The prospect of product liability

In attempting to assess the prospective changes of product liability law in the terms of a risk—benefit analysis one faces some formidable difficulties. The first is that one can only speculate at this stage on what the ultimate law will be as only a draft of the EEC directive is available and even when it is finalized there will be a degree of flexibility in how it is implemented in UK legislation. The second concern is that, in expressing any benefit at all the author does not renege on the view that strict liability on medicines is one of the most damaging things that has ever hit the long-term prospects, not only of the pharmaceutical industry, but of the entire practice of therapeutic medicine. The views expressed here are the author’s own and not necessarily those of the Association of the British Pharmaceutical Industry (ABPI) although there is no disagreement of which the author is aware. This paper will examine the important features of the EEC directive, and then assess the significance of the main differences between the first and second drafts. Finally, it will attempt to develop some kind of cost—benefit analysis. The word ‘cost’ is preferable to ‘risk’, as risk has a particular meaning in the context of insurance.