Written by: Haim Ravia, Dotan Hammer
The European Union Directive on liability for defective products came into force in December 2024 and will become effective from December 2026. It establishes common rules for the liability of economic operators for damages caused by defective products. The directive aims to enhance the EU market and ensure high consumer protection by addressing innovative technologies such as AI and global supply chains. It defines a covered ‘product’ to include all movables, software, digital manufacturing files, and AI systems, regardless of how they are supplied. Free and open-source software developed outside commercial activity is excluded. Additionally, digital services integrated with or interconnected to a product that affects its safety are considered components under the manufacturer’s control. The directive also covers damage due to data destruction or corruption.
A key feature of the directive is the introduction of no-fault liability, which means economic actors are liable for defective products irrespective of negligence. A product is deemed defective if it does not meet the safety standards a person is entitled to expect. Defectiveness is evaluated by considering the product’s presentation, reasonably foreseeable use, and relevant safety requirements. Claimants bear the initial burden of proving damage, defectiveness, and the causal link. However, this is alleviated by presumptions of defectiveness in certain situations, such as the failure to disclose evidence or non-compliance with safety standards.
Liable actors include manufacturers, importers, authorized representatives, fulfillment service providers, and distributors. Online platforms may also be held liable under certain conditions. There are exemptions from liability, such as when the defect did not exist when the product was placed on the market or arose later through no fault of the manufacturer.
Liability is limited by a 10-year expiry period from when the product is placed on the market, extendable to 25 years for latent personal injuries.
Click here to read the European Union Directive on liability for defective products.
