Product safety, liability, and sustainability: a roundup of new frameworks

This is the fifth, and final, part of this series covering product safety, liability, sustainability, AI and ESG matters. How is it all going to work in practice? And what steps (if any) do businesses need to take now?

EU and UK interaction

The UK’s departure from the EU unfortunately does not mean that we can only focus on UK legislation. Businesses operating in both the EU and UK markets have the complicated job of ensuring that they are compliant with all applicable legislation, both EU and UK.

In relation to product safety and liability, obligations in the various pieces of EU legislation appear to overlap and, in some cases, contradict each other, or do not necessarily reference each other, which will undoubtably be confusing for those trying to comply. Furthermore, the burden of compliance is far greater with increased regulation and the consequences of non-compliance more significant than ever before.  

By comparison, the UK’s targeted deregulation, and more specific increased obligations, with legislation that will not overlap may provide some relief to UK operators (except, of course, for those also operating in the EU). Reducing the regulatory burden on lower risk products signifies a more pragmatic approach to product safety and liability reform.  However it remains to be seen how successful this approach will be in practice.

Manufacturers operating in the EU, if they have not already, need to act now to ensure they can navigate the various ESG reforms already in force and those proposed for the future. The complex regulatory environment will place administrative burdens on businesses operating/incorporated in the EU and will place more pressure on market surveillance authorities to monitor compliance.

But can it all work together? There is a risk of regulatory overload and a risk that, in the quest for more circular products, product safety may be compromised, at a time when the regulatory regime for product liability and regulation is becoming more onerous and wide ranging. We’ll have to wait and see what the effect of the reforms will be in practice.

What can businesses do in the meantime? We have made some suggestions for businesses in the earlier articles in this series but, in addition, consider the following: 

Product Safety and Liability 

• Reassess product portfolios in relation to smart devices, online selling practices, cyber security, traceability and recall strategies.
• Do the products fall within the scope of the new reforms?

AI and Machinery Safety and Liability 

• Risk-assess the use of AI systems – will they be caught by the AI Act and AI Directive?
• What risk category does the system fall into and are there any specific obligations? Is there adequate insurance cover in place?
• Plan and implement internal processes ready to respond to any orders for disclosure of evidence.

Product Sustainability and ESG Reform

• Review product designs and manufacturing processes. Can they be better designed to allow easy repairs?
• Review due diligence policies in relation to supply chains and suppliers.
• Ensure environmental claims are accurate and supported by verifiable scientific data.

Ask us for help!

We understand that change is difficult, and the new regimes (when fully in force) are going to be complicated. We’re here to help. For further information or guidance on whether any of the reforms or proposed reforms apply to your business, contact Robin Adams at [email protected] or 0191 211 7949.