Product liability is regulated on multiple levels under Czech law. The Act No. 634/1992 Coll., Consumer Protection Act, sets the general obligations for sellers towards customers in regards of products. According to the Consumer Protection Act, the seller is obliged to sell products in the correct weight, measure or quantity, in the prescribed quality and practice overall complete transparency regarding the product. If the seller fails to comply with such obligations, a fine of up to CZK5 million (EUR200,000) may be imposed by the competent authorities.
Product liability itself is regulated by the Act No. 89/2012 Coll., Civil Code. Liability for damage caused by a defective product is an objective liability with the possibility of liberation of the liable person, if the existence of one of the reasons for liberation are to be proven by the liable person. Damages must be claimed by the customer under Czech law in order to be compensated. To successfully claim damages, a product defect and a causal link between the product defect and the damage must be proven by the customer.
Furthermore, damages caused by a defective product may have consequences set out by criminal law, most notably Section 253 of the Act No. 40/2009 Coll., Criminal Act, under which the seller who harms customers, in particular by deceiving them on the quality, quantity or weight of the products, or who places products or services on the market to a greater extent and conceals their substantial defects, may be punished by imprisonment for up to one year, prohibition of activity or confiscation of property.
We offer full-service legal support on product liability compliance as well as dispute resolution and potential litigation. Our regulatory lawyers have deep knowledge advising on the requirements of regulatory authorities in the field of consumer protection and product liability. We offer comprehensive solutions that cover the widest range of risks and satisfy the most demanding requirements.
Our team in the Czech Republic is experienced in reviewing and auditing clients' compliance with regulatory requirements governing promotional activities and consumer protection. Moreover, we represent many of the leading manufacturers of pharmaceutical and biological products and we also provide services as a litigation counsel.
We advise on important developments affecting the consumer products sector and represent consumer product manufacturers. Our assistance also includes review or preparation of promotion terms, to ensure compliance with Czech statutory requirements and help mitigate the risk of sanctions by the regulators.