New regulations on Consumer Product Safety & Market Surveillance were adopted by the European Parliament on 15 April 2014 before discussion with the Council of the EU; they will replace the current EU General Product Safety Directive adopted in 2001. They should create a coherent approach to product safety and market surveillance leading to lower compliance costs for economic operators. The thing that remains unclear is the impact on insurance pricing of the new regulations in terms of the number of future claims and the coverage of insured companies against the cost of a corrective action and the liability for product defects.

1.  2014 FERMA
EU Product safety law to become more consistent
New Regulation on Consumer Products Safety adopted on 15 April 2014
Julien Bedhouche
FERMA European Affairs Adviser
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2.  2014 FERMA 2014 FERMA
Current product safety rules in the
EU: fragmented and unclear
The current Directives do
not give legal certainty for
cross-border operators
• 2001: General Safety Product
Directive 2001/95
• 1985: Product Liability Directive
85/374
Gives too many options
to member states
• Different possible interpretations
of the Directive
• National liability regimes remain
in place
High compliance cost &
complex insurance
programs to cover
different legislations
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3.  2014 FERMA 2014 FERMA
• It directly replaces national measures
No need to be
implemented into
national law by
Member States
• business done on the basis of a single regulatory
framework
• no more 'patchwork' of Member States' national laws.
Strong simplification
effect
• Presumption of safety for products already subject to
specific harmonised product safety legislation (toys,
cosmetics…)
Applies to non-food
consumer products
only when no sector-
specific EU legislation
New Regulations on
Consumer Products Safety
and Market Surveillance
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4.  2014 FERMA 2014 FERMA
Increased
Market Surveillance
One set of rules for
all Market
Surveillance
authorities in the EU
Better
communication and
information sharing
between authorities
Heavier safety rules
for manufacturers,
importers,
distributors
Identification,
traceability and
notifications
Prior safety
assessment (risk
analysis, technical
documentation)
Level playing field
among EU countries
Possible lower
compliance costs for
cross-border
operators
Impact on insurance
pricing
More notifications to
authorities
More litigation
between
manufacturers,
importers and
distributors
More frequent
recalls
New Regulations on
Consumer Products Safety
and Market Surveillance
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5.  2014 FERMA 2014 FERMA
New Regulations on
Consumer Products Safety
and Market Surveillance
Adopted by the European
Parliament
• on 15 April 2014
Possibly effective after Council of
the EU approval
• early 2015 in the 28 EU countries
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6.  2014 FERMA 2014 FERMA
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