The provisional agreement on the liability of economic operators for damage caused by defective products aims to respond to the increase in online shopping (including outside the EU) and the emergence of new technologies (such as AI), as well how to guarantee the transition to a circular economic model. In order not to stifle innovation, the rules will not apply to open source software developed or supplied outside of a commercial activity.
The new rules ensure that there is always an EU-based company, such as a manufacturer, importer or its authorized representative, that can be held responsible for a product that caused damage, even if the product was not purchased in the EU. MEPs insisted that in cases where a responsible company cannot be identified, Member States can provide compensation using national compensation systems.
Easier access to compensation
Negotiators agreed to simplify the burden of proof for the claimant, who would normally have to prove that the product was defective and that this caused the damage suffered. For example, a court may presume defect where the plaintiff faces undue hardship, in particular due to technical or scientific complexity, and it is probable that the product is defective.
To further assist damage victims with their claim for compensation, they will be able to apply for the court to order the company to disclose "necessary and proportionate" evidence. MEPs also insisted that competent consumer protection authorities or bodies should be encouraged to provide additional help with compensation claims to consumers.
Extended responsibility
MEPs assured during the talks that it will be possible to obtain compensation not only for material damage, such as the destruction of property, but also for moral losses, including medically recognized damage to psychological health. It will also be possible to claim compensation after the destruction or corruption of data that is not used for professional purposes (for example, deletion of files from a hard drive). Negotiators also agreed to an extended liability period of 25 years in exceptional cases when symptoms take time to appear. The injured person may still obtain compensation after this period if the procedure was initiated within the indicated period.
Quotes
After the negotiations, the Legal Affairs Commission (JURY) coponent Pascal Arimont (EPP, BE) said: โThe revised Product Liability Directive aims to strike the right balance between the need to remain an effective instrument for victims harmed by defective products and the legal certainty that economic operators deserve in a rapidly evolving market characterized today by digitalization and the circular economy. and global value chains.
He Internal Market and Consumer Protection Committee (IMCO) coponent Vlad-Marius Botoล (Renew, RO) noted: โThe review of the product liability directive has been long awaited. We needed this review to adapt the liability regime to new legislation and new and innovative products. We must be clear and decide how to cover these new products so that all European citizens have the same rights to be compensated when damage occurs, but this must be done carefully, to ensure balance and encourage innovation and the development of new products. "
Next steps
The legislation will come into force once formally approved by the plenary session and the Member States. The new rules will apply to products marketed 24 months after the entry into force of this directive.
Background
These agreed rules update the existing Product Liability Directive, which is now almost 40 years old. It provides an additional layer of consumer protection in the EU on top of national liability regimes. When it comes to AI technology, consumers will also be protected by fault-based regulations in the coming years. AI Liability Directivewhich is currently being examined by Parliament and the Council.
