The aim is to provide consumers with a clear overview of their rights relating to goods at first glance, enabling them to make an informed purchasing decision.
The new GARAN-label, which will be mandatory for commercial guarantees in future, is strictly specified by the EU.
If you are a manufacturer (OEM) or a dealer acting on behalf of a manufacturer and offer vehicle Warranties, a Warranty label may be required when selling a vehicle covered by such a Warranty. Depending on the sales process, the label must be provided either directly with the vehicle or as part of the contractual documentation.
Which Warranties are currently affected?
Under the current legislative framework, the labelling requirement applies only to Warranties that meet all three of the following criteria:
- The guarantor is the manufacturer (OEM).
Dealers offering their own Warranty products without the involvement of a manufacturer (e.g. Real Garant dealer Warranties) are currently not subject to these requirements. - The Warranty is provided free of charge as part of the purchase.
Real Garant Warranties in Germany and Austria are provided free of charge as part of the purchase. - The Warranty has a duration of more than two years/24 months.
Only Warranties exceeding two years in duration fall within the scope of the labelling obligation.
How does Real Garant support its partners?
Real Garant is actively supporting its manufacturer partners in the development and implementation of the future Warranty labelling requirements. This includes assistance with the design of the Warranty label itself as well as guidance on the practical implementation of the new regulatory obligations.
This information does not constitute legal advice, but is intended solely for general guidance. It is based on the current understanding of the forthcoming EU regulations, makes no claim to completeness and is no substitute for individual legal advice. For binding information, please consult a qualified legal adviser.
