Monthly Bulletin – April 2022

Independent Retail Europe responses to the EU consultation on the right to repair

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The European Commission consulted stakeholders on a possible right to repair, also touching upon the duration of legal guarantees, a new right to repair for situations where the legal guarantee does not yet apply, and the cost of repair services. Results of the consultation will lead to a revision of the Sale of Goods Directive (EU) 2019/771, expected to be presented in Q3 2022.

We will soon engage in a dialogue with policy makers on this issue. If you would like to provide further input, please get in touch.

In our response to the consultation (questionnaire and position paper), we highlighted that a justified and reasonable division of the repair costs is key and that there is a need for an adequate recourse and compensation mechanism between producers and retailers. Retailers are not responsible for defects and should not bear the cost of repair. The consumer should bear the repair costs outside the legal guarantee period. Importantly, manufacturers should be obliged to indicate the lifespan of their products and of spare parts.

We also stressed that extending legal guarantee periods will most likely lead to consumers handling products with less due care since the product may no longer be considered ‘new’ and they can expect a replacement in any case. Moreover, manufacturers are likely to increase prices to include the entrepreneurial risk of bearing the costs of replacements and repairs.

If the legal guarantee period is extended, there should not be a right to full replacement, as customers will then always opt for full replacement instead of repair. This would counteract the objective of a more sustainable use of products and would also constitute a significant economic burden for retailers and manufacturers.

We also suggest that an extended legal guarantee should be linked to periodic inspections of the product, particularly of high-end products. If consumers do not accept the regular inspection of high-end products, they should lose the right of replacement during the legal guarantee. This practice is already common in the automotive sector where cars have to undergo regular inspections and repairs to remain fit for use. Consequently, products will be handled with due care and defects will be recognized at an early stage and immediately repaired.

Concerning a possible right to repair, the characteristics of products are an important factor when deciding on whether to replace or repair a product. The retailer is inclined to repair high-end products with long life cycle, whereas repair costs may easily exceed the purchasing price for products of lower quality. When considering the repair of the product, retailers also consider all the costs concerned with the repair such as the time spent on the repair, the costs of warehouse capacity for the storage of spare parts, or the shipping costs to the appointed repair service or the manufacturer.

Furthermore, retailers are concerned about their customers’ satisfaction in a highly competitive market. Customers who decide to buy a brand new product instead of a repaired product rightfully expect a new replacement in case the product breaks down within the legal guarantee period. The retailer even faces the risk of a legal dispute with the consumer if the product is repaired instead of replaced.

A possible alternative solution to a right of repair, or replacement outside the current legal guarantee period, in case of a defect caused by the consumer or by normal wear and tear, would be a right of information on possible repair solutions. The manufacturer would then need to communicate a list of recognized/appointed repair shops.

Very importantly, manufacturers should be obliged to communicate the expected life span of their products. This would make the purchasing decision more transparent for the consumer and would provide retailers with the necessary legal certainty regarding several national transpositions of Directive (EU) 2019/771. The obligation to communicate the expected life span should also apply for spare parts.

We will also pursue some of these issues under the amendment of the Unfair Commercial Practices Directive (B2C practices) (see article below).