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ECJ ruling: Online retailers must provide information about guarantees

June 23, 2022 /

According to a ruling by the ECJ, retailers on online marketplaces must inform their customers about the manufacturer’s warranty under certain circumstances. If this information is relevant to the purchase decision, the retailer must make it available to the customer. (see judgment of 05.05.2022, Case C-179/21). Therefore, if the guarantee is part of the advertising arguments, the retailer must now state, among other things, the scope of validity, guarantee period, place of repair, any restrictions and the name and address of the guarantor.

General obligation disproportionate

However, a general obligation to provide information on manufacturers’ warranties is disproportionate, as this would require a considerable amount of effort from companies to provide and update the texts. The competitiveness of companies must be ensured. Weighing this up against the level of protection for the consumer shows that the trader is only obliged to provide information on a manufacturer’s warranty if it is important for the purchase decision, i.e. if there is a significant interest.

So if an online retailer advertises the warranty of a product and fails to provide the relevant data on the manufacturer’s warranty, they risk a warning.

BGH calls on ECJ for support

The ruling was preceded by a case heard by the BGH. A competitor of absoluts bikes and more GmbH & Co. KG sued for an injunction because the mail order company was selling pocket knives via the Amazon online marketplace and, in the plaintiff’s opinion, was providing insufficient information about the manufacturer’s warranty. A link to a data sheet for the pocket knife was not sufficient and the business should therefore be discontinued.

The BGH had doubts as to whether traders are obliged under the Consumer Rights Directive to inform consumers about the existence of a commercial guarantee offered by the manufacturer. The ECJ has now ruled on the matter.

Difference between warranty and guarantee

In general, a distinction must be made between a guarantee and a warranty. While the warranty is regulated by law in the German Civil Code (BGB), the guarantee results purely from an additional service provided by the retailer or manufacturer. The guarantee in no way replaces the statutory warranty claims; these run parallel to each other. A warranty also always requires that the object of purchase must be free of defects at the time of purchase. The guarantee, on the other hand, functions as an unconditional replacement service.

We have also summarized the differences for you in the table below.

GuaranteeWarranty
Legally regulated in the BGBBased on contract
Limited in timeTime frame depends on guarantor
Condition free of defects at the time of purchaseWarrantor promises functionality during the warranty period
Can only be asserted against the sellerCan be asserted against the guarantor

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