Information on the new warranty law

Feb 11, 2022 Benn-Ibler Rechtsanwälte

Changes in warranty law have been in force since January 1, 2022. The consumer warranty law (Verbrauchergewährleistungsgesetz, VGG) now predominantly applies to consumer contracts. There have also been changes in the Austrian General Civil Code (Allgemeinen Bürgerlichen Gesetzbuch, ABGB) as well as in the Consumer Protection Act (Konsumentenschutzgesetz, KSchG).

With these changes, one says goodbye to a uniform warranty law. Instead, there are now two separate (albeit very similar) warranty regulations. For contracts with consumers on the purchase of goods (including contracts for labour and materials) and on the provision of digital services (e.g. social media, apps, music, software), the VGG now applies - unless an exception (Section 1 para 2 VGG) applies.

A service is free of defects within the meaning of the VGG if it has both the contractually agreed features (subjective requirements) and equally important objectively required features. The latter apply independently of a contractual agreement and become ex lege part of the contract. Other provisions shall only apply if the consumer "expressly and separately" agrees to the deviation of a certain feature.

For digital services, the VGG introduces a new obligation to update. The entrepreneur must provide the necessary updates so that the service continues to comply with the contract (especially security updates). The duration is either based on the "reasonable consumer expectation" or covers the entire provision period (Sec. 7 para 2 VGG). The obligation to update also exceptionally applies to contracts between two entrepreneurs (Sec. 1 para 3 VGG)!

The presumption period that the defect was present at the time of handover is extended to one year from the time of handover under the VGG (Secs. 11 para 1, 19 para 1 VGG).

Both the VGG and the ABGB now distinguish between the warranty period and the limitation period. The warranty period is two or three years (immovable property). The limitation period begins to run after the warranty period and runs three months (Sec. 28 VGG, Sec.933 para 3 ABGB).

Rights under warranty can now also be asserted out of court by means of a form-free declaration (VGG and ABGB).

BGBl I Nr 175/2021 (09.09.2021)