Product Liability – New Directive, New Rules
Insights
On 8 December 2024, the new 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 (“Product Liability Directive“) came into force.
Here's what’s new.
Any natural person who suffers damage caused by a defective product is entitled to compensation, however the Directive does not cover situations in which the victim is a company. The right to compensation applies to the following: death or personal injury, including medically recognised damage to psychological health; damage to, or destruction of, any property (with certain exceptions); and destruction or corruption of data that are not used for professional purposes. The Product Liability Directive also specifies which economic operators are liable for the aforementioned damage (manufacturer, importer, etc.) and instances where they might be exempt from the liability.
Under the new Product Liability Directive, a product is defective if it does not provide the safety that a person is entitled to expect from it, or what is required under law. The Directive also applies to digital products (including various types of software) and online platforms, which can also be responsible for damage.
Another novelty that the new Product Liability Directive introduces relates to the disclosure of evidence, to enable an equal position to both parties. Specifically, at the request of the claimant who has presented facts and evidence sufficient to support the plausibility of the claim for compensation, the defendant is required to disclose relevant evidence that is at their disposal.
Furthermore, even though the claimant is required to prove the defectiveness of the product, the damage suffered and the causal link between that defectiveness and that damage, the new Product Liability Directive prescribes some cases in which the defectiveness of the product and/or the causal link between the defectiveness and the damage will be presumed, for instance if the defendant fails to disclose evidence.
The limitation period for claiming compensation for damage falling within the scope of the Product Liability Directive is three years from the day on which the injured person became aware, or should have reasonably become aware of the damage, the defectiveness and the identity of the relevant economic operator. However, the economic operator is no longer liable after the expiry of 10 years from the date on which the product was placed on the market (unless the injured person already initiated proceedings)or put into service, or from the date on which the substantially modified product was made available on the market or put into service following its substantial modification. Exceptionally, in certain health-related cases where the symptoms are slow to emerge due to the latency of a personal injury, this expiry period is extended to 25 years (unless the injured person has initiated proceedings).
Finally, this Directive will apply to products placed on the market or put into service after 9 December 2026 and the Member States have until that day to transpose the new Product Liability Directive into national law.