Hungary: changes to laws on direct marketing, privacy and unfair commercial practices

New amendments have been introduced to Hungarian direct marketing, privacy and consumer protection legislation. The changes were designed to modify those rules which caused unreasonable administrative requirements or expenses for advertisers, or provided insufficient protection for the privacy of individuals. Advertisers and other c ompanies involved in the compilation, maintenance or trade of direct marketing databases should review their practices in order to ensure compliance with the amended rules.

The modifications affect opt-in consents, unsubscribing notices, the illegal trade of personal data and advertisements addressed to children.

As a result of the changes:

• It is not mandatory to specify the address of the consenting person in the opt-in consents (which are mandatory for the receipt of direct marketing advertisements).
• Direct marketing advertisements sent via post must contain a template notice to unsubscribe from the advertisement, in a return envelope by registered mail with postage prepaid and with notice of delivery. After 1 October 2009, such template notice to unsubscribe shall be provided only once, when an advertisement is sent by the same advertiser to the same addressee.
• As of 9 August 2009, the definition of the misdemeanour called “misuse of personal data” has been refined. Any person who, in the pursuit of unlawful financial gain or advantage or causing significant injury to the interests of another person, is engaged in the unauthorized and inappropriate processing of personal data or fails to take measures to ensure the security of data is punishable by imprisonment for up to one year, community service, or a fine. The most common forms of the illegal data processing may be the unlawful compilation or retention of databases or lists containing personal data and the subsequent use of such databases for direct marketing purposes, or the attempt to sell such databases on the internet or in (usually unsolicited) emails.
• The definition of unfair commercial practices has been refined. Under the new rules, a direct exhortation in an advertisement to children up to 14 years to buy advertised products or persuade their parents or other adults to buy advertised products for them shall be automatically deemed as unfair commercial practice. Previously, this rule was stricter, as it was applicable to advertisements addressed to children up to 18 years.

Laws:

Act XLVIII of 2008 on the General Requirements and Certain Restrictions of Advertising

Act XLVII of 2008 on the Prohibition of Unfair Business-to-Consumer Commercial Practices

Act IV of 1978 on the Criminal Code of the Republic of Hungary (Section 177/A)

Act LXIII of 1992 on the Protection of Personal Data and the Disclosure of Information of Public Interest