Insights and Analysis
AI-washing – when AI hype becomes a litigation risk
AI-washing – when AI hype becomes a litigation risk
For luxury brands operating in Spain, a new customer service law marks a structural shift in retail-client regulation and relationships. For the luxury sector, it represents a profound transformation: client experience is no longer governed by brand strategy but by legal architecture.
Spanish Law 10/2025 on Customer Service and Client Care Services introduces a comprehensive set of mandatory obligations for luxury and high-end retailers operating in the Spanish market. What was once a ‘nice-to-have' add on to the client journey is now a compliance project with a hard deadline of 28 December.
The new regime transforms customer service from a brand differentiator into a regulated legal function.
Historically, customer service standards in the luxury sector have been shaped primarily by brand strategy, market positioning and internal service models. Under the new law, however, customer service becomes a formal compliance domain, subject to enforceable legal requirements and regulatory oversight.
The legal framework now requires that these relationships operate within structured, transparent and auditable service systems, rather than purely discretionary service models.
The new law imposes a set of binding obligations that directly affect retail operations, customer experience design and internal governance structures. Among the most relevant for luxury retailers are:
For luxury brands, this means that client experience architecture, CRM systems, concierge services and ‘clienteling’ models must now be designed not only for excellence, but also for legal compliance and regulatory auditability.
The law includes a 12-month transitional period allowing companies a defined adaptation period before full enforcement applies. This transitional period gives businesses time to restructure internal processes, implement compliant systems and adapt service models to the new regulatory framework.
The countdown to compliance has already started. Failure to use the transitional period strategically may expose companies to regulatory risk, sanctions and reputational damage once full enforcement begins on 28 December 2026.
Authored by Adrián Fernández de Pedro.