Regulatory shifts in 2026 increase litigation risk on 'forever chemicals'

On 11 March 2025, the EU's Committee for Socio-Economic Analysis (SEAC) agreed its draft opinion on the socio-economic impacts of the proposed universal restriction of per- and polyfluoroalkyl substances (PFAS) under REACH (the EU's chemicals regulation framework).

The opinion, which is expected to be published imminently and will be subject to a 60-day consultation, follows the adoption by the European Chemicals Agency's (ECHA) Risk Assessment Committee (RAC) of its own opinion on 3 March 2026, completing the two-committee scientific evaluation of the universal PFAS restriction proposal jointly submitted by Denmark, Germany, the Netherlands, Norway and Sweden in January 2023.

The picture in the UK is similarly evolving. On 3 February 2026, the Department for Environment, Food and Rural Affairs (Defra) published the UK's first-ever PFAS plan, setting out a broad range of measures to address contamination and tighten regulation.

How can businesses mitigate their exposure to the litigation risks from these regulatory developments?

Why is regulation accelerating? 

PFAS are a large family of thousands of synthetic chemicals manufactured and used across a wide range of consumer products, including cosmetics, food packaging, non-stick cookware and clothing. They are also used in many industrial applications such as firefighting foams, electronics and semiconductor manufacturing, and pesticides.

Their defining characteristic is the strong carbon-fluorine bond, which renders them highly resistant to heat, water, oil, and chemical degradation, earning them the label "forever chemicals". While these properties make them commercially attractive, their accumulation in soil, groundwater, surface water and living organisms raises growing concerns about the risks they pose to human health and the environment.

This combination of ubiquity, persistence and toxicity has propelled PFAS to the forefront of the regulatory agenda in the US, the EU and, more recently, the UK. It has also exposed manufacturers and suppliers of PFAS chemicals and PFAS-containing products to an increased litigation risk.

UK regulatory developments

First UK PFAS plan published

On 3 February 2026, Defra published the UK's first-ever PFAS plan, setting out a broad range of measures to address contamination and tighten regulation. These include consulting on statutory PFAS limits in England's drinking water, increased testing and monitoring of contaminated land, soils, food packaging, estuaries and coastal waters, new guidance for industrial sites on the handling and disposal of PFAS, and consideration of restrictions on PFAS use in firefighting foams and specific consumer product groups. The plan also commits to developing PFAS-free alternatives for products such as period pads and water-repellent clothing, and launching a public-facing website to improve transparency on government action.

The plan spans 2026 to 2028, with several key milestones. The Environment Agency's PFAS prioritisation map will be made available to public sector bodies by the end of 2026, followed by an interactive public website by the end of 2027. UK REACH reforms aimed at aligning with the EU and closest trading partners are targeted for completion by December 2028, and a comprehensive assessment of PFAS contamination in coastal environments is due by February 2028.

UK consultation on PFAS use in firefighting foams closed

In April 2023, the UK Health and Safety Executive's Regulatory Management Options Analysis report highlighted that PFAS have a combination of properties that raise concerns for human health and the environment. The report recommended assessing whether a restriction under UK REACH could reduce PFAS emissions from firefighting foams.

In August 2025, the Health and Safety Executive consulted on the proposed restriction of the placing on the market and use of PFAS in firefighting foams. The consultation closed on 18 February 2026. A formal decision on restrictions is expected in 2027. Under current proposals, PFAS firefighting foams are to be phased out entirely across Great Britain.

EU regulatory action

Limits in drinking water standards

From 12 January 2026, EU Member States are required to ensure that drinking water complies with new, stricter limits for PFAS under the revised Drinking Water Directive. They must monitor the levels of PFAS in drinking water and keep the Commission informed of the results, including data on exceedances of the limit values, incidents and any granted derogations. They must also inform the public and take fast action to reduce PFAS levels.

These measures represent the first EU-wide systematic approach to monitoring PFAS contamination in drinking water.

EU restrictions on PFHxA

Regulation (EU) 2024/2462 places restrictions on undecafluorohexanoic acid (PFHxA), its salts and related substances. There will be a staged implementation of it across various sectors, starting with restrictions in some firefighting foams applications effective from 10 April 2026. Further restrictions for textiles, cosmetics, and food packaging are effective from 10 October 2026.

Manufacturers and suppliers should undertake a thorough review of their product formulations and supply chains to identify any use of PFHxA and related substances, and substitute non-compliant substances with viable alternatives before the relevant deadline applicable to their sector. They should also consider updating technical and safety documentation and labelling to demonstrate compliance.

EU restrictions on food packaging containing PFAS

From 12 August 2026, the EU Packaging and Packaging Waste Regulation will introduce a prohibition on food packaging containing PFAS above specified concentration thresholds.

This will have significant practical consequences for the food industry, given the widespread use of PFAS in oil-resistant food packaging materials such as fast-food wrappers, pizza boxes and microwave popcorn bags. Manufacturers and suppliers will need to undertake meaningful reformulation of affected materials as well as adjustments across their supply chains.

EU Product Liability Directive (Recast)

The recast EU Product Liability Directive, which must be transposed by Member States by December 2026, has significant implications for PFAS-related claims.

It introduces a presumption of defectiveness and causation in cases where scientific complexity makes it excessively difficult for claimants to establish their case. This provision is particularly relevant to PFAS, given the well-documented difficulties in proving causation between exposure and long-latency health harms (health conditions that may not emerge until years or decades after exposure).

Manufacturers and suppliers of PFAS-containing products should assess the extent to which the new directive expands their potential liability exposure compared to the predecessor regime.

European Commission's decision on Member States' universal PFAS restriction proposal

Following consideration of the opinions of the RAC and SEAC and subsequent 60-day consultation, the European Commission's decision on the proposal is expected in 2027, with any potential restrictions entering into force in 2028 or 2029.

If finalised in its current form, it would represent the most expansive chemicals restriction ever adopted under REACH.

PFAS litigation update

The US

Mass litigation has surged in response to alleged long-term environmental and health harm attributed to PFAS exposure. The US remains ahead in terms of litigation volume and scale, with federal and state claims against PFAS manufacturers resulting in multi-billion-dollar settlements. 

Thousands of lawsuits are currently pending in the United States alleging PFAS-related harms, with the number of filings expected to increase. Claims have been brought by various plaintiffs, including governments, public water systems, environmental groups and individuals. Defendants include manufacturers, distributors, and retailers of products that contain PFAS, as well as companies that allegedly polluted the environment with PFAS.

PFAS-related actions against companies that produce and sell consumer products (including clothing, carpets, cosmetics, food and beverages, grease-resistant food packaging and non-stick cookware) are increasing. These are often framed as putative class actions brought on behalf of consumers who purchased the product, and involve allegations of greenwashing where either the company failed to disclose the presence of PFAS or wrongly marketed the product as PFAS-free.

The EU

PFAS collective actions in Europe continue to grow.

In Belgium, there have been multi-million euro settlements of collective environmental pollution claims involving over 1,400 residents. A Supreme Court ruling in Sweden in 2023 declared that municipal water containing PFAS at levels exceeding thresholds constituted a defective product under the Swedish Product Liability Act and that an increased risk of certain diseases constituted injury.

In February 2026, 192 residents and environmental groups filed a civil lawsuit in France against chemical manufacturers over "Chemical Valley" pollution near Lyon, seeking over €36m in damages.

More broadly, litigation is also expected to increase significantly as the EU Representative Action Directive, in force from July 2023, enables qualified entities such as consumer organisations and public bodies to bring collective redress actions on behalf of groups of consumers harmed by infringements of EU law, including breaches of REACH and the EU Product Liability Directive. The directive provides a mechanism through which large-scale cross-border PFAS collective actions can be brought.

The UK

In the UK, the litigation risk is growing albeit at a slower pace than in the EU. Although proceedings are yet to be filed, a campaign group in Bentham, North Yorkshire, is reported to have instructed lawyers to investigate the first PFAS-related mass tort claim over alleged contamination by firefighting foam. If the case proceeds, it is likely to pave the way for future similar environmental group actions. 

Insurance considerations

PFAS are labelled by some commentators as "the new asbestos" as both are widespread, persistent and linked to long-latency health harms that may not manifest for years or decades after initial exposure. This creates a profound challenge for insurers and reinsurers who wrote policies without contemplating PFAS-related liability and insureds who may now find that PFAS-related cover is unavailable before claims have been asserted against them.

The cumulative financial exposure across the insurance market may result in insurers taking a particularly aggressive approach to claims for PFAS-related exposures. Potential issues include establishing which historic policies respond to PFAS claims, allocation of claims between policies, and notification of claims. In addition, insurers may seek to rely on policy exclusion in relation to pollution or pre-existing circumstances.

It is important that organisations that have potential PFAS exposures carefully consider their available policy coverage for historic PFAS exclusions and ensure that appropriate notifications are made to insurers where possible.

Further, the true extent of exposure remains difficult to quantify. Uncertainties surrounding the scope of contamination, the long-term effects of associated health harms and remediation costs are likely to give rise to significant disputes over identifying which historic policies respond and quantum.

Osborne Clarke comment

The trajectory of regulatory activity at both UK and EU level signals that more stringent restrictions on PFAS use are likely, creating fertile ground for future claims. Companies may wish to take the following steps in anticipation of these regulatory changes and the growing litigation risk:

• Conduct a PFAS audit. Map where PFAS appear across your products and supply chains. Supplier questionnaires and material safety data sheets are a practical starting point.
• Check product labels: Verify that PFAS chemicals and/or PFAS-containing products are accurately labelled, and ensure that any PFAS-related content, restrictions, or warnings are properly disclosed.  
• Evaluate alternatives. Where PFAS are present in your products or processes, investigate the availability, cost and sustainability profile of substitutes.
• Assess your liability exposure. In light of regulatory developments and PFAS-related claims and lawsuits, evaluate the extent to which your business may face such  claims, regulatory enforcement, or reputational risk.
• Review your insurance cover. Proactively engage with your brokers and insurers to identify PFAS-related exclusions and coverage gaps, and consider the extent to which historic cover is available, whether steps are necessary to preserve that cover (such as notifying Occurrences, to Occurrence reported policy forms), whether specialist cover is available in future and/or whether contractual protections with suppliers can address potentially uninsured liabilities.