It’s extremely common for these two terms to be mixed up. To clear up this confusion, we will outline their key differences in this article. Broadly speaking, the two consumer protection systems differ in that statutory warranty is the responsibility of the retailer, while a guarantee is set by the manufacturer. But what does that actually mean? Alright, let’s start over from the beginning.
Warranty
Warranty (also referred to as liability for material defects) outlines the legally regulated set of rights that buyers hold against sellers if the latter has delivered a defective product. When entering into a sales contract, the selling party guarantees that the goods being sold are free from material and legal defects. If defects that already existed at the time of sale do arise, merchants are required to remediate those issues. Under the law, buyers are entitled, for example, to claim supplementary performance, a price reduction, or compensation for damages, and even have the right to withdraw from the sales contract entirely.
Remedial performance is the primary right available. This can take one of two forms: either replacement with a new item, or repair to resolve the defect. Generally, the buyer, not the seller, chooses which type of remedial performance must be provided. While it is theoretically possible to contractually reassign this right of choice in other circumstances, this is not permitted for purchases of consumer goods. However, if a merchant would incur "disproportionately high costs", they may refuse the buyer’s selected form of remedial performance. If a defect arises, the merchant must "cover all costs for transport, labor, and materials". Customers may also request an advance payment to cover transport or shipping costs. The buyer also has the option to fix the defect themselves, and file a damages claim against the merchant to recoup all necessary costs incurred for the repair (§ 437 Nr. 3 BGB).
But what exactly does a so-called 'defect' cover? Under Sections 434 and 435 of the German Civil Code (BGB), a defect exists, for example, if 'the purchased item does not have the contractually agreed properties, is unfit for its ordinary intended use, or has not been assembled properly.' This also includes latent defects that may only come to light at a later date. It is important to note that the obligation to remedy defects under Section 438 BGB is limited to two years. A damaged item must therefore be reported as damaged or defective within the first 24 months after purchase for the warranty to still apply. Since January 1, 2022, a legal presumption in favor of consumers applies: within the first year after purchase, it is legally assumed that the item was already defective at the time of delivery. Important note: For all purchases made before this date, this presumption period is only six months! If the seller claims that the defect arose after the purchase, they must prove this within the first twelve months. After this period, the burden of proof reverses. This means that from that point onward, the buyer must prove that the defect already existed at the time of purchase. For used goods, the warranty period may be set within the 1 Terms and Conditions or be reduced to twelve months by agreement between both parties
Warranty
While retailers are legally required to provide a statutory warranty, a guarantee is an additional, voluntarily agreed service offered by the manufacturer (manufacturer’s guarantee) or sometimes also by the retailer (retailer’s guarantee). A guarantee commitment may never reduce, let alone replace, the scope or duration of the statutory warranty in any case. It always applies only alongside, or in addition to, the statutory warranty. Since a guarantee is a freely customizable service that a manufacturer or retailer provides to customers, its length and terms can be set individually. Most manufacturers guarantee that their product will function properly for one to two years when used under normal conditions. If a defect arises within that period, under a guarantee it does not matter whether the defect existed at the time of purchase or developed later. Many manufacturers limit their guarantees to specific parts or features of an item, for example a computer’s drive. Wear-and-tear parts such as batteries are therefore almost always excluded from guarantee coverage. It is also common for only replacement parts to be covered by the guarantee, meaning buyers are responsible for covering any associated repair costs themselves. Beyond that, there are many other ways guarantee services can be structured, such as on-site service, direct replacement, pick-up & return, bring-in service, and more. A formal guarantee statement lists all exact guarantee terms: details on the party providing the guarantee, its duration and scope, notices of the unreduced statutory warranty rights, and a description of the process buyers must follow to submit a claim. Since January 1, 2022, sellers have been required to provide this document to buyers in writing no later than the time of delivery. Furthermore, no guarantee claim can be enforced without a valid guarantee statement.
Complaint
Now that we’ve clarified the critical differences between statutory warranty and manufacturer’s guarantee, we will go one step further and explain what else you need to keep in mind in practice. If both statutory warranty and manufacturer’s guarantee are still active, end consumers can choose how to file a claim for the goods. A manufacturer’s guarantee, for example, only covers repairs, and typically does not include a refund of the purchase amount. By contrast, statutory warranty allows you to withdraw from your purchase contract if a repair has already failed twice, or if the retailer has already unsuccessfully attempted to replace the product. Statutory warranty also covers wear-and-tear parts, which are often excluded from manufacturer’s guarantees. If a defect arises after purchase and it can be reasonably assumed that the defect was not present at the time of purchase, it is well worth reviewing your guarantee certificate.
Hopefully it is clear that the appropriate complaint system can vary depending on the situation. You may now be wondering what you need to take into account if you discover a defect with an item you purchased from us. Below, we will gladly go over that in full detail.
At HiFi
Let’s get one key point out first: Since the HiFi products we sell are almost exclusively in the premium price range, it is always incredibly frustrating when something does not work as it should. Customer satisfaction is our top priority, which is why we do everything we can ahead of time to avoid these situations entirely. We only stock products that we are confident in, not just for their sound quality, but for their build quality too. We rely heavily on hands-on experience, and we regularly remove items from our range that fail to deliver on their promises. We want you to receive a product that you can enjoy for as long as possible, which is why we prioritize longevity over planned obsolescence. Instead of you, as our customer, being forced to purchase a new device after only a few short years because your old one has stopped working, we have a different goal. To put it frankly, we hope that the satisfaction you get from your long-lasting product will eventually spark a desire in you to upgrade your home audio system even further with additional sound components. That said, we must be honest at this stage: despite all our efforts, we are not immune to defects occurring. It can happen that you receive a device that does not meet requirements, and in such a case, our greatest aim is to work with you to find the best solution. If we here at HiFi cannot fix the issue ourselves, we will of course handle all logistics for you: we manage the process of sending your damaged item to the manufacturer’s official service workshop. This applies to both in-store purchases and online orders. For online orders in particular, it is important that you submit your claim for the defective goods in writing, and describe the issues you have encountered as accurately as possible, whether in a letter or via email.
Bottom Line
To fully and definitively answer that opening question in full: Yes, there is a clear difference between statutory warranty and voluntary guarantee. A statutory warranty is a legally mandated obligation on the part of the retailer to remedy defects, while a guarantee is an additional, voluntary, and flexibly interpreted benefit offered by either the manufacturer or the retailer. It is well worth understanding this difference: if both coverage periods are still active, it is worth evaluating which option will benefit your specific situation most.
We hope we have been able to provide some clarity, and that you can enter into your next purchase agreement fully informed moving forward. If you have any further questions or need to file a claim regarding an item you purchased from us, please do not hesitate to reach out to us.
0 comments