If you are selling products to consumers as part of your business, you will want to familiarise yourself with product safety laws. As a seller, you may be under certain obligations to ensure that your products are both safe and appropriate for use. Unsafe products will have commercial and legal implications for your business. For example, unsafe products may affect your business’ reputation and your brand’s image. Depending on how unsafe the product is, you may also be legally liable to compensate your consumers.
This article will explain some of the key obligations you should know about concerning product safety laws. This will give you a base level of understanding, so you know what to look for when assessing the safety of your products.
The Law on Product Safety
Products that you sell must meet ‘product safety regulations’. Regulations set out safety requirements to minimise the risk of injury from dangerous products. Following the UK’s exit from the European Union, the regulatory framework has been transposed into domestic UK legislation. EU law may still apply where you are selling goods in the European Union.
It is also worth keeping in mind that there is specific safety legislation in many product sectors. For example, there are specific rules in the industries of:
- toy products;
- electrical goods products; and
- machinery products.
The Product Safety and Metrology etc. (Amendment etc.) (EU Exit) Regulations 2019
The Product Safety and Metrology etc. (Amendment etc.) (EU Exit) Regulations 2019, which amended the General Product Safety Regulations 2005, are the relevant part of the law. These regulations require all products to be ‘safe’ in the ‘normal or reasonably foreseeable usage’. This means that the product you sell must be safe for any purpose, which you could predict a consumer might use it for.
Continue reading this article below the formWhat This Means for You
First of all, if your business sells consumer products in the UK, you must not sell products that you know are unsafe. Therefore, this means that you are prohibited from selling a product if you have reason to believe it may be unsafe. You must also take immediate action to address the risk, which may include withdrawing the product from sale and issuing warnings to consumers who may have already purchased it.
For example, an unsafe product could be a food item that you later learn was produced in a factory without a high level of safety standards. Similarly, it could also be a building product that is inappropriate for certain construction projects. In both cases, your product will be unsafe, and you will be under an obligation to report the safety risk to:
- the manufacturer;
- your supplier; and
- the Trading Standards service.
What Happens When You Report an Unsafe Product
Suppose your product is sent to you from a manufacturer, and you let the manufacturer know that it is a dangerous product. In that case, the manufacturer will be under an obligation to remedy the product. If you are also the manufacturer, then this will be your obligation.
The requirement to remedy the product might be achieved through:
- modifying the product;
- issuing new instructions on how to use the product; or
- requiring consumers to stop using the product and return it for a refund.
What to Do to Mitigate Risk
Above all, it will be very important that you do everything in your power to make sure that your product:
- is safe;
- meets regulation standards; and
- is unlikely to cause injury.
Before placing products on the market, you should conduct appropriate risk assessments and ensure proper testing where required. You should also maintain comprehensive records of your due diligence processes. If your business is not the manufacturer of the product, then you may want to enter into a product liability insurance agreement. This will ensure that your insurance can cover the costs if there is a product liability issue. Further, you will want to check which type of insurance you are getting. One that covers legal fees will also be important, as legal fees can seriously harm your business if you find yourself in a product liability dispute. It is also advisable to establish clear contractual arrangements with your suppliers that include appropriate indemnities and require them to maintain adequate insurance coverage.
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Key Takeaways
Ensuring your products are safe will be essential for your business. You can do so by checking the relevant law for the product you are selling, and ensuring you meet the safety requirements. The general rules require that your products are fit and safe for the purpose for which they are sold or for any purpose for which they may be used, which you could reasonably foresee. Implementing robust quality control processes and maintaining proper documentation will be crucial for demonstrating compliance. You may also want to enter into an insurance agreement to mitigate any potential risk to your business.
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Frequently Asked Questions
These are regulations that set out safety requirements to minimise the risk of injury from dangerous products. The General Product Safety Regulations require all products to be safe in the normal or reasonably foreseeable usage.
The UK Government website is very good at breaking down specific product industry laws and is a good starting point for research. Alternatively, it might be useful to seek professional legal advice if your product overlaps in multiple industries.
Penalties can include unlimited fines and imprisonment for up to two years for serious breaches. Trading Standards can also impose various enforcement measures, including product recalls and suspension notices.
If a consumer reports an injury, you should immediately document the incident, preserve the product if possible, notify your insurance provider, and report the matter to Trading Standards. You should also investigate the cause and consider whether other products in the same batch pose similar risks. Seeking legal advice promptly is essential to protect your business interests.
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