Hungary’s existing regime has been enhanced by implementation of the Directive

What is the most common type of collective action you are seeing?

All types of consumer actions.

What are the various ways a group could bring a collective action?

Group actions: Two or more plaintiffs may bring their related or identical claims against a defendant or a group of at least 10 plaintiffs may bring certain collective actions (e.g. claims arising out of consumer or employment agreements) for identical claims subject to provisions of the Hungarian Civil Procedure Act (HCPA).

Representative actions: Authorised representative bodies may bring certain representative actions subject to the special provisions of the HCPA.

If collective actions are permitted, are these opt-in or opt-out actions?

Group actions are opt-in in the sense that affected individuals (e.g. consumers) are parties to the proceedings. In representative actions affected individuals are not parties to the proceedings. However, the final and binding judgment also covers each individual unless the defendant fails to notify the individual of the final and binding judgment or if the individual decides to opt-out. 

Does the law currently provide for private collective actions by consumers? 

If collective actions are permitted are the usual forms of relief permitted and can punitive damages be claimed?

The usual forms of relief (e.g. declaratory actions, injunctions) are permitted. Punitive damages are not allowed.

Are bodies which represent consumers able to bring actions on their behalf? And if yes, can these bodies bring cross-border actions?

Yes, bodies representing or protecting consumers are able to bring actions on their behalf. Cross-border actions are not permitted.

Is third party funding of litigation permitted?

But is unregulated.

Is litigation funding permitted for collective actions?

Are consumer groups and law firms allowed to advertise the collective actions they are running?

Consumer groups are allowed to advertise collective actions they are running. Law firms are allowed to advertise their services with strict ethical rules.

Is there a formal mechanism to settle actions on a collective basis?

General provisions on settlement apply. Affected individuals can choose not to be bound by the settlement in representative actions.

If a trader loses a collective action does the law require the trader to publicise this?

The court may order the publication of the judgment or order the consumer body who brought the action, to do so.

Is there a penalty for non-compliance with a final decision issued in respect of a collective action?

No specific penalties but if the trader does not comply it may have to pay interest on the money claimed, or a fine can be imposed.

The Collective Redress Directive must be implemented in all EU member states by 25 December 2022. To find out more about the current progress of implementation of the Directive in this jurisdiction click here.

The Collective Redress Directive must be implemented in all EU member states by 25 December 2022. To find out more about the current progress of implementation of the Directive in this jurisdiction click here.