New rules on the use of Hungarian language in advertisements and other publications

Hungary

General rules

Act No. XCVI of 2001 on the Publication of Advertisements and Shop Signs and Public Announcements (the "Act") entered into force on 17 February 2002. Advertisements, signs and notices which have already been published will have to be amended to comply with the new rules by 1 January 2003. The Act regulates the following types of publication:

  • advertisements;
  • shop signs and notices; and
  • notices, signs and information displayed in public places and on public transport.

As a general requirement, such advertisements, notices, signs and information must be displayed either in Hungarian or both in Hungarian as well as in a foreign language. Accordingly, the Act does not prohibit the displaying of notices, signs or information in a foreign language; it merely makes it mandatory to use Hungarian as well. If the Hungarian translation is displayed next to a foreign language text, it must be displayed in the same size on the given surface and the visibility of the two versions must be the same.

Advertisements

The obligation to display advertisements in Hungarian relates to advertisements published in:

  • Hungarian newspapers and magazines;
  • Hungarian language radio and television programs; and
  • public advertising media (i.e. posters, banners etc.).

Accordingly, there are exceptions relating to:

  • adverts published in foreign supplements and special editions of Hungarian newspapers, journals and magazines;
  • adverts published in foreign language radio and televisions programs;
  • advertisements broadcast before or after foreign language radio or television programmes.

If the rules for use of the Hungarian wording are not kept, the consumer protection authority may order termination of the unlawful status, may prohibit further continuation of the unlawful activities and may impose a penalty. No minimum or maximum for such penalty is provided for in Act LVIII of 1997 on business advertising activity ("Advertising Act") which is to be applied in respect of sanctions. The Advertising Act only stipulates that the amount of the penalty should be determined taking into account all circumstances of the given case.

Shop signs

As regards shop notices, signs and information displayed in shops, announcements intended for the information of customers must be displayed in Hungarian. This applies to all notices and signs in shops, with the exception of the sign displaying the name of the shop, the company name (i.e. the short name which excludes reference to the form of the company) and the "product markings" of goods sold in the shop.

Compliance with the above regulations is controlled by the local notary. If the notary observes a breach of the Act, it may close down the shop until the deficiencies are cured, but for a maximum of 90 days. If the deficiencies are not cured within this period, the local notary may withdraw the operational licence of the shop.

Public information

In respect of the third category, i.e. texts displayed in public places and on public transport which are for information (and not for advertisement) there is only one exception from the duty to publish the wording in Hungarian. This covers original texts displayed on historical monuments.

Observation of the rules regarding texts displayed in a public place is monitored by the local notary and those relating to texts displayed on public transport by the transportation authority. In case of breach of the law, the responsible party can be obliged to terminate the unlawful status.

Some practical problems

The definitions of some concepts in the Act contain subjective elements, which may lead to potential disputes regarding their interpretation. The Act extends the definition of "product markings" (see business notices and signs) beyond trademarks and geographical product markings (precisely defined in other laws). Under the new rules "product markings" include all markings by which a product is generally recognised, regardless of whether it is a registered trademark or label or an industrial design or an unregistered mark. The Act does not precisely define those marks which require no Hungarian translation. This may cause difficulty until the unclear definitions are interpreted by courts on a case-by-case basis. Such court decisions will then need to be followed for a closer understanding of the interpretation of the unclear concepts.

A further unclear provision of the Act is that it need not be applied to "localised foreign language wording", however the Act does not in any way define what constitutes a "localised foreign language wording", which may also lead to the above consequences.

For further information please contact Dr. Marianna Csabai at [email protected] or Dr. Gabriella Ormai at [email protected] or on 00 36 1 4834800.