HONG KONG SAR, CHINA Law and Practice Contributed by: Gordon Chan
highlights the strict approach to description-based claims, especially in high-value electronics supply chains. Non-compliant KN95 face masks – MJH International B.V. v Rome International Handbag Company Limited [2023] HKCFI 2441 A Dutch buyer ordered masks for the Dutch govern - ment, relying on samples and specifications meet - ing KN95 filtration standards. Several batches failed independent testing. The High Court ruled that the masks supplier breached implied conditions of sale by description and by sample, awarding sums of mul - timillion US dollars to the plaintiff. The judgment rein - forced that compliance with agreed technical stand - ards forms part of merchantable quality. Defective hydraulic platforms for fire services – Echelles Riffaud SA v the Secretary for Justice [2024] HKCFI 1994 A manufacturer supplied hydraulic platforms to the Hong Kong government for use by the Fire Ser - vices Department. Critical defects emerged shortly after delivery, creating safety risks. The government rejected the platforms and terminated the contracts. The manufacturer sued, while the government coun - terclaimed. The court refused to imply terms that the platforms should be of merchantable quality or fit for the purpose of firefighting and high-level rescue oper - ations, as these terms had been expressly stated in the contract. While the court found that it is necessary to imply a term of reasonable safety in a contract, this does not add much as a breach of the term would also mean that the platforms would not be merchant - able or fit for purpose. In the end, the court held that the manufacturer should pay the government almost USD10 million in damages. The decision clarifies that safety expectations are especially high for products affecting life and public safety. 3. Recent Policy Changes and Outlook 3.1 Trends in Product Liability and Product Safety Policy Hong Kong continues to maintain a stable product liability and safety framework built on common law principles and sector-specific ordinances. However,
Hong Kong still does not have a standalone strict lia - bility regime for unsafe products. Despite long-stand - ing Law Reform Commission recommendations since 1998, a strict liability regime faces strong opposition and the government does not intend to take this for - ward. On the other hand, regulatory enforcement remains active and up to date. Examples include the testing and recall of external power banks that pose burn and fire hazards. Product safety legislation is also regularly updated. In 2026, amendments to the Toys and Children’s Products Safety Ordinance (Cap 424) updated standard safety requirements for toys and certain children’s items, such as high chairs, paints, playpens, and wheeled conveyances. Given the growing trend of e-commerce and online shopping in many aspects of daily life in Hong Kong, it comes as no surprise that this now forms a major area of concern. In 2025, around half of the complaints received by the Consumer Council concerned online shopping. Software remains a grey area in Hong Kong. Under the Sale of Goods Ordinance (Cap 26), which is rooted in the UK Sale of Goods Act 1893, software supplied only in intangible form may fall outside “goods”, while software embedded in physical products is more likely to fit within the existing definition for goods and chat - tel. Hence, liability arising from digital products and AI-enabled systems remains uncertain. On the other hand, the regulatory regime for medi - cal devices may shed light on the way forward, with both freestanding and embedded software in medi - cal devices falling under the now-voluntary “Medical Device Administrative Control System” (MDACS). 3.2 Future Policy in Product Liability and Product Safety Hong Kong is actively modernising its product safety rules to better protect consumers while supporting innovation and trade. The government is focusing on targeted updates to existing frameworks and prepar - ing for new challenges from emerging technologies.
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