Tougher rules on supplier liability and packaging under spotlight

Michaela Herron
Increased liability for suppliers and strict EU-wide bans on vague environmental claims are among the key legal trends identified in a new report from Mason Hayes & Curran.
The firm’s product and consumer protection mid-year review for 2025 examines a significant EU court ruling in the Ford Italia case which expands the definition of a “producer” under the Product Liability Directive.
A supplier may be liable if the branding on a product closely resembles both its own and the manufacturer’s, even if the supplier did not apply the branding itself.
Aisling Morrough, senior associate at Mason Hayes & Curran, said the judgment “redefines the risk landscape”.
“Companies whose name, trade mark or other distinguishing features such as logos are similar to those of manufacturers will need to urgently review their packaging, contracts and marketing material to avoid potential exposure under EU law,” she said.
Ms Morrough continued: “This is one of several notable developments covered in our mid-year update. In the six months since our 2024 annual review, we’ve seen a steady tightening of EU product and consumer protection rules. Our mid-year review offers clear analysis and practical guidance on the changes now influencing the sector.”
The publication also analyses the impact of the EU Packaging and Packaging Waste Regulation, which comes into effect in stages from August 2026.
The new rules will impose obligations on matters such as recyclability, reusability and packaging waste reduction. Non-compliance may trigger enforcement action or product recalls, with further penalties to be defined by member states.
Michaela Herron, head of products at Mason Hayes & Curran, said: “We are helping clients to assess, firstly, how they are categorised under the Regulation, and then to map the specific obligations that follow. That includes reviewing supply chain arrangements, as importers and distributors must be satisfied that manufacturers are meeting their responsibilities.
“Many of the obligations seem far away now, but a lot of preparation is likely to be required to ensure that businesses are compliance ready.”
The review also considers the withdrawal of the proposed AI Liability Directive, which creates legal uncertainty in cases involving harm caused by AI. In the absence of harmonised liability rules, businesses must now rely on diverse national frameworks to manage AI risk.
In addition, it examines the first-ever representative action brought in Ireland under the EU Collective Redress Directive. The case has been taken by the Irish Council for Civil Liberties (ICCL) against Microsoft and could shape how collective consumer litigation develops across the EU.
Ms Herron said: “Ireland’s first representative action marks a shift in consumer enforcement. It creates new litigation risk for businesses, especially in data-heavy and consumer-facing sectors.
“We are helping clients map their exposure and put targeted response plans in place under the emerging EU regime.”