Vendor’s obligations when a consumer complains about a defective product

The Consumer Ombudsman has detected several shortcomings in the way companies handle complaints concerning defective items.

Typically, the vendor has denied all liability for the defect only because the product warranty has expired. Consumers have also been instructed to submit their complaints to, for example, the manufacturer, even though consumers must always be offered the opportunity to contact the vendor, if they so wish.

With this guidance, the Consumer Ombudsman reminds companies of their responsibility to investigate and rectify defects in accordance with the legislation on liability for defects. This guidance address the difference between warranty and statutory liability for defects, and the basic principles of handling complaints.

The Consumer Ombudsman urges companies to ensure that their customer service personnel have sufficient competence in consumer protection and processing complaints. In addition to the guidelines and policies issued by the Consumer Ombudsman, companies can improve their competence with the online courses available on FCCA Kampus.

1. Vendor bears liability for defects based on product warranty or legislation on liability for defects

The provisions on liability for defects and warranty are laid down in Chapter 5 of the Consumer Protection Act. The provisions of the Consumer Protection Act are mandatory for the benefit of the consumer and cannot be deviated from in a manner that weakens the consumer’s position.

1.1 Vendor’s liability for defects

A defect in a product means a fault, deterioration, shortcoming, or deviation for which the vendor is liable under the provisions on liability for defects in the Consumer Protection Act.

The vendor bears primary responsibility for defects in products and for compensating for them.

Read more about the Consumer Ombudsman’s policy on Statutory liability for lack of conformity and guarantee in the sale of consumer goods Liability for defects (in Finnish).

1.2 Period of liability for defects

The duration of the vendor’s period of liability for defects is not specified in legislation, but the liability period is determined on a case-by-case basis based on the expected service life of the product.

For example, in terms of products that are expected to last for several years, the vendor is liable for manufacturing errors and other hidden defects even if they occur after the warranty period has expired.

When assessing the normal service life of a product, it is important to consider that the durability of the product must correspond to the reasonably expected durability of a similar product.

• For example, electronic devices and household appliances can be expected to remain functional for several years in normal use.
• The Consumer Disputes Board issues recommendations for resolving legal disputes between consumers and companies, and the Board has expressed an opinion on issues such as the service life of household appliances. The recommendations have been published on the website of the Consumer Disputes Board (in Finnish).

Read more about the Consumer Ombudsman’s policy on Statutory liability for lack of conformity and guarantee in the sale of consumer goods: Liability for defects (in Finnish).

1.3 Vendor’s liability during the warranty period

By granting a warranty, the vendor assumes responsibility for the usability or other properties of a product for a certain period. For such an additional commitment to meet the definition of a warranty, no additional fee may be charged to the consumer (HE 180/2021, in Finnish).

• The law does obligate vendors to issue a warranty, but a warranty may be given on a voluntary basis.
• The warranty terms may not restrict the statutory rights of consumers.
• The warranty is included in the terms and conditions of the sales transaction.

The vendor is responsible for the warranty provided by a previous link in the sales chain, such as the manufacturer or importer, just as for any warranty issued directly by the vendor.

The vendor can only void a warranty issued by the previous link in the sales chain by notifying the buyer of this explicitly and clearly before the sale.

A product is considered defective if it deteriorates during the warranty period in accordance with the terms and conditions set forth in the warranty certificate and in warranty-related advertising.

When the product is covered by a warranty, the terms and conditions set out in the warranty certificate and in warranty-related advertising shall be applied in case of any defects.

Read more about the Consumer Ombudsman’s policy on Statutory liability for lack of conformity and guarantee in the sale of consumer goods: Warranty (in Finnish).

2. Vendor is always responsible for defects

If a consumer wants to submit their demands to the vendor, the consumer may not be automatically referred to any of the other links in the sales chain. Instead, the vendor is responsible for contacting the necessary other parties.

Also in situations involving warranty issues, the buyer always has the right to deal directly with the vendor. For example, even if the warranty terms would state that the repair location of a product is somewhere else than in the vendor’s premises, the consumer may still take the product to the vendor if it is difficult for the consumer to deliver the product elsewhere.

In retail sales, vendors often have cooperation agreements or other established procedures with other companies when it comes to repair services. These agreements or procedures have no effect on consumers’ rights, and they do not remove or reduce the vendor’s liability for defects.

• The vendor is responsible for rectifying the defect, and the consumer is not obligated to serve as a mediator between the vendor and the vendor’s contracting partner.
• The vendor is responsible for rectifying the defect even if the repair would be carried out by, for example, an outsourced service provider or a manufacturer with whom the vendor has signed an agreement.
• The vendor cannot repudiate liability by, for example, invoking a contract signed with the manufacturer and by requiring the consumer to contact the manufacturer directly to clarify the matter.

If they wish, the consumer may handle their complaints independently with, for example, an outsourced repair service provider.

• The consumer may not be automatically referred to another company, as the consumer must always be offered an opportunity to handle the matter with the vendor.
• The consumer must be given a genuine opportunity to choose with whom they wish to continue processing the complaint.

Read more about the Consumer Ombudsman’s policy on Statutory liability for lack of conformity and guarantee in the sale of consumer goods:

Liability for defects (in Finnish)
Warranty (in Finnish)

3. Charges for investigating defects

If the investigation process reveals that the product is fault-free, the vendor may, in certain situations, charge the consumer a reasonable fee for the investigation work. According to the Consumer Ombudsman’s guidelines, charging a fee for investigation work is possible in the following situations:

• the fee has been agreed on in advance;
• the investigation has been carried out with care and due consideration for the consumer’s interests; or
• the consumer had no justification to demand for the defect to be rectified.

In such situations, the consumer must be given an account of the cause of the defect and an explanation as to why the vendor is not responsible for the defect.

Read more about the Consumer Ombudsman’s policy on Statutory liability for lack of conformity and guarantee in the sale of consumer goods:

Identifying defects in products (in Finnish)
Defect and compensation during the warranty period (in Finnish)

4. Customers must receive appropriate information on consumers’ rights

The Consumer Protection Act prohibits unfair practices in a customer relationship. The vendor may not provide false of or misleading information if that information is likely to lead to the customer making a purchase decision that they would otherwise not have made.

For example, it may be deemed an unfair practice if the vendor denies their liability for defects only because the warranty issued for the product has expired.

A prerequisite for the appropriate handling of complaints is that the vendor is familiar with the requirements of the Consumer Protection Act and can comply with said provisions when handling complaints.

• The customer services must provide the customer who filed the complaint with information on consumers’ rights and explain how the matter will be investigated and how any defects will be compensated for.
• As a rule, the consumer may choose whether the product shall be repaired or replaced. Furthermore, the consumer may usually demand a price reduction or cancellation of the purchase even after just one unsuccessful attempt to rectify the defect.
• The defect must be rectified free of charge, and the consumer must be compensated for any costs caused by the defect, such as the costs of filing and sending the complaint.
• Consumer contacts and complaints must be handled by customer services aimed at customers who have concluded a contract in a way that allows the consumers to receive an answer and exercise their rights within a reasonable time.

Read more on the page Organising customer service.

Read more about the Consumer Ombudsman’s policy on Statutory liability for lack of conformity and guarantee in the sale of consumer goods (in Finnish).

5. Learning about consumer protection on FCCA Kampus online courses

All customer service personnel in companies must be familiar with consumer protection legislation to ensure that false or misleading information is not given to the consumers about their rights and that the consumers can exercise their rights as easily as possible.

Competence in consumer protection can be developed by taking basic and advanced courses on vendor’s liability in the FCCA Kampus learning environment: kkv-kampus.fi (in Finnish and Swedish).