WHAT IS THE AIM OF THE DIRECTIVE?
Directive (EU) 2024/2853 updates the European Union’s (EU) product liability rules to take into account new technologies, ensuring better protection for victims and greater legal certainty for businesses.
The directive ensures that a person who has suffered damage can claim compensation by proving the defect and the causal link between the defect and the damage, regardless of whether or not the manufacturer is at fault.
KEY POINTS
The new directive adapts the existing liability rules to the following areas.
- The digital economy. The definition of product has been clarified to cover software, including artificial intelligence (AI) systems:
- all types of software, including applications and AI systems, are covered by the new directive;
- the manufacturer is liable for defects that might appear following an update or upgrade of the software performed under its control;
- the manufacturer is liable for defects that might appear through the continuous learning of the AI system where the AI system remains under the control of the manufacturer;
- digital services that are necessary for the product to function and that have been incorporated into the product under the manufacturer’s control are covered by the directive.
- Global value chains. The directive ensures that there is always a liable person in the EU against whom the victim can claim compensation when a manufacturer is established outside of the EU:
- importers and authorised representatives can be held liable for damages caused by the defective product;
- in the absence of an importer or an authorised representative, fulfilment service providers can be held liable for the defective product;
- online platforms that act as a manufacturer, importer, authorised representative, fulfilment service provider or distributor can be held liable for a defective product sold on their platform just like any other economic operator;
- online platforms acting as a mere intermediary for the defective product can still be held liable under certain conditions.
- The circular economy. A company or person who substantially modifies a product outside the original manufacturer’s control becomes a manufacturer of the product and can be held liable for any defect.
The directive also covers the following main elements.
- Defectiveness. A product is considered defective if it does not provide the safety that a person is entitled to expect or that is required under EU or national law. An assessment of the defectiveness would include, among other circumstances:
- the presentation and the characteristics of the product, including its labelling;
- the effect on the product of any ability to continue to learn or acquire new features;
- the reasonably foreseeable effect on the product of other products that can be expected to be used together with the product.
- Damage. The right to compensation exists when one of the following types of damage has been caused by the defective product:
- death or personal injury (including medically recognised damage to psychological health);
- damage to property;
- destruction or corruption of data not used for professional purposes.
- Access to evidence. The directive establishes a right for both parties to request access to evidence necessary to support their claims.
- Liability and compensation.
- Any person who has suffered damage caused by a defective product can bring a claim before a national court.
- Businesses remain liable for their defective products for a period of 10 years after the product was placed on the market.
- The 10-year limitation is extended to 25 years where the personal injuries are slow to emerge (latent health injuries).
- Victims have three years to bring the claim for compensation before a national court.
FROM WHEN DO THE RULES APPLY?
The directive has to be transposed into national law by 9 December 2026. It applies to products placed on the market or put into service as of 9 December 2026. For products placed on the EU market before that date, the rules stemming from Directive 85/374/EEC remain applicable.
BACKGROUND
For further information, see:
MAIN DOCUMENT
Directive (EU) 2024/2853 of the European Parliament and of the Council of 23 October 2024 on liability for defective products and repealing Council Directive 85/374/EEC (OJ L, 2024/2853, 18.11.2024).
RELATED DOCUMENTS
Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024 laying down harmonised rules on artificial intelligence and amending Regulations (EC) No 300/2008, (EU) No 167/2013, (EU) No 168/2013, (EU) 2018/858, (EU) 2018/1139 and (EU) 2019/2144 and Directives 2014/90/EU, (EU) 2016/797 and (EU) 2020/1828 (Artificial Intelligence Act) (OJ L, 2024/1689, 12.7.2024).
Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on general product safety, amending Regulation (EU) No 1025/2012 of the European Parliament and of the Council and Directive (EU) 2020/1828 of the European Parliament and the Council, and repealing Directive 2001/95/EC of the European Parliament and of the Council and Council Directive 87/357/EEC (OJ L 135, 23.5.2023, pp. 1–51).
Directive (EU) 2020/1828 of the European Parliament and of the Council of 25 November 2020 on representative actions for the protection of the collective interests of consumers and repealing Directive 2009/22/EC (OJ L 409, 4.12.2020, pp. 1–27).
Successive amendments to Directive (EU) 2020/1828 have been incorporated into the original version. This consolidated version is of documentary value only.
Regulation (EU) 2019/1020 of the European Parliament and of the Council of 20 June 2019 on market surveillance and compliance of products and amending Directive 2004/42/EC and Regulations (EC) No 765/2008 and (EU) No 305/2011 (OJ L 169, 25.6.2019, pp. 1–44).
See consolidated version.
Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market For Digital Services and amending Directive 2000/31/EC (Digital Services Act) (OJ L 277, 27.10.2022, p. 1–102).
