CJEU: Online traders must provide information about the product guarantee

On 5th May, the Court of Justice finds that, under the Consumer Rights Directive, a trader is required to provide the consumer with pre-contractual information concerning the manufacturer’s commercial guarantee where the consumer has a legitimate interest in obtaining that information in order to decide whether to enter into a contractual relationship with the trader.

This decision was prompted by the case of the company absoluts, which offered the product of a Swiss manufacturer for sale on Amazon. The Amazon page offering that product for sale contained no information on any guarantee provided by absoluts or a third party for that product, but contained, under the subheading ‘Further technical information’, a link by means of which the user could access an information sheet designed by the manufacturer.

A competitor company took the view that absoluts did not provide sufficient information on the guarantee offered by the producer, and therefore brought an action under German unfair competition law for absoluts to cease making such offers.

With the case now before the Bundesgerichtshof (Federal Court of Justice, Germany), that court had doubts as to whether, under the Consumer Rights Directive, 1 a trader in absoluts’ situation is required to inform the consumer of the existence of a manufacturer’s commercial guarantee.

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However, the Court notes that, although the communication of information on the manufacturer’s commercial guarantee ensures a high level of protection for the consumer, an
 unconditional obligation to provide such information, in all circumstances, seems to be disproportionate.

Consequently, the Court considers that, in weighing up a high level of consumer protection and the competitiveness of enterprises, the trader is required to provide the consumer with precontractual information relating to the manufacturer’s commercial guarantee only if the consumer has a legitimate interest in obtaining that information in order to decide whether to enter into a contractual relationship with the trader. That obligation on the part of the trader therefore arises not merely through the existence of that guarantee, but through the presence of
such a legitimate interest on the part of the consumer. In that regard, the Court specifies that that interest is established if the trader makes the manufacturer’s commercial guarantee a central or decisive element of his offer, in particular where that guarantee has been made for sales purposes in such a way as to improve the competitiveness and attractiveness of its offer in comparison with his competitors’ offers.

The Court adds that guarantee information should include the duration and territorial scope of the guarantee, possible restrictions, and basic information about the guarantor such as name, address or place of repair.

Source: CURIA – Press release