Most important points

• A guarantee in the legal sense is a voluntary promise by a manufacturer or seller to vouch for the quality or durability of an item. It is additional to the statutory warranty and can offer the customer more rights, but can never undermine the warranty.

• Warranty (also known as liability for material defects), on the other hand, is a legal claim of the buyer against the seller if the purchased item is defective upon delivery. For consumer goods purchases, the warranty period is usually 2 years.

• Difference: Warranty applies to defects from the outset, even if the defect only becomes apparent later. However, a warranty can freely define the content and duration – e.g. 5-year warranty on functionality, regardless of initial defects, often even including self-inflicted defects (depending on the conditions).

• A guarantee promise must be transparent for the consumer: it should clearly describe the content of the guarantee, the duration, the territorial validity and the claims in the event of a guarantee claim. According to Section 479 of the German Civil Code (BGB), a guarantee declaration must set out the rights in a simple and comprehensible manner and point out that the statutory warranty rights remain unaffected.

• Example: A smartphone has a 2-year warranty from the retailer (statutory). The manufacturer also provides a 1-year manufacturer’s warranty, which also covers battery damage, for example, provided it is not caused by improper handling. If defects occur after 1.5 years, the buyer can still invoke the warranty (from the dealer). If a battery problem occurs after just 6 months, the buyer could choose between the Manufacturer’s warranty or dealer’s warranty – whichever is easier.

• Important for start-ups in e-commerce: use guarantee promises cleverly – they can strengthen customer trust. But people voluntarily commit themselves more strongly. It is important that the guarantee is not confused with the statutory warranty and that it is clear what is meant when “guarantee” is mentioned in advertising (e.g. “3-year manufacturer’s guarantee in addition to statutory liability for defects”).

• A warranty case usually means that the guarantor (whoever gives the warranty) is free to choose whether to repair, replace or refund – depending on the warranty conditions. In the case of a warranty claim, the buyer is initially entitled to supplementary performance (repair or replacement, at the buyer’s discretion, unless disproportionate).

Legal warranty: briefly explained

The warranty (statutory liability for defects) is a mandatory right in sales and work contract law. It cannot be contractually excluded for consumer purchases (the period may only be shortened to 1 year for used goods, but not for new goods). Warranty means:

If a product is defective when it is handed over to the customer (this may be a defect, lack of warranted characteristics, incorrect delivery, etc.), the buyer has claims against the seller. First and foremost, subsequent performance – i.e. repair or delivery of a defect-free item. If this is out of the question or fails, the buyer can reduce the price (price reduction) or withdraw from the contract (return the goods, money back). In some cases, they can also claim compensation if damage has occurred.

Important: Since an EU amendment, a reversal of the burden of proof applies to consumer goods purchases in the first 12 months (until 2021 it was 6 months): If a defect becomes apparent within this period, it is assumed that the defect existed from the outset, unless the seller can prove that the buyer caused it. This means that customers do not have to prove why something broke at the beginning – it is initially assumed that the product was faulty.

The warranty obligation always lies with the seller (dealer). Even if a manufacturer has made a mistake – the consumer turns to the retailer. The retailer can then turn to the manufacturer (so-called recourse according to § 445a BGB), but this is their internal problem.

What is a guarantee then?

A warranty is optional. It can be given by the manufacturer (often: manufacturer’s warranty) or by the retailer as a promise of their own. With a guarantee, the guarantor undertakes to ensure a certain quality or durability. Typical example: “10-year guarantee on the durability of our washing machine motors”. This means that if the motor fails within 10 years (even if it only happens after 5 years due to wear and tear), the manufacturer will repair or replace it in accordance with the warranty conditions.

However, a guarantee can also be an immediate satisfaction guarantee, e.g. “money-back guarantee if you are dissatisfied ” – this is also a voluntary promise, over and above the legal requirements, as the customer would not have a legal right of return if there is no defect (except for online purchases with a 14-day withdrawal period, but not in stores, for example).

Important to know: A guarantee cannot exclude or replace warranty rights. The law even stipulates that every guarantee declaration must clearly state that the consumer’s statutory rights remain unaffected. So no manufacturer can say: “You only have our 1-year guarantee, there is no warranty” – that would be illegal.

How do customers distinguish this in practice?

There is often confusion. Many people think that everything is over after 2 years (confusing warranty with guarantee). Or they think that you have to go to the manufacturer in the event of a defect because of the “warranty”, although the dealer is actually responsible for the warranty.

Example: A customer buys a television from an electronics store. After 1.5 years, it breaks down. Warranty: 2 years from purchase from the retailer. However, after 1.5 years, the customer must now prove that the defect was already present from the outset – practically difficult. Most dealers are still willing to help as a gesture of goodwill, but legally there could be a problem. However, if the manufacturer has given a 3-year warranty on the device, for example, the customer can contact the manufacturer’s service department directly – the promise applies there without having to prove anything (depending on the warranty conditions, the defect will simply be repaired, regardless of why).

For start-ups and online retailers, it is advisable to organize customer service in such a way that the customer is not sent back and forth between warranty and guarantee. The retailer often handles the process with the manufacturer. It is important to keep communication clear: In the online store, products that have a manufacturer’s warranty should include a note such as “incl. 24-month manufacturer’s warranty”. And every delivery of consumer goods must be accompanied by the warranty declaration (e.g. a warranty certificate or manual with warranty information) in accordance with Section 479 of the German Civil Code (BGB).

What does a guarantee declaration include?

If a company provides a guarantee itself, it must clearly state the following:

• Warranty period: From when and for how long it applies. Often X years from the date of purchase.

• Area of validity: Worldwide? Only in the country of purchase?

• Content: Which defects or events are covered by the warranty? (e.g. only material and manufacturing defects, or also self-culpability?), What is covered in the event of a warranty claim? (Repair, replacement, money back?)

• Procedure: How can the customer make a warranty claim (address, service hotline, etc.)?

• Note on warranty: “Your statutory rights in the event of defects are not restricted by this warranty promise.”

Example text: “We grant a 5-year guarantee on the technical functionality of the product from the date of purchase. The warranty is valid within the EU. In the event of a warranty claim, we will repair the product or replace it with an equivalent product at our discretion. Warranty claims are excluded in the event of improper handling, external force or normal wear parts (e.g. battery). To make a claim, please send your proof of purchase to [address]. Irrespective of this guarantee, you are of course entitled to the statutory rights in respect of defects against the seller.”

Why do companies give guarantees voluntarily?

A guarantee is a marketing tool. It signals quality and trust. If a manufacturer gives a 10-year guarantee, the customer thinks: “They must be convinced, otherwise they wouldn’t dare to do that.” It can also make the purchase decision easier or set you apart from the competition.

For some products, warranties are standard in the industry (e.g. cars have manufacturer warranties of 2+ years, electronics often 1 year, sometimes extendable through paid packages).

However, the company must of course take into account that costs may arise during the warranty period. This is factored into the pricing.

Start-ups could, for example, score points with a “satisfaction guarantee” – if the customer is dissatisfied after 30 days, money back. This goes beyond the statutory right of withdrawal (14 days), but it can take away customers’ fear of buying.

A word on the risk of confusion: Terms such as “guarantee” are also used colloquially in a different way (“satisfaction guarantee”). It is important to make a clear distinction in the legal context (general terms and conditions, customer information), otherwise there is a risk of warnings. You must not pretend that the warranty right is a voluntary “guarantee”. For example, formulations such as “We give a 2-year guarantee on all products” – this would be misleading because 2 years are legally mandatory anyway (in B2C). Better: “statutory warranty 2 years + manufacturer’s warranty X years”.

Interaction of guarantee and warranty

Assuming a defect occurs and there are both: The customer can turn to both. Example with the defective television after 1.5 years:

• Route 1: Dealer/warranty. The dealer could first try to repair it. However, he could argue that after 1.5 years, the customer must prove that it was defective from the start (which he can hardly do, as it has been 1.5 years). However, dealers are often accommodating, especially if there is a manufacturer repair option anyway.

• Route 2: Manufacturer/warranty. Take a look at the warranty conditions: Is the defect covered? If so, the manufacturer will provide a remedy. This has the advantage for the customer that he does not have to worry about the burden of proof – he has a promise in his hand, usually without this restriction.

It is also possible that the warranty covers more cases than the guarantee: for example, “3-year guarantee even on display breakages caused by the user” – this is available as an extra service package (in which case it is actually more of an insurance policy). Warranty would not cover something like this because self-inflicted = no initial defect.

On the other hand, a warranty covers defects from the outset even if they only become apparent after delivery, whereas a guarantee may only last for 1 year. If, for example, a material defect occurs after 1.5 years and the warranty is no longer valid, you may still be able to invoke the warranty – but here again there is the problem of proof.

Special cases: Warranty extensions, second-hand purchase

A dealer can, for example, sell warranty extensions (known in the electronics market: 3-year warranty for an additional charge). This is more or less an additional service, which is often covered by insurance. Legally, you enter into a contract that is similar to an insurance policy: you pay X amount and a defect is repaired after the manufacturer’s warranty/guarantee has expired for Y year. Year a defect is repaired.

When buying used goods from a dealer: the warranty may be reduced to 1 year. Some dealers then advertise their own “12-month dealer warranty” to give the customer security, although the warranty is only 12 months – which is the same length; it could be that the dealer warranty is easier to apply because it may come without the burden of proof.

For private sales: No warranty (if effectively excluded). A guarantee could be given privately, but hardly anyone does this.

Conclusion

Warranty = legal obligation of the seller in the event of a defect, limited in time but indispensable. Guarantee = voluntary bonus, customizable in terms of content. Both are important for consumers to know: Many first complain “under guarantee”, where a warranty would actually apply – the main thing is that their problem is solved. For companies, this means If you offer guarantees, you have to be able to fulfill these promises and communicate them clearly. And as a retailer, you should be careful not to lose sight of your legal obligations – a manufacturer’s guarantee does not release you from your own responsibility in the event of complaints.

Overall, a clearly regulated guarantee and warranty practice contributes to customer satisfaction and legally compliant handling of product defects.