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Wednesday, September 28, 2022

Ryanair is fined $779,464 by Hungary for violating consumer rights

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The Hungarian government fined Irish ultra-low-cost airline Ryanair HUF 300 million ($779,464) for violating consumer rights.

According to Reuters, on August 8, 2022, a consumer protection investigation into Ryanair, which was started by Marton Nagy, Hungary’s minister of economic development, found that the airline violated customer rights when it began passing along the cost of a special windfall tax on airlines to consumers.

Judit Varga, the justice minister for Hungary, posted on social media that “the consumer protection authority has identified a breach of the law today because the airline has misled customers with its unfair business practice.”

According to a government decree, airlines operating in Hungary must pay a HUF 3,900 ($10.11) tax for each passenger on every flight between states that are members of the European Union as well as for passengers who travel to various locations within 16 additional nations, including Albania, Andorra, Bosnia, and Herzegovina, North Macedonia, Iceland, Kosovo, Liechtenstein, and Moldova as well as Monaco, Montenegro, the United Kingdom, Norway, San Marino, and Switzerland.

Airlines operating between Hungary and other countries must pay a levy of HUF 9,750 ($25.27) for each passenger.

Ryanair was prepared to file an appeal against the fine, according to Reuters.

The local government enacted the windfall tax on airlines, as well as on banks, insurance, retail, telecommunications, pharmaceutical, and energy firms, in July 2022 in an effort to boost the nation’s budget.

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