Product Safety

Product Safety
Learning Objectives
 Understand the requirements of Product Safety for sellers
 Which laws are relevant for product safety
 How does a seller defend against such actions
 Consider how the laws relate to the Assignment set

• Good design and manufacturing processes are essential to ensure you meet
these technical and legal requirements. They can also give your business a
competitive edge and save costs
• Under the Consumer Rights Act 2015, all products must be ‘fit for purpose’, be
of satisfactory quality and fit its description. This means that your products must
fulfil the purpose the customer has been led to expect and the reasons that led
them to buy it.
• The act also covers any purpose that a customer asks about when the product
is purchased and is guaranteed by the retailer to meet that purpose when it is
sold. If a product is not fit for purpose, the customer is within their rights to have
the goods replaced or repaired
• As a manufacturer or supplier you could be held liable
in any legal action for harm caused to consumers or
businesses as a result of unintended side-effects or the
failure of products manufactured or supplied by you
• A CE mark is a manufacturer’s claim that its product

meets specified essential safety requirements set out in
relevant European directives
• Certain categories of products must bear CE marking if

you intend to sell them in the EU
• Items requiring the CE check: toys, electrical products,

medical devices, machinery, personal protective
equipment, gas appliances and so forth
Influence from USA
Ford Pinto case

Ford Pinto
• As early as 1972, reports of explosions in low-speed collisions involving
‘Cheaper to
Pintos struck from the rear started to come in to the National Highway let them
Safety and Transportation Administration.
burn’
• Accident investigations in many of the cases revealed that victims had
few, if any, trauma injuries as a result of the impacts, but had burned to
death when the cars exploded into flames.
• Some had been trapped inside the cars due to the body buckling and
doors becoming jammed shut
• Experts calculated the value of a human life at around $200,000, while a

serious burn injury was worth about $67,000. Using an estimate of 180
deaths and 180 serious burns, someone put on paper that the cost to
redesign and rework the Pinto's gas tank would cost close to $137
million, while possible liability costs worked out to around $49 million.
GPS Regulations
• General product safety is regulated by the
General Product Safety Regulations 2005 (GPS Regulations). They apply to all
products (new and second-hand) used by consumers
• The GPS Regulations maintain the general duty placed on producers and distributors
to place on the market (or supply) only products that are safe in normal or reasonable
foreseeable use
• RAPEX (Rapid Alert System for non-food consumer products) is the EU rapid alert
system for dangerous consumer products – with the exception of food, pharmaceutical
and medical devices which are covered by other mechanisms
• When a product (eg a toy, childcare article or household appliance) is found to be

dangerous, the competent national authority takes appropriate action to eliminate the
risk. It can withdraw the product from the market, recall it, or issue warnings
• http://content.time.com/time/specials/packages/completelist/0,29569,1908719,00.html
• While you are creating your product, the manufacturer is obligated to
check that no harm will be caused to makers and consumers by any of
the materials or finishing techniques used.
• Once a sample of their product is ready for use, it is vital to check that:
• it is strong enough to support any loads involved

• it can’t produce any toxic, harmful, or adverse effects on the user or
consumer
• the materials used are suitable for the purpose and safe for users
• all hazards have been sufficiently controlled, e.g electrical insulation,
moving parts, folding components, noise and poor ergonomic design
• The main responsibility for product safety falls on producers. This
includes:
• Manufacturers
• importers
• businesses that supply own-brand products
• businesses that change the safety of a product - for example, by

customising or servicing it
• If you are liable for harm caused by an unsafe product,
you can be sued by anyone who is harmed - even if
they didn’t buy the product themselves.
• You can be sued for compensation for death or injury.

You can also be sued for damage or loss of private
property caused by faulty goods if the damage amounts
to at least £275.
• Many businesses take product liability insurance to

protect them from legal costs and damages awards.
https://www.youtube.com/watch?v=kFox5Q1OTf0
Current examples of
items being recalled?
Elements of liability
• Defective product
• Claimant suffers an injury for which damages are recoverable
• Causal link proven
Who is liable – s.2(2) & 2(3)
• The producer – 2(2)
• Own-branders – 2(2)
• The first business importer into the EU importing for the purposes of
supply – 2(2)
• Anyone who supplied the defective product to the injured person or
someone else and who fails to identify his own supplier– 2(3)
Defect– s3(1)
‘..the safety of the product is not such as
persons generally are entitled to expect…’
- Objective consumer expectation test

Factors to consider – s3(2)
• Manner and purpose for which product is
marketed
• The use of any mark, instructions and warnings
• What reasonably is expected to be done with the
product
• The time when it was supplied by the producer
to another
N.B. A product is not rendered defective merely

because a later product is safer
Notorious Product Liability Cases
• A woman sued a tobacco company for $28 million, claiming cigarettes produced by Philip Morris caused her
lung cancer and long-term addiction
• In the 1990’s, Dow Corning was repeatedly sued by several women who stated their breast implants were
rupturing, causing infections, disfigurement and even death. The company ended up settling the law suit for $2
billion
• Faulty 700 and 710 series rifles would fire when the safety released, instead of when the trigger was pulled.
The safety often disengaged by accident, causing the gun to fire and culminating in a $15 million suit for
Remington Rifles
• Richardson v LRC Products Limited - a female claimant brought an action for damages for personal injury
suffered when a condom manufactured by the defendant failed and she became pregnant. The claimant argued
that the condom was defective, as it had been weakened due to damage by ozone while at the defendant's
factory. The defendant agreed that ozone damage had occurred, but contended that it must have occurred after
the product had been used by the claimant, when it had been left in a cupboard pending the claimant's
complaint.
Defending a product liability
claim
• If someone sues you under product liability laws, your first step is to consider who is
liable. If you are a distributor, such as a shop, you may not be liable if you can
identify the original producer
• If you’re the producer and you believe the problem was caused by a fault in your
production process, you may want to admit liability and settle the claim
• Alternatively, you will need to prove one of six defences
• What are the 6 defences?

1. You did not supply the product. For example, you are not liable if a product is stolen or is
a fake copy of one of your products
2. You could not reasonably be expected to discover the safety fault. For example, if scientific
evidence first comes to light after you have manufactured or sold your product
3. The safety fault was an inevitable result of obeying other laws
4. Someone else caused the fault after you supplied the product
5. You didn’t supply the product in the course of business. For example, the law does not apply
to private gifts
6. If you make components, you are not liable if you can show that the manufacturer who
assembled the product caused the fault. For example, the manufacturer might have made a
poorly designed product or ordered the wrong components from you
• You can’t defend yourself simply on the basis that a user was careless. But if you can show
that they contributed to a problem, the amount of damages may be reduced.
Thalidomide Scandal
What happened?
What is the state of the art defence?
Is this appropriate?

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Product Safety

 Understand the requirements of Product Safety for sellers

 Which laws are relevant for product safety

 How does a seller defend against such actions

 Consider how the laws relate to the Assignment set

• A CE mark is a manufacturer’s claim that its product

• Certain categories of products must bear CE marking if

• Items requiring the CE check: toys, electrical products,

Ford Pinto case

• Experts calculated the value of a human life at around $200,000, while a

• When a product (eg a toy, childcare article or household appliance) is found to be

• it is strong enough to support any loads involved

• businesses that supply own-brand products

• businesses that change the safety of a product - for example, by

• You can be sued for compensation for death or injury.

• Many businesses take product liability insurance to

- Objective consumer expectation test

N.B. A product is not rendered defective merely

• Alternatively, you will need to prove one of six defences

• What are the 6 defences?

3. The safety fault was an inevitable result of obeying other laws

What is the state of the art defence?

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