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Product risks

All products launched on the market are expected to be safe. Pursuant to the Product Liability Act, a launched product must meet all reasonable expectations with regard to product safety.

The product safety assessment includes the use of the product, marketing, user instructions and other factors. The Product Liability Act is only applicable to situations in which the trader’s product causes harm to the consumer. Effectively, the trader’s product liability is also towards other traders, albeit with different grounds for liability and based on different legislation.

Product safety starts with design

In product liability risk management, particular attention should be paid to design. If the safety risk originates from the design stage, the risk is inherent in all products manufactured that follow the same design. This multiplies the risk of product liability.

Quality control

The quality of the product should be constantly controlled. Potential risks should be identified in advance. You can use different questions to help identify them, including:

  • How is quality control carried out in your company?
  • Does your company use an up-to-date quality manual distributed to all personnel?
  • Are the different checking and testing stages explained in detail?
  • Does quality control go through the production work instructions to ensure that they are adequate and compliant with the checking and testing procedures?

To a great degree, product safety is guaranteed by fixing flaws spotted during the risk identification stage. Product safety is also greatly enhanced by comprehensive quality control carried out in your company, which not only includes quality checks but also preventive quality work in order to eliminate unsafe products.

Product recalls

Product recall means withdrawing a faulty product batch or batches from the market.

A recall can be prompted by a risk of accident or other damage or the issued batch not meeting legal requirements. The authorities may order a faulty product to be recalled.   

A product recall may also become necessary when the sale of a product is discontinued. Patent disputes or reputational reasons may also cause a recall. As a result of the recall, the product is removed from the company’s own warehouses and retail and/or consumers.

Several different corrective measures may result from the recall, such as repair, amendment or replacement of the product, compensation, or annulment of sale.

Purpose of user manual

The user manual is a part of the product. A good manual will help in the correct, safe, effective and pleasant use of the product. The user manual explains the product’s purpose of use, operation and use. Furthermore, it includes the product’s individual specification.

The user manual should include instructions on the use of the product, including installation, configuration and connection, for example, to an electrical or mains network.

What kind of goods are dangerous?

Consumer goods are considered dangerous if their structure or composition is faulty or if untruthful, misleading or incomplete information has been issued regarding them, resulting in a risk of injury, poisoning, illness or other health hazard. Goods intended for children presume a higher safety level than goods intended for adults.

Because of their properties, some consumer goods may create a health hazard or risk to property even in normal use. This is considered an acceptable risk or danger. The acceptability of such goods is based on commonly known dangerousness (an axe, etc.). The dangerous nature as such is not grounds for product liability. Liability is caused by the product not meeting the safety level expected of such a product.

For entrepreneurs, the least costly loss is one that can be prevented altogether.
 
By following our safety regulations, you can prevent losses and reduce the amount of damage and harm to your business.
Mies hymyilee smoothie kädessään tuotevastuuvakuutus turvanaan.
Product liability insurance
Covers losses caused by your product.