Commitments In Procedures Regarding Unfair / Misleading Advertising Before The Hungarian Competition Authority

If the Hungarian Competition Authority ("HCA") initiates proceedings based on unfair / misleading advertising (towards both consumers and non-consumers), the fine that may be imposed is rather high. In principle, the maximum amount is 10% of the net turnover of the infringer's group of undertakings reached in the business year preceding the decision of the HCA. In practice, HCA calculates the amount of the fine on the basis of the cost of the infringing communication campaign.

In such proceedings, the HCA has the right to accept commitments from parties if it considers that compliance with the law and the effective safeguarding of the public interest can be ensured by the commitment. If the HCA accepts the commitment, the case is terminated so that the HCA's order does not establish the liability of the undertaking and the infringement (and it does not impose any fine) but makes the commitment binding for the party to the proceedings.