Updates EU Product Liability

Is Your Business Prepared for the 2024 EU Product Liability Directive Changes?

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Now the amendment to the Product Liability Directive is approved, the question arises: How prepared is your company for the sweeping changes coming to EU product liability laws? As a manager or executive responsible for product safety and compliance, staying ahead of regulatory changes is crucial. The recent adoption of ...

Now the amendment to the Product Liability Directive is approved, the question arises: How prepared is your company for the sweeping changes coming to EU product liability laws? As a manager or executive responsible for product safety and compliance, staying ahead of regulatory changes is crucial. The recent adoption of the new EU Directive on Liability for Defective Products by the Council of the EU on October 10, 2024, marks a significant shift in the product liability landscape. This update will be particularly interesting for:

  • Companies manufacturing or selling products
  • Manufacturing executives and compliance managers
  • Product safety professionals
  • Quality assurance teams
  • Legal departments handling product liability

Why should you care? 

The new directive, which will replace the existing 40-year-old framework, introduces several significant updates:

  • Explicit inclusion of standalone software and AI within its scope
  • Expanded list of potentially liable entities, including importers and authorized representatives
  • New disclosure requirements for claimants in product liability cases
  • Presumptions of defectiveness and causal links to make claims easier for plaintiffs
  • Extension of compensation rights to cover psychological health damage and data loss
  • New criteria for courts to assess product defectiveness, including cybersecurity compliance

Key changes you need to know:

  1. Broader Scope
    • The directive now covers software, AI, and related services, affecting both B2C and B2B companies.
  2. Extended Liability Chain
    • More parties can now be held liable, including:
      • Manufacturers
      • Importers
      • Authorised representatives
      • Fulfilment service providers
  3. Product compliance impacts product liability directly
    • The new directive clarifies what was implied before: Lack of compliance of products with the applicable regulations directly lead to a product being con
  4. Enhanced Consumer Protection
    • New disclosure requirements
    • Presumption of defect in certain cases
    • Easier path for collective claims
    • Coverage for psychological damage
  5. Implementation Timeline
    • Member States must transpose the directive into national law by Q4 2026, affecting products placed on the market after this deadline.

 What should you do next?

We recommend the following steps:

  1. Review your product portfolio, especially if you deal with software or AI components
  2. Assess your supply chain relationships and liability exposure
  3. Update your documentation and disclosure procedures
  4. Consider the implications for your current product safety measures
  5. Plan for potential changes in your risk management strategies

Want to stay ahead of these changes and ensure your business is prepared? Subscribe to our Product Compliance Manager platform for regular updates and practical guidance on implementing these new requirements.

Source: https://data.consilium.europa.eu/doc/document/PE-7-2024-INIT/en/pdf