CMS Guide to changes to the EU Product Liability Directive

Product Liability Directive is a key piece of legislation that outlines the responsibilities of manufacturers and distributors in the case of damage caused by a defective product. The recent changes reflect the evolving landscape of consumer goods, technological advancements, and the increasing importance of consumer protection in the digital age.

The revised directive aims to clarify and expand the scope of liability, particularly in relation to digital products and services. It also addresses the challenges posed by emerging technologies such as artificial intelligence and the Internet of Things (IoT). The updates seek to balance the need for consumer protection with the encouragement of innovation and competitiveness in the European market.

Key changes:

• Expanded scope for digital products: The updated directive includes digital products and, in some instances, digital services, within its scope. This is significant considering the growing digital economy and the rise of products that are either digital in nature or heavily reliant on digital component.
• Clarification on liability for software: The revisions provide clearer guidelines on when software can be considered a product and how liability is determined, particularly relevant for software that can influence the physical world, like in the case of autonomous vehicles or smart home devices.
• Adjustments for emerging technologies: The directive addresses the challenges posed by emerging technologies like Artificial Intelligence (AI) and the Internet of Things (IoT). This includes determining liability for damages caused by autonomous systems or AI-driven decisions.
• Streamlined burden of proof: The directive aims to simplify the process for consumers to prove damage and the causal link to a defect in a product. This change is particularly important for complex products where establishing such links can be challenging.
• Enhanced transparency measures: Manufacturers may be required to provide more information about the safety and risks associated with their products. This is to ensure consumers are better informed about the products they use.
• Updated definitions and terms: The directive revises definitions and terms to reflect current market realities and technological advancements, ensuring that the legal framework remains relevant and effective.
• Provisions for SMEs: Recognizing the potential impact on SMEs, the directive includes provisions to balance the interests of these businesses with consumer protection needs.

It's important to note that these points are a broad summary and the actual directive might include more specific legal language and additional provisions. For the most accurate and detailed information, it's recommended to consult the official text of the revised directive or legal analysis provided by experts in EU law.

Please fill in the self-assessment questionnaire below to help you assess whether your products fall within the scope of the Product Liability Directive. It will take you around 20-30 minutes to fill-in the self-assessment questionnaire.