FINLAND Trends and Developments Contributed by: Jussi Laasonen and Saara Järvinen, Ruoholahti Law
The Impact of Regulatory Changes on Dispute Resolution Bodies In Finland, product liability cases have rarely proceed - ed to court, as the vast majority of damage claims have been compensated under companies’ product liability insurance policies. According to the report by the working group of the Ministry of Justice, between 2021 and 2024 fewer than five product liability-related compensation cases per year were resolved in the Finnish district courts. As a result of the legislative reforms, however, the number of product liability claims is potentially expected to increase in future. The likely reasons for a rise in litigation include the abolition of the mini - mum compensation threshold, the expansion of the scope of application and the range of liable parties, the inclusion of new categories of damage, and provi - sions regarding presumptions and disclosure. Dispute resolution bodies as consumer protection mechanisms In Finland, product liability matters are processed not only by the general courts but also by various public authorities and boards. In future, a significant propor - tion of disputed cases may continue to be resolved outside the courts due to the significant risk of litiga - tion expenses and the slow pace of legal proceedings. In the report by the working group of the Ministry of Justice, it is estimated that, in practice, the effects of the new regulation are likely to impact the Finnish Competition and Consumer Authority more signifi - cantly than the general courts. The Finnish Compe - tition and Consumer Authority operates the national Consumer Advisory Services, whose responsibilities include providing legal guidance to consumers and businesses regarding consumer rights, as well as assisting consumers in individual disputes with trad - ers. Significant reforms to product liability legislation will affect consumers’ legal position, which is likely, in turn, to increase the need for consumer guidance and advisory services. These legislative reforms are also likely to affect the work of the Consumer Disputes Board and the Insur - ance Complaints Board. The Consumer Disputes Board is responsible for issuing written recommenda -
Both of these changes are likely to increase the amount of compensation paid. The position of injured parties has also been improved by a new final maximum limitation period of 25 years. The existing three-year and ten-year limitation peri - ods within product liability legislation will remain the general rules. The final limitation period applies instead to situations in which the injured party has been unable to bring a claim within ten years due to the latent nature of their personal injury. In such cases, proceedings must be commenced within 25 years. On the other hand, the practical significance of this new maximum limitation period in product liability law will only become apparent decades from now, mean - ing that, at present, this reform has limited immediate impact on the existing legal landscape. In the report by the working group of the Ministry of Justice, it is noted that, under the new regulatory framework, businesses must in future prepare more carefully than before for potential liability exposure. It would therefore be advisable for businesses to ensure adequate anticipatory measures in their opera - tions and, for example, to document their activities in greater detail than previously. By doing so, businesses will be better prepared to present evidence in their defence against potential compensation claims. On the other hand, the working group of the Minis - try of Justice has noted that the new regulation may also encourage businesses to operate with greater diligence overall. The threat of strict product liability may force businesses to invest more in product safety and testing of their products, and may also encourage greater scrutiny of supply chains and the conduct of those involved within them. Businesses’ anticipation of potential product liability claims will be reflected primarily in product liability insurance. As the number of liable parties increases, demand for product liability insurance will also grow. On the other hand, new categories of damage (eg, “digital harm”) are likely to create pressure to expand the current scope of coverage. For the same reason, it is also likely that coverage disputes will increase, at least during the initial phase.
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