Latest developments in European Shopper Legislation: Unintentionally turning into an obvious producer – Cyber Tech

AG Campos Sánchez-Bordona elaborated right now on the notion of a producer underneath the Product Legal responsibility Directive (Directive 85/374) within the case Ford Italia (C-157/23). A client on this case bought a Ford Mondeo automotive from Stracciari, Ford’s vendor in Italy. The automotive itself was manufactured by Ford WAG, a German firm, which used one other firm, belonging to the identical firm group, – Ford Italia – to distribute it to Stracciari. After the patron was concerned in a visitors accident, throughout which the airbag didn’t work, they introduced a declare towards the vendor – Stracciari, and Ford Italia. The latter claimed their ‘provider’ standing and recognized Ford WAG because the producer. Nonetheless, Italian courts allotted producer’s legal responsibility to Ford Italia within the circumstances earlier than them in each situations. 

As AG Campos Sánchez-Bordona additionally agrees right here with, utilizing Artwork. 3(1) PLD that’s contemplating Ford Italia as an ‘obvious producer’ as a substitute of Artwork. 3(3) PLD, which solely permits to carry the provider liable if they didn’t well timed determine the producer, is what the CJEU ought to contemplate right here. The referred query asks then whether or not if the provider has not bodily positioned its personal identify, dealer mark or different distinguishing function on the patron product, they could possibly be held liable as a producer on the bottom that they share in entire or partly the identical identify, dealer mark or different distinguishing function because the producer. How broad then is the idea of an ‘obvious producer’?

AG Campos Sánchez-Bordona advises the CJEU to contemplate that within the given case not solely the producer and the provider share the identical identify (which permits the provider, Ford Italia, to boost client confidence, benefiting from the status of Ford model – para 39) , however that in addition they belong to the identical group of firms, working underneath the identical emblem (para 50), and that the automotive bears the commerce mark the characterises each firms. As such, the patron may have thought of Ford Italia as presenting itself as a producer, which may result in their legal responsibility underneath the PLD. ‘(…) the patron can’t be anticipated to find, by his or her personal means, who the (precise) producer is, the place that producer is distinct from the provider which presents itself with these traits.” (para 41). This in response to AG Campos Sánchez-Bordona may result in to joint and a number of other legal responsibility of precise producer and obvious producer (para 48).

The AG Campos Sánchez-Bordona attracts parallels to the current Fennia v Philips case (C-264/21 – with our remark), nonetheless, in that case each Saeco and Phillips names had been positioned on the patron product, which made the reference to the ‘obvious producer’ simpler. The second invoked case, O’Byrne (C-127/04), made it simpler to contemplate as a producer one other firm, a distributor, belonging to the identical firm group. Nonetheless, there, the excellence with the present case was that in O’Byrne the precise producer may not have been sued, because of the deadlines having handed. 

As AG Campos Sánchez-Bordona mentions in para 31 the given case requires cautious weighing of the patron safety pursuits, which the broader interpretation of the notion gives, towards pursuits of merchants concerned within the manufacturing and provide chain. 

I’m not totally satisfied whether or not within the present case the latter mustn’t have prevailed. Contemplating that the provider, Ford Italia, promptly recognized the precise producer, plainly the patron pursuits may have been protected by nationwide procedural legal guidelines permitting both including to the process one other occasion (Ford WAG) or elevating a brand new declare towards them. Nonetheless, holding the provider liable as an obvious producer underneath the circumstances of this case could expose suppliers to claims they haven’t accounted for both by insurance coverage or of their B2B agreements inside the manufacturing and provide chain. Let’s examine what the CJEU decides on this case.

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