Advertising and marketing
It seems likely that UK rules on advertising and marketing will diverge from those applicable in the EU. This means that businesses cannot assume that what is legal in the UK is legal in EU member states – and vice versa. Businesses must also seek legal advice locally and potentially run different campaigns for EU member states and the UK.
Agency
Important aspects of English agency law and practice are derived from the EU and particularly The Commercial Agents (Council Directive) Regulations. These Regulations offer commercial agents certain rights beyond those implied under the common law of England and Wales. These Regulations will remain in force now the transition period is over but may be withdrawn in the long term.
Competition
EU competition law rules are set out in two main prohibitions in The Treaty on the Functioning of the European Union:
- Article 101(1): Arrangements that prevent, restrict or distort competition in the EU; and
- Article 102: Conduct that is abusive by any undertaking (or undertakings collectively) with a dominant position in the market.
These Articles continue to apply to UK companies that operate within the EU, meaning these companies now need to comply both with EU competition law and applicable domestic law. Furthermore, UK companies active within the EU might potentially become subject to parallel proceedings in respect of allegedly anti-competitive behaviour that impacts both the UK and EU.
As the application of EU and English competition laws develop, some divergence between EU and English competition law may be expected.
“UK companies active within the EU might potentially become subject to parallel proceedings in respect of allegedly anti-competitive behaviour that impacts both the UK and EU.” Evangelos Kyveris
Distribution
Distributors who sell UK products on the EU market are now subject to importers’ obligations, which are set out in the European Commission’s Blue Guide on EU product rules. Similarly, UK distributors who import goods from the EU for distribution in the UK need to be aware of their obligations as importers.
E-commerce
Following Brexit, the UK ceased to benefit from the so-called EU ‘country of origin’ principle. This principle allows online services to be provided across EU member states subject to compliance with the laws of the service provider’s country of origin. According to guidance published by the UK government, online providers should now review the legal requirements in the relevant EEA countries they operate in and ensure that they have processes in place to monitor ongoing compliance if requirements in EEA countries change.
Product liability and safety
Brexit has caused the following changes to the UK’s product liability and safety regime:
- The UK no longer falls within the EU product compliance regime. This has had an impact on the status of the economic operators and which entity is deemed the ‘manufacturer’, ‘importer’ or ‘distributor’ in a supply chain that involves the UK.
- The EU CE marking system has been replaced by the UKCA (‘UK Conformity Assessed’) marking.
- There is no longer a requirement for UK authorities to notify EU authorities (or vice versa) about product safety issues via the Rapid Alert System (RAPEX or Safety Gate). The UK government has established a UK-wide replacement Product Safety Database instead.
It’s complex! Contact corporate lawyer Evangelos Kyveris today to ‘health check’ your business procedures and contracts today.
Note: This article is not legal advice; it provides information of general interest about current legal issues.