Are Fines Fine? Sanctioning Infringements of the Directive on Unfair Commercial Practices in Hungary

Abstract

This paper gives an overview about the legal background and the practice of the Hungarian Competition Authority as regards imposing monetary sanctions for misleading advertising and other types of unfair commercial practices. The sometimes unpredictable fluctuation of the level of fines is criticized. It is emphasized that the clear meaning of broadly worded legal prohibitions is essential before sanctions with the aim of deterrence are imposed. Consequently, in some cases where the infringement was not obvious, a less strict approach is advised, whereas for repeat infringers harming a wide range of consumers, personal, in some cases even criminal law liability should be the optimal sanction.

Keywords: unfair commercial practices, misleading advertisement, fines, monetary sanctions, criminal sanctions, repeat infringement, Hungarian Competition Authority, UCP Directive

JEL Classification: K20, K40