New Hungarian Advertising Act rules come into effect in July 2015, impacting advertising intermediaries, sellers of advertising and advertising services providers.
Under the Advertising Act, advertising intermediaries are companies which facilitate advertising between advertising customers and advertisement publishers . Advertising intermediary services are usually provided by advertising and media agencies. Sellers of advertising are companies which sell advertising slots on behalf of advertisement publishers.
The Advertising Act establishes a fixed fee which may be charged for advertising intermediary services. Its amount is 15% of the publication fee per advertisement.
Advertising intermediaries are prohibited from accepting any direct or indirect bonus, rebate, gift or other gain from the publisher or any other person. Advertising intermediaries may agree to a discount; however, it must be passed on to the advertising customer and indicated as such on the invoice issued to the customer. This same restriction applies also to advertisement service providers, who usually create and design advertisements and campaigns. However, they are not permitted to agree to a discount.
An advertising intermediary, acting on behalf of its advertising customer, may agree directly with the publisher about the fee to be charged. However, full transparency must be provided to the advertising customer concerning both the financial terms of the advertising and the publishing data.
The Advertising Act amendments also aim to provide further transparency to advertising customers. The new rules require advertising intermediaries and advertising service providers to disclose to their customers if the intermediary or service provider or a company in which they have a qualified majority ownership owns either a company having facilities suitable for the publication of advertising or an for publishing advertising or a company which sells advertising . If an advertising intermediary owns a seller of advertising which is involved in a contract, then the Advertising Act prohibits the advertising intermediary from being a party to the advertising agreement. That same prohibition applies if the seller of advertising has direct or indirect ownership in the advertising intermediary.
The Consumer Protection Authority may impose a fine if the Advertising Act's rules are not followed. The fixed amount of the fine is 10 times the financial benefit gained from the violation.
Currently exiting agreements must be amended to comply with the Advertising Act until 30 September 2015. Agreements concluded after July 2015 must comply with the Advertising Act's new provisions.