EU Sales of Goods Directive 2019/771

This page does not constitute legal advice on any subject matter from Fruugo.com Ltd. As a retailer it is your responsibility to conduct your own research and/or seek your own independent legal advice in understanding your compliance obligations.ย 

The EU Sales of Goods Directive was introduced in June 2019, and replaces the existing 1999 legislative framework. The Sales of Goods Directive has been adopted by individual EU Member states, and became effective as of the 1st January 2022. Directive 2019/771 applies to all sales contracts between consumers and sellers and provides a high level of consumer protection, and creates a harmonised standard across the EU for the sale of goods. As a retailer on Fruugo it is your responsibility to ensure that you are compliant with all obligations set out under this Directive.ย 

Under Article 3 of Directive 2019/771, this directive applies to the sales contracts between consumer and seller for tangible movable items, for the supply of goods to be manufactured or produced, and any goods that are incorporated or inter-connected with digital content or digital service.ย 

Requirements for conformity -ย 

Article 7 Directive 2019/771 stipulates the objective and subjective requirements for conformity. This means that all goods sold in a consumer sales contract must meet the following requirements outlined below.ย 

As a seller you are responsible for any lack of conformity which exists at the time when the goods were delivered and which becomes apparent within two years of that time.ย ย 

Objective requirements of conformity:ย 

The goods shall:ย 

  1. Be fit for purpose for which goods of the same type would normally be used;

  2. Be of the quality and correspond to to the description of a sample or model that the seller made available to the consumer before the conclusion of the contract;

  3. Be delivered along with such accessories, including packaging, installation instructions or other instructions that the consumer may reasonably expect to received; andย 

  4. Be of quality and possess the qualities and other features normal for goods of the same type which the consumer may reasonably expect given the nature of the goods.

Subjective requirements for conformity:ย 

The goods shall:ย 

  • Be of the description, type, quantity and quality, and possess the functionality, compatibility, interoperability and other features as required by the sales contract

  • Be fit for any particular purpose for which consumer requires them and which the consumer made known to the seller at the latest at the time of the conclusion of the sales contract, and in respect of which the seller has given acceptanceย 

  • Be delivered with all accessories and instructions, including on installation, as stipulated by the sales contract, andย 

  • Be supplied with updates as stipulated by the sales contractย 

Incorrect installation

Article 8 of Directive 2019/771 states that any lack of conformity resulting from the incorrect installation of the goods shall be regards as lack of conformity, if:ย 

  1. The installation forms part of the sales contract and was carried out by the seller; or

  2. The installation, intended to be carried out by the consumer, was done by the consumer and the incorrect installation was due to shortcomings in the instructions provided by the seller.ย 

As a seller it is your responsibility to ensure that adequate instructions, including instructions on installation, are provided to the consumer in the relevant language of the country for sale.ย 

Liability of the seller

Article 10 of Directive 2019/771 states a seller is liable for any lack of conformity which exists when the goods are delivered, and becomes apparent within 2 years of delivery.ย 

Burden of proofย 

Article 11 of Directive 2019/771 states that any lack of conformity which appears within one year of the time of delivery shall be presumed to have existed at the time that the goods were delivered. This presumption is deemed to be true unless proven otherwise by the seller or unless the presumption is incompatible with the nature of the goods or the nature of the lack of conformity.ย 

Individual EU Member States may opt to introduce a presumption from a two year period from the time when the goods were delivered.ย 

Remedies for lack of conformityย 

Article 13 of Directive 2019/771 there are three remedies for lack of conformity outlined below.ย 

  1. To have the goods brought into conformityย 

The first potential remedy for lack of conformity is to have the goods brought into conformity through a repair or replacement which the customer may choose between, unless the chosen remedy would be impossible, or would impose disproportionate costs on the seller.ย 

Any repairs or replacements conducted shall be carried out free of charge, within a reasonable time period from the moment the seller has been informed about the lack of conformity and without any significant inconvenience to the customer.ย 

  1. A proportionate reduction in the priceย 

The reduction in price shall be proportionate to the decrease in the value of the goods which were received by the consumer compared to the value the goods would have if they were in conformity.ย 

The customer shall be entitled to a proportionate reduction in price or termination whereby a seller has not completed a repair or replacement, refused to bring the goods into conformity, the lack of conformity appears despites the sellers attempts to bring them into conformity, the lack of conformity is of such a serious nature as to justify an immediate price reduction or termination, or the seller has declared that they will not bring the goods into conformity within a reasonable time, or without significant inconvenience the customer.ย 

  1. Termination of the contractย 

Whereby a consumer wishes to terminate the contract, the consumer shall exercise the right to do so by express statement to the seller. In the event a consumer chooses to terminate the contract the consumer shall return the goods to the seller at the sellers expense, and the seller shall be responsible for reimbursing the consumer the price paid for the goods upon receipt or upon evidence provided by the consumer that the goods have been sent back.ย 

A consumer may not be entitled to terminate the contract for a minor lack of conformity, however the burden of proof lies with the seller to evidence that it is only minor.ย 

Commercial Guarantees

As per Article 17, any commercial guarantee shall be binding on the guarantor under the conditions laid down in the commercial guarantee statement and associated advertising available at the time, or before the conclusion, of the contract. Where a product offers to a consumer a commercial guarantee of durability of certain goods for a certain period of time, the producer shall be liable directly to the consumer during the entire period of the commercial guarantee of durability for repair or replacement of the goods.

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