INDEPTH FEATURE
Product Liability 2021
February 2021 | RISK MANAGEMENT
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The last 12 months have been challenging for companies of all sizes, given the devastating impact of the coronavirus (COVID-19) pandemic, which has touched on the product liability space. In the months and years ahead, claims relating to products which came to market prematurely to counter the effects of COVID-19, for example, may feature heavily. The urgent need to manufacture medical products and personal protective equipment as quickly as possible could lead to a rise in product liability claims, especially as counterfeiters also took advantage of the situation.
UNITED STATES
Wilson Elser
“The most relevant trends in product liability claims in the US in 2020 included lawsuits relating to the opioid crisis, a large volume of matters in multidistrict litigations (MDLs) – with 178 active MDLs, 59 of which were classified as product liability matters – the emergence of litigation related to the Internet of Things (IOT) and autonomous motor vehicles, and Bayer AG settlements.”
UNITED KINGDOM
Shook, Hardy & Bacon International LLP
“Claimant law firms continue to focus on a range of traditional product liability issues, including medical devices, food safety, electrical products and cosmetics. However, we can expect increasing numbers of claims regarding connected products, particularly when safety is allegedly compromised by security breaches. We have already seen examples of this with medical devices, toys and automobiles.”
GERMANY
Gleiss Lutz
“The trend of individual lawsuits by consumers is increasing. Today, even minor damages will be claimed in large numbers by such lawsuits. There has been an increase in such cases, particularly in the automotive sector, but also in other sectors relating to consumer goods. In many cases, consumers have legal protection insurance, which means that there are rarely any cost risks for consumers, and this makes them more willing to bring lawsuits. Companies must be compliant with regulations and monitor due diligence and the safety of their goods if they want to avoid lawsuits.”
AUSTRALIA
Hogan Lovells (Australia) LLP
“Product safety has continued to be a priority area for the Australian Competition and Consumer Commission (ACCC), particularly in the e-commerce sector and online platforms. The focus has been targeted toward hosting safe products online to ensure better safety outcomes for consumers in the online marketplace. The ACCC has been working with certain online selling platforms in this regard. Throughout 2020, the ACCC also introduced a number of new safety standards, including, among others, those relating to button batteries, aquatic toys and projectile toys.”
CONTRIBUTORS
Gleiss Lutz
Hogan Lovells (Australia) LLP
Shook, Hardy & Bacon International LLP
Wilson Elser