The new Consumer Protection Law introduces significant amendments regarding the requirements that goods must satisfy in order to be considered conforming to the contract, as well as regarding consumer rights in the event of a lack of conformity.
The very concept of the conformity of goods with the contract is broken down into several elements, which will be explained in more detail below.
Conformity of Goods – Amended Definition
Goods shall be considered conforming to the contract if they satisfy the subjective and objective requirements prescribed by law, if they have been correctly installed, and if there are no third-party rights that would exclude, diminish, or limit the consumer’s rights, of which the consumer was not informed and to which the consumer did not consent.
Subjective Requirements
The term “subjective requirements” refers to the conditions relating to what has been agreed between the trader and the consumer.
Within this “subcategory” of requirements, the solutions contained in the current law have been retained, according to which the goods must correspond to the agreed description, type, quantity, and quality, possess the agreed functionalities and characteristics, and also be suitable for the particular purpose for which the consumer informed the trader and with which the trader agreed.
However, the new Law also stipulates that the goods must be supplied together with all agreed accessories and instructions, including installation instructions and customer support.
A particular novelty is the trader’s obligation to supply the goods with updates, as provided for in the sales contract.
Objective Requirements
This group of requirements includes the existing requirements that the goods must possess the characteristics necessary for the ordinary use of goods of the same type and correspond to the quality and description of the sample or model if one was shown to the consumer, but it also introduces the requirement that the goods must, where applicable, be supplied with accessories, including packaging, installation instructions, or other instructions that the consumer may reasonably expect.
As before, public statements made by the trader or the manufacturer relating to the quality and other characteristics of the goods, including advertisements, shall also be taken into account, unless the trader proves that it was unaware of such a statement, that it had been appropriately corrected, or that it could not have influenced the consumer’s decision.
Trader’s Liability for Lack of Conformity
First of all, the moment from which the trader’s liability for conformity begins has been specified more precisely, so that the trader is liable for any lack of conformity that existed at the time of delivery, as well as for any lack of conformity that appears after delivery, provided that it originates from a cause that existed before delivery.
Furthermore, a new form of the trader’s liability is liability for a lack of conformity resulting from improper installation, where the installation forms part of the contract and was carried out by the trader or under the trader’s responsibility, or where the improper installation results from deficiencies in the instructions provided by the trader.
However, the trader shall not be liable for a lack of conformity if the consumer was specifically informed of the deviation from the objective requirements and expressly accepted it.
Consumer Rights in the Event of a Lack of Conformity
As before, in the event of a lack of conformity, the consumer has the right to request the repair or replacement of the goods, at the consumer’s choice, and may also request a price reduction or termination of the contract, provided that the conditions prescribed by law are met.
The Law further emphasizes that the remedying of the lack of conformity shall be free of charge for the consumer and that the trader bears the burden of proving that the lack of conformity of the goods with the contract is insignificant.
In the event of termination of the contract, the consumer shall return the goods at the trader’s expense, while the trader is obliged to reimburse the price paid within the time limit prescribed by law.
Price Reduction and Termination of the Contract
In addition to the existing cases in which the consumer may request a price reduction or termination of the contract, the new Law provides that this is also possible where the lack of conformity is sufficiently serious to justify a price reduction or termination of the contract, as well as where the trader has refused to remedy the lack of conformity or has declared that it will not remedy it.
The time limits for exercising consumer rights have also been amended, so that a lack of conformity is now presumed to have existed at the time of delivery if it appears within one year from the delivery of the goods, while the time limit for notifying the trader of the lack of conformity is two months from the date the consumer became aware of it.
As before, if the lack of conformity appears within a short period after the delivery of the goods, the consumer may choose between replacement, price reduction, or termination of the contract; however, instead of the previous period of six months, that period is now 30 days.
The New Framework of Trader Liability and Consumer Rights
The new Consumer Protection Law regulates the concept of the conformity of goods in greater detail by further specifying the criteria that goods must satisfy and strengthening consumer rights in the event of a lack of conformity.
Particular emphasis has been placed on a clearer definition of objective standards, the trader’s liability for installation, and the improvement of the rules relating to costs and the burden of proof in favor of consumers.
Author:
Vuk Preradović, Junior Associate at PR Legal