Product Labelling Law and Product Liability
by Brendon Carr
Check out this week’s Law Talk column of the Korea Herald about product labelling. Our firm’s Mr. Kyung-Ho Park, with whom I’ve recently had the pleasure of collaborating with on an asset-transfer deal, is the author. Apparently there is a new (well, relatively recent and not-yet-enforced) law concerning product safety testing and labelling requirements. Here is the money graf from his article:
When labeling standards were only [Ministry of Commerce, Industry & Energy] guidelines and did not have any legally-binding effect, the breach of labeling standards did not directly mean “defects in [expression]” under the Product Liability Act (PLA). But, under the new [Quality Management and Industrial Safety Act], labeling standards have a legally binding effect and any breach of the labeling standards may be interpreted by courts as a “defect in [expression]” and the manufacturer, importer or seller may be subject to the indemnification of the damages or losses caused by such defect under the PLA.
Anyone in consumer products ought to re-evaluate their current practices in respect of labelling in order to make sure their companies are not exposed to product-liability claims based on a defect in expression.
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