Discusses the state of direct marketing and what channels are available for companies to use direct marketing.
Last Published: 8/9/2019

Direct Marketing

Direct marketing is an accepted business practice in Hungary, as in other EU countries. The Association of Direct Selling (DSA), promotes direct selling and works to protect consumer interests in Hungary. DSA Hungary operates in line with the European Codes of Conduct, a set of guidelines aimed at ensuring the satisfaction and protection of consumers, promoting fair competition in the framework of free enterprise, and enhancing the public image of direct selling. The Codes of Conduct state that DSA members must allow consumers eight days to get reimbursed should they change their mind about a purchase. DSA is a member of the Federation of European Direct Selling Associations and the World Federation of Direct Selling Associations. The members of DSA Hungary include Amway, Avon, Flavon Group, Neolife, Herbalife, Sunrider, Nu Skin, Oriflame, Tiens and Zepter.

While associations such as DSA undertake their own efforts to protect consumers, Hungary also has a consumer protection law (Act CLV of 1997) and a General Inspectorate for Consumer Protection.  According to law, consumers must be properly informed about prices, quality, instructions for the use of goods and any hazards associated with such use, and delivery and packaging costs at the site of the sale. If these regulations are violated, the consumer may seek legal redress against the manufacturer, distributor, or direct marketer. Customers generally have the right to return goods without explanation within seven calendar days and have the right to a full refund or appropriate exchange within 30 days, where provided for by contract. Promotional literature or mailings may not contain deceptive or misleading product descriptions, claims or illustrations and must include the name and address or telephone number of the company. E-mail sales efforts should be clearly identifiable to the consumer when received, and recipients can opt-out of future solicitations. When an order is placed, the service provider must quickly acknowledge receipt via email. The law does not cover the sale of goods at markets, fairs, and other public places.

Direct marketing agents may not visit potential customers at their homes after 7:00 pm and before 9:00 am without prior notification and consent. The agent must prove identity by presenting a delegation authority or ID card.

EU Regulations

There is a wide-range of EU legislation that impacts the direct marketing sector. Compliance requirements are stiffest for marketing and sales to private consumers. Companies need to focus on the clarity and completeness of the information they provide to consumers prior to purchase and on their approaches to collecting and using customer data. The following gives a brief overview of the most important provisions flowing from EU-wide rules on distance-selling and on-line commerce.

Consumer Affairs Homepage
Consumer Marketing Rights
Directive Concerning the Distance Marketing of Consumer Financial Services.
Boosting e-Commerce in the EU.


Processing Customer Data

The EU has strict laws governing the protection of personal data, including the use of such data in the context of direct marketing activities.  For more information on these rules, please see the privacy section above.

Distance Selling Rules

The EU’s Directive on Distance Selling to Consumers (97/7/EC) and amendments) sets out obligations for companies doing business over a distance with consumers.  It can read like a set of onerous "dos" and "don’ts," but in many ways, it represents nothing more than a customer relations good practice guide with legal effect.  Direct marketers must provide clear information on the identity of themselves as well as their supplier, full details on prices including delivery costs, and the period for which an offer remains valid –  all of this, of course, before a contract is concluded. Customers generally have the right to return goods without any required explanation within seven days and retain the right to compensation for faulty goods thereafter. Similar in nature is the Doorstep Selling Directive (85/577/EEC) which is designed to protect consumers from sales occurring outside of a normal business premises (e.g., door-to-door sales) and essentially assure the fairness of resulting contracts.
In 2011, the EU overhauled its consumer protection legislation and merged several existing rules into a single rulebook - “the Consumer Rights Directive”.  The provisions of this Directive apply to contracts concluded after June 13, 2014 and replaced previous EU rules on distance selling to consumers and doorstep selling along with unfair contract terms and consumer goods and associated guarantees. The Directive contains provisions on core information to be provided by traders prior to the conclusion of consumer contracts.  It also regulates the right of withdrawal, includes rules on the costs for the use of means of payment and bans pre-ticked boxes.  Companies are advised to consult the relevant sections of EU member states’ Country Commercial Guides or to contact the Commercial Service at the U.S. Mission to the European Union for more specific guidance.

In 2013, the EU adopted rules on Alternative Dispute Resolution which provide consumers the right to turn to quality alternative dispute resolution entities for all types of contractual disputes including purchases made online or offline, domestically or across borders.  A specific Online Dispute Resolution Regulation will set up an EU-wide online platform to handle consumer disputes that arise from online transactions.  An EU-wide Online Dispute Resolution platform was set up to handle consumer disputes that may arise from online transactions.

Consumer Affairs Homepage:
Consumer Rights


Distance Selling of Financial Services

Financial services are the subject of a separate directive that came into force in June 2002 (2002/65/EC). This piece of legislation amended three prior existing Directives and is designed to ensure that consumers are appropriately protected with respect to financial transactions taking place where the consumer and the provider are not face-to- face.  In addition to prohibiting certain abusive marketing practices, the Directive establishes criteria for the presentation of contract information.  Given the special nature of financial markets, specifics are also laid out for contractual withdrawal.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.