Compensation for losses resulting from a defect

You can claim compensation for your additional costs resulting from a defect. You must have proof of your losses, for example a receipt. You cannot get compensation for distress or mental suffering.

Liability

You have the right to claim compensation for losses caused by a defect in a product. You cannot get compensation for distress or mental suffering.

To get compensation, you must have proof of your losses. You must have a receipt or other reliable information on the costs.

The consumer and the vendor are obliged to minimise any costs resulting from the losses. For example, if the consumer could justifiably have reduced the costs caused by the defect by acting differently, the vendor does not have to compensate any costs regarded as unnecessary.

 

Losses to be compensated

You can demand compensation for direct and indirect losses and material damage.

Direct losses

Direct losses include reasonable travel, postage, telephone and other costs resulting from investigating a defect (including a goods inspector’s report) as well as necessary costs of using services that replace the product. Repair costs are also direct losses if, for a justified reason, the defect had to be repaired by someone else than the vendor, or the vendor refused to repair it.

Indirect losses

The consumer can only claim compensation for indirect losses if the defect or damage was caused by the company’s negligence.  Negligence may include failing to comply with obligations, incompetence, indifference or carelessness. Indirect losses include:

  • loss of income 
    for example, the consumer has had to take time off work to investigate a defect or have it rectified, and their pay has been deducted for this time of absence.
  • losses associated with some other contract concluded by the consumer 
    for example, the consumer’s car has broken down due to a defect, which leads to them missing a flight whose ticket price was non-refundable.
  • Essential loss of use or other inconvenience  
    For example, repairing a defective product takes a long time, causing the consumer concrete, significant inconvenience. You cannot claim compensation for minor inconvenience.

 

Material damage (damage to property caused by a defective product)

The consumer may claim compensation for material damage, which means damage caused by a defect in the product to other property besides the goods sold by the vendor. The type of the damage determines the party to whom the claim should be addressed.

You can claim compensation from the vendor for damage caused by the defect to other items if the product causing the damage and the damaged item are directly connected by use.

  • This means a functional connection.  For example, the vendor may be liable to provide compensation for textiles ruined by a defective washing machine or foods defrosted by a defective freezer.

On the other hand, the vendor is not liable for water damage to floor or wall surfaces caused by a defect in a washing machine, as under product liability regulations, the manufacturer or importer would be liable for such damage.

A claim may be addressed to the manufacturer or importer if it concerns compensation for personal injuries or damage to private property caused by safety defects in the product. If the manufacturer of the product is not evident, compensation may be claimed from the company that marketed the product as their own or put their logo on it. The consumer must show proof of the damage, the deficiencies in product safety, and the causal link between the damage and the safety deficiencies.

  • Material damage includes repair costs and costs resulting from damage caused by the goods, reduced value, or the value of the destroyed item. Under product liability provisions, damage to property of less than EUR 395.25 does not have to be compensated. Any damage exceeding this minimum limit must be covered in full.
  • As personal injuries are compensated medical costs without a minimum limit and any other costs caused by the damage. In addition, compensation is paid for loss of income, pain and suffering, and disability or other permanent impairment.

Complaints and dispute resolution 

  • if you have an issue regarding a product, you should always contact the vendor first. The manufacturer or importer is also liable for the factory warranty.  If you delay reporting the problem, you may lose the right to make any demands.

    Often the problem can be resolved when you notify the vendor as soon as possible.

    If the vendor does not react as you would like, submit a written complaint to the vendor with a detailed description of the problem and a list of your demands.

    Justify your demands and provide evidence to support your claim, if possible. For example, photographs, documents, e-mail correspondence, and other evidence (such as fault diagnoses) may help.

    You can use our Complaint Assistant to file a complaint. The Complaint Assistant also provides information about your rights and helps you assess what kind of demands you can make.

    Complaint Assistant – Filing a complaint with a company

  • If the opposing party is willing to resolve the issue, try to find a satisfactory solution through negotiation.

    Consider carefully whether you can accept the service provider’s proposal. Often there is not just one right solution. However, reconciliation is usually a better and more economical solution than a prolonged dispute.

  • If the complaint and the negotiation procedure do not lead to an amicable solution, you can contact the Consumer Advisory Services for instructions.

    The processing of your case usually requires information about the opposing party’s view.

    Consumer Advisory Services