Brought to you by Dimitra Papoutsoglou from ECORESET
The legal guarantee of repaired products as well as their liability are quite thorny issues in the electrical and electronic equipment (EEE) repair market causing great concern for consumers and having a catalytic effect on their choices.
A guarantee can be either a right or a promise from the seller or manufacturer about a product’s quality, usually covering defects for a limited period. Liability refers to the legal responsibility for any harm or damage caused by a product and warranty is the written contract under which the seller describes the repairs or replacements if a product fails.
Consumers always want the longest and most reliable coverage all the while even original warranties of new products do not live up to the expected standards.
EU consumer rights apply to both new and refurbished goods whether purchased in stores or online. However, in the context of repair and resale of electronic devices still a lot of work needs to be done. The Digital Product Passport (DPP) can be a precious catalyst for improvement.
Legal and commercial guarantee
A general legal guarantee is a mandatory right, automatically applicable to all new products with a minimum of two-year coverage. Repaired items benefit from a minimum six-month guarantee for the parts or services used in the repair. For second-hand goods, the guarantee can be shorter, and this must be communicated to the buyer.
A commercial guarantee (also known as a voluntary or additional guarantee) is an optional benefit provided by the seller or manufacturer to the buyer and it is offered as a marketing tool.
This can vary among the countries for repaired and refurbished products e.g. Back Market requires all sellers of its marketplace to offer a warranty of 12 months.
Guarantee and liability
Guarantee focusses on ensuring the quality and performance of a product when liability is broader in scope, focusing on the legal accountability of a manufacturer or seller for any harm or damage caused by a product or service. Liability does not expire at the end of the guarantee period. As with the guarantee, the liability for repaired parts lies with the repairer unless the repair is carried out as part of a legally guaranteed obligation.
Right to repair
According to the EU’s new legislation, for the first time, producers will be required to offer repair options beyond the legal guarantee period of two years, for a duration of up to 10 years depending on the product. These repairs will need to be carried out by the producers or via their subcontracted operators – not by independent repairers (yet). The guarantee will be extended by 12 months if consumers opt for repair, and this will result in a total coverage for three years in most EU countries.
Liability and insurance
Product liability requires insurance coverage for any EEE provider, including the manufacturer, the seller or the repairer. The cost of insurance can vary significantly:
- depending on the size of the business, e.g. an original equipment manufacturer (OEM) or a subcontracted repairer,
- And the risk, e.g. injury and the type of coverage, e.g. compensation time.
It is important to highlight that the trade of devices with a higher risk of malfunction or safety concerns, such as electronics with lithium batteries or high-voltage components equally entails higher premiums and consequently the DPP will have to contain the corresponding data.
DPP and product value chain
The Digital Product Passport can serve as a critical tool for all stakeholders involved in enhancing transparency and increasing circularity rates.
Original equipment manufacturers (OEMs) can more easily track the lifecycle of their products through the DPP, and tailor warranty offerings based on actual usage and service information.
The DPP can standardize the repair process and give access to official service networks for independent repairers. Furthermore, recording services will improve the liability insurance calculation and contribute to the control of repair costs.
The detailed product history provided by the DPP can facilitate legal claims to determine warranty coverage and product liability – and promote confidence in repaired and remanufactured items ultimately aiding consumers.