Businesses

Issuing a warranty is voluntary

The Consumer Protection Act does not require that products or services are provided with warranties or guarantees.

A warranty is a voluntary arrangement that must give the consumer superior rights than those stipulated by legislation on liability for defects. From the buyer's perspective, this type of superior offer could include the promise to refund the purchase price even in the event of a minor defect.

Warranties may be issued for products by the manufacturer, importer or retailer. The customer is free to choose which of these organisations in the supply chain to make warranty claims to.

  • The retailer is always responsible for the warranty despite the fact that warranties are most frequently given by the importer or manufacturer
  • The retailer may only disclaim a warranty offered by an organisation higher up in the supply chain if the buyer is clearly informed of this before the transaction is concluded

Expiration of warranty does not automatically put an end to the seller's liability

In addition to the warranty, the customer is protected by the rights stipulated by the Consumer Protection Act's provisions on defects.

Warranty terms may not be used to deny the consumer of his statutory rights.

  • Warranty terms may not e.g.
    • specify that the consumer is responsible for the costs of transporting the item to the repair facility
    • restrict the warranty to have it only apply to certain parts of the product. Parts not included in the warranty must also meet the requirements of sufficient service life.
    • state that the consumer must have repairs done at a specific repair facility
  • The warranty period must be long enough to offer the customer an extra benefit. For instance, a six-month warranty period does not offer the consumer any extra benefit compared to his normal statutory rights
  • Expiration of the warranty period does not free the seller from liability. If a warranty has not been offered or the warranty period has expired, the seller is liable for defects under the provisions of the Consumer Protection Act

Warranty is product-specific

Warranties are given to products and they remain valid even if the ownership of the product is transferred. As such, the warranty may not be restricted to the first owner of a product.

The provider of warranty is responsible for their obligation for the entire validity of the warranty regardless of who owns the product. However, the use of the product may not change substantially, for example from private use to professional use.

Service guarantees

Service guarantees are subject to the same principles as product warranties. A guarantee is voluntary. If a guarantee has not been given or the guarantee period has expired, the provisions of the Consumer Protection Act apply.

Warranty Assistant for Sellers
 

Print
15/07/2010