September 17, 2024, 8:21 am | Read time: 5 minutes
Purely digital products are ubiquitous today. But what do they mean for consumers? TECHBOOK explains why their purchase and subsequent ownership does not work in the same way as with physical goods.
Digitalization is progressing unhindered, impacting many areas of everyday life. This also includes people’s consumer behavior and the goods they buy. As a result, they are increasingly turning to digital products instead of analog ones. These have their own advantages. However, there are also a few things to bear in mind. A common misunderstanding in this context concerns the purchasing process in particular.
Overview
What are digital products?
A digital product is just that – it exists exclusively in digital form. These include, for example, e-books, downloads, and the provision of films as a stream or services for creating, processing, or storing, as the Bavarian consumer portal writes.
They should not be confused with goods that have digital elements. These are either items that contain digital products in their own right or that are so closely linked to them that they would not function without the digital element. For example, everything that is considered “smart” these days falls into this category: smartphones, smartwatches, or smart household appliances.
Confusion surrounding the purchase of digital products
Whether in a physical store or an online shop, customers typically pay money and then physically hold their goods. Moreover, they are then entitled to keep. However, what many take for granted about the purchase process differs for digital products. Many people don’t know this, and this can cause problems.
With computer and video games, for example, it can happen that you buy a game, but the manufacturer simply deactivates it after some time and can, therefore, no longer be played. Our TECHBOOK editor also feels downright “ripped off” in this case.
You don’t really buy digital products
As experts from WBS.Legal explained to TECHBOOK, this is because digital products are not purchased like physical objects that one can own indefinitely. Instead, you only acquire the contractual right to use the digital content. The contractual relationship is therefore much more dependent on the structure of the individual contract than in the case of a purchase. This is a separate type of contract, which has also been regulated separately in the law since 2021.
But what minimum duration of use can consumers expect from digital products? There is an answer to this:
“[The law] states, among other things, that providers of a digital service must ensure that what you have purchased is available to you for a period of time that can reasonably be expected. How long this period is is not specified – but it is usually assumed to be around 2 years. Only in strict exceptional cases and after explicit consent can this be deviated from. As a result, it is possible that such content can be ‘taken away’ after a certain amount of time has passed – even if consumers are not always aware of this.”
WBS.Legal
In principle, manufacturers or providers should communicate the framework conditions better. Above all, they are required to announce the end of a service in good time so that potential buyers do not pay for it at short notice. If the discontinuation takes place at too short notice, consumers are entitled to a pro-rata refund of the purchase price.
Further customer rights for digitally purchased products
In principle, however, customers have the same rights with digital products as with other goods. In the event of defects (such as faulty functionality or compatibility problems) or failure to access the product, they may insist on the problem being rectified, ask for compensatory service, terminate the contract, or ask for a reduction in the purchase price. Claims for damages and reimbursement of expenses also apply. There is also an obligation to update products, according to which products must be supplied with updates.
For instance, anyone who purchases an e-book should gain access to the content immediately after the payment process. If this does not work, customers can ask the company to provide the content. If access is still not possible after this, the contract may be terminated. Customers can demand compensation for any damages incurred as a result.
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Observe warranty claims and periods
Warranty claims are also valid for at least two years from the time the product is made available. If a defect occurs within the first twelve months, the law simply assumes it was present at the time of delivery. In this case, the company must prove that this was not the case. This is known as the reversal of the burden of proof). This applies throughout the EU, as the European Consumer Center Germany explains.
From the 13th month, the burden of proof then shifts to the consumer. In the case of permanent services and products (e.g., apps or cloud storage space), the reversal of the burden of proof applies for the entire provision period, provided this has also been contractually agreed. If not, only one year applies.
Incidentally, the burden of proof also lies with the customer if the digital product is incompatible with their digital environment. For example, if you install a program that was not designed for your own operating system and problems then arise, you must prove that a defect exists regardless of the incorrect system.
As a rule, claims become time-barred after two years at the earliest or one year after the end of the provision period in the case of permanent provision. Specifically in Germany, however, the limitation period does not expire until four months after a defect is discovered. So if a defect occurs after 23 months, the claims do not expire immediately after the 24th month, but only after the 27th month.