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Official translation Official translation REPUBLIC OF LITHUANIA LAW ON THE AMMEDMENT OF THE LAW ON PRODUCT SAFETY June 1 1999, No VIII-1206 Vilnius (As amended 5 July 2001, No IX-427) Article 1. New V

this Article shall be provided in the manner laid down by the Government of the Republic of Lithuania or a body authorised by it. CHAPTER THREE OBLIGATIONS OF THE PRODUCER, DISTRIBUTOR AND SUPPLIER OF SERVICES TO ENSURE PRODUCT SAFETY Article

  1. Producer’s Obligation to Ensure Product Safety The producer shall be obliged: 1) to place only safe manufactured goods on the market; 2) to mark manufactured goods and provide consumers with the relevant information before supplying the good to the consumers to enable them to assess the risks inherent in a manufactured good throughout the indicated, normal or reasonably foreseeable period of its use; 3) upon discovering that a manufactured good is dangerous, inform, without delay, the consumers, the Board, and appropriate monitoring authorities, and withdraw the manufactured good from the market in the manner prescribed by the Government; 4) to carry out instructions and requirements of monitoring authorities; 5) to compensate, in the manner provided by law, for the damage caused to the consumer by a dangerous product; 6) to carry out other obligations set forth in this Law and other legal acts on product safety. Article
  2. Distributor’s Obligation to Ensure Product Safety The distributor shall be obliged; 1) to place only safe manufactured goods on the market; 2) before supplying a manufactured good to the consumers, to provide them with all the information received from the producer as well with any other relevant information so that the consumers are able to assess the risk inherent in a manufactured good throughout the indicated, normal or reasonably foreseeable period of its use; 3) upon discovering that a manufactured good is dangerous, to interrupt forthwith placing of a manufactured good on the market, and inform about it the producer, the consumers, the Board and an appropriate monitoring authority, and to withdraw the manufactured good from the market in the manner prescribed by the Government; 4) to carry out instructions and requirements of monitoring authorities; 5) to compensate, following the procedure established by law, for the damage caused to the consumer by a dangerous manufactured good; 6) to carry out other obligations laid down in this Law and other legal acts on product safety. Article
  3. Obligation of the Service Supplier to Ensure Product Safety
  4. The service supplier shall be obliged : 1) to provide only a safe service to the consumer; 2) to provide consumers with relevant information about the risks inherent in the service throughout the indicated, normal or reasonably foreseeable period of its use; 3) upon discovering that a service provided may involve risks for the consumer, to discontinue, without delay, provision of the service and inform the consumer, the Board and an appropriate monitoring authority; 4) to carry out instructions and requirements of state product safety monitoring authorities; 5) to compensate, following the procedure established by law, for the damage caused to the consumer by a dangerous service; 6) to carry out other duties laid down by this Law and other legal acts on product safety. CHAPTER FOUR RIGHTS OF PUBLIC CONSUMER PROTECTION ORGANISATIONS IN THE SPHERE OF PRODUCT SAFETY Article
  5. Rights of Public Consumer Protection Organisations The rights of public consumer protection organisations in the sphere of product safety shall be established by the Law on the Protection of Consumer Rights and other legal acts. CHAPTER FIVE STATE MONITORING OF PRODUCT SAFETY Article
  6. Monitoring of Compliance with Product Safety Requirements Compliance with the requirements set forth in this Law and other legal acts, which ensure that only safe products are placed on the market, shall be controlled by food and non-food product safety monitoring authorities established by the Government in the manner prescribed by laws and other legal acts of the Republic of Lithuania. Article
  7. Content of the State Product Safety Monitoring
  8. Direct product safety monitoring shall involve: 1) product safety checks conducted on the initiative of a product safety monitoring authority; 2) product safety checks conducted on the basis of reports of consumers, their organisations and other interested bodies and institutions; 3) monitoring of withdrawal of dangerous products from the market and destruction of dangerous manufactured goods; 4) analysis of the findings of product safety monitoring and periodical communication of the relevant information to the Board.
  9. Indirect monitoring of product safety shall involve gathering, storing, processing and analysing statistical data about the manufacturing, import and sales of dangerous products, and information about any factors which might result in the increase or decrease of risks involved in the consumption. Article
  10. Rights and Obligations of Monitoring Authorities
  11. In exercising state product safety monitoring, the monitoring authorities shall have the right: 1) to check the compliance with legal acts regulating product safety, and gather information pertaining to product safety; 2) to obtain information and documentation necessary for investigation of violations of this Law and other legislation from state and municipal institutions, other legal persons, natural persons, and from enterprises without the status of a legal person; 3) to obtain from producers, distributors and suppliers of services the information and documentation necessary for investigation of violations of this Law and other legislation; 4) to take samples of manufactured goods and check their safety following the procedure established by the Government or a body authorised by it; 5) to require that heads of manufacturing, sales and service supply entities, or persons authorised by them, appear in person and provide oral or written explanation; 6) to recommend to an appropriate authority to cancel a licence to engage in commercial - economic activities issued to those persons who placed on the market products causing damage to consumers; 7) upon establishing violations of the requirements of legal acts on product safety, to notify the producer, distributor and supplier of service and obligate them to rectify the violations without delay; 8) to apply marketing restrictions in accordance with the principles set forth in this Law and other legislation, and following the procedure established by the Government.
  12. Monitoring authorities shall be obliged: 1) to provide to law enforcement institutions all information pertaining to infringement of legal acts on product safety if these products could cause or have caused health impairment or death; 2) to ensure confidentiality of information constituting a trade secret obtained from producers, distributors or suppliers of services.
  13. The employees of monitoring authorities designated to carry out control of product safety, who violate the requirements of this Law shall be held liable in the manner prescribed by law. Article
  14. Information Not Constituting a Trade Secret
  15. The following information about a product may not constitute a trade secret: 1) the name of the product; 2) possible methods and means of remaking the product into a safe product; 3) results of tests concerning health effects of the product on the consumers; 4) methods of detoxication and/or safe destruction; 5) methods of product examination; 6) potentially hazardous components of the product; 7) potentially hazardous factors related to supply of a service. CHAPTER SIX EXERCISE OF THE POWERS OF STATE PRODUCT SAFETY MONITORING AUTHORITIES Article
  16. Grounds for Restrictions on the Placing of a Product on the Market
  17. Restrictions on the placing of a product on the market (hereinafter - restrictions on marketing) may be applied where products have been placed on the market in violation of the requirements set forth in subparagraphs 1, 2,

Article 8

, subparagraphs 1, 2,

Article 9

, and subparagraphs 1, 2,

Article 10of this Law.

  1. The Board or the monitoring institutions may apply marketing restrictions where there is evidence that, despite a product’s conformity to the requirements of paragraph 2 of Article 4 of this Law, it is dangerous to the health and safety of consumers. Article
  2. Restrictions on Marketing
  3. When there are grounds for applying restrictions on marketing in pursuance of Article 16 of this Law, the Board or the monitoring authorities shall have the right to apply, in the manner prescribed by the Government, the following restrictions on marketing: 1) to subject product marketing to prior conditions designed to ensure product safety and require that producers, distributors and suppliers of services inform the consumers of the risks inherent in the product; 2) temporarily, for the period required for carrying out state expert examination of product safety, prohibit anyone from supplying, offering to supply or exhibiting a product, whenever there are clear indications that the product is dangerous; 3) to cancel or prohibit any placing on the market of dangerous products, to obligate the producer, distributor, and supplier of a service to eliminate harmful properties of the product or to destroy the dangerous product in a safe way; 4) to demand the withdrawal of the dangerous product from the market, and where the producer, distributor or supplier of a service do not proceed to do that in a timely manner, or where it is impossible to identify promptly the producer, distributor or supplier of a service, the monitoring authorities themselves shall withdraw the dangerous product from the market; 5) to ban advertising of the dangerous product and to request discontinuation of advertising of such a product.
  4. All the decisions on the restriction on marketing must be motivated. These decisions must be notified forthwith to the persons in respect of whom they apply. If there is a possibility these persons shall be allowed to express their opinion before taking a decision. If, because of the urgency of implementing the decision, such a possibility was not provided in advance, it shall be provided after taking the decision.
  5. If a monitoring authority itself withdraws a dangerous product from the market, the expenses incurred shall be, by the decision of the Board, recovered from the producer, distributor, and supplier of a service without suit.
  6. The Board or monitoring authorities must inform the distributors, consumers and public consumer protection organisations about the decisions to withdraw products from the market with a view to encouraging them to contribute to the implementation of said decisions.
  7. Decisions of the Board or resolutions of the monitoring authorities with regard to the beginning or end of restrictions on the marketing must be published in the information supplement “Informaciniai pranešimai” of the “Valstybės žinios” (the “Official Gazette”).
  8. Producers, distributors and service suppliers must carry out decisions of the Board or resolutions of the monitoring authorities from the moment of their receipt unless a later date is specified in the decision or resolution. CHAPTER VII STATE EXPERT EXAMINATION OF PRODUCT SAFETY Article
  9. State Expert Examination of Product Safety
  10. State expert examination of product safety shall be undertaken at the request of state institutions when they themselves are not able to determine if a product is safe.
  11. State expert examination of product safety shall be conducted by institutions designated by the Government. The procedure for carrying out this examination and payment of the examination costs shall be established by the Government. Article
  12. Conclusions of State Expert Examination of Product Safety If during a state expert examination of product safety it is established that samples of the product or services are dangerous the whole batch from which samples for the expert examination have been taken or all the services provided by the service supplier from the moment of establishing that they are dangerous shall be deemed dangerous. CHAPTER EIGHT LIABILITY FOR VIOLATIONS OF THE LAW ON PRODUCT SAFETY Article
  13. Liability for Violations of the Law
  14. Producers, distributors or suppliers of services in breach of the requirements of this Law shall be held liable in the manner stipulated by this Law and other legislation.
  15. The importer in breach of the requirements of this Law shall be held liable in the same way as the producer. Article
  16. Compensation for Damage
  17. Damage caused to consumers by dangerous products shall be compensated following the procedure laid down in the Civil Code.
  18. Any agreement providing exemptions for the producer, distributor or supplier of a service through whose fault the damage has been caused from compensation for the damage shall be null and void. Article
  19. Persons Subject to Penalties for Violations of the Law The producer and distributor of a product, or the supplier of a service shall be subject to penalties for violations of this Law. Article
  20. Penalties for Violations of this Law
  21. The producer or distributor who has placed dangerous products on the market shall be imposed a penalty from LTL 500 to 5,
  22. 2.The producer or distributor who has placed dangerous products on the market following the order to discontinue their sale shall be imposed a penalty from LTL 3,000 to 15,
  24. The supplier of a service who has provided or is providing dangerous services shall be imposed a penalty from LTL 500 to 2,
  26. The supplier of a service who has provided or keeps providing a dangerous service following the order to discontinue providing it shall be imposed a penalty from LTL 2,000 to 10,
  28. The persons indicated in Article 22 of this Law who fail to comply with the requirements of the Board or the monitoring authorities to withdraw dangerous products from the market or to destroy them shall be imposed a penalty from LTL 5,000 to 20,
  30. The persons indicated in Article 22 of this Law who have placed dangerous products on the market which caused a health impairment to consumers shall be imposed a penalty from LTL 5,000 to 40,
  32. The persons indicated in Article 22 of this Law who have placed dangerous products on the market which caused death of a consumer shall be imposed a penalty from LTL 20,000 to 80,
  34. Imposition of penalties does not release from paying damages to the consumers. Article
  35. Release from Liability and Mitigating and Aggravating Circumstances
  36. The producer and distributor of a dangerous product, or the supplier of a service shall not be held liable for the placing of a dangerous product on the market if he proves that: 1) he has not placed a dangerous product on the market; 2) the product became dangerous as a result of actions of a third person during an improper/unsafe transportation or keeping/storage or because of any other reasons outside his control; 3) at the time when the dangerous product was placed on the market, the state of art and technology was not adequate for determining a potential risk; 4) the consumer used the product in breach of the instructions, precautions and safety measures, as a result of which he sustained damage; 5) dangerous properties of the product resulted as a consequence of force majeure.
  37. In deciding upon the amount of a penalty the Board shall take into account the mitigating and aggravating circumstances.
  38. When imposing a penalty, the fact that persons who have committed a violation rectified it and compensated the damage caused to the consumers in good faith, as well as other relevant circumstances shall be regarded as mitigating circumstances.
  39. When imposing a penalty, the fact that a person repeatedly committed the same type of violation within one year after a previous violation, and persisted in committing it without regard to the order of the Board or the monitoring authority to discontinue unlawful actions, and has failed to compensate for the damage or evaded to provide a compensation for it, shall be regarded as aggravating circumstances. Article
  40. Time Limit for Imposing Penalties The penalties specified in Article 23 of this Law may be imposed within six months from establishing a violation of this Law; and in the event of a continuing violation - from the day when it transpired. This provision shall not apply when a dangerous product impairs the consumer’s health or causes his death. Article
  41. Administrative Liability Violations of the Law on Product Liability shall entail administrative liability in the manner prescribed by law. Article
  42. Investigation of Violations of the Law and Procedure of Imposing Penalties
  43. The Board shall examine the cases referred to in this Law and impose the prescribed penalties. Preparation and examination of the cases and the procedure of imposing penalties shall be laid down by this Law, the rules of the Board approved by the Government, and the regulation adopted by the Board.
  44. The employees of the monitoring authorities shall draw up a statement reporting a violation of this Law and together with the relevant evidence shall submit it within three work days to the Board.
  45. A representative of the monitoring authority which submitted the relevant material shall be present during the examination of the case; the person in breach and/or his representative must be duly informed and may also be present during the examination. The person in breach and/or his representative has the right to inspect the materials of the case, provide explanations, make motions, give evidence, and appeal against the decisions adopted. Failure of the person in breach and/or his representative where he was informed in a timely manner about the venue and time of the examination to appear during the examination of the case shall not prevent the examination from taking place.
  46. After examination of the case the Board shall adopt an appropriate resolution. The resolution shall state the name of the institution which adopted the resolution, the date and venue of the examination, information about the person in breach of the Law, the particulars of the violation, the evidence on which the decision is based, the article of the Law on Product Safety providing liability for infringement of this Law, the resolution adopted, the time limit for appealing against it and the procedure of the appeal. Article
  47. Appeal Against Decisions of the Monitoring Authorities and Resolutions of the Board
  48. Within 20 days from adoption of a resolution or a decision, the producer, distributor and supplier of services may file an appeal in a court against the resolutions of the Board or decisions of the monitoring authorities on the restrictions on the marketing and resolutions of the Board on imposing penalties, following the procedure set forth in the Law on Administrative Proceedings.
  49. Appeal in a court shall not stay the enforcement of the decision or resolution unless the court provides otherwise. Article
  50. Recovery of Penalties
  51. The penalties imposed pursuant to Article 23 of this Law shall be paid into the State budget within one month from the day of receipt by the person in breach of the Law of the resolution to impose a penalty upon him.
  52. The outstanding penalties shall be recovered in the manner laid down in the Code of Civil Procedure.” Article
  53. Entry into Force Article 7 of the Law on Product Safety shall enter into force from January 1,
  54. Article
  55. Recommendation to the Government The Government of the Republic of Lithuania or a body authorised by it shall, by 1 January 2002, establish a procedure for rapid exchange of information about dangerous products posing threat to the health of consumers. I promulgate this Law passed by the Seimas of the Republic of Lithuania PRESIDENT OF THE REPUBLIC VALDAS ADMAKUS

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