New guarantee and guarantee label in the B2C sector

Content:

Who does the duty affect?
How should the new labels be implemented?
What are the legal consequences of violations?
What recommendations for action result from this?

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Following the "Empowering Consumers Directive" (Directive (EU) 2024/825, known as the "EmpCo Directive"), the German leg-islator has implemented new information obligations relating to statutory guarantee rights and voluntary manufacturer's warranties through the Third Act Amending the German Act against Unfair Competition (“UWG”).
The aim is to better inform consumers about their statutory guarantee rights and to strengthen the demand for durable goods.
Retailers will have to use two harmonised instruments in the future:

• A mandatory notification regarding the statutory guarantee and
• a standardised label for voluntary manufacturer's guarantees (if granted).

The visual design is already specified by an EU implementing regulation. A mere textual reference to the guarantee is not sufficient.

Who does the duty affect?

The obligation to use the guarantee label applies to all entrepreneurs who sell goods to consumers ("B2C"). This includes all movable physical items, including those with digital elements (e.g. smartphones or connected kitchen appliances). Excluded from the regulation are, for example, food, medicines or other everyday consumer goods.

The label obligation applies regardless of whether the sale takes place in a retailstore or online. It applies to companies of all sizes and legal forms that offer their services on the European market.

How should the new labels be implemented?

The law distinguishes between the statutory guarantee under current legislation and an additional contractually granted guarantee on products.

1. Harmonized Legal Guarantee Label
The harmonised notification of the statutory guarantee rights must be made available to consumers in a prominent manner prior to the conclusion of the contract – both in the retail store and in the online shop. It must clearly inform consumers of the existence of the statutory guarantee right, which lasts for at least two years, and its key features. There are specific requirements regarding placement, format and colouring.

The specific visual design (including font sizes, contrasts and pictograms) is mandatorily described by the Implementing Regulation (EU) 2024/2753; a mere textual reference of the guarantee is not sufficient. The official templates are provided by the EU Commission. They are shown below.
 

2. Harmonized Contractual Guarantee Label
The contractual guarantee label contains elements that are partly fixed, partly cus-tomizable and must be used on a product-specific basis. It is a specific graphic symbol for cases where the manufacturer provides a free commercial durability guarantee. However, the obligation to use it only exists if the manufacturer grants a free commercial durability guarantee of more than two years for the entire product and the retailer is provided with this information. The pictogram highlights the exact duration of the manufacturer's guarantee (e.g. 3, 5 or 10 years).

What are the legal consequences of violations?

Errors in the implementation of the new labels may entail significant economic risks. From 27 September 2026, a violation of the new labelling and information obligations will be considered an unfair commercial practice under the German Act against Unfair Competition (UWG).

• Competitors and consumer protection associations may issue warning.
• In addition, according to the national provisions on administrative fines (Section 19 UWG), fines of up to 50,000 euros per individual case may be imposed.
• For companies with an annual turnover of more than 1.25 million euros, fines of up to four percent of the annual turnover generated in the relevant EU Member State may be imposed in the event of cross-border violations.

What recommendations for action result from this?

1. Review of individual Concern
Entrepreneurs should first clarify whether and through which sales channels they sell goods to consumers and are therefore subject to the obligation to use the legal guarantee label. In addition, it must be checked which products are advertised with manufacturer's warranties that fall under the label obligation for contractual guarantees.

2. Technical Implementation
The guarantee label must be incorporated into both, the stationary and digital sales outlets in good time. The official templated provided by the EU Commission are bind-ing.

3. Adaptation of precontractual Information
The new obligations for notification and labelling (so-called GARAN label) are mandatory components of the precontractual information obligations (esp. Art. 246a EG-BGB). Since the EU requires specific wording and visual highlighting for this purpose, existing documents such as general terms and conditions, product pages and notices containing mandatory information in distance selling must be revised.

We would be happy to assist you in checking whether and to what extent your company is affected and in adapting the information in your shop.

If you have any questions, our colleagues will appreciate to assist you.

 

Author: Dr. Karolin Nelles