Compensation for a defect in a product

Compensation for a defect in a product can be provided by repairing the product or replacing it within a reasonable time. If repairing the defect or replacing the product with a non-defective one is not possible, the buyer may demand a reduction in the price that corresponds to the defect, or cancel the sale if the defect is not minor.  

Repairs

he primary method of rectifying a defect is repairing the product. The company has the right to repair the defect if it offers to do so as soon as the buyer has reported the problem and the repair can be completed within a reasonable time without reducing the value of the product and without causing significant inconvenience to the buyer.

The buyer has the right to refuse to accept this if it would cause significant inconvenience or reduce the value of the product, or there is a risk that the buyer’s costs will not be reimbursed.

Replacement

The product can be replaced if repairing it is impossible or would result in unreasonable costs. If the warranty is still valid, the warranty period will not be extended because of the replacement, and the original warranty will remain in place. The price and quality of the replacement product must be similar to those of the defective product and meet the criteria based on which the consumer decided to purchase the original product.

The company may refuse to supply a similar, non-defective product if this would result in unreasonable costs, for instance when the product was made to measure, or is no longer manufactured.

Price reduction and cancellation of sale

If the product cannot be repaired or replaced, the company may offer compensation in the form of price reduction, or the sale can be cancelled. You do not have to accept a gift voucher or another product instead of having the purchase price refunded.

A price reduction may also be possible for example when

  • the product is usable, even when defective, but the defect can be considered to reduce its value.
  • the defect is minor and its significance may be small for the consumer as a whole, such as a surface defect.
  • repairing the defect would result in unreasonable costs considering the value of the product, for example if the value of the repaired product exceeds its original value

The amount of the price reduction must be equal to the defect. To estimate the amount of the price reduction, the significance of the defect for the product’s use or exchange value or appearance must be taken into account in many cases, for example by comparing the actual value of the defective product to the value it would have if it did not have defects.

The customer can demand cancellation of the sale if the defect is not minor and it cannot be compensated for by other means.

Cancelling the sale is usually not possible if the product can be repaired easily and quickly, or it has a surface defect that is of minor significance.

If the sale is cancelled, the vendor must refund the customer when the customer has returned the product. The value of any use that the customer may have had out of the product may be deducted from the refunded purchase price. The buyer also has the right to compensation for any losses caused by a defect in the product.

Withholding part of the purchase price

If the buyer has not yet paid the full purchase price, they have the right to withhold a part of it that corresponds to the defect until the defect has been rectified or otherwise compensated for. However, the remainder of the purchase price must be paid as set out in the contract.

For businesses