New Product Liability Directive

Briefing 04-12-2023

New liability rules for defective products

As products have become more complex in the digital age, the European Commission published a proposal for a new directive on liability of defective products in September 2022. This would revise the existing Product Liability Directive, adopted nearly 40 years ago in 1985. The proposal aims to bring the European Union's product liability regime up to speed with the digital age, circular economy business models and global value chains by ensuring that consumers receive compensation for defective products including those manufactured outside the EU. The proposal introduces new provisions to address liability for products such as software (including artificial intelligence systems) and digital services that affect how the product works (e.g. navigation services in autonomous vehicles). It also alleviates the burden of proof for victims under certain circumstances. The Parliament confirmed its negotiating position in October 2023, while the Council adopted its negotiating mandate in June 2023. The Parliament and the Council are now working towards a compromise text. Third edition. The 'EU Legislation in Progress' briefings are updated at key stages throughout the legislative procedure.