General

The principal legislative act in Ukraine in the area of consumer protection and product liability is the Law of Ukraine No. 1023-XII " On the Protection of Consumer Rights" dated 12 May 1991 (the " Consumer Rights Law").

Under the Consumer Rights Law, manufacturers of goods, providers of services, and merchants have the obligation to furnish consumers with goods and/or services, which comply with the established quality standards, the terms of the agreement with the consumer, and the information about the goods/services, which is publicized by the manufacturer/provider/merchant.

Pursuant to the Consumer Rights Law, manufacturers of goods must ensure the safe use of the goods for the duration of the service life period established by law or by the agreement with the consumer, or, in the absence of any relevant provisions, for a period of 10 years.

Furthermore, the Consumer Rights Law requires a manufacturer of goods to ensure the availability of maintenance services for the goods during the relevant periods of time. It also sets forth the obligations of manufacturers (merchants) toward consumers with respect to the replacement of defective goods and warranty repairs.

Liability for Damage Caused by Defective Goods (Services)

Under the applicable Ukrainian legislation, damages which are incurred by a consumer with regard to his/her life, health, or property by a manufacturer's (provider's) goods (services) must be indemnified in full by the person who inflicted the damages. The right to claim damages is vested in every damaged consumer, regardless of whether such consumer had concluded a contract with the manufacturer (provider, merchant). This right is deemed valid for the duration of the service life of the specific product or, if the service life of the product is unidentified, for 10 years from the date of manufacture of the goods (producing the works, rendering of the services). The only exception from the above rule are cases whereby damages were inflicted at fault of consumer or caused by force-majeure.

Liability for Violation of Consumer Rights

The applicable Ukrainian legislation provides for civil, administrative, and criminal liability for the violation of a consumer's rights. The scope of penalties envisioned by the Consumers Rights Law for the violation of consumer rights ranges from 10% to 1000% of the cost of the goods manufactured or sold, or the services rendered. Meanwhile, the Code of Ukraine on Administrative Offenses provides a fine for the relevant offenses in the amount of 3 to 88 non-taxable minimum monthly incomes (approximately USD9 - USD275). At the same time, under the Criminal Code of Ukraine, the maximum penalties for criminal offenses in the area of consumer protection are 500 non-taxable minimum monthly incomes (approximately USDl, 550) or 3 years of imprisonment.