Hogan Lovells 2024 Election Impact and Congressional Outlook Report
The new UK Government has unveiled the Product Safety and Metrology Bill, a critical piece of legislation that will affect all businesses involved in manufacturing, importing, and selling products in the UK. Announced as part of the King’s Speech on 17 July 2024, this legislation will seek to protect UK consumers as technology rapidly advances while also supporting business, to help deliver on the new Government’s growth agenda. With a raft of new consumer protection legislation being implemented in the EU, the Bill will provide the UK with the mechanism to align or diverge, depending on what is considered best for UK consumers and businesses.
Addressing emerging risks: the Bill will empower the government to respond to new product risks and technological developments, such as those posed by artificial intelligence and lithium-ion batteries used in e-bikes, which have been linked to increased fire risks.
Maintaining regulatory leadership: the Bill seeks to modernise the UK’s product safety framework, most of which has historically been derived from EU law. It will provide the UK with the autonomy to either align with or diverge from future EU regulations based on national interests – including recognising new or updated product regulations.
Clarifying supply chain responsibilities: by identifying and regulating new business models, such as online marketplaces, the Bill aims to ensure clearer responsibilities for those involved in the supply chain.
Enhanced compliance and enforcement: the Bill will include measures to improve compliance and enforcement, including through better data sharing between regulators and market surveillance authorities, to ensure that the regulatory framework remains robust and effective.
The new Government’s announcement only states its high-level aims, so it will not be until we have the detail before we start to see how the Government intends to balance the interests of businesses, and the drive for innovation, against the potential risks new products may pose to consumers. Once the new legislation is in place, there will be important policy decisions for the Government to take around whether to align with or diverge from the EU’s consumer protection framework, such as the incoming updated General Product Safety Regulation, the AI Act, and the new Product Liability Directive. For interesting discussion of the product safety regime from other members of the Product Law team, see their recent article: The ever growing increase of EU and UK product safety related-requirements and enforcement activity.
The new Bill represents a significant opportunity to modernise the UK’s approach to product regulation: It intends to enhance consumer protection while still supporting business growth. It also introduces the possibility of regulatory divergence from the EU. Businesses must stay vigilant and proactive in adapting to these changes as more detail becomes available, to ensure continued compliance and competitiveness in the market.
Authored by Matthew Felwick and Matt Aleksic.