The revised Directive modernises and reinforces the current well-established rules, based on the strict liability of manufacturers, for the compensation of personal injury, damage to property or data loss caused by unsafe products, from garden chairs to advanced machinery. It ensures fair and predictable rules for businesses and consumers alike by:

• Modernising liability rules for products in the digital age: allowing compensation for damage when products like robots, drones or smart-home systems are made unsafe by software updates, AI or digital services that are needed to operate the product, as well as when manufacturers fail to address cybersecurity vulnerabilities.
• Modernising liability rules for circular economy business models: by ensuring that liability rules are clear and fair for companies that substantially modify products.
• Creating a more level playing field between EU and non-EU manufacturers: when consumers are injured by unsafe products imported from outside the EU, they will be able to turn to the importer or the manufacturer’s EU representative for compensation.
• Putting consumers on an equal footing with manufacturers: by requiring manufacturers to disclose evidence, by introducing more flexibility to the time restrictions to introduce claims, and by alleviating the burden of proof for victims in complex cases, such as those involving pharmaceuticals or AI. This will ensure businesses no longer face a patchwork of rules and practices in different Member States

More than 350 stakeholders from all sectors of the economy took part in a webinar organised by the Commission on 20 October, reflecting the broad scope and relevance of the Directive across the single market. All stakeholders have until 11 December to provide feedback on the proposal on the Have Your Say portal. The Commission’s proposal will need to be adopted by the European Parliament and the Council before it becomes law, with discussions due to start soon.

The proposal for a new Product Liability Directive was accompanied by a second proposal that aims to help people who seek compensation outside the Product Liability Directive for harm caused by AI systems as a result of someone’s wrongdoing.