Manufaturer Liability In Moden Commercial Practice

5/1/2025

All Insights

1. Introduction

The transformation of production processes that began with the Industrial Revolution has accelerated through globalization, resulting in today’s multi-layered and complex supply chains. As products are placed on both national and international markets, product safety and compensation for damage arising from defective products have gained even greater significance.

In Türkiye, the primary piece of legislation governing manufacturers’ obligations is the Law No. 7223 on Product Safety and Technical Regulations (“the Law”). The Law applies to all types of products placed on the Turkish market and imposes extensive responsibilities on manufacturers, importers, distributors, and other relevant actors.

This overview focuses on key aspects of manufacturer liability under the Law, which is grounded in the principle of strict liability, and outlines its essential elements. In an era where product safety is increasingly critical, evaluating the scope and structure of manufacturers’ liability through the lens of current legal frameworks and practice serves as a valuable reference for both businesses and consumers.


2. Relevant Legislation

2.1. Law No. 7223 on Product Safety and Technical Regulations

The Law is the sole piece of legislation in Türkiye that comprehensively regulates the obligations of manufacturers and other relevant actors in the field of product safety and technical compliance. Entering into force relatively recently on 12 March 2021, the Law introduces an expanded liability regime that covers not only consumers, but also third parties who may suffer harm due to any product placed on the market. The primary aim of the Law is to ensure product safety, establish principles of market surveillance and inspection, and set out the responsibilities of all parties involved.

One of the most significant developments introduced by the Law—previously governed only by general provisions—is the inclusion of specific rules to ensure that products placed on the market are safe not only for consumers but for all users. The term “product” is defined broadly to include not only goods intended for individual consumers, but also machinery used in commercial activities, industrial equipment, and second-hand products. In this way, product safety is no longer limited to the consumer market; the Law aims to protect all individuals who may come into direct or indirect contact with a product.

The Law imposes obligations on manufacturers to ensure compliance with technical regulations and safety requirements, to monitor the product while it is on the market, and, where necessary, to withdraw or recall it. Moreover, manufacturers are responsible for maintaining product safety not only during the production phase but also throughout the period during which the products remain available on the market, and for taking corrective measures when required.

By expanding the scope of liability, the Law enables not only buyers but also third parties harmed by a product to seek compensation.


2.2. The Code of Obligations, the Commercial Code, and the Consumer Protection Law

Although different from the Law in terms of both scope and approach, the Turkish Code of Obligations (“TCO”), the Turkish Commercial Code (“TCC”), and the Consumer Protection Law (“CPL”) also contain provisions that, in certain cases, relate to the liability of manufacturers.ir.

Article 49 of the TCO grants persons who have suffered harm the right to claim compensation under tort liability and stipulates that a person who causes damage through an unlawful act is liable for that damage. Article 227, on the other hand, regulates the buyer’s rights in cases where a product is found to be defective.

The TCC does not directly regulate product liability but includes provisions concerning defective goods in the context of commercial sales. Since the provisions of the TCO and TCC primarily address the seller’s liability towards the buyer within a contractual relationship, they differ in nature from the general product safety liability regime established under the Law.

Article 8 of the CPL is limited to consumer transactions and does not regulate general manufacturer liability.

As seen, the TCO, TCC, and CPL do not contain specific provisions on product liability as such but rather regulate the liability regime applicable to defective goods and the respective parties’ optional rights. In contrast, The Law establishes a broader liability framework by granting the right to claim compensation to any person harmed by a product, regardless of whether they qualify as a consumer.


2.3. International Regulations

One of the key international instruments concerning manufacturer liability is Council Directive 85/374/EEC of 25 July 1985, which introduced the first comprehensive EU regulation imposing strict liability on manufacturers for damage caused by defective products. The Directive also aimed to harmonize product liability rules across Member States. The principles of this directive served as a source of inspiration during the drafting of the Law.


However, in response to new risks brought about by technological developments and digitalization, Council Directive 85/374/EEC was replaced by the new Product Liability Directive 2024/2853, which entered into force on 9 December 2024. The new directive expands the scope of product liability to include not only traditional physical goods but also emerging technologies such as software, artificial intelligence systems, and products integrated with digital services. It also broadens the concept of joint and several liability to cover importers and other relevant actors in the supply chain who violate product safety standards

Although the Law is largely aligned with existing EU regulations on product liability, it remains to be seen how the new obligations introduced by Directive 2024/2853 will be reflected in Turkish legislation.


3. Manufacturer’s Liability under the Law

3.1. Compensation Liability

Pursuant to Article 6 of the Law, for a manufacturer to be held liable for damage caused by a product, the injured party must prove that the product was defective, that damage occurred, and that there is a causal link between the defect and the damage.

The Law adopts a regime of joint and several liability for manufacturers. Where more than one manufacturer or importer is involved, they are jointly liable for the damage. More importantly, the Law provides that any contractual provisions aiming to limit or exclude the manufacturer’s or importer’s liability are null and void. This ensures that a manufacturer cannot avoid liability by relying on contractual terms agreed upon with the buyer.

In terms of the scope of compensation, the Law adopts a broad approach and, under Article 6/5, allows for claims covering both pecuniary and non-pecuniary damages. The amount of compensation payable due to product-related harm is to be determined in accordance with the tort provisions of the Code of Obligations.

However, the Law also introduces a significant limitation on the types of harm that may give rise to compensation: the manufacturer is only liable where the product causes damage to a person or to another item of property. Damage to the defective product itself is not compensable under this framework.

With respect to limitation periods, Article 6/6 stipulates that compensation claims must be brought within three years from the date on which the injured party became aware of both the damage and the liable party; in any event, such claims must be filed within ten years from the date the damage occurred. It is important to note that the limitation period does not begin on the date the product was placed on the market, but rather on the date the damage actually occurred.


3.2. Administrative Liability

In addition to compensation liability, Article 20 of the Law regulates the conditions under which a product may be placed on the market, as well as the rules of market surveillance and inspection. It also introduces administrative fines of varying amounts in cases of non-compliance with the relevant obligations. Considering the revaluation rate of 43.93% determined for 2024, the upper limit of administrative fines applicable between 1 January 2025 and 31 December 2025 has been set at TRY 3,462,473.


4. Grounds for Exemption from Liability

Although the Law provides for a broad scope of liability for manufacturers, Article 21 sets out specific circumstances in which manufacturers may be released from liability.

First, if the manufacturer can prove that the product causing the damage was not placed on the market by them, liability may be excluded. Similarly, if the defect causing the harm is proven to result from interference by a distributor or a third party, the manufacturer may not be held liable. Furthermore, if the product was manufactured in full compliance with applicable technical regulations and mandatory general safety standards, this may constitute a ground for exemption from liability. However, such compliance will not automatically release the manufacturer from liability in every case. The facts of the individual case, as well as risks that may arise after the product is placed on the market, must also be taken into account when assessing liability.

Moreover, the fact that the harm is partly attributable to the act or omission of a third party does not eliminate the manufacturer’s liability. Nevertheless, in such cases, the manufacturer retains the right of recourse against the third party responsible. In this context, it is important for manufacturers to maintain complete and up-to-date documentation, such as product certifications, maintenance records, user instructions, and technical files. In addition, contracts entered into with distributors or other relevant actors should clearly and transparently define responsibilities regarding product maintenance, usage, and safety— particularly with respect to user training, periodic maintenance obligations, and technical support. Proper documentation and record-keeping in these areas play a critical role in mitigating risk for manufacturers.

The liability of the manufacturer may also be reduced or eliminated where the damage results from the user’s error or gross negligence. For example, if a product is used in violation of its operating instructions and this misuse causes damage, the manufacturer may be released from liability.

Finally, under Article 21(1) of the Law, where a manufacturer, authorized representative, importer, or distributor detects that a product is non-compliant and withdraws it from the market without waiting for the intervention of the Ministry or other relevant supervisory authority, they may be exempt from administrative sanctions. This provision is intended to encourage economic operators to engage in active post-market surveillance.


5. Conclusion and Assessment

The comprehensive liability regime introduced by the Law undoubtedly necessitates careful legal and commercial planning on the part of manufacturers and importers. Since the Law came into force, there has been a noticeable increase in lawsuits and compensation claims arising from product safety violations . The expansion of compensation liability, in particular, compels large-scale manufacturers to tighten their compliance processes and reassess their risk management strategies.

In conclusion, the effective implementation of the Law will help establish a balance by ensuring both the protection of consumer rights and the clarification of obligations for all stakeholders, primarily manufacturers. However, in light of the increasing regulatory burdens and the risk of substantial compensation claims; it is critically important for manufacturers and other supply chain actors to remain prepared, adopt a proactive approach to compliance, and take all necessary measures to maximize product safety. Indeed, technological advancements such as digitalization, artificial intelligence, and automation are continuously reshaping the risks and liability areas associated with product safety. This evolving landscape requires not only the dynamic adaptation of legal frameworks, but also the readiness of manufacturers and all other stakeholders to align themselves with these developments.


Selin Su, Managing Associate
Nejan Yılmaz, Associate
Selen Kaya, Trainee Lawyer




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