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Institutional Design in Hungary: A Case Study of the Unfair Commercial Practices Directive


  • V. Balogh


  • K. Cseres



The adoption of the Unfair Commercial Practices Directive (UCPD) and its implementation in the EU Member States raised many academic and policy discussions on substantive issues such as the fairness notion, the substantive test of material distortion, as well as the concept of the average consumer. However, its influence on the Member States' enforcement regimes is equally far-reaching. This paper analyses on the one hand, how EU law, i.e., the UCPD, affected the traditional enforcement models of the Member States and on the other hand, how the allocation of enforcement powers to institutions who enforce the UCPD and the organizational design of these enforcement institutions influence the actual enforcement of EU law in the national legal context. This paper conducts a case study on Hungarian law and examines how Europeanization of unfair commercial practices has changed the Hungarian model of law enforcement. The paper finds that the changes in the Hungarian institutional framework had significant impact on how substantive rules are applied by the various enforcement agencies due to their different enforcement legacies. This case study shows that looking at institutional design provides a deeper understanding of local enforcement modalities, and it offers new insights for Europeanization strategies. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • V. Balogh & K. Cseres, 2013. "Institutional Design in Hungary: A Case Study of the Unfair Commercial Practices Directive," Journal of Consumer Policy, Springer, vol. 36(3), pages 343-365, September.
  • Handle: RePEc:kap:jcopol:v:36:y:2013:i:3:p:343-365
    DOI: 10.1007/s10603-013-9236-y

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    References listed on IDEAS

    1. Colin Scott, 2004. "Regulation in the Age of Governance: The Rise of the Post-Regulatory State," Chapters, in: Jacint Jordana & David Levi-Faur (ed.),The Politics of Regulation, chapter 7, Edward Elgar Publishing.
    2. Paul K. Gorecki, 2011. "Economic Regulation: Recentralisation of Power or Improved Quality of Regulation?," The Economic and Social Review, Economic and Social Studies, vol. 42(2), pages 177-211.
    3. Stiglitz, Joseph E, 2002. "Participation and Development: Perspectives from the Comprehensive Development Paradigm," Review of Development Economics, Wiley Blackwell, vol. 6(2), pages 163-182, June.
    4. Gerda Falkner & Oliver Treib, 2008. "Three Worlds of Compliance or Four? The EU-15 Compared to New Member States," Journal of Common Market Studies, Wiley Blackwell, vol. 46, pages 293-313, March.
    5. Hans-Wolfgang Micklitz, 2009. "Universal Services: Nucleus for a Social European Private Law," EUI-LAW Working Papers 12, European University Institute (EUI), Department of Law.
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