E-warranty card in Hungary – how it helps international delivery of goods and protection of consumer rights

1. What are the new provisions in the Decree?

The Decree previously set out the statutory warranty term for durable consumer goods as being one year; and the Annex to the Decree specified which consumer goods the Decree applies to. The specific listed goods were generally identified as having a sales price of over HUF 10.000 (i.e. approximately EUR 30.
The new rules affect the statutory warranty terms by introducing a new approach, where the mandatory term (1-2-3 years) depends on the sales price; extending the Decree’s scope to new product categories by complementing the list of goods in the Annex; introducing electronic warranty cards (e-warranty cards); and setting out specific timeframes for repairs and replacements.

The enforcement of the statutory warranty, including those based on e-warranty cards, cannot be conditional upon requesting the consumer to return the opened packaging of the concerned product.

2. What is the new e-warranty card?

When enforcing statutory warranty rights, in principle, the consumer shall be in possession of a warranty card, while in certain cases, the invoice may also serve this purpose. As for physical warranty cards, the seller must hand over the warranty card on the day of the handover or installation of the product. This requirement likewise applies to the e-warranty cards. As such, the seller can:

• send the e-warranty card to the consumer;
• provide a link for download by the consumer; or
• provide access to the download link through the seller’s website or through the consumers registered account.

If the electronic receipt provided to the consumer fulfils the requirements set out by the Decree, such an electronic receipt may in itself act as a warranty card.
However, when providing a download link or access to the e-warranty card, the seller must bear in mind that such link/access must be valid and accessible for the consumer throughout the entire period of the warranty term. This, depending on the respective product(s), means up to three years.

As an additional requirement, e-warranty cards must be furnished with the electronic signature of the seller.

In the case of any disputes, the fulfilment of the above requirements must be proven by the seller.

Interestingly, this new legislation on e-warranty cards is unique in the region and in the European Union (e.g. neither Germany nor the Czech Republic have adopted similar rules ). International sales of goods (especially in the era of the delivery of goods ordered via the internet) pose a huge risk to the protection of consumer rights, and the issue of absent warranty cards or providing improperly completed warranty cards may be eliminated by issuing e-warranty cards.

3. Conclusion

The new rules give some homework for sellers to tailor their current B2C warranty policies in order to comply. Yet introducing this option could lead to higher consumer trust and showcase higher standards, in each case heightening consumer protection. If you are selling goods through multi-channels; or operate multi-store outlets it may also be sensible streamlining e-warranty card arrangements. If you are a manufacturer of consumer goods you may also consider reaching out to your distributors, sellers or other subcontractors to discuss e-warranty card possibilities.

When preparing for the new rules, sellers should review their warranty cards or their general terms and conditions and ensure these are up to date and adequately reflect the new general rules, and be ready for e-warranty cards.

In case you are interested in reading more about the changes to the Hungarian warranty conditions, you will find our concise summary here.