Consumer protection rules regarding product durability are being tightened
New consumer protection rules regarding product durability, repairability, and long-term usability came into effect on September 27. Under the amendments, businesses are required to provide more information prior to purchase, while several misleading commercial practices are explicitly prohibited, notes Baker McKenzie.
The regulation implements a European Union directive in Hungary designed to empower consumers in the green transition. The aim is to ensure that, before making a purchasing decision, consumers have a clearer understanding of a product’s expected durability, repairability, and the duration for which it will remain functional.
What does durability mean?
A product is considered durable if it is capable of maintaining its necessary functions and performance over a specific period when used for its intended purpose. Several factors may be taken into account when assessing this: among others, the reasonably expected lifespan of the specific product type, the nature and price of the goods, maintenance requirements, frequency of use, and any public statements regarding durability made by the manufacturer or other market participants. The term “manufacturer” encompasses not only the actual producer of the product but also—in the case of imported goods—the EU importer, as well as any party presenting itself as the manufacturer by displaying its own name, trademark, or other distinguishing mark.
“A durability warranty is far more favorable to the consumer than a warranty against defective performance, as, generally speaking, it covers product failures occurring after delivery—including premature wear and tear”– said Dr. Artúr Tamási, a lawyer at Baker McKenzie.
More information, mandatory disclosure requirements
The amendments expand the pre-contractual information obligations of businesses. Consumers must be informed, among other things, if the manufacturer offers a commercial durability warranty and the duration of that warranty. This commercial durability warranty is a voluntary undertaking by the manufacturer ensuring that the product will meet durability requirements for a specified period.
For products containing digital elements, information regarding software updates must also be provided. Consumers must be informed about the duration for which the manufacturer or service provider supplies software updates.
Information regarding the product’s repairability must also be provided. If an official repairability score exists, it must be disclosed. In the absence of such a score, information regarding the availability, estimated cost, and ordering process for spare parts, as well as repair and maintenance options, must be provided—provided the manufacturer has made this information available to the business.
The amendments also mandate the introduction of two new, standardized information tools: a harmonized notice regarding warranty rights and a harmonized label displaying the commercial guarantee on durability, known as the “EU GARAN label.” These must be displayed in a manner clearly visible to consumers; for physical sales, the label may appear on the product, its packaging, or next to the product, while for online sales, it must be visible on the product page prior to the purchasing decision.
Several misleading practices explicitly prohibited
Regulations prohibiting unfair commercial practices towards consumers have also been significantly expanded. Among other things, it is now explicitly prohibited to withhold information if a software update adversely affects the functioning of a digital product. It is also unlawful to withhold information about known characteristics that reduce a product’s durability, to make false claims regarding expected lifespan, or to advertise a non-repairable product as repairable. The regulations prohibit encouraging consumers to replace or replenish a product’s consumables prematurely without technical justification.
“The changes primarily affect retailers, webshops, and online marketplaces selling to consumers. However, manufacturers and importers should also review whether the information provided to retailers—regarding product durability, repairability, expected lifespan, software updates, and durability warranties—is accurate and properly substantiated,” said Dr. Viktória Kölcsei, a trainee lawyer at Baker McKenzie. “After all, retailers rely on this information to inform consumers. Furthermore, if manufacturers offer a durability warranty, consumers can assert claims arising from it directly against them.”
Source: trademagazin.hu
