the administrative courts. A statement of claims must be filed before the competent administrative court requesting the judicial review of the authority's decision.

5 Specific advertising regimes

5.1 What rules and requirements apply to the following types of advertising in your jurisdiction, and what best practices should be considered in each case? (a) Comparative advertising; (b) Promotional marketing (eg, competitions, lotteries and sweepstakes); (c) Interest-based advertising (ie, tailored advertising based on data collected from internet browsing); (d) Native advertising; (e) Influencer advertising; (f) Ambush marketing; (g) Country-of-origin marketing; and (h) Green marketing.

(a) Comparative advertising

Comparative advertising is permitted, subject to certain positive and negative conditions in line with the relevant EU directive.

According to the positive conditions, comparative advertising:

• must compare only goods which are similar in terms of their purpose and function;
• must objectively compare one or more features of the goods in question which are definitive and typical, and which can be confirmed;
• must objectively exhibit the prices, where applicable; and
• must pertain to products of the same origin where it pertains exclusively to products with a designation of origin.

Furthermore, comparative advertising must not:

• injure the reputation of another company or the name, merchandise, brand name or other marking of such a company;
• lead to any confusion between the advertiser and another company or the name, merchandise, brand name and other marking of such a company;
• result in any unfair advantage derived from the reputation of another company or the name, merchandise, brand name and other marking of such a company; or
• violate the prohibition in the Competition Act on imitating the merchandise of another company or the characteristics of such merchandise.

If the comparative advertising contains a competitor's trademark and is not in compliance with the above requirements, the trademark holder may bring trademark infringement proceedings if the ad violates the functions of the trademark. Claims based on unfair market practice are almost identical to those on the basis of trademark infringement.

(b) Promotional marketing (eg, competitions, lotteries and sweepstakes)

Both skill-based and chance-based promotional games are generally permissible. However, in the case of chance-based games, the rules of the Gambling Act (XXXIV/1991) must be taken into consideration. If a chance-based game qualifies as gambling under the Gambling Act, it will either be prohibited or subject to approval by the tax administration. In general, promotions linked to product purchases, where the participants need not pay any extra fee, are permitted even if they are chance based.

(c) Interest-based advertising (ie, tailored advertising based on data collected from internet browsing)

Interest-based advertising is allowed only based on the informed consent of the data subject given specifically to this type of advertising.

(d) Native advertising

There is currently no specific legislation regulating native advertising in Hungary. General rules apply, including the rule that an ad be clearly identifiable as such.

(e) Influencer advertising

Both the European Commission and the Hungarian Competition Authority (HCA) have issued guidelines on influencer advertising. Proper disclosure of the commercial relationship is key in this respect.

Based on the principle of interest, the entity in whose interest the product is sold (ie, the advertiser) is responsible for adhering to proper marketing practices. In other words, the advertiser must ensure that:

• the influencer discloses the commercial relationship; and
• the claims made by the influencer in connection with the product are truthful.

If the influencer has an interest in the sales of the product (eg, the influencer is paid commission based on the turnover from the product), he or she will qualify as an advertiser too and will be held liable if the commercial practice turns out to be unfair.

Therefore, it is recommended that the advertiser conclude a contract with the influencer and establish a compliance programme in which it provides detailed information on how to comply with the above requirements.

The main requirements in connection with influencer advertising include the following:

• Any form of commercial relationship or cooperation with the advertiser must be clearly and precisely disclosed to consumers.
• The content provided by the influencer should give a true, fair and authentic picture of the product or service.
• The influencer must:
• • be familiar with the product or service being promoted and endorsed; and
  • have tried the product.
• The influencer's claims must reflect his or her personal experience with the product and thus present a true picture to his or her followers.
• The content must not be directed at soliciting direct purchases from children.
• If there are special advertising rules relating to a certain type of product or service (eg, pharmaceuticals, food, food supplements, financial and investment products), these must be complied with.

(f) Ambush marketing

There is no specific legislation regulating ambush marketing in Hungary. However, the relevant provisions of competition and trademark law and consumer protection rules provide guidelines in this respect.

According to the Competition Act, it is prohibited to engage in economic activities unfairly –in particular, in a way that infringes or endangers the legitimate interests of business partners or competitors. Furthermore, under the Competition Act, it is prohibited to infringe or jeopardise the good reputation or credibility of any competitor by:

• communicating or disseminating untrue facts; or
• misrepresenting true facts with any false implication, as well as by any other practices.

Comparative advertising is also prohibited if it could:

• lead to an unfair advantage due to the reputation of a competitor or its name, goods, trademarks; or
• cause market operators to confuse the undertaking with a competitor or the name, trademark or other marks of the competitor.

It is also forbidden to mislead business partners in economic competition; arguably, certain cases of ambush marketing could violate this provision, which would constitute an infringement of competition law.

Under the Unfair Commercial Practices Act, it is prohibited to mislead consumers. A commercial practice is regarded as misleading if it contains false information and is therefore untruthful or in any way, including overall presentation, misleads or is likely to mislead the average consumer, in relation to, among other things, any statement or symbol regarding sponsorship that results in, or is capable of resulting in the consumer taking a transactional decision that he or she would not have taken otherwise.

Furthermore, the Trademark Act will also apply in case of trademark infringements. For example, the holder of the trademark is entitled to prevent any unlicensed person from using for goods or services, in the course of trade, any sign where there exists a likelihood of confusion on the part of the public, including the likelihood of association between the used sign and the trademark of the trademark holder.

(g) Country-of-origin marketing

Both the Unfair Commercial Practices Act and the Competition Act consider it to be an unfair commercial practice/misleading of business partners if untruthful information is provided on the geographical origin of a product.

Special rules may exist in relation to certain product types. For example, as regards food, EU Regulation 1169/2011 on indications of country of origin has direct application, as Hungary is an EU member state. According to the regulation, an indication of the country of origin:

• must not be misleading; and
• is mandatory where failure to indicate this might mislead the consumer as to the true country of origin or provenance of the food.

Geographical signs and designations of origin used to indicate the geographical origin of products on the market may be granted protection as geographical indications under specific regulations. Where such protection exists, the proprietors will enjoy the exclusive right to use the geographical indication.

(h) Green marketing

Green marketing has been the focus of law enforcement in recent years. According to guidance provided by the HCA and the relevant case law, green claims must:

• be easily understandable for consumers; and
• be true and verifiable based on solid, independent and well-supported evidence, which takes into account the latest scientific findings and methods.

It is advisable to provide opportunities for consumers to verify green claims themselves. Undertakings should also aspire to continuously review their green claims to ensure that those statements are always up to date.

Companies should also communicate sustainability results already achieved, rather than commitments related to future performance. Furthermore, they must avoid claiming that an environmental benefit is unique if it is in fact available to consumers anyway as a result of legal provisions or typical market practices.

In addition, the proper use of certification labels which state that a product or service or the operation of an undertaking has a positive effect on the environment is crucial. First and foremost, undertakings must ensure that the message conveyed by the ad does not extend beyond the scope of what the certification label is intended to certify so that the use of the label is not misleading for consumers.

6 Direct marketing

6.1 What rules and requirements apply to the following types of direct marketing in your jurisdiction, and what best practices should be considered in each case? (a) Telemarketing; (b) Email marketing; (c) Direct mailings; and (d) Opt-out marketing.

In particular, direct marketing via electronic means (eg, email) is subject to the prior informed explicit consent of the data subject (and consent may not be sought by way of email).

Direct marketing via phone (automated call) is subject to the prior informed consent of the data subject.

Direct marketing via phone (personal, non-automated call):

• is permitted unless the data subject has previously objected to receiving such calls; and
• must be stopped if the data subject objects to such calls.

The data subject must be informed of the right to object.

Direct marketing by mail is subject to the prior explicit consent of the data subject. However, if the marketing letter qualifies as a so-called ‘addressed marketing parcel', it can be sent in the absence of a prior explicit consent. In this case, the advertiser must ensure that the data subject can object to the receipt of such message at any time, in which case no such further message can be sent. A pre-paid envelope must also be enclosed with the message through which the data subject can send back his/her objection. For the purposes of Hungarian law, an ‘addressed marketing parcel' is a communication:

• consisting solely of advertising, marketing or publicity material;
• comprising an identical message except for the addressee's name, address and other data which do not alter the nature of the message; and
• which is sent to at least 500 addressees.

7 Indirect marketing

7.1 What rules and requirements apply to the following types of marketing in your jurisdiction, and what best practices should be considered in each case? (a) Product placement; (b) Sponsorship; and (c) Loyalty programmes.

(a) Product placement

Product placement in media services is generally allowed, with certain exceptions.

No product placement may be published in the following programmes:

• news bulletins and political information,
• programmes that are expressly directed to minors under the age of 14;
• programmes reporting on official events on national holidays;
• programmes with religious content; and
• programmes dealing with consumer affairs.

Programmes in which product placement is generally allowed may not contain product placement with respect to the following types of products:

• tobacco products, cigarettes, e-cigarettes and refill tanks or other products from companies whose principal activity is the manufacture or sale of these;
• products that may not be advertised pursuant to the applicable legislation;
• pharmaceutical products, therapeutic products or processes that are available only on prescription; and
• gambling services that are provided without the authority's authorisation.

Programmes that contain product placement must meet the following requirements:

• Their content – and, in the case of linear media services, their scheduling and, in the case of on-demand media services, their position in the programme offer – cannot be shaped in such a way as to affect the responsibility and editorial independence of the media service provider.
• They must not directly encourage the purchase or rental of goods or services.
• They must not give undue prominence to the product in question which does not otherwise stem from the content of the programme.

Viewers must be clearly informed of the existence of product placement, such that programmes containing product placement must be appropriately identified, using optical or acoustical means:

• at the start and the end of the programme; and
• when a programme resumes after a commercial break.

Because product placement is a commercial communication, it must also meet all other general requirements.

(b) Sponsorship

The sponsor of the media content must be named immediately before or after publication. An audiovisual media service or its programme may not be sponsored by:

• another audiovisual media service provider; or
• an undertaking producing audiovisual programmes or cinematographic works.

The promoted media content must not encourage or incite the purchase or use of a product or service from the promoter or from a third party specified by the promoter.

The sponsor must not influence the media content or its publication in any way that affects the media content provider's liability or editorial freedom.

The sponsor may be identified by:

• the publication of its name, trademark and other signs;
• references to its products, activities or services; or
• inclusion of its distinctive signs, logos or other indications.

The following parties may not sponsor a media service or programme:

• a political party or political movement,
• an undertaking whose principal activity is the manufacture or sale of cigarettes, other tobacco products, electronic cigarettes or refillable tanks; or
• an undertaking that carries on the business of gambling without a licence from the authority.

The following may not be sponsored:

• news programmes and political information;
• coverage of official events on national holidays; and
• radio media services covering official events of national holidays.

(c) Loyalty programmes

There are no specific rules on loyalty programmes. They are allowed as long as the general consumer protection and advertising law rules are complied with.

8 Industry-specific regimes

8.1 What regulatory regimes apply to advertising in the following industries in your jurisdiction, and what best practices would you highlight? (a) Gambling (including lotteries); (b) Alcohol; (c) Tobacco; (d) E-cigarettes; (e) Pharmaceuticals (prescription and over-the-counter); (f) Therapeutic products (ie, products which claim to have health benefits but which are not medicines or pharmaceuticals, such as vitamin supplements); (g) Food; and (h) Financial products and services.

(a) Gambling (including lotteries)

The advertising of gambling is permitted in Hungary. However, it is prohibited:

• to invite children or juveniles to participate in gambling;
• to publish ads related to gambling in media primarily intended for children and juveniles;
• to promote gambling that is organised without the permission of the Hungarian regulatory authority; and
• to participate in ads that promote gambling organised in Hungary without the permission of the Hungarian regulatory authority.

(b) Alcohol

Alcoholic products may be advertised. However, several restrictions apply – in particular the following:

• The advertising of alcohol must not be addressed to children or juveniles.
• Ads must not:
• • encourage excessive alcohol consumption;
  • connect alcohol consumption with better physical or sexual performance, driving or therapeutic effects; or
  • suggest that alcohol can help resolve personal conflicts.
• Alcohol ads must not appear on the outer cover page of the advertising medium or on the home page of a website.
• Alcohol ads:
• • must not be shown in theatres or cinemas before 8:00pm; and
  • in the case of television programmes, must not be broadcast immediately before, during or just after programmes targeted at children or juveniles.

(c) Tobacco

The advertising of tobacco products, even indirectly, is completely forbidden. This prohibition does not apply to professional ads addressed exclusively to the distributors of tobacco products.

(d) E-cigarettes

The same rules as apply to tobacco apply to e-cigarettes.

(e) Pharmaceuticals (prescription and over-the-counter)

Hungarian law differentiates between:

• marketing aimed at the general public (ads); and
• marketing aimed at healthcare professionals (detailing).

Ads must always be based on summaries of product characteristics and the patient information leaflet of the specific pharmaceutical, as approved by the regulatory authority. Ads for pharmaceuticals must include mandatory warnings with the exact wording prescribed by the law. Prescription-only pharmaceuticals must not be advertised.

(f) Therapeutic products (ie, products which claim to have health benefits but which are not medicines or pharmaceuticals, such as vitamin supplements)

In accordance with EU law, health claims are strictly regulated in Hungary. This means that, as a general rule, health claims can be made only in connection with pharmaceuticals on the basis of their summary of product characteristics.

Products that claim health benefits other than this often fall under the category of food, such as food supplements. Pursuant to EU law, health claims made regarding food are strictly regulated at the EU level.

(g) Food

Consumers may not be misled:

• with regard to the characteristics of the foodstuff (eg, its nature, identity or properties);
• by attributing to the foodstuff effects or properties which it does not possess; or
• by stating or suggesting that the foodstuff possesses special characteristics when in fact all similar foodstuffs possess such characteristics.

Nutrition and health claims made regarding food are strictly regulated at the EU level.

(h) Financial products and services

Hungarian law contains several rules on the advertising of financial products or services. Detailed rules may be found in particular in:

• the Act on Credit Institutions and Financial Enterprises (CCXXXVII/2013); and
• the Act on Consumer Loans (CLXII/2009).

9 Enforcement

9.1 On what grounds can the following parties take action against ads in your jurisdiction? (a) Competitors; (b) Consumer associations; and (c) Members of the public.

(a) Competitors

A competitor may bring an action against an advertiser in the civil courts claiming:

• unfair competition based on the Competition Act; or
• trademark infringement.

As a general rule, in the statement of claim, the plaintiff (ie, the competitor whose interests were violated) may demand:

• the establishment of the infringement;
• the termination of the infringement and the prohibition of further infringement by the infringing party;
• that the party infringing the law:
• • make amends, through an announcement or in any other appropriate manner; and
  • if necessary, ensure that sufficient publicity is given to such amends by it or at its expense; and
• damages in accordance with the rules of civil law.

Furthermore, if a competitor believes that an advertiser has published unlawful comparative advertising or if there is a misleading business-to-business commercial practice, it may also file a complaint with the Hungarian Competition Authority (HCA). In practice, before filing a complaint with the HCA, the parties will try to settle the issue before the Self-Regulatory Advertising Board (ÖRT). The ÖRT may:

• prohibit the unlawful advertising; and
• oblige the infringing party to:
• • amend the ad; and
  • obtain the ÖRT's prior approval before re-publishing same.

The ÖRT's decision is binding on its members only and is not enforceable, but advertisers generally follow the ÖRT's decisions.

If the HCA initiates a procedure based on a complaint, this procedure is ex officio, which means that the competitor which filed the complaint will not be a party to such procedure and will not have the right to stop the procedure, even if the parties resolve the matter between themselves in the meantime.

(b) Consumer associations

No answer submitted for this question.

(c) Members of the public

Both consumers (members of the public) and consumer associations may complain about an alleged infringement by requesting the initiation of the procedure by the HCA or the Consumer Protection Authority. Complainants need not worry about which is the competent authority, as an authority without jurisdiction will forward the request to the relevant authority.

The sanctions available to the HCA and the Consumer Protection Authority are detailed under question 1.8. However, these are typically not remedies for consumers but rather sanctions (eg, fines) against the advertiser.

In addition, consumers can initiate litigation proceedings to claim damages suffered. Therefore, if a consumer suffers actual damage or loss due to the unlawful advertising, these damages may be claimed before the court.

9.2 What mechanisms are available to them to do so, and what are the pros and cons of each?

Please see question 9.1

9.3 How does the procedure typically unfold and how long does it take?

If the competent authority investigates the case in an administrative procedure, this means that the complainant will not be a party to that procedure. The investigation may take from several weeks to several months, depending on:

• which authority handles the case;
• the applicable procedural rules; and
• the complexity of the case.

In case of a civil law action for damages, the lawsuit may take one to two years.

9.4 What costs are incurred?

In case of a complaint filed with an authority, typically no further costs arise, since the complainant is not a party to the procedure.

In case of a civil lawsuit, costs must be advanced by the party with an interest in the substantiation. At the end, the costs will be borne by the losing party. Costs include:

• procedural duties and costs; and
• the fees payable for legal representation.

9.5 What defences are typically raised by the advertiser?

Typically, the advertiser argues that the claims made were duly substantiated.

9.6 What remedies are available?

In administrative proceedings before the HCA, companies may offer commitments to remedy the HCA's concerns and the HCA can make these commitments legally binding through a decision; while in proceedings before the Consumer Protection Authority and the Hungarian National Bank, companies may conclude a public contract with the authority.

Businesses that propose commitments typically want to avoid a negative decision by complying with the relevant rules as interpreted by the HCA. Thus, one of the main purposes of the commitment regime is to close the proceedings of the HCA without any declaration of infringement.

In case of a public contract, the company undertakes to cease the infringement and to comply with the relevant statutory requirements in a way as set out in the public contract.

In both cases, in case of non-compliance, the authorities may reopen the case and apply sanctions.

9.7 Can the decision be appealed? If so, what is the process for doing so?

The competent authorities' decision may be challenged before administrative court by filing a statement of claim containing detailed reasoning for the challenge to the authority's decision. In case of a civil lawsuit, first-instance judgments may be appealed by filing an appeal with the second-instance court.

10 Trends and predictions

10.1 How would you describe the current advertising landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

Current trends include an increased focus on:

• digital markets;
• ‘dark patterns';
• environmental claims; and
• the protection of vulnerable consumers (eg, minors) from potentially harmful content.

At the EU level, there is a robust focus on consumer protection legislation. Within this framework, the forthcoming Green Claims Directive is anticipated to result in a substantial transformation once it is adopted.

11 Tips and traps

11.1 What are your top tips for companies that advertise their products and services in your jurisdiction and what potential sticking points would you highlight?

The Hungarian authorities have displayed a strong commitment to addressing unfair commercial practices and substantial fines have been levied in recent years in such cases. This heightened regulatory focus underscores the growing importance of compliance. It is advisable for companies to establish and execute robust compliance programmes aimed at preventing violations and mitigating the risks associated with wrongdoing.

Notably, these compliance programmes are viewed positively by the authorities. In certain situations, a well-structured compliance programme may even lead to a reduction in fines if a violation is identified by the relevant regulatory body.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.