ReportThe complexity of the guarantee

Jörg Spaniol

 · 11.07.2023

Report: The complexity of the guaranteePhoto: Jörg Spaniol
The complexity of the guarantee
Warranty, liability for material defects, goodwill... When the expensive (e-) bike breaks down, it's not just a question of finding the cause, but also of legal knowledge. A current report.

What is actually going on with the widespread culture of indignation on the internet, in which minor sensitivities often develop into a roaring shitstorm? In the e-bike forums, however, a certain calmness seems to be setting in: A user called "Hinkel" complains about the repeated failure of the motor and control unit on his expensive electric mountain bike, understandably in a bad mood. Four months without a bike, no solution in sight, summer ruined!

Just a few years ago, the outraged community would have drummed up a storm at the bike shop or at least a legal dispute, but today, prudence dominates. One forum participant advises, without contradiction, to talk to the dealer about a conversion, i.e. returning the bike, after the unsuccessful repair attempts - and to do so for as long as possible without a lawyer to keep the ball rolling. The good old "us poor cyclists against the evil bike industry" has obviously lost its vigour. People explain to each other the important difference between liability for material defects and warranty, point out elsewhere without malice that rapid sprocket wear on a pedelec is often a user error, and wish each other every success. Our call to describe experiences with the handling of claims also only brought to light a few massive annoyances.

Problems caused by technology

So everything is fine? No, because a sophisticated product such as a high-end bike can still break a lot, and the damage amounts can quickly run into four figures, especially with pedelecs and their drives. However, one reason that settles many disputes before they escalate is the technology itself: Current e-bike control units sometimes store an immense amount of data, from the temperature when charging the battery to the power called up and tuning attempts. This exposes many a supposed reason for complaint as user error. On the other hand, the e-bike boom has also led to dealers and manufacturers increasingly professionalising the rules and processes for complaints.

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Comparison: Guarantee versus liability for material defects

Guarantee

A warranty is a voluntary promise made by a manufacturer. Typically, the manufacturer of a bike promises that parts of the bike manufactured by them (usually at least the frame) are free from manufacturing defects. Other parts are usually not included. A warranty only makes sense if it extends beyond the period of liability for material defects. It is advisable to read the terms and conditions carefully. Frequent pitfalls: registration after purchase, regularly documented workshop service. An "equivalent" frame is guaranteed, but not an identical one. Costs for necessary replacement parts and assembly are usually extra. A "lifetime" guarantee usually refers to a standard product service life.

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Liability for material defects

The retailer must be responsible for ensuring that the product was free from defects at the time of purchase for two years after purchase. For products purchased after 1 January 2022, the retailer must be able to prove for a full year that the defect was not already present at the time of purchase; previously, this only applied for six months. Another advantage for the customer: After the complaint, the product must be in the same condition as it would have been without the defect, i.e. identical in terms of colour and technology. The buyer incurs no costs for transport or installation. The retailer has the option of repairing the product at least twice. Only then can the customer withdraw from the contract and demand his money back.


What about the e-bike?

The floors at Specialized's German headquarters have just been taped up and it smells of fresh wall paint. Specialized is expanding its office enormously, and the number of employees for "Rider Care" alone is growing by 50 per cent. Ulf Beckmann, who is also responsible for this as a member of the management team, sees good reasons for the expansion: "When you buy an e-bike, you buy a complex vehicle," he says. "There are service intervals, software updates and a product that you can no longer do everything yourself. The need for interaction with the dealer or manufacturer is therefore greater than it used to be. And the customer also expects ever shorter response times!" So the brand has not only expanded its team, but has also digitalised its complaints business and bundled it into forms that the respective dealer has to fill out - because only the dealer, and not the manufacturer, is the point of contact for dissatisfied cyclists.

Even if e-bikes have driven up prices and the complexity of the technology - legally speaking, it makes no difference whether a battery supports the cyclist or not. Above all, the legally prescribed liability for material defects places dealers under obligation. In short, according to the law, the retailer must guarantee for two years that the product has the advertised properties and was flawless when purchased. In the first year - until 2022 it was only the first six months - the buyer does not even have to prove that the defect was already present in the shop. Of course, normal wear and tear and violent damage are not grounds for a complaint, but a bike and all its components must be able to withstand the intended use without failing due to faults in the design, materials or initial assembly. If it does not, the dealer must make improvements and may even have to refund the purchase price after several failures.

Consumer advice centre NRW: "The seller does not have to pay for the wear and tear of wearing parts. This can lead to disputes, as the line between wear and tear and material defects is often not easy to recognise."

What is a misconstruction?

Benjamin Spahn has experienced such a borderline case. "My tubeless rear wheel was continuously losing air," he explains. "When I was cleaning it, I discovered that the air was escaping through a long, thin crack in the rim flank. I took it to the dealer, who sent it back to the manufacturer. After a month and a half, I had a new rear wheel. And then the same thing happened again: another crack, in exactly the same area. The second exchange took a month. Now I have a new wheelset, which I don't want because I don't trust the construction."

Benjamin Spahn points to the rear tyre, which is losing air.Photo: Benjamin SpahnBenjamin Spahn points to the rear tyre, which is losing air.

So a design or material defect that would have entitled Spahn to a "cancellation", i.e. a return with a refund of the purchase price? Perhaps. But Benjamin Spahn didn't take it to the extreme: "I handle warranty cases myself, in the car industry. So I know that with a complete bike like mine, it would be difficult to return the whole bike because of a faulty part - and I don't want to, because the bike itself is great. But the dealer is unlikely to refund me for the wheels alone. So I'll probably buy another wheelset and put the exchanged one in my cellar, just in case..."

What does the guarantee promise?

Quite unpleasant, but just two to three hours of legal fees can be as expensive as a good set of wheels - and the case is far from won. The warranty is often even trickier. The retailer is legally excluded from this: It is a voluntary promise of quality from the manufacturer. They advertise it to increase confidence in the brand. It does not normally apply to the bike as a whole, but only to the parts of the respective bike manufacturer, usually the frame, sometimes also the wheels, cockpit or other add-on parts if these are the bike manufacturer's own brands. Most motor and battery manufacturers also offer warranties - with their own conditions and deadlines. Some warranties sound great at first, but it's worth reading the conditions before you buy.

Warranties that require extremely long and costly service intervals at an authorised workshop or do not last longer than the statutory liability for material defects are of little value. In contrast to claims based on liability for material defects, the costs for the workshop and possibly for the installation of necessary new parts (for frames of a different model year, this would be, for example, bottom brackets, headset bearings or thru axles) are usually borne by the customer. Although the warranty promise is actually the responsibility of the manufacturer, the dealer also has to deal with it, because in many cases they have to take care of the processing on site, which costs time and nerves.

Excessive demands and disagreement

Many retailers are obviously overwhelmed by this: The Federal Association of Consumer Centres recently evaluated 100 complaint cases across all sectors in 2018, in which buyers with defective products sought help. In an incredible 92 per cent of cases, the retailers violated the law. They dismissed customers, declared that they were not responsible, made false claims about the legal situation, demanded processing fees or assumed that they were at fault. The retailers cannot be accused of bad faith across the board - the matter is simply so complicated that many cases are probably based on ignorance.

However, if you ask around at dealers and manufacturers, there is also sometimes a lack of knowledge on the customer side - not only legally, but also technically. At the Specialized headquarters in Upper Bavaria, Rasmus Lang heads up the Rider Care team, which deals with individual cases. His observation: "A growing proportion of the technical problems experienced by customers are user errors and not design or manufacturing defects. Wear and tear is a particular issue with e-bikes. Some people underestimate the great power of the motors, which act directly on the components if the shifting behaviour is incorrect. Then the small sprocket is quickly ruined, especially with lightweight material. This is usually not a case for liability for material defects," explains Lang - and he also sees progress here: "However, I have the impression that the shifting behaviour is gradually changing. In any case, the complaints about chain cracks or worn sprockets are becoming fewer, with the same hardware."

And so three trends come together: On the one hand, there is increasingly complex technology, which is driving overtaxed DIY mechanics to make complaints. On the other hand, there are higher dispute values, especially for e-bikes, and a boom that brings stress to the shops. On the other hand, retailers are professionalising the process - and articles like this one promote a realistic and successful approach to everything that will continue to go wrong when buying a bike.


Three parties - three perspectives

The customer perspective - Marcello Pabst, Gravelbiker

Marcello PabstPhoto: Marcello PabstMarcello Pabst

My frame had a crack in a weld seam below the seat clamp. Fortunately, I noticed it before anything happened and then wrote an email with photos directly to the manufacturer (Rose Versand). Because I lived nearby at the time, they suggested that I have it looked at in the service workshop in Bocholt. The employee then took the bike with him, came back after a few minutes and said straight away that the frame would be replaced - which is good news at first.

However, as the frame in question was no longer available at the time, I was offered the opportunity to swap to a more up-to-date gravel frame. I didn't have to pay anything extra and the assembly was also free of charge. They only charged me for a few smaller parts such as headset bearings, thru axle and spacers, which were necessary for the conversion.

Frame cracks in the area of the seat post clampPhoto: Marcello PabstFrame cracks in the area of the seat post clamp

However, the delivery time for the frame was extremely long and I had to wait almost six months. The conversion wasn't perfect either, so the new frame had a few paint flaws and the wrong thru-axle at the front. I later received the correct thru-axle and a 100 euro voucher. All in all, it didn't go too badly because the exchange fortunately took place in the winter. But it should be better organised with a replacement for the waiting time.

The retailer's view - Wiebke Landwehr, bicycle dealer in Dortmund

Wiebke LandwehrPhoto: Arturo RivasWiebke Landwehr

We are happy to help when customers come to us with their problem. But some come into the shop with the attitude of wanting to claim a guarantee, warranty or goodwill - all quickly and free of charge. And then I see sprocket sets where the two smallest sprockets (and only those) are completely worn out because they have obviously not been oiled or shifted properly. The engine does it, in turbo mode. Or a torn rear derailleur that has wound itself into the spokes because the bike was lying on it when it was taken for a bike ride in the car.

A derailleur hanger bends when it's carrying a 28-kilo load - and we're supposed to repair it under warranty? It's okay if someone doesn't know their way around, and we're happy to provide advice and assistance before something breaks. But to expect the retailer to rectify the consequences of their own ignorance free of charge is a bit strange. Of course there are reasons for a complaint. And if you are respectful and friendly, you will be served in the same way. In most cases, even the manufacturer addresses the issue. Why should we oppose this in such cases?

The manufacturer's view - Rasmus Lang, Specialised Rider Care

Rasmus LangPhoto: Jörg SpaniolRasmus Lang

All complaints that the dealer does not handle as a gesture of goodwill for the sake of simplicity ultimately end up at Specialized's German headquarters. The manufacturer supports its dealers with the relevant replacement parts in the event of a warranty claim and also pays them workshop flat rates for installation in the event of material defects. Communication between the dealer and manufacturer is almost always digital and defective parts are rarely sent out. In the case of the dented, broken chainstay on Rasmus Lang's screen, the dealer asked the manufacturer for help in making a decision.

"There are cases like this," says Lang, "where even the dealer has doubts. This is supposed to have happened without a crash? Well, I would have my doubts about that too. But before I call in an expert or the customer comes to me with a complaint, I prefer to take the pressure off: We made him an assisted replacement offer, i.e. a new frame at a reduced price. He accepted it and the case was closed." In times of the pedelec boom, the service team is very busy and has to make quick decisions. "Certain problems can crop up again and again. If the customer credibly describes the damage to the dealer, we don't analyse each individual case.


Avoid technical hassle by subscribing or leasing

E-bike subscription

If you want to ride an e-bike for a limited period of time, you can subscribe to it. This is basically a long-term hire for at least a quarter of a year. The tariff includes insurance against theft, but also repairs and the replacement of wearing parts. Service and repairs are carried out by authorised workshops on site after the damage has been reported to the rental company. At the end of the subscription, the bike is refurbished for the next renter. With providers such as Ebike-abo.de high-quality pedelecs cost between 60 and over 200 euros per month.

Bicycle leasing

The second option for wearing out a high-quality bike without having bought it beforehand is offered by leasing models. Unlike renting, leasing models are tax-favoured: If the employer has a contract with a leasing company, the instalments are deducted directly from the gross salary before tax. In addition to the obligatory theft insurance, repairs and wear and tear can also be insured for an extra charge. Mobility guarantees can also be booked. The choice of bikes is somewhat limited depending on the leasing company. The leasing service is provided by the dealer from whom the bike was selected.


Problem cases: Interview with lawyer Dr Michael Heidelbach

Where even knowledgeable consumers reach their limits with their knowledge, a call to an expert can help. We asked Stuttgart-based lawyer Dr Michael Heidelbach from the law firm Heussen about problem cases involving warranties and guarantees.

Dr Michael HeidelbachPhoto: PrivatDr Michael Heidelbach

What should you do if you don't like the colour in a warranty case or if a replacement frame doesn't match the other add-on parts?

In the case of a defective purchased item, the seller owes subsequent fulfilment. He must then put the buyer in the same position as he would have been in without the defect. This means, for example, that he must install the same frame for the buyer that he previously removed. This also applies to the colour. If the frame suddenly has a different colour, or if it is even a different frame, the buyer may again demand rectification from the seller. If, on the other hand, the warranty is involved, the guarantor formulates the conditions as he sees fit.

What is the legal situation if I buy outside the EU?

Anyone who delivers to the EU must comply with the EU warranty directives. But be careful: as a consumer, I can claim the warranty, but it will usually be very difficult to enforce in practice. It is therefore not advisable to buy goods of relevant value in non-EU countries. The seller or manufacturer determines the warranty terms themselves anyway. For example, if they offer a worldwide guarantee, you can claim this in the country of the seller or manufacturer. However, this can also be difficult in practice.

Is the warranty transferred to the new owner when buying second-hand?

In the case of statutory liability for material defects, the regulation is simple: the commercial dealer concludes a contract with the private buyer - and only with this buyer. If the first buyer later resells the purchased item, there is a new contract between the first buyer and the new buyer. If the new buyer wants to make a complaint, the private seller is the right person to contact. However, private sellers often exclude any warranty claims, and they are allowed to do so. The second-hand buyer can then no longer assert any warranty claims.

Is the warranty period or the period of liability for material defects extended if they have been utilised? Does a replaced frame have a new warranty period?

The limitation period for the expiry of the warranty period or the period of liability for material defects shall only be interrupted if a material defect is asserted and expressly recognised or by replacement. However, this does not apply to the entire bicycle, but only to the defective and replaced component. This means that the limitation period for the component begins anew when it is replaced, but not for the rest of the bike.

Suppose a bike fails so badly within the warranty period that I have to cancel a cycling holiday lasting several weeks or I need a rental bike for the commute to work - can I then make a financial claim?

In the event of a material defect, the buyer can claim compensation for futile expenses that he has incurred in reliance on the receipt of the services, i.e. theoretically also something like a flight ticket already paid for because he trusted that the bike would be available to him for his holiday. However, there are so many prerequisites for this that there is certainly no blanket entitlement. It must be clarified on a case-by-case basis, if necessary with the help of a lawyer, whether and to what extent the claim can be enforced.

According to the latest legal situation, the dealer must have a "bulky item" collected at his own expense in the event of a warranty claim. A pedelec is likely to be such a bulky item. Does this assumption of transport costs only apply to mail order or also to stationary retail?

No, this only applies to distance selling transactions, i.e. for items purchased over the telephone or internet. The law states the following: In the case of off-premises contracts where the goods have been brought to the consumer's home at the time the contract is concluded, the trader is obliged to collect the goods at his own expense if the goods are of such a nature that they cannot be returned by post. The wording explicitly refers to "contracts concluded away from business premises" and therefore not to bricks-and-mortar retail.

The retailer only has to arrange for a "bulky item" to be collected at his own expense in the event of a warranty claim if it is a distance selling transaction.Photo: Robert NiedringThe retailer only has to arrange for a "bulky item" to be collected at his own expense in the event of a warranty claim if it is a distance selling transaction.

"I sometimes wonder how people communicate." - Interview with Dirk Zedler

Dipl.-Ing. Dirk Zedler, sworn bicycle and e-bike expert, Zedler-InstitutPhoto: Oliver HeesDipl.-Ing. Dirk Zedler, sworn bicycle and e-bike expert, Zedler-Institut

The frame is cracked, the motor grinds like a pepper mill and the display remains dark. What to do?

Dirk Zedler: First of all, you should gather all the documents relating to the purchase and document the damage clearly and with the date. Sharp, correctly exposed photos from several perspectives can now be taken with almost any mobile phone. First a long shot, then the details. Because the mobile phone automatically saves the photo data, the time is also documented. This can be important. Then contact the dealer. They - and not the manufacturer - are responsible.

Presumably the dealer wants to keep the defective part, if only to substantiate his claims against his supplier. Should I really hand over my evidence?

In the case of physical damage, I wouldn't let it out of my hands. But in the case of normal material defects that are already documented, this is the usual way. After all, the product is still your property and it must not simply disappear at the dealer's premises. Ask for a receipt.

How can I increase my chances of the retailer making improvements or refunding the purchase price?

I sometimes wonder how people communicate. Seriousness is required in business, even in the bike industry. I can't come with a series of sloppy WhatsApp messages and useless photos and expect to be taken seriously. Simply talking to each other and then keeping a record of it is not a bad idea either.

Does it help to hire a lawyer right away?

We should leave the church in the village. If you escalate to the maximum right away, you quickly have a new hobby on your hands, which, even if successful, usually robs you of more time and money than is really at stake in the damage. As an expert witness, I have had to travel across the country to a court hearing to personally confirm that the problem in dispute would not have occurred if the plaintiff had oiled the chain. The written expert opinion was not enough for the plaintiff. The whole affair ended up costing him several thousand euros.


Guarantee? What our readers' ten favourite brands offer

Table on dealer warrantiesPhoto: MYBIKETable on dealer warranties

The warranty is almost always only valid for the registered first owner. Some manufacturers offer an extremely discounted replacement for a frame destroyed in an accident (crash replacement). Incidentally, a "lifetime" warranty does not refer to the life of the owner, but to a typical product lifetime. It is not a lifetime subscription to top-quality material. Paint, components and battery/motor are covered by any warranties from the respective manufacturer. Otherwise, only the statutory liability for material defects applies.

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