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Product recalls

General requirements

Are there any statutory criteria under which a product must be recalled or other corrective action be taken?

Yes. If a product is dangerous or defective or if there is a risk of damage or injury, the Product Safety Act stipulates that the manufacturer must remedy the condition or withdraw, recall or destroy the product. The act stipulates that the Safety Technology Authority should determine the remedy to be used to ensure that the product does not cause any damage or injury.

Notification

What rules and procedures govern notification of the product recall to government authorities and the public?

Various rules apply, for instance the Product Safety Act. For example, orders to recall, withdraw or destroy a product are issued by the Safety Technology Authority.

The remedy depends on the seriousness of the situation.

Repairs, replacements and refunds

What rules and procedures govern repairs, replacements and refunds for defective products?

It depends on whether the damages are contractual damages or non-contractual damages. If the damages are contractual, the issue is regulated by the parties' agreement or the Sale of Goods Act. If the damages are non-contractual, the general law of damages is used.

Non-compliance

What penalties apply for non-compliance with the legal provisions governing product recalls?

It depends on the circumstances and the Safety Technology Authority determines the possibility of a sanction under the Product Safety Act, which contains applicable penalty clauses.

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