Draft for new consumer warranty law presented

Apr 28, 2021 Benn-Ibler Rechtsanwälte

The Federal Ministry of Justice (Bundesministerium für Justiz) has submitted a draft for a new consumer warranty law for review. In the course of this, the general warranty law will also be adapted. The reform is the implementation of two European directives.

First of all, the European legal requirements to be implemented are to be bundled in a new Consumer Guarantee Act (Verbrauchergewährleistungsgesetz, VGG). The warranty law of the Austrian Civil Code (Allgemeines Bürgerliches Gesetzbuch, ABGB) and the Consumer Protection Act (Konsumentenschutzgesetz, KSchG) will, however, be retained - slightly adapted.

The reform creates specific regulations for the warranty for digital content and digital services. Thus, an update obligation for software is introduced. Although entrepreneurs are not obliged to provide updates with new or better functions, they must - in order that their goods or digital services do not become defective - provide updates that would be necessary due to new technical developments in order to maintain conformity with the contract, as well as security updates. Otherwise, the entrepreneur is liable under warranty law.

The obligation to update exists only during certain periods. If software is provided only once (e.g. in the case of a download which is then available for an unlimited period of time), the period of time during which the consumer can "reasonably" expect such updates applies. If the service is provided on an ongoing basis (e.g. in the case of cloud services), the trader is obliged to update the software for the entire duration of the contract, but at least for two years.

Contracts in which the consumer provides personal data in return are also to be included in the warranty law.

Furthermore, the presumption period for the origin of the defect is extended from 6 months to one year from the provision of the goods or digital service. Only after this period is the burden of proof reversed. In future, warranty claims will only become time-barred three months after the end of the warranty period.

In addition, consumers no longer have to assert their claims for price reduction or contract termination in court. In future, a form-free declaration will suffice.

BMJ, Begutachtungsentwurf (03.04.2021)