Good news for SMEs! From autumn, they also will be entitled to consumer rights in the case of defective performance

News – 16.10.2025

From August 22, SMEs are also entitled to consumers' rights relating to defective performance if they act outside their business activities. In the case of SMEs acting outside their business activities, it must also be presumed that a defect recognized within six months of performance already existed at the time of performance. They may not deviate from the warranty and guarantee provisions set out in the legislation to their disadvantage, and they may also exercise their warranty rights for two years, which may not be reduced to less than one year in the case of the sale of used goods. They are also entitled to product guarantee rights.

Due to a new paragraph of the Civil Code valid from August 22, 2025, SMEs have the same consumer protection rights against defective performance as the consumers if the company is acting outside its business activities.

Although, it is good news for many consuming and service-user small and medium-sized enterprises, but it requires greater caution from entrepreneurs in the position of sellers and service providers when concluding B2B contracts. Moreover, in order to enforcement of the rights, it is worth reviewing the activities listed in the company register and the KSH database to ensure that only those activities that the company actually performs are included.

Let’s see what consumer rights will SMEs be entitled to in the future?

SMEs operating outside the scope of their business activities it must be assumed that a defect discovered within six months of performance already existed at the time of performance.
A fault reported within two months of its discovery shall be deemed to have been reported without delay (i.e., within the deadline).
SMEs are also entitled to a two-year warranty instead of the standard one year, and this period cannot be reduced to less than one year even in the case of used goods;
The commercial guarantee provisions set forth in the legislation may not be deviated from to their detriment;
Product guarantee rules also apply in their case, meaning that they too can request that the manufacturer repair the defective product or, if this is not possible, replace it;
Certain consumer protection regulations also apply in their case, such as the government decree on mandatory guarantee for housing construction.

When does the SME act outside the scope of its business activities?

Although this is not precisely defined in the legislation, it can be inferred from the explanatory memorandum and previous case law that an SME is acting outside the scope of its business activities when it has no professional experience in a given field based on its own activities and has no technical knowledge of the purchased product or service.

Since the activities listed in the company register and the KSH database may be decisive in determining the scope of business activities. It is advisable for SMEs to review their registered activities and only include those that they actually perform in order to be entitled to consumer protection rights.

In terms of the seller’s position it is worth to specify in the contracts whether the SME buyer or customer is acting within or outside the scope of their business activities. This will prevent legal disputes arising from the question of whether the contractual partner is entitled to consumer protection in the event of possible defective performance.

LeitnerLaw’s experienced attorneys are happy to assist their partners in reviewing and modifying the commercial register and other databases, as well as in drafting appropriate contract templates! We are also happy to represent our clients in consumer disputes!