The Ministry of Economy ("Ministry") recently presented the draft Law on Product Safety and Technical Legislation ("Draft Law") for public consultation. The Draft Law introduces significant rules regulating product safety principles and compliance with the technical legislation.
The Draft Law aims to update and harmonize the rules and principles on product safety set out under Law No. 4703 on the Preparation and Application of Technical Legislation with those of the EU.
The Draft Law imposes a separate indemnification obligation on the manufacturer and the importer for damages that may arise from any non-compliance with the Draft Law's provisions. Accordingly, if a product causes harm to a person or property, the manufacturer or importer of the product will be liable for the damages. Any contractual provision for the exclusion or limitation of the manufacturer or importer's product liability will be deemed invalid.
The limitation period for any compensation claims is three years from the date the injured party becomes aware of the damages and the responsible party, and in any case, 10 years from the date on which the damage occurred.
Under the Draft Law, those who process products in a way that could affect the product's compliance with the Draft Law safety requirements or the applicable technical legislation will also be subject to the manufacturer's compensation obligation.
The Draft Law also provides for more strict monitoring mechanism for products placed into the market. Accordingly, companies must keep record of the information on the commercial entity at the previous or the next step within the supply chain for 10 years and submit such information to the authorized institutions upon request.
Companies should view the consultation process as an opportunity to cooperate with the Ministry in improving the Draft Law. Companies should closely follow all updates on the Draft Law and take the necessary actions once the Draft Law takes effect.