Hungary: Extension of Consumer Rights to SMEs

In brief

Following the previous amendment to the Civil Code, consumer protection rules on defective performance have already been extended to small and medium-sized enterprises (SMEs). This is now complemented by SMEs' eligibility for mandatory guarantee rights and their ability to initiate proceedings before the conciliation board.

In more detail

• Effective 22 August 2025 – Amendments to the Civil Code.
  • The rules of the Civil Code on defective performance will also be applied to SMEs, if they are acting outside of their trade, profession or business activity.
• Effective 1 January 2026 – SMEs may also turn to the conciliation board.
  • The amendment to the Consumer Protection Act allows SMEs to initiate conciliation board proceedings when they use a public service or purchase a product in the course of retail activities under the Trade Act.
  Effective 1 March 2026 –  Consumer rights set out in the Government Decree (151/2003) on mandatory guarantees for certain durable consumer goods will also apply to SMEs.
  • Under the amendment to the Government Decree, consumer guarantee rights will also extend to SMEs acting outside their trade, profession or business activity, if they purchase a product or a service in a retail context.
    
    

What does this mean in practice?

• SMEs are now entitled to a two‑year statutory warranty.
• The six‑month presumption of defective performance applies to SMEs as well.
• Mandatory warranty periods for durable consumer goods also apply to SMEs.
• In case of replacement, unjust enrichment claims cannot be enforced against SMEs.
• The provisions of the Civil Code on defective performance and Government Decree 151/2003 may not be derogated from to the detriment of SMEs.
• The duration of the mandatory guarantee is extended by the duration of repair.
  
  

Actions required

• Businesses must assess which of their products fall within the scope of the new rules, identify which of those are likely to be used by SMEs for business purposes (e.g., a drill intended for residential use or a passenger car heavily used for business purposes), and determine how to manage or mitigate the additional claims and costs arising from the extended statutory warranty period and new mandatory guarantee.
• Businesses must update their guarantee certificates, warranty information materials, websites and advertising materials accordingly.
• Complaint‑handling procedures must be updated, as SMEs must now be informed, similarly to consumers, of their ability to turn to the competent conciliation board based on their registered office in the event of a dispute.
• Manufacturers, importers, distributors, and other market participants should review whether their contracts adequately address retailers' rights of recourse and revise or update those contractual provisions where necessary.

Who is affected?

• Eligible entities:
  • A business qualifies as an SME if:
    • It employs fewer than 250 persons; and
    • Its annual net turnover does not exceed EUR 50 million, or its balance sheet total does not exceed EUR 43 million.
• Obligated parties:
  • The amendments directly affect retailers as SMEs will enforce their rights arising from defective performance directly against them. Retailers, however, may have a right of recourse against distributors, importers or manufacturers.
  • Indirectly, the amendments also affect manufacturers, importers and distributors due to these recourse rights and because these market participants often provide voluntary guarantees intended to cover the mandatory guarantees obligations.

* * * * *

Viktoria Kolcsei, Associate, has contributed to this legal update.