The amendments to the Product Liability Directive, which the EU’s legislative bodies agreed to last year, came into force on Sunday. For the first time, it forms the basis of a comprehensive framework for claims for damages caused by defective products, including in the field of software and hardware.
Advertisement
The new rules apply to all goods – from traditional household items and electrical appliances to digital products and more complex technologies like robots and smart home systems. They must now be implemented into the national law of the Member States within two years. With this initiative, EU parliamentarians primarily responded to the rise in global online shopping, the increasing spread of technologies such as artificial intelligence (AI) and the ongoing transition to a circular economy.
with one in October Amendment published in the EU Official Journal Following its 40-year-old predecessor, the Parliament and the Council of Ministers have modernized and strengthened the rules on compensation for personal injury, property damage and data loss caused by unsafe products.
The reform also aims to take into account the increasing number of products in the internal market that are manufactured outside the European Economic Area. For example, the Directive now stipulates that manufacturers must always name an economic operator in the EU from which injured parties can claim compensation. This also applies to products sold online.
Exception for open source developers
For explicitly covered computer programs, it is irrelevant whether the software is installed on a device or provided as a service via the cloud, for example. In the event of errors in embedded software, not only the end manufacturer but also the component suppliers are liable. This may include connected services like voice assistants. There is one area exception – similar to the Cyber Resilience Act (CRA) – for open source: in order not to hinder innovation and research, developers of free and open-source software that were created outside a commercial activity and are not commercial. The products offered are free of liability.
What is also new is that as long as a manufacturer is able to provide software updates, it retains control and can be held responsible for errors that occur, such as violations of legitimate security expectations. In cases where symptoms appear gradually, an extended liability period of 25 years applies. EU lawmakers initially pushed for even 30 years. The EU Commission, which initiated the amendment in 2020, Insurance: “The Directive ensures fair and predictable rules for both businesses and consumers.” The Brussels Government Institute wants to establish a publicly accessible EU database with court rulings on product liability cases to better inform consumers about the application of new requirements and developments in case law.
(Never)
