With the EU, it’s never a dull moment

Updated on 02.09.2026

Why the New Statutory Warranty Label is Keeping Small Businesses on Their Toes

(Ralf) Anyone who believes that small businesses enjoy quiet phases from time to time will be taught otherwise by Brussels just in time for autumn. On September 27, 2026, a new EU regulation comes into force, putting an end to bureaucratic peace: from this deadline, standardized, uniform labels for statutory warranties and manufacturer guarantees are mandatory. Sounds like dry paperwork? It is – but paperwork with explosive force. Since the regulation applies without any transitional period, retailers on online shops, physical stores, and regional markets face an immediate wave of expensive warning letters if they disregard it. One-person businesses (EPUs) in particular must act quickly now to avoid falling into the liability (or warning) trap.

Why is the EU Introducing These Labels?

The new labeling obligations are based on the so-called EmpCo Directive (EU) 2024/825 (Empowering Consumers for a Green Transition). This is part of the European “Green Deal”.

The EU is pursuing two main objectives with this:

• Strengthening Consumer Protection: Many end consumers do not know the difference between the statutory warranty (seller’s liability for defects) and a voluntary manufacturer’s guarantee. The uniform labels are intended to provide immediate clarity.
• Promoting Sustainability and Longevity: Consumers should be able to see at a glance which products are more durable. If manufacturers offer a voluntary, free commercial guarantee of more than two years, this will be highlighted via a special guarantee label (“GARAN”). This is intended to create purchasing incentives for sustainable products.

The Implementing Regulation (EU) 2025/1960 governs the exact design, colors, and texts of the graphics. Designing your own or making modifications is strictly forbidden.

1. The Warranty Label (Harmonized Notice): This label is mandatory for almost all B2C retailers. It informs about the statutory liability for defects of at least two years.
2. The Guarantee Label (Harmonized Label): This label is only used if the manufacturer of the product grants a voluntary, free commercial guarantee of more than two years.

Bureaucratic Additional Effort for Small Businesses

• Visibility Before Completing the Purchase: The labels must not be hidden in the T&Cs. They must be placed prominently directly on the product page (or in the checkout) in online shops, and directly on the product or shelf in stationary retail.
• Catalog and System Adjustments: Every single product in the range must be checked. Online retailers must adapt their shop systems (e.g., Shopify, JTL, WooCommerce) technically so that the labels are displayed correctly.
• Data Procurement from Suppliers: Small businesses must actively gather information from their suppliers or manufacturers regarding whether and for which products extended commercial guarantees apply, in order to correctly fill out the guarantee label.
• Double Burden in Stores: Anyone operating a small physical shop must print out and attach the labels physically (in stationary retail, a minimum format of A4 is even prescribed under certain conditions for the general notice).
• This new label obligation applies not only to fixed brick-and-mortar shops and online shops, but to every Point of Sale (POS) in the B2C sector. Anyone selling handicrafts, homemade products, or commercial goods as a small business or EPU to end consumers at regional markets, street festivals, pop-up stores, or trade fairs must strictly implement these regulations.

Pitfalls for One-Person Businesses (EPUs) Due to Ignorance

One-person businesses often act as “all-rounders” and overlook critical details in the daily hustle and bustle. Hard legal dangers lurk with the new labels:

• The “Second-Hand Goods” Trap: Many EPUs (e.g., in upcycling, antiques, or refurbished sectors) believe the obligation only applies to new goods. Incorrect: The labeling obligation generally also applies to used goods sold to consumers.
• The “Guarantee Confusion”: Mere ignorance of product features can become expensive. If an EPU displays the “GARAN” label for a product where the manufacturer does not grant any such guarantee (or couples it to paid conditions), a competition law violation occurs.
• B2B vs. B2C Fallacy: Anyone manufacturing products that can theoretically be bought by companies and private individuals (e.g., office supplies, tools) must integrate the labels as soon as the offer is (also) aimed at end consumers. Only pure B2B shops are exempt.
• Wave of Warnings Due to Form Errors: Since the law applies from 27.9.2026 without a grace period, warning associations and competitors are standing ready. A misplaced label, an incorrect language version for international shipping, or a minor design change is enough for a costly warning letter.

Typical Pitfalls at Outdoor Events

• The “Occasional Fallacy”: Many EPUs only use regional markets seasonally (e.g., Christmas markets or pottery markets in spring) and believe the obligation does not apply to these “temporary” stands. Incorrect: The EU requirement does not distinguish between permanent and temporary trade. As soon as commercial sales are made to consumers, the label obligation applies from the effective date.
• Missing General Notice: When offering a wide range of various small goods at markets, it is easy to forget the labeling. In stationary and mobile trade, a clearly visible, central notice (e.g., in A4 format at the stand) is often permissible, but it must correspond exactly to the legal design specifications and must not be hidden by goods.
• Spontaneous Discounts and Price Markings: If products are spontaneously reduced in price or regrouped at markets, it must be ensured that the….

The Warranty Label: Central Notice Instead of Individual Labeling

The “Harmonized Notice” on statutory warranty law does not have to be attached to every single product. For mobile and stationary trade, the following applies:

• Central Point of Sale Notice: It is sufficient to place the warranty label prominently once at the stand.
• Legally Secure Placement: The ideal location is directly next to the cash register, the payment system, or the checkout station, as customers must pass there before purchasing.
• Format Specification: The regulation prescribes a minimum size of DIN-A4 for this physical notice. Larger is allowed, smaller can result in warnings.
• Cost Advantage in Offline Retail: In contrast to online retail (where color is mandatory), retailers in stationary and mobile trade are also allowed to print the warranty label in black and white.

And this is what the European Commission’s warranty label looks like:

On the Commission’s consumer protection information pages, there is a download package in all EU languages directly available as a ready-to-use graphic for download.

Possible Consequences of Faulty, Incomplete, or Delayed Implementation

1. The Wave of Warnings by Competitors and Associations

The absence or incorrect placement of the labels is evaluated as a violation of the Act Against Unfair Competition (UWG).

• Warning Letters: Competitors or authorized business associations (such as the Wettbewerbszentrale or the Händlerbund) can send costly warnings to retailers.
• The Costs: A classic competition law warning letter usually costs the retailer between 500 and 1,500 euros in legal fees for the opposing party alone.
• Cease-and-Desist Declaration: Retailers must issue a cease-and-desist declaration subject to a penalty. If the same error happens again afterwards, a contractual penalty becomes due, which is usually between 2,500 and 5,000 euros per individual case.

2. Fines by Consumer Protection Authorities

Since the underlying EmpCo Directive is intended to strengthen consumer protection, the national market surveillance authorities (in Germany, depending on the federal state, e.g., the trade offices or ministries) are responsible for compliance.

• Administrative Offense: A violation is classified as an administrative offense.
• Amount of Fines: The authorities can impose severe fines. While large corporations face penalties of up to 4% of their annual turnover, small businesses and EPUs can be fined in the three-digit to low four-digit euro range to achieve a deterrent effect.

3. Official Inspections at Regional Markets

The risk is high, especially for mobile traders at outdoor events and markets:

• Direct On-Site Controls: Market offices and trade inspectorates check sales stands randomly.
• Immediate Measures: If no legally compliant DIN-A4 warranty label is found at the stand, the authority can demand immediate rectification or, in the worst case, prohibit the further sale of certain goods until the defect is remedied.

Typical Errors Officially Counted as a “Violation”:

• The warranty label is printed at the market stand smaller than DIN-A4.
• The label is present but hidden by goods or decoration.
• The QR code integrated into the label is damaged, pixelated, or illegible.
• An EPU has adapted the color of the label to its own branding (which is strictly forbidden under the Implementing Regulation).

Boredom? There is no such thing for me when you have to deal with things like this.

And this is what the European Commission’s ‘masterpiece’ looks like: