As of 1.1.2022, in Austria the legal guarantee of conformity provisions apply and are applicable in daily business transactions both b2c (i.e. for entrepreneur-consumer transactions) and b2b (i.e. for transactions between entrepreneurs).

The legal guarantee of conformity reform brought significant changes, especially in the b2c area: For example, for b2c transactions in the case of the purchase of goods or digital services, not only the concept of defect changed fundamentally, but there is now an obligation to provide updates for digital services and goods with digital elements. In addition, the period for shifting the burden of proof for b2c contracts is now one year and a new three-month limitation period had been introduced. The obligation to provide updates and the three-month limitation period also apply to b2b transactions. However, the provisions on so-called "dealer recourse" (i.e., recourse in the contractual chain) also changed extensively. The new guarantee of conformity provisions apply equally to ‘online’ and ‘offline’ business, so that they must also be observed in distance selling.

Because of the new provisions, in particular the following "To-Dos" arise for entrepreneurs in order to adapt their daily business practices to the new legal guarantee of conformity law (whereby, of course, the differences b2b and b2c must be taken into account here):

• Employees must be trained on the new provisions/terms (e.g. the new defect term for b2c transaction) and workflows must be adapted to the new deadlines and requirements (e.g. obligation to provide updates).
• If the general terms and conditions (GTC) stipulate the legal guarantee of conformity, the clauses must be adapted to the new terms and periods (e.g. the term cancellation of contract (‘Vertragsauflösung’) replaces the term cancellation (‘Wandlung’).
• If manufacturers, importers or resellers provide voluntary warranties and their end customers are consumers, the warranty statements must be adapted to the new (form) regulations for warranties. Resellers must also ensure that warranty statements are handed over together with the product.
• Enterprises must check whether - in the sense of the new regulations – they sell goods with digital elements or offer digital services for which an updating obligation now exists. If so, they should take appropriate precautions for processing and implementation (possibly agreements with manufacturers/suppliers). However, enterprises can exclude or restrict the obligation to update for customers (b2b and b2c) in accordance with legal requirements. Likewise, the obligation to the customer to always provide the latest version can be excluded.
• Enterprises may also consider to restrict or exclude certain "objectively presumed characteristics" in products and digital services vis-à-vis consumers to the extent permitted by law.
• Provisions in GTCs, contract forms or contracts on dealer recourse must be adapted to the new provisions.
• Due to the new definition of a defect, there may also be a need to adjust advertisements, package inserts, packaging as well as other advertising statements in order to avoid legal guarantee claims in connection with "public statements".

In summary, the new legal guarantee of conformity not only poses new challenges for companies in terms of practical implementation, but also requires action in terms of adapting documents, contracts and GTCs.