E-tailers are required to give consumers the right to withdraw from the purchase without giving any specific reason. All natural persons who have made an off-premises purchase for private use, for example on the internet, are entitled to the right of withdrawal. The reason for withdrawal may simply be that the consumer does not like the product, they may find the price too high, or they may realise that they simply do not need the product. In such a case, even if the product is not defective, the consumer can cancel the order or withdraw from the purchase. They have 14 days to do so. This period does not start on the day of purchase but on the day of receipt of the product. If the order consists of several products, the period of 14 days starts from the date of receipt of the last product in the order.
In fact, the customer does not even have to wait for the delivery of the order; they can change their mind before receiving the order.
The e-tailer is obliged to give prior information on the right of withdrawal to customers (the information must be indicated on the website in a straightforward manner). If the trader fails to do so, the 14-day period will be extended by 12 months. If, in the meantime, the e-tailer does provide the consumer with the necessary information, the period for giving notice of withdrawal expires on the 14th day following the date when the information was provided to the customer.
EXCEPTIONS
Of course, not all products sold on the internet are subject to the consumer's right of withdrawal. For example, the customer cannot withdraw from the purchase if they ordered music, a film or a computer program and have already opened the sealed packaging after delivery. If they downloaded digital content, and the seller made this content available with the consumer's prior consent, the consumer cannot exercise their right of withdrawal if they declared their awareness of the fact that they might lose their right to withdrawal at the same time as giving their consent.
It is also not possible to withdraw from the purchase if the consumer purchased a product in sealed packaging which cannot be returned if opened for health and/or hygiene reasons (e.g., razors, electric toothbrushes, underwear, etc.). Because of their nature, the purchase of perishable foodstuffs and foodstuffs with a short shelf life cannot be withdrawn without a reason, nor can the purchase of products which are custom-made according to specific parameters and/or to the customer’s request (e.g., printed T-shirts, mugs with personalised messages).
Consumers also cannot exercise their right of withdrawal when buying services, such as train, bus or plane tickets, hotel reservations, tickets to concerts, sporting events or exhibitions, theatre tickets, or when taking part in online gambling.
The detailed rules on the right of consumers to withdraw without giving a specific reason are set out in Articles 20-29 of Government Decree 45/2014 (26.II.) on the detailed rules of contracts between consumers and businesses.
WITHDRAWAL IN PRACTICE
Consumers can exercise their right of withdrawal in two different ways:
- they can use the "Declaration of withdrawal without giving a specific reason" form, provided in the government decree mentioned above, or
- they may withdraw by means of a written statement.
The declaration is valid even if, for example, it is sent by mail within 14 days of receipt of the order, but it reaches the e-tailer after the 14th day.
The e-tailer's obligation is then to refund the full amount paid by the consumer without delay, or no later than 14 days of becoming aware of the withdrawal. The refund includes costs incurred in connection with the performance of the order, such as the delivery costs.
To reimburse the amount, the e-tailer is required to choose the same method of payment as the one the consumer originally chose to use. If the consumer gives their consent to the e-tailer refunding them in another payment method, this should be done in a way that the consumer will not have to cover any extra costs or fees related to the specific method. The e-tailer has the right to withhold the amount to be reimbursed until the goods have been returned or the consumer has proved beyond reasonable doubt that they have returned them.
The consumer is obliged to return the product without delay, but no later than 14 days from the date of withdrawal, or to hand it over to the e-tailer or to a person authorised by the e-tailer to receive the product. The consumer must cover the costs of returning the goods, except if the e-tailer has agreed to pick up the goods for return or to cover the cost of returning the goods if the consumer withdraws. If the goods were delivered to the consumer at the time of the conclusion of the off-premises contract, the e-tailer has to return them at their own expense if, by their nature, the goods cannot be returned by mail.
COMMON MISCONCEPTIONS
Can an e-tailer refuse a return within 14 days if, for example, the product has already been used, some of its parts are missing or its original (unopened) packaging is missing?
Unless it is a case of exception defined by the consumer protection rules, the right of withdrawal cannot be ruled out for products that have already been used by the consumer.
However, the law only allows the consumer to use the product in order to establish its quality, characteristics, and functioning. The consumer is responsible for any reduction in value resulting from using the product more than what is permitted by the consumer protection rules, so the business is not obliged to reimburse the full price of the product and the related costs if the product is returned damaged or incomplete.
The e-tailer can deduct the amount of reduction in value from the total amount to be refunded. However, the consumer can only be held liable for the reduction in value if they were informed in advance in writing (usually in the “Terms and conditions” section of the website of the shop) of the possibility and the conditions of such deductions. If no such prior information has been provided, no amount of money can be deducted from the amount to be refunded to the consumer!
The 14-day withdrawal period cannot be subject to any additional conditions which are not stipulated by law.
If the e-tailer is willing to take back products beyond the 14-day period, the terms of returning the products have to be made clear to the consumer. In such a case, the seller may refuse to refund the consumer if the returned product has already been used, provided that the return is made beyond the period of the "withdrawal guarantee", i.e., when more than 14 days have passed since the goods were received by the consumer.
Can I require the consumer to accept the delivery of the product they ordered?
According to consumer protection rules, the right of withdrawal without giving a specific reason can be exercised at any time after the order has been placed, even before the date of receipt of the product. No derogation from this regulation is allowed, except if the derogation benefits the consumer. Therefore, no derogatory clause can be imposed by the seller.
Can I refuse a 14-day return because of the absence of the original invoice?
Consumers can exercise the right of withdrawal without giving a reason for a 14-day period for online purchases under the consumer protection rules. These rules cannot be derogated from to the detriment of the consumer! This means that you cannot demand more from the consumer than what the law requires.
It is the consumer’s obligation to inform the online shop in writing within 14 days of receipt of the product that they are exercising their right of withdrawal. In this case, it is also the consumer's responsibility to return the product to the e-tailer immediately after the withdrawal, or no later than 14 days after the withdrawal, at their own expense (unless the seller has undertaken to cover the costs of returning the product).
However, no other conditions must be set regarding the refund of the amount paid. If the consumer complied with the time limit of withdrawal and has returned the product at their own expense, the e-tailer cannot ask the consumer for the original invoice as a prerequisite for reimbursing the full amount paid. Online shops cannot limit consumers' 14-day right of withdrawal and cannot impose additional conditions of their own that are not recognised by consumer protection rules.
How to comply with the obligation to refund the money in the event of withdrawal?
The consumer needs to mail the withdrawal notice to the e-tailer within 14 days of receiving the product. The consumer must then return the product immediately, or no later than 14 days after the withdrawal is communicated. The e-tailer must reimburse the consumer for the price of the product and other related costs immediately after becoming aware of the withdrawal, or no later than 14 days after the withdrawal. If the e-tailer himself does not arrange for the goods to be returned, the e-tailer has the right to withhold the amount to be reimbursed until the goods have been returned or the consumer has proved beyond reasonable doubt that they have returned the goods.
As a rule of thumb, the price the consumer paid as well as any additional costs (e.g., delivery fees) must be refunded by the e-tailer using the same method of payment as the one the consumer originally chose to use. If the consumer gives their consent to the e-tailer refunding them in another payment method, this should be done in a way that the consumer will not have to cover any extra costs or fees related to the specific method. Therefore, the refund can be made in the form of a bank transfer even if the consumer paid in cash, but in this case, the bank transfer fees have to be covered by the seller.
Who is to cover mailing and bank fees in the event of withdrawal? Should the e-tailer reimburse the consumer for the cost of delivery?
When the consumer exercises their right to withdraw without giving a reason, they must be reimbursed in a way that will leave them in a position as if the purchase had never been made. Therefore, the consumer is reimbursed for the price paid for the product, in addition to the delivery costs or the extra fees paid for the payment method of their choice. The only exception to this is if the consumer did not choose the most cost-efficient delivery method. In this case, the price difference between the most cost-efficient method and the method of the consumer’s choice will not be refunded.
The cost of returning the goods is usually covered by the consumer.
There are three exceptions when the e-tailer must cover the cost of returning the goods: 1) if the e-tailer has agreed in advance to cover the cost of returning the goods; 2) if the e-tailer has agreed in advance to pick up and return the goods themselves; 3) if the goods are not to be mailed because of their nature and were delivered to the consumer at the time the contract was concluded.
What are the e-tailer's obligations and the consumer's rights if a product ordered online is faulty?
If within six months of receipt, the product becomes defective, it will be deemed to have been defective at the time of purchase (unless this is incompatible with the nature of the product or the nature of the defect). This also means that the e-tailer must prove that the cause of the defect arose only after delivery. If the e-tailer fails to do so, the consumer may have a valid claim for repair or replacement. If the six-month period is already over, it is the consumer’s responsibility to prove that the defect was already present at the time of purchase (in this case, at the time of receipt). The consumer can file a complaint with the e-tailer within two years from the date of receipt if the product was brand new, and within one year if the product was bought second-hand.
Even stricter rules apply to products that are considered to be consumer durables and are sold to consumers new, either online or in person in a shop. This category includes goods above a certain purchase price - usually 10,000 forints - such as laptops, televisions, furniture, smartphones, computers, household appliances, watches, jewellery, sports equipment, children's toys. These products are covered by a one-year mandatory warranty. This means that if a defect occurs within one year of delivery, the seller must prove that the cause of the defect arose only after delivery. If the seller fails to do so, the seller is obliged to repair or replace the defective product free of charge, or to, for example, reduce the purchase price or refund it in full. In the case of a defect occurring after the mandatory one-year warranty period, it is up to the consumer to prove that they received a defective product from the seller (unless the product is covered by a voluntary, i.e., contractual, warranty). In this case the maximum period for making a complaint is two years from the date of receipt or until the end of the voluntary warranty period.
It is worth avoiding lengthy repair processes!
Consumers often complain about lengthy repair processes, as the returned product might sit in the repair shop for months, while the consumer has no information about the status of the repair.
The seller (i.e., the party bound by the obligation to provide warranty) should try to repair or replace the product within a maximum of 15 days. (The effort to repair or replace the faulty product within 15 days may be subject to investigation by the consumer protection authority). This requirement is not met if the repair process takes months.
The consumer may also be entitled to a free replacement or a refund, not just a repair!
Often, online shops are only willing to repair defective products, and consumer claims that go beyond this (for example: replacement or a full refund) are rejected. This is also true in cases where the repair is unsuccessful, and the product is still not functional after three or four attempts to repair it.
The consumer cannot only and exclusively ask for the repair of the defect. If the business has not agreed to repair the defect, or if the repair is not feasible, or if the repair cannot be done within a reasonable time and without causing inconvenience to the consumer, then the claim for a replacement or even a refund of the purchase price may be justified. The consumer can always switch from their repair claim to another type of warranty claim (e.g., a replacement or a refund). Moreover, if it was the seller who has given a reason for the customer to do so, or if changing the claim was otherwise justified, the consumer does not have to pay the extra costs incurred by the switch. With lengthy repair processes or a series of unsuccessful repairs, online shops can provide basis for consumer claims for replacement or even a refund.
This is particularly true in the case of complaints where the product is a consumer durable, typically belonging to the category of electronic goods. Given the high purchase price of such goods and the value of the transaction, which can reach hundreds of thousands of forints, the rejection of consumer claims is clearly in conflict with the consumer's interests.
What if the consumer claims that the product they received was already damaged?
It is possible that the goods ordered arrive damaged. This usually becomes apparent only after the delivery person has left the premises and the consumer has already signed that they have received undamaged goods. Later on, it is usually the consumer’s signature on the declaration of receipt that prompts online shops to refuse to repair or replace a broken or scratched product. However, sellers are legally responsible for the undamaged condition of the product until the consumer takes possession of it (taking possession of the product means, by definition, that the consumer receives the product and unpacks it).
It is important to ensure that businesses properly fulfil their responsibilities and obligations regarding the mandatory warranty and also when they are providing evidence of defects that arise within six months. For example, a broken, scratched or dented display does not necessarily mean that the defect is actually the cause of the malfunction (for example, it could be a manufacturing defect of a low-quality material, as there are many examples of mobile phones being functional, i.e., taking photos and videos and accessing the internet, even with a broken display). For this very reason, liability cannot be ruled out without any further investigation – yet, this is often the case, whether it is a tablet PC worth tens of thousands of forints or a TV or mobile phone worth hundreds of thousands of forints.
Can the trader withdraw the mandatory warranty for a product ordered online?
It is not possible to inform the consumer during the period of the mandatory one-year warranty that the e-tailer is "withdrawing the warranty". The mandatory warranty is not a matter of choice for the online shop; it is stipulated by law. The communication of the business may therefore be misleading, and the competent authorities (consumer protection authorities, the Hungarian Competition Authority or, in the case of financial service providers, the Hungarian National Bank) will specifically check if this is the case.
VOLUNTARY PRODUCT RETURN GUARANTEE
The e-tailer may decide to provide a voluntary return guarantee after the initial 14 days are over. In this case, the refund can be subject to conditions set by the e-tailer, for example the e-tailer might demand that the product that has been returned must not be damaged or worn in any way.