Hungary updates

Competition & Antitrust

Contributed by Schoenherr
Digital consumer protection in action – HCA launches market study into digital comparison tools
  • Hungary
  • 09 May 2019

The Hungarian Competition Authority (HCA) has launched a market study to explore the specific market developments relating to the application of digital comparison tools and their effects on consumers' decision making. The market study puts the HCA's mid-term digital consumer protection strategy paper into action and demonstrates the HCA's recent focus on consumer protection and efforts to serve as a lighthouse in the digital age.

Digital consumer protection – Black Friday success turns sour for major online marketplace
  • Hungary
  • 24 January 2019

After a record-breaking Black Friday promotion, an online retailer is now suffering the consequences. According to the Hungarian Competition Authority (HCA), eMAG may have failed to meet the standards of professional diligence by misleading consumers with its 2018 Black Friday campaign. This action was one of the first to be initiated under the umbrella of the HCA's digital consumer protection strategy paper.

HCA publishes digital consumer protection strategy
  • Hungary
  • 06 December 2018

The Hungarian Competition Authority (HCA) recently published a strategy paper presenting its views on consumer protection in the digital age. The paper subtly indicates that the HCA will continue to follow the European Commission's guidance in this regard. It also highlights the measures which the HCA deems necessary to protect consumers and keep up with the developments and companies central to this process.

HCA's recent practice: cooperation and commitments
  • Hungary
  • 20 September 2018

In recent years, the Hungarian Competition Authority (HCA) has seemingly aimed to foster cooperation between itself and market participants. Recent case law shows that the HCA strives for cooperation even when market participants allegedly commit grave infringements of the competition rules. Market participants are advised to harness this tendency and the HCA's willingness to reach decisions more efficiently.

Influencers have been targeted by the HCA, but what about buying followers?
  • Hungary
  • 05 July 2018

With the global development of the Internet, life has changed radically in just a few decades, and legislation can barely keep up. The Hungarian Competition Authority (HCA) has been monitoring developments and has not been afraid to intervene in the interests of fair competition and the protection of consumer rights. Influencers have recently been targeted by the HCA, especially regarding their promotional activity.


Employment & Benefits

Contributed by Schoenherr
'Slave act': changes to working time rules
  • Hungary
  • 23 January 2019

In Hungary, as is the case in other EU countries, recent economic growth has been accompanied by a labour shortage. Under pressure to find a solution, the government introduced a new law to amend the working time rules. Since its adoption, the new law has come under close scrutiny from opposition parties and trade unions, and in December 2018 thousands of people took to the streets to protest what has become known as the 'slave act'.

How will new EU directive on work-life balance affect family-related leave in Hungary?
  • Hungary
  • 19 September 2018

The European Commission has proposed to implement a directive on work-life balance for parents and carers which aims to increase the number of dual-earning families and help women return to work, while also requiring more flexibility from employers. Should the proposed directive enter into force, it will set minimum standards regarding parental and carer leave and will thus bring about considerable change for the Hungarian employment and social systems.

Decline in turnover as grounds for dismissal
  • Hungary
  • 27 June 2018

Hungarian law generally requires employers to justify the termination of an employment relationship, and economic grounds generally serve as valid grounds for dismissal. A recent Supreme Court case clearly shows that even when an employer has a rightful interest in dismissing certain employees for economic grounds, the justification of the dismissal must be formulated correctly in accordance with the law. Otherwise, employers may have difficulties protecting themselves in court.

Use of electronic documents in employment relationships
  • Hungary
  • 11 April 2018

With the constant development and advancement of digital technologies, the use of paper-based documents is gradually decreasing in all areas of life. This trend has inevitably affected the employment sector, as both employers and employees have an increasing need to reduce the volume of paper-based documents used in employment relationships. At the same time, the use of electronic documents has raised several practical questions.

Procedural aspects of equal treatment claims
  • Hungary
  • 31 January 2018

The Supreme Court recently issued a reasoned opinion on certain legal and procedural aspects of employment-related suits involving equal treatment claims. The reasoned opinion addresses, among other things, the interpretation of the burden of proof in such suits, the equal pay principle, the concept of discrimination based on other grounds and the way of hearing and deciding anti-discrimination claims in suits initiated on the grounds of unlawful dismissal.


Intellectual Property

Contributed by Danubia Patent and Law Office LLC
Red Bull doesn't always give you wings: trademark applicant defeated by energy drink giant
  • Hungary
  • 27 May 2019

An applicant filed to register the combination word mark R.E.D. RÓNA ENERGY DRINK, which was opposed by the owner of the RED BULL mark. The applicant argued that there was no likelihood of confusion, as the term 'Róna' (ie, plain) was the distinctive element of the applied-for mark. However, the Metropolitan Tribunal disagreed, finding that the central element of the applied-for mark was the acronym 'R.E.D.'.

Fifty shades of violet: court finds likelihood of similarity between two colour marks
  • Hungary
  • 06 May 2019

Colour combinations could be protected as trademarks under the previous Trademark Act 1969. However, single colours have only been protectable as trademarks since Hungary joined the European Union and harmonised its trademark law therewith. A recent Metropolitan Court of Appeal case concerning a colour mark for a shade of violet, which was used on chocolate packaging, is a notable example of the application of the rules on colour marks during the enforcement phase.

Who owns a mark used by multiple business parties?
  • Hungary
  • 25 March 2019

In a recent dispute between the inventor and marketer of a food supplement gel, the Hungarian Intellectual Property Office, the Metropolitan Tribunal and the Metropolitan Court of Appeal had to determine the true owner of the associated word and device marks. Using EU case law as a guide, they considered the market situation, including the knowledge of consumers, and applied the principle of registration and the rule of good faith.

Facebook secures finding of likelihood of confusion by association
  • Hungary
  • 04 March 2019

In a recent trademark dispute between Facebook and the owner of the applied-for mark 'mbook – ablak a világra' (ie, 'window to the world'), the Hungarian Intellectual Property Office, the Metropolitan Tribunal and the Metropolitan Court of Appeal came to the same decision on the merits and rejected the applied-for mark, albeit for different reasons. This result is logical, as the Facebook mark is one of the most well known with regard to communication services.

Rexona fined for unfair ad: role of trademarks in comparative advertising
  • Hungary
  • 28 January 2019

The Office of Economic Competition recently fined the owner of the REXONA mark HUF30 million following an investigation into an ad which compared Rexona Invisible and NIVEA Invisible antiperspirant. The case demonstrates the important role that trademarks play in comparative advertising, as the decision discussed the REXONA and NIVEA marks which appeared in the TV ads and the fine – which is arguably high – was the result of the volume of products sold under the REXONA mark.