Medical Devices & Consumer Health Products 2022

Last Updated June 24, 2022

France

Law and Practice

Authors



Kennedys is a global law firm with expertise in dispute resolution and advisory services, staffed by more than 2,300 people across the globe. The firm delivers straightforward advice, even when the issues are complex, but it is often the firm’s insights and support beyond the law that really make a difference to its clients. The team members’ expert knowledge in their chosen industries means that Kennedys has the best people to help clients navigate challenges. Its lawyers handle both contentious and non-contentious matters, and provide a range of specialist legal services for many industry sectors, including insurance and reinsurance, aviation, banking and finance, construction, engineering, cyber and data privacy, healthcare, life sciences, marine, public sector, real estate, retail, shipping and international trade, sport and leisure, transport and logistics, and travel and tourism. The firm has particular expertise in litigation and dispute resolution, especially in defending insurance and liability claims.

In France, the rules applicable to healthcare products (medical devices, pharmaceuticals, blood products, personal protective equipment, medical instruments, etc) derive from EU law and national law (which is often a transposition of EU law).

The French Public Health Code (FPHC) sets out definitions and rules in relation to healthcare products. More precisely, Part V of the FPCH relates to medical devices and medicinal products.

Regulatory Regime Applicable to Medicinal Products

Directive (CE) No 2001/83, which was transposed under French law (Articles L. 5121-1 et seq of the FPHC; Articles R. 5121-1 et seq of the FPHC) sets out the rules applicable to medicinal products.

Regulatory Regime Applicable to Medical Devices

There are specific regulations applicable to specific medical devices. There are also general rules, which apply to all of these products, as set out by Articles L. 5211-1 et seq of the FPHC.

Two EU Regulations on medical devices are worth noting:

  • Regulation (EU) 2017/745 on medical devices; and
  • Regulation (EU) 2017/746 on in vitro diagnostic medical devices.

These EU Regulations were recently amended and have been applicable, respectively, since 26 May 2021 and 26 May 2022. The new rules set out in these amended regulations aim at extending the scope of the products falling under the definition of “medical device” and strengthening the requirements and criteria for the design and manufacture of medical devices.

The Regulatory Regime Applicable to Blood Products

In France, blood products are strictly regulated by the FPHC (Articles L. 1221-1 et seq and Articles L. 1271-1 et seq of the FPHC). This strict regulation is the consequence of the infected blood scandal that occurred in France in the 1990s, when a medical centre distributed blood products contaminated with HIV and hepatitis C. More precisely, specific rules are set out in relation to the donor, transportation, the safety chain and the storage of the product.

The French Blood Establishment (EFS), created in January 2000, has the monopoly, in France, on the collection, testing, preparation, and distribution of labile blood products (Articles L. 1222-1 to L. 1222-16 of the FPHC).

Regulatory Regime Applicable to Cosmetics

Cosmetics were first regulated by Directive No 76/68/ECC, which was transposed into national law under Articles L. 5131-1 to L. 5131-11, Articles L. 5431-1 to L. 5431-7, Articles R. 5131-1 to R. 5131-14, Article R. 5431-1 and R. 5431-2 of the FPHC.

Regulation (EC) No 1223/2009 on cosmetic products has subsequently replaced this Directive.

A French Act that recently entered into force is also likely to have an important impact on cosmetics, since a lot of their components are now prohibited (French Act No 2020-105 dated 10 February 2020). Indeed, pursuant to this Act, and since 1 March 2020, 23 chemical substances which are considered toxic or carcinogenic, are forbidden in cosmetics products.

Regulatory Regime Applicable to Biocides

Biocides are chemical or organic products aiming at destroying, pushing back or annihilating harmful organisms. As such, biocides may have a negative impact on humans and on the environment.

All biocidal products require prior authorisation before being placed on the market, and their active substances should also be approved (Regulation (EU) No 528/2012). There are 22 biocidal product types, which are grouped in four main areas (disinfectants, preservatives, pest control, and other biocidal products).

At the national level, biocides are usually governed by the legislation applicable to chemicals of the French Environmental Code, to the extent they impact the environment.

However, biocides may also be subject to medical regulations. That is the case of medical disinfectants, which may fall under the scope of Regulation (EU) No 528/2012, which came into force on 1 September 2013. However, it should be noted that, as a principle, medical disinfectants cannot be characterised as medical devices per se. They may fall into this category to the extent a medical device needs to be disinfected before use (such as contact lenses or endoscope disinfectants).

Regulatory Regime Applicable to Food and Nutrition Supplements

French Decree No 2006-352 of 20 March 2006 has transposed Directive No 2002/46/CE, relating to food supplements, into French law.

Regulatory Regime Applicable to Medical Apps

Healthtech businesses have spread rapidly in France, particularly over the last decade. As a result, medical apps have developed and now cover a wide range of activities and specialisations in the health sector.

However, and considering that medical apps are rather recent, there is no specific regulation applicable to these apps.

However, it should be noted that:

  • like every other piece of software collecting data, they must comply with the General Data Protection Regulation (EU) No 2016/679 (GDPR); and
  • a medical app may be characterised as a medical device, since the French definition of medical devices includes “software designed to be used specifically for diagnosis or treatment purposes” (Article L. 5211-1 of the FPHC).

To that extent that they do qualify as medical devices, medical apps may be obliged to comply with the applicable regulation, which notably derives from Regulation (EU) No 2007/745. It should be noted that a Medical App may qualify as a medical device if it meets the following cumulative conditions:

  • it is intended for medical purposes;
  • at least one of its functions enables it to use patient-specific data; and
  • this date is processed in order to provide new medical information (Court of Justice of the European Union (CJEU), 7 December 2017, Case C-329/16).

Regulatory Regime Applicable to Telemedicine

Telemedicine is a form of remote medical practice that was introduced into the FPHC under Articles L. 6316-1 and R. 6316-1 et seq of the FPHC.

It was amended by a 2010 Decree (Decree No 2010-1229), implementing a national Act dated 21 July 2009, which reformed the hospital system. The decree defines the medical act that may be realised through telemedicine and the different conditions of application of telemedicine (which are teleconsultation, telexpertise, telesurveillance, tele-assistance and medical regulation).

Telexpertise allows health professionals to request the advice of professionals of other specialities, through digital means. Telesurveillance allows the practitioners to interpret health data without examining the patient.

In 2018, the French National Health Insurance Fund allowed the reimbursement of telemedicine (Articles L. 6316-1 et seq of the FPHC).

In the context of the COVID-19 pandemic, and following the public health emergency Act dated 23 March 2020 (which was extended until June 2021), the rules applicable to telemedicine were modified in an attempt to expand the practice and offer greater protection to patients. All teleconsultations were fully reimbursed by public insurance.

Regulatory Regime Applicable to Wearables

Wearables have also spread over the last few years. These objects collect health data on a daily basis, and to that extent, should strictly comply with data protection legislation, including the GDPR. Depending on the device, medical device regulations may also apply.

Regulatory Regime Applicable to Cannabidiol (CBD)

In France, there is a general prohibition of any operation (including the production, transport, possession, sale or use) involving cannabis and its derivatives (as provided by Article R. 51232-86 of the FPHC).

By way of exception, the farming, import, export and industrial and commercial use of the seeds and fibres of a variety of Cannabis, the Cannabis sativa L. variety, is allowed providing the following conditions are met:

  • the concerned variety is one of the authorised varieties;
  • only the seeds and the fibres are to be used; and
  • the THC content of the plant variety does not exceed 0.20% (these conditions are set out by the Decree of 22 August 1990).

However, in a recent case, this strict regime was challenged before the CJEU. Indeed, in a landmark decision, the Court held that CBD is not a narcotic drug and that member states are not allowed to prohibit its marketing (CJEU, 19 November 2020, Case C-66318). In other words, French laws which ban hemp-derived CBD were found contrary to EU laws.

The French government refused to apply this European decision and introduced an order dated 30 December 2021 prohibiting the sale of cannabis flower and leaf. However, for the authorised varieties only, this order also increased the allowed rate of THC to 0.30%.

This order was suspended as from 24 January 2022, following a decision of the higher court of the administrative system in France; ie, the Conseil d’Etat.

The French regulation of CBD is still hazy and is likely to evolve in the next few years.

The classification of products may sometimes be discussed, especially when said products are destined to be used in different sectors (environment, food industry, beauty industry, etc). As a result, the correct regime applicable to these products, which may be referred to as “borderline products”, is sometimes difficult to determine.

In order to facilitate the distinction between products, several instruments were put in place. Guidelines were issued by the European Commission and national governments, notably covering the distinctions between cosmetics and medicines.

Moreover, in borderline situations, and in the event a claim arises in this respect, French courts may decide which categories apply to which products on a case-by-case basis.

Finally, the National Agency for the Safety of Medicines and Health Products (ANSM) may also rule on the classification of a product, taking into consideration its composition, its scientific properties, its mode of use, etc.

Manufacturing entities are subject to several requirements both prior to and after the marketing of health sector products, including medical devices, healthcare products and products featuring new technologies. These requirements depend on the product. However, the same steps are generally followed by the manufacturers of the health sector products , as summarised below.

Application (ie, Prior Authorisation or Declaration)

The manufacture of medical products is usually subject to prior authorisation granted by the ANSM

Manufacturers of blood products are subject to prior authorisation by the ANSM. Indeed, establishments carrying out transfusions must be approved by a decision of the ASNM. Moreover, any activity involving the preparation, storage, distribution, transfer, import or export of tissue, as well as its derivatives, cells and cell therapy preparations from the human body, used for therapeutic purposes, is also subject to prior authorisation from the ANSM.

The preparation, conservation, distribution, or transfer of advanced therapy medicinal products prepared on an ad hoc basis (including experimental medicinal products) is also subject to prior authorisation from the ANSM.

However, the manufacturers of both medical devices (Article L. 5211-3-1 of the FPHC) and cosmetics (Articles L. 5131-2 and T. 5131-1 of the FPHC) are only subject to a declaration (which is distinct from a pre-authorisation) to the ANSM.

It should also be noted that entities other than the ANSM may be involved in this pre-authorisation/declaration process. More precisely, the development of the healthtech sector has led to new requirements in relation to data protection. As a result, any person hosting personal health data in the context of prevention, diagnosis, care, social or medico-social healthcare must be certified as a health data hosting service provider pursuant to Article L. 1111-8 of the FPHC. The conditions of approval are set by decree, and subject to a consultation of the Data Protection Authority (CNIL).

Conditions of Approval

Manufacturing authorisations may be delivered only if the product, the manufacture site and the manufacturer meet the conditions presented under the good manufacturing practice (GMP) guidelines (which – at the EU level – is regulated by Directive No 2003/94/EC).

Other guidelines may apply depending on the manufacturer’s activity. For instance, the manufacture of medicinal products must be realised by a pharmacist or a company in which a pharmacist participated in the management or board of directors.

Examination of the Application

Both the declaration and the authorisation procedures must be done online up to 60 days before any activity starts. Manufacturing authorisations are granted within 90 days as from the receipt of the application.

Initial authorisations are not subject to any fees.

It should be noted that the application may sometimes be subject to an inspection of the facility by an expert – whose mission is, inter alia, to verify the facility’s ability to carry out its activities in compliance with the applicable requirements.

Period of Authorisation and Renewals

Authorisations are granted for an unlimited period of time.

However, suspensions or withdrawals may be decided by the ANSM following inspections revealing hypothesis of breaches of the applicable standards.

Inspections

Inspections aim at assessing the compliance of manufacturers with good practice and other applicable standards.

In this process, inspectors can analyse samples and can be authorised by a court to seize products.

An inspection report usually summarises the breaches/deviations from required standards. The inspection report is drawn up during a process in the presence of all the parties (ie, an adversarial process) which includes a preliminary report to the operator. As a result of this report, and if the site is deemed not compliant, appropriate decisions may be taken. Moreover, inspections can lead to administrative being measures taken by the ANSM, including injunctions, suspensions, the withdrawal of authorisation or the approval of financial penalties.

There are no specific obligations in respect of corporate social responsibility, environment, and sustainability throughout the product life cycle. However, manufacturers are largely encouraged by the French government to take measures in this respect, if practicable. Moreover, manufacturers usually publish measures that they plan on implementing in order to improve their position on social responsibility, the environment, and sustainability.

Applicable Rules on Advertising and Product Claims under French law

Under French law, the FPHC strictly regulates advertising and product claims in respect of healthcare products and medical devices. Moreover, the French Consumer Code, which is also applicable in the heath sector, prohibits unfair, misleading practices and comparative advertising (Articles L. 121-1 et seq, Articles L.122-1 et seq).

There is also soft law on this subject:

  • the ANSM provides for general recommendations and guidelines on the matter; and
  • on 25 March 2022, a new version of the MedTech Ethics Code entered into force.

This code aims at regulating all aspects of the industry’s relationship with healthcare professional and healthcare organisations, at ensuring that all interactions are ethical and professional at all times and at maintaining the trust of regulators, and – most importantly – patients. A such, the code contains rules on advertising which are applicable to all the members parties (the MedTech Europe corporate members became signatories of this Code on 1 January 2017).

Finally, it is worth noting that a French ministerial order laying down a Charter on the quality of professional practices for the presentation, information or promotion of medical devices for individual use, other health products and any associated services was published on 8 March 2022. This Charter sets out a new framework for providing information and carrying out promotional practices in relation to reimbursed medical devices. It applies to products and services reimbursed by the French social security system and is used, notably, in pharmacies and health institutions. Non-compliance with the Charter by a company can lead to a financial penalty.

Presentation of the Requirements in Respect of Advertising and Product Claims under French Law

Medical advertising requires a prior authorisation (an “advertising visa”) or a certification. Products must comply with the marketing authorisation or certification and the therapeutic strategies recommended by the French National Authority for Health (HAS). The advertisement of the product must be objective and not misleading or endanger public health and/or consumer safety.

The advertising requirements for products vary depending on the audience (general public or healthcare professionals), the payers and the reimbursement systems for those products.

Pursuant to the Toubon Act No 94-665 dated 4 August 1994, the use of French language is compulsory. The aim is to protect French consumers, as well as to preserve the French language, and promote French culture. A failure to comply with this Act may lead to a fine of EUR3,750 per non-compliant product.

The FPHC has provisions for penalties for advertising violations that can go up to a EUR750,000 fine and two years in prison for the company’s legal representative. For the companies involved, fines can be five times as high.

Examples of Specific Requirements

The advertisement of biocides, which may be particularly dangerous for the environment, is strictly regulated (Articles L. 522-18 to L. 522-19 and Articles R. 522-16 to R. 522-17 of the French Environment Code). Decree 2019-642 of 26 June 2019 specifies the types of biocides which may be commercialised and the form of advertisement that a biocide product may take.

The advertisement of food and cosmetics is not subject to prior authorisation by the ANSM. However, some rules must be respected by the advertiser. For instance, the advertisement cannot mislead consumers. Moreover, the presentation of the product must not refer to the product as being able to cure or prevent diseases (in this event, it could be considered as a medicine by the regulators).

Under French law, several requirements must be met for a product to be validly placed on the market.

Indeed, in order to be placed on the French market, medicinal products must receive prior authorisation (AMM) issued either by the Director General of the ANSM or by the European Commission after evaluation by the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Evaluation Agency (EMA).

For medicinal products intended to be sold in European countries, specific procedures should be followed. The access to the market should be made either through:

  • the centralised procedure (defined in Regulation No 2309/93/ EEC amended by Regulation No 726/2004/EEC);
  • the mutual recognition procedure (provided for in Directive 2001/83/EC amended by Directive 2004/27/EC);
  • the decentralised procedure (provided for in Directive 2004/27/EC).

To obtain an AMM, the manufacturer of a medicinal product must submit a file containing all the scientific results obtained during the development of the product as well as the clinical studies. The file must contain proof of the quality, safety, and efficacy of the drug, with a favourable benefit/risk ratio.

In France, national marketing authorisations granted by the ANSM are valid for a period of five years, renewable without time limits.

It should also be noted that after obtaining the authorisation and after putting their product on the market, the manufacturers of a medicinal product must appoint an internal representative for pharmacovigilance, whose contact details must be shared with the ANSM. A periodic report must also be given to the ANSM detailing any adverse reactions to the product, and any prohibition or restriction regarding the product that could have been imposed by the competent authority. Finally, if any incident happens, if any serious risk occurs of if a recall happens, manufacturers should also notify the ANSM.

Other products should also obtain authorisation in order to be placed on the market:

  • pursuant to Regulation (EU) No 528/2012, biocide goods should also be granted a marketing authorisation;
  • the French Agency for Food, Environmental and Occupational Health and Safety (ANSES) is the competent institution that delivers marketing authorisation for food products; and
  • the manufacturer of a cosmetic products are required to prepare a file to the ANSM that includes a human health evaluation, taking into consideration the toxicological profile of the components used in its formula and the level of consumer exposure.

Internationalisation plans may be put in place by French manufacturers of health products. Indeed, manufacturers may decide to export and sell their products to other countries.

However, the circulation of health products is not unlimited and is subject to strict conditions. For instance, in a decision related to the circulation of a medical product, the CJEU held that a medicinal product, which is not subject to prescription in one member state, may not be placed on the market in another member state, unless that member state has granted its marketing authorisation (Case C-178/20, 8 July 2021). Therefore, the European principle of freedom of movement does not seem to be applicable to health products.

At the international (non-European level), health products should also meet the conditions of the foreign country to which they are exported, in order to be marketed in such country. 

This may be explained by the fact that countries have different health policies and regulations.

The French regulatory authorities of the healthcare sector are invested with a general mission of surveillance and, as such, should ensure that the products placed on the market present, on balance, more benefits than risks. In this context, healthcare agencies should also verify the quality and the safety of the products.

For instance, the ANSM has established several surveillance systems such as:

  • pharmacovigilance (for medications);
  • reactovigilance (for in vitro medical devices);
  • cosmetovigilance (for cosmetics);
  • nutrivigilance (for food supplements); and
  • materiovigilance (for medical devices).

If needed, corrective actions can be taken to reinforce the products’ safety which can also lead to there being recalled from the market.

Moreover, French regulatory authorities usually conduct inspections to ensure that the rules are being properly followed and regulations properly applied. Inspections may result in administrative actions forcing the manufacturers to comply and can vary from an injunction to financial fines. These sanctions can even lead to the suspension of activity.

In France, there are several regulatory authorities intervening in the health sector. The mission of these health agencies is to regulate the health sector; ie, to set and define rules applicable to medical devices, healthcare products and any other related products.

The role and mission of each of these agencies are governed by the French Act No 2016-41 dated 26 January 2016.

In France, the main health agencies are:

  • the ANSM, which a public institution with a general mission of control and regulation of healthcare products;
  • the French National Authority for Health (HAS), which is an independent public body created to bring together a number of activities designed to improve the healthcare system, and to guarantee equity and patient-care quality;
  • at the local level, the French Regional Health Authorities (ARS) control public health policies and regulate the supply of healthcare in each of the relevant regions; and
  • the French Directorate General of Healthcare Provision (DGOS) evaluates the healthcare supply policy, in line with the priorities and objectives of national health policy.

There are also specific health agencies such as:

  • the French National Digital Health Agency (ANS), which supports and reinforces the digital transformation of the healthcare system, by implementing digital tools for health purposes;
  • the French Agency for Food, Environmental and Occupational Health & Safety (ANES), which is a public administration body reporting to the Ministries of Health, Environment, Agriculture, Labour and Consumer Affairs whose mission consists in providing the scientific benchmarks needed for protection from risks related to food, the environment and the workplace; and
  • the CNIL, which is an independent public institution whose mission is to ensure the protection of personal data – which is often disclosed in the health sector.

In order to allow effective regulation of the healthcare sector, French regulatory agencies are granted several powers of investigation and control. They may also send reports to the ministry/authority they depend on, and request measures if and when necessary.

It should be noted that the ANSM has increased powers since French Act No 2011-2012 of 29 November 2011, since it is entitled, inter alia, to:

  • investigate by carrying out inspections on sites;
  • monitor the manufacture, distribution, advertisement, marketing and sale of the products, by conducting investigations – these investigations can also be held jointly by several regulatory authorities who can use complementary powers; and
  • impose administrative injunctions, sanctions or suspensions of authorisations.

The other health agencies also have significant powers. For instance, the CNIL is entitled to alert the public in the case of a breach of the applicable rules but also to carry out investigations and impose sanctions if needed.

The FPHC sets out the criminal offences and monetary penalties that may be pronounced in the case of a breach of the applicable rules and regulations (fourth part and fourth book of the FPHC).

The sanctions may apply in case of breach of several rules, set out in the FPHC, such as a failure to comply with the rules applicable to medical devices, cosmetics or in vitro diagnostic devices.

The sanctions that may be imposed are of both a criminal and civil nature and are usually pronounced by the ANSM.

Criminal penalties depend on the nature of the breach. For instance, advertising of medical products and devices with early authorisation may lead to a sanction of one year’s imprisonment and a EUR150,000 fine. The distribution, production, brokage, advertising, sale, import or export of falsified medicine can be sanctioned by a EUR375,000 fine and five years in prison.

The FPHC also provides for monetary penalties in the case of infringements of certain rules (Articles L.5421-8, L.5422-18, L.5423-8, L.5461-9, L.5462-8, R.5461-4 and R.5462-4 of the FPHC).

These financial sanctions cannot exceed 10% of the gross turnover, up to EUR1 million, for a company, and EUR150,000 for a natural person. The daily fine for a delay in performance or compliance with an ASNM order cannot exceed EUR2,500 per day.

In 2021, the ASNM ordered six penalties for a total amount of EUR508,048. On 27 April 2022, the ANSM published a report announcing it might decide to apply penalties in cases of falsification of advice from a hospital’s ethics committee and research on human subjects without prior authorisation.

Under French law, claims based on the defect of a product should be exclusively grounded on the product liability regime (Article 1245 et seq of the French Civil Code – FCC). Indeed, the product liability regime, which derives from a transposition of Directive No 85/374/EEC, is of public order if the cause of the damage allegedly suffered is the defect of the product. This regime applies even in the presence of a contract between the parties.

In the case of an alleged defect in a product, a party may also bring a claim on the basis of the warranty for latent defect regime (Articles 1641 et seq of the FCC). It should be noted that the time limitation applicable to this type of claim is shorter than the one applicable to product liability claims (two years as from the discovery of the defect for the warranty for latent defect regime and three years as from the discovery of the defect, the identity of the producer and the damage in the context of the product liability regime).

If the claim is not related to the defect of the product, it may be grounded on:

  • contractual provisions – therefore, and in order to incur contractual liability, the claimant should prove (i) a breach of contractual provisions, (ii) damage, and (iii) a causal link between the alleged breach and the damage (it should be noted that only the foreseeable damages are compensable under French law); and
  • torts – if the special regime of liability for goods is not applicable, a claimant may try and incur a party’s liability by proving (i) a fault, (ii) damage, and (iii) a causal link between the alleged fault and damage (Article 1240 of the FCC).

In France, rules on jurisdiction of the courts derive from European law, when and if applicable, and more precisely from the Regulation No 1215/2012 (Brussels I bis). These rules may also result from the provisions of the French Code of civil procedure (FCCP), which applies in national and international (non-European) matters.

A claimant should first determine the nature of their claim (civil or commercial) to identify the competent jurisdiction. In civil matters, the claimant should seize the court of the defendant’s domicile (Articles 42–48 of the FCCP). This principle applies to cross-border litigation (French Supreme Court, 1st Civ. 14 March 2006, No 05-13.820).

There is an exception to this rule applicable to consumers. Indeed, a consumer may seize the court of the place of its domicile under Article 18 of the Brussels I bis Regulation. Under Article R.631-3 of the French Consumer Code, a consumer may also decide to bring the case before the Court located where they were domiciled when the agreement was entered into or the court located where they resided when the damage arose.

The “loser pays” principle is not as strong in France as it can be in common law countries.

There are, however, some costs rules applicable to French claims (which are not limited to product liability claims). More precisely:

  • pursuant to Article 696 of the FCCP, the winning party may recover all the procedural costs listed under Article 695, which include the service fees and the court-appointed expert’s fees; and
  • pursuant to Article 700 of the FCCP, a party may claim and recover all the costs that are not procedural costs (including lawyers’ fees incurred in the context of the proceedings).

The parties are free to claim any amount under Article 700 of the FCCP but should justify their request. The court will then rule, on a case-by-case basis, whether this amount should be granted, in light of the representations made by the parties and also of the equity between the parties.

Most of the decisions of regulatory bodies can be challenged before administrative courts. This does not concern preparatory acts, advice or recommendations which are not binding (guidelines, etc).

Class actions are not allowed per se under French law. However, group actions may be issued before the courts.

The group action mechanism is quite recent in France since it was introduced by the Hamon Act of 17 March 2014. Under the provisions introduced by this Act, consumer associations are entitled to bring claims in respect of consumer law and competition law breaches, providing at least two of the consumers suffered the same damage. In order to validly bring proceedings, the consumer association should also have the capacity to issue such proceedings.

On 26 January 2016, the group action mechanism was extended to the healthcare products and cosmetic fields (Article L.1143-1 of the FPHC). It is on the basis of this new regime that the Depakine cases were brought before French Courts. In a recent decision dated 5 January 2022, the Paris Judicial Court held Sanofi liable for the damage caused as a result of the administration of Depakine to pregnant women, since it failed to observe its obligation of vigilance and information on the risks attached to this medicine. This is a landmark decision since it is the first decision relating to a group action in the health sector. Please refer to the France Trends & Developments chapter in this guide for further discussion of the Depakine case.

Even though there is no public listing of group actions, it should be noted that some actions are still pending and relate to consumer goods, health products, data protection, housing, and discrimination.

In France, it is not mandatory to try to settle a case through an alternative dispute resolution (ADR) mechanism before issuing proceedings before the courts.

There are exceptions to this principle:

  • for small claims (less than EUR5,000), under specific conditions stated by Article 750-1 of the FCCP; and
  • in the event the parties agree, by contract, to try and settle their claim through a mediation or a conciliation procedure before any proceedings.

The parties are bound by their agreement and the court may reject a party’s claim in the absence of any attempt to settle the dispute prior to a trial.

Claims in relation to product safety compliance may be brought before civil, criminal of administrative courts.

Civil litigants may also report to any regulatory authority any violation of law or regulations.

Product safety and product liability in respect of environmental impact is governed by the French Act No 2020-105 of 10 February 2020, which was issued to prevent waste and to achieve zero single-use plastic by 2040, as well as to end the use of micro-plastic by 2040.

In order to avoid wasting medicine and medical products, the law states that pharmacies have been able to sell medicines individually from January 2022 (Article 40 of the French Act No 2020-105).

The EU regulations applicable to medical devices (EU Regulation No 2017/745) and in vitro devices (EU Regulation No 2017/746) were recently amended.

The aims of these amendments were, inter alia, to:

  • redefine the responsibilities of economic operators;
  • modify the system of classification for medical devices; and
  • impose new requirements for marketing surveillance and require new transparency duties and obligations.

The EU regulation on Medical Devices were to apply from 26 May 2021. However, due to the pandemic, the European Parliament handed down a decision postponing the beginning of its application by a year, until 26 May 2022. The transitional period, during which member states will have to implement the provisions of the Regulation into their national law, will end on 26 May 2024.

No similar decision has been handed down by the European Parliament regarding the EU In Vitro Diagnostic Regulation, which will apply from 26 May 2022.

Since then, the European Parliament has not issued any similar decision regarding the EU In Vitro Diagnostic Regulation.

The COVID-19 pandemic had important consequences on the health sector. Indeed, healthcare providers were particularly impacted by this pandemic.

More precisely, on 23 March 2020, the French government issued a statement declaring a state of health emergency (on the basis of the French Constitution), thus allowing the Prime Minister to take measures by decree. This state of health emergency, which was extended until 1 June 2021, allowed the French government to take several restrictive measures as well as impose regulations applicable to the health sector. Indeed, measures were issued to ensure sufficient medical provision for patients (hydroalcoholic gels protection for caregivers in hospitals, protective equipment, etc).

Along with these developments and the rapid changes forced on the healthcare sector, comes the question of product liability, especially for vaccines against COVID-19. In this respect, the State’s liability has been questioned.

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Kennedys is a global law firm with expertise in dispute resolution and advisory services, staffed by more than 2,300 people across the globe. The firm delivers straightforward advice, even when the issues are complex, but it is often the firm’s insights and support beyond the law that really make a difference to its clients. The team members’ expert knowledge in their chosen industries means that Kennedys has the best people to help clients navigate challenges. Its lawyers handle both contentious and non-contentious matters, and provide a range of specialist legal services for many industry sectors, including insurance and reinsurance, aviation, banking and finance, construction, engineering, cyber and data privacy, healthcare, life sciences, marine, public sector, real estate, retail, shipping and international trade, sport and leisure, transport and logistics, and travel and tourism. The firm has particular expertise in litigation and dispute resolution, especially in defending insurance and liability claims.

Group Actions in the French Health Sector

In France, group actions are a developing trend in the health sector. In this respect, a decision recently rendered by a French Court is worth noting.

The Depakine case

The Paris Judicial Court (the “Court”) handed down a landmark decision on 5 January 2022 (No 17/07001). More precisely, proceedings were brought on 2 May 2017 by APESAC, an association involved in the assistance of parents of children suffering from anti-convulsant syndrome, against Sanofi-Aventis and its insurer, in relation to the Depakine drug marketed by the laboratory.

The claimant (APESAC) argued that the defendant (Sanofi-Aventis) failed to comply with its obligation of vigilance since it did not alert consumers of the risk associated with the absorption of the active ingredient of Depakine (sodium valproate) by pregnant women.

Sanofi raised a procedural argument in response, by challenging the admissibility of the group action brought by the association. More precisely, the defendant alleged that, for the action to be admissible, it should meet the following conditions:

  • the association should present individual cases sufficiently documented to justify the action;
  • individual harm must have a common cause, which must be a breach attributable to a producer or supplier of a health product or a provider using the product;
  • health system users seeking compensation for individual harm must have a right to compensation against the defendant;
  • these users must be in a similar or identical situation; and
  • individual harms must have a common cause.

In these circumstances, the Court noted that, under relevant case law, a group action can be certified by the judge if the following requirements are met:

  • the action must be introduced by an approved association of health system patients;
  • the existence of damage relating to personal injury suffered by health system patients;
  • a breach by a producer, manufacturer or service provider of its legal or contractual duties; and
  • the existence of a causal link between the damage and the breach.

The Court held that the APESAC met those requirements as the APESAC is an association of patients of the health system approved in application of the provisions of Article L 1114-1 of the public health code since:

  • this association had a national approval for associations and unions of associations representing patients in hospital or public health authorities which was taken by order of 11 January 2016 of the Minister of Social Affairs, Health and Women’s Rights;
  • this association stated that it represented several thousand families whose mothers were treated for epilepsy with the drug Depakine during their pregnancy and whose children now present pathologies characteristic of foetal valproate syndrome;
  • in support of its request, it produced the situation of 14 families numbered from 1 to 14 to illustrate and justify its action, as required by law;
  • the existence of alleged damages related to personal injury is well established in this case;
  • the group relates to women who took Depakine between 1970 and 2016, and who live throughout France – these women are therefore placed in a similar or identical situation and their situations are particularly representative of the group; and
  • the causal link between the damage and the breach was alleged by the APESAC, although it was not the judge’s role to evaluate the existence of such a link at this stage.

As a result of the above, the Court ruled in favour of the admissibility of the claim.

On the merits, the Court held that the laboratory had failed in both its duty of vigilance and its obligation of information. More precisely, the Court ruled that Sanofi-Aventis should have updated the summary of product characteristics (SPC) and the information leaflets of Depakine to mention the risks associated with absorption of the medicine during pregnancy. As a result, the drugs were found defective for the following time periods:

  • from 22 May 1998 to 25 January 2006 for the teratogenic effects; and
  • from January 2001 to 25 January 2006 for developmental disorders and cognitive disorders.

Finally, it should be noted that the Court provided the following definition of the group in the action:

“ 1. any woman who was pregnant in France between 1984 and January 2006 for congenital malformations and between 2001 and January 2006 for developmental and cognitive disorders and who was exposed during her pregnancy to a speciality containing sodium valproate produced and marketed by the company SANOFI-AVENTIS FRANCE, or any other company to whose rights it now belongs

2. all children exposed in utero in France between 1984 and January 2006 for congenital malformations and between 2001 and January 2006 for developmental and cognitive disorders to a product containing sodium valproate produced and marketed by SANOFI-AVENTIS FRANCE, or any other company to whose rights it now belongs.

3. any indirect victim of the two previous categories of victims who has a family link and/or a real emotional link with them and who can prove that he or she has suffered a loss.”

The Court also noted that no individual medical expertise was necessary to join the group as per applicable provisions regarding health group actions.

This ruling is a decisive step since it is the first time a French court has approved a group action in the health sector.

It should, however, be noted that an appeal has been lodged against this decision and the ruling of the Paris Court of Appeal is much anticipated.

The legal framework applicable to group actions under French law

This decision prompts a consideration of the framework applicable to group actions under French law.

It should be noted that the notion of the group action is quite a recent one in France. Indeed, class actions analogous to those available in the United States of America did not exist in the French legal system before 2014, when a group action mechanism was created by the French legislature (Law No 2014-344 of 17 March 2014).

Whilst French group actions share some common traits with US class actions, they differ in certain key respects and it is therefore best to approach them as a distinct and autonomous mechanism, sui generis, rather than try to understand them by comparison to or via the prism of the US regime.

Group actions in the field of public health were created by the Health Act dated 26 January 2016 for health disputes and Law of 18 November 2016 on the modernisation of justice for the 21st century.

There are conditions which should be met for a group action in public health to succeed. These conditions are notably presented under the first paragraph of Article L.1143-2 of the Public Health Code which states that:

“An association of users of the health system approved under section L. 1114-1 may take legal action in order to obtain compensation for the individual harms suffered by health system users placed in a similar or identical situation and whose common cause is a failure on the part of a producer or supplier of one of the products mentioned in II of Article L. 5311-1 or a service provider using any of these products to their legal or contractual obligations…” (emphasis added).

For a group action to be validly filed, various individuals need to have suffered identical or analogous prejudices as a result of a defendant’s breach of its statutory or contractual obligations.

The expected developments in this sector

To date, and despite the flourishing legislation in this area, there have been very few group actions in France. This may be explained by the fact that the French regime in this sector is particularly strict. Indeed, it is only if very strict requirements are met that a group action is deemed admissible before French courts.

The French legal framework could soon evolve since the EU Representative Actions Directive, endorsed on 24 November 2020, and which replaces Directive 2009/22/EC on injunctions for the protection of consumers’ interests, should soon be implemented in France, as member states are required to implement the provisions of this Directive before December 2022. However, France has not implemented this Directive yet.

It should be noted that this Directive shares significant similarities with the French group action regime already in place, and that, in turn, it should not bring many modifications to the applicable rules. More precisely, this regime enables consumers to introduce actions in a variety of areas, such as financial services, energy, telecommunications, health and the environment. As under French law, it allows qualified entities to bring domestic or cross-border actions to seek both redress (compensation, contract termination, repair, replacement, price reduction, etc) and injunctive relief (provisional measures to obtain the prohibition of the infringing practice). Finally, the procedural scheme is made up of two phases, as is the case under French law: (i) a first phase of a declaration of liability, to which consumers are not parties; and (ii) a second phase of compensation.

As a result, the EU Representative Actions Directive in France should not substantially impact the landscape in respect of future group actions regarding consumer health products/medical devices.

Kennedys

31 rue de Lisbonne
75008 Paris
France

+33 (0)1 84 79 37 80

+33 (0)1 45 63 61 72

Aurelia.Cadain@kennedyslaw.com www.kennedyslaw.com
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Kennedys is a global law firm with expertise in dispute resolution and advisory services, staffed by more than 2,300 people across the globe. The firm delivers straightforward advice, even when the issues are complex, but it is often the firm’s insights and support beyond the law that really make a difference to its clients. The team members’ expert knowledge in their chosen industries means that Kennedys has the best people to help clients navigate challenges. Its lawyers handle both contentious and non-contentious matters, and provide a range of specialist legal services for many industry sectors, including insurance and reinsurance, aviation, banking and finance, construction, engineering, cyber and data privacy, healthcare, life sciences, marine, public sector, real estate, retail, shipping and international trade, sport and leisure, transport and logistics, and travel and tourism. The firm has particular expertise in litigation and dispute resolution, especially in defending insurance and liability claims.

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Kennedys is a global law firm with expertise in dispute resolution and advisory services, staffed by more than 2,300 people across the globe. The firm delivers straightforward advice, even when the issues are complex, but it is often the firm’s insights and support beyond the law that really make a difference to its clients. The team members’ expert knowledge in their chosen industries means that Kennedys has the best people to help clients navigate challenges. Its lawyers handle both contentious and non-contentious matters, and provide a range of specialist legal services for many industry sectors, including insurance and reinsurance, aviation, banking and finance, construction, engineering, cyber and data privacy, healthcare, life sciences, marine, public sector, real estate, retail, shipping and international trade, sport and leisure, transport and logistics, and travel and tourism. The firm has particular expertise in litigation and dispute resolution, especially in defending insurance and liability claims.

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