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28.10.2024 | đź‡đź‡ş Hungarian competition authority
A Hungarian Competition Authority has conducted numerous investigations in recent decades into deceptive commercial practices related to the secondary sales of holiday rights. Despite active enforcement, these scams remain a significant threat, particularly to vulnerable consumers. To tackle the issue, the Authority initiated broad consultations with relevant organizations, leading to the discussion of potential solutions in a parliamentary committee.
Holiday rights in Hungary experienced a golden age around the turn of the millennium, creating a significant market that persists today. However, these rights often impose substantial costs on older consumers, who may find it challenging and costly to exit contracts. As a result, secondary sales of rights have become common, but they are rife with deceptive practices and scams.
Deceptive practices often involve presenting consumers with pre-prepared contracts at in-person meetings, leaving insufficient time for review. While initial discussions may suggest cash purchases of holiday rights, the contracts may actually include a system where the payment is debited as 'credit' in a company-operated purchase scheme. Additionally, consumers are often required to pay significant one-time fees, sometimes amounting to hundreds of thousands of forints, to enter the system, keeping them burdened with high costs associated with the holiday rights.
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