Frequently asked questions

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Who can I file a complaint with concerning a service defect if the service provider has gone bankrupt?

Complaints concerning a service defect can always be filed not only with the service provider, but also with a subcontractor used by the service provider to perform the actual service. For instance in the case of a renovation project, if the primary contractor has gone bankrupt and there is a defect in the work done by the subcontractor, the consumer is entitled to file a claim directly with the subcontractor.

The consumer's primary course of action is to demand that the defective work is rectified or the service repeated. If rectifying the defect or repeating the service is not possible, the consumer is entitled to claim a price discount. If the defect is not considered minor, or if other forms of compensation do not apply, the consumer may demand that the transaction is cancelled.

The liability for defects borne by subcontractors is governed by the same principles as the primary service provider's liability, but is not quite as extensive.

If the defect is caused by a reason independent of the subcontractor after the service performance was handed over to the service provider, the subcontractor is not liable.
If the defect is compensated for by refunding the sales price or granting a discount, the basis of the compensation is the price at which the subcontractor sold the service performance to the service provider, not the price paid by the consumer. Therefore, in the event of cancellation of the transaction, the consumer cannot demand the subcontractor to refund the price in full.

Claims concerning defects must be filed within a reasonable time of the consumer noticing the defect or the time the consumer should have noticed the defect. Claims concerning defects must be filed no later than two months after noticing the defect.

Who can I file a complaint with concerning a defective product if the seller has gone bankrupt?

Complaints concerning a defective product can always be filed not only with the seller, but also with the manufacturer, importer or any business that is part of the product's chain of distribution. Complaints and claims for compensation can be filed even if the product did not come with a warranty, or if the warranty period has expired.

1. When the warranty granted by the manufacturer or importer is still valid, the compensation for defective products is determined by the warranty terms.

2. When the product does not come with a warranty or the warranty period has expired, the manufacturer or importer is liable for product defects e.g. if the product's service life, under normal use, is shorter than what can be reasonably expected of products of similar quality and price.

In this case, the primary forms of compensation are rectifying the defect or exchanging the product for a non-defective one. If rectifying the defect or exchanging the product can't be done, the consumer may request a discount on the price or cancellation of the purchase. The liability for defects borne by businesses representing earlier steps in the distribution chain is governed by the same principles as the seller's liability, but is not quite as extensive.

If the defect is caused by a reason independent of the manufacturer or importer after the product was transferred to the seller, the manufacturer and importer are not liable.
If the defect is compensated for by refunding the sales price or granting a discount, the basis of the compensation is the price at which the manufacturer or importer sold the product to the retailer, not the sales price paid by the consumer. Therefore, in the event of cancellation of the transaction, the consumer cannot demand the manufacturer or importer refund the sales price in full.