Digital content and services

What it means

Digital content and digital services are data and services supplied in digital form, such as apps, games, e-books, music, streaming, software as a service or cloud storage. Consumers have special rights in relation to them, based on an EU directive and Slovak consumer protection law.

The trader must supply content that conforms to the contract and provide updates, including security updates, for the period the consumer can reasonably expect. If the content does not work, the consumer can demand a fix, a price reduction or termination, much like liability for defects in goods.

These rights apply even when the consumer pays not with money but with their personal data, for example in a free app funded by advertising. The data count as consideration, so the trader cannot claim it is not liable for a free service.

How it works in practice

Under a consumer contract concluded at a distance, the consumer may withdraw within 14 days. For digital content not supplied on a physical medium, this right is lost if the consumer expressly agreed to performance starting and acknowledged losing the right of withdrawal.

Traders should state clearly in their terms the minimum device requirements, the support period and how updates are delivered. In a complaint, the consumer must cooperate, for example by providing device details, but the burden of proving the content works initially lies with the trader.

For VAT, selling digital content to consumers in other EU countries counts as electronically supplied services taxed in the customer's country. Above the 10,000-euro threshold, VAT is due in the customer's country, which the OSS scheme simplifies.

What to watch out for

Changing digital content during the contract, such as removing a feature or adding ads, is only allowed under statutory conditions: it must be justified, at no extra cost, and the consumer must be informed. If the change is significantly detrimental, the consumer may terminate the contract.

Businesses buying digital content as traders cannot rely on consumer rights. Their protection depends on the contract, such as licence terms and SLAs, so when buying software it is important to check liability for errors and the availability of updates.