Five major U.S. Trade associations, led by the U.S. Chamber of Commerce, are calling on the Donald Trump administration to intervene regarding new European Union consumer protection regulations that could expose American companies to a surge of mass class-action lawsuits.
Concerns Over Shift in Legal Burden
The push for intervention follows a letter sent this year to high-ranking officials within the Trump administration. The trade groups are urging the U.S. Government to “actively engage in dialogue with the European Commission” to address specific changes to the EU Product Liability Directive.
At the center of the dispute is a proposed shift in the burden of proof. Under the updated rules, companies may be required to prove that consumer harm was not the result of a product defect, rather than requiring the claimant to prove the product was at fault. This regulatory pivot is viewed by U.S. Business interests as a catalyst for increased litigation risk.
Transatlantic Trade Tensions
The updated directive is expected to take effect in December. According to the Financial Times, these regulatory changes could emerge as a fresh point of tension in transatlantic relations, adding to the existing complexities of trade and corporate compliance between the U.S. And the EU.
The decision to lobby the administration underscores the significant impact that EU regulatory shifts can have on global corporate liability and the broader economic landscape for American exporters.
