Material compliance & substance law

In addition, however, material requirements also apply in specific product areas such as cosmetics, biocides, medical devices and construction products. There are also international regulations that German companies must comply with due to global supply chains, such as California Proposition 65 (CP 65), TSCA and the Dodd-Frank Act. The ever-growing number of substance bans and use-specific restrictions contained in these legal acts aim to phase out particularly hazardous substances from the economic cycle and lead to marketing bans on the respective products with the associated liability risks in the event of non-compliance.

Achieving material compliance is a challenge that we have been supporting our clients with competently for many years. Contractual provisions along the supply chain and the establishment of an internal material compliance organisation are of particular importance here. This is also necessary in order to be able to fulfil the information obligations regarding Substances of very high concern (SVHCs) in the supply chain and the notification obligations in connection with the ECHA's SCIP database. Violations of material compliance requirements go far beyond the potential consequences of official market surveillance: substance restrictions and bans are recognised by the Federal Court of Justice as market conduct rules relevant to competition law, and contractual recourse claims in the supply chain often also include the costs of removing and installing affected components. Finally, violations of the Chemical Sanctions Regulation are in some cases even punishable as criminal offences. We protect our clients from these risks with all means at our disposal.

Please refer to our case law report on product law and our client information on current developments in the field of product safety law.