The Product Regulation and Metrology Bill (the “Bill”), which was introduced in the House of Lords on 4 September 2024 and which enters committee stage on 4 November 2024, seeks to reshape how the UK regulates a large number of products in the post-Brexit environment.

What the Bill seeks to achieve

The Bill's primary objective is to modernise the UK’s product safety, regulation and metrology framework, and to ensure the UK can adapt to new technologies, such as AI, while maintaining consumer safety.

While AI is not expressly mentioned in the text of the Bill, the reference to AI in the Bill’s explanatory notes indicates the government's intention to address a pressing challenge: how to regulate the rapidly evolving AI technologies that are now integral to a wide range of consumer products.

Broad powers for future regulation

The relatively short Bill grants the Secretary of State the power to introduce secondary legislation to address emerging risks associated with, among other things, AI-enabled products and modern sales channels such as online marketplaces.

Under Clause 2(2), the Secretary of State is entitled to establish requirements for monitoring, assessing and certifying components to guarantee safety and performance, which may extend to AI components.

Additionally, the Bill enables the regulation of information disclosures (including information about risk), which will aim to ensure that consumers are informed about the risks associated with products, which may again extend to AI technologies.

Divergence or alignment with the EU?

Another key feature of the Bill is its provision for flexibility - specifically, the ability for the UK either to align with or diverge from EU product regulations. While this approach is expected to ease trade complexities for businesses operating across both UK and EU markets, the ambiguity around which EU regulations the UK might adopt raises concerns about how this will play out in practice.

The government’s ability to adopt or reject EU regulations as it sees fit suggests the possibility of both alignment and divergence, depending on what is deemed to be in the UK’s interests. This flexibility may benefit cross-border businesses, but it also adds uncertainty, particularly for companies needing to navigate two regulatory regimes post-Brexit.

Limited Parliamentary scrutiny

One notable concern surrounding the Bill is the limited parliamentary scrutiny of secondary legislation. While the Bill enables the rapid introduction of new regulations, including those related to AI, it does so through statutory instruments, bypassing the need for full parliamentary debate and amendment.

This process, though efficient, raises concerns about oversight, particularly given the wide-ranging impact of potential AI regulations on businesses and consumers. Without adequate parliamentary scrutiny, there is a risk that crucial regulatory decisions could be made without thorough debate or consideration of the broader implications, and could potentially lead to unintended consequences for industry and the public.

What’s next?

The Bill’s journey through Parliament has only just begun, with its second reading having been held on 8 October 2024, and the committee stage scheduled for 4 November 2024.

It will then move through further stages in the House of Lords and the House of Commons, with Royal Assent anticipated in the spring of 2025. However, the real changes will only be apparent as secondary legislation is implemented under the Bill’s framework.

While the Bill empowers the government to align with EU standards where it benefits the UK, it does leave many questions unanswered about the full extent of future regulatory changes and the level of parliamentary oversight.  

This uncertainty raises concerns about the transparency and accountability of decisions that could significantly impact businesses, consumers and the broader regulatory environment, especially as AI technologies continue to evolve and shape the market.