Exciting Changes in EU Product Liability Laws to Benefit Consumers and Businesses

Umar Hargrave-Silk- 21st October, 2024

In a move aimed at adapting to technological advancements and boosting consumer protection, the Council of the European Union has approved a forthcoming directive updating the EU’s civil liability laws. These changes are designed to encompass the ever-changing landscape of technologies and the principles of a circular economy. 

For those unfamiliar, a circular economy is a model of production and consumption that aims to reduce waste and keep resources in use. It involves sharing, leasing, reusing, repairing, refurbishing and recycling materials and products as long as possible. Technology can play a vital role in the circular economy, increasing the efficiency of waste reduction.

Here’s a breakdown of the key updates in the directive:

Expanded definition of ‘Product’

The scope of what constitutes a ‘product’ has been widened to include digital manufacturing files and software, better reflecting the nature of goods in today’s digital age.

Responsibility of Online Platforms

Online platforms could now be held accountable for any defective products sold on their platforms, provided they play a significant role in the sales process as an economic operator.

Simplified Compensation Procedures

The process for seeking compensation for damages resulting from faulty products is set to become more straightforward, ensuring that consumers are fairly compensated for any harm caused to them.

Liability for Imported Products

Companies importing goods into the EU or acting as the local representatives for foreign manufacturers may now be held liable for damages caused by products manufactured outside the EU.

Accountability for Product Modifications

In cases where products are altered or upgraded outside the control of the original manufacturer, the entity responsible for the modifications will be held accountable for the resulting issues.

Easier Claims Process

To facilitate consumer claims, especially in cases where providing product defects or causation is challenging, courts may require only a demonstration of the likelihood that the product was faulty or that its defectiveness led to the damage.

The directive is set to come into effect 20 days after its publication in the Official Journal of the European Union. Following this, EU member states will have two years to incorporate these changes into their national laws.

These updates are poised to significantly impact consumers and businesses opening within the EU. Unlike other jurisdictions, the EU has made a positive move towards reinforcing the importance of accountability, transparency, and consumer protection in the evolving marketplace. The EU prioritises protecting purchasers in a rapidly moving industry with few consumer safeguards.

It will undoubtedly be interesting to see in what form and to what extent member states adopt the new directive. It will also be interesting to see how other countries, like the UK, respond to added safeguards worldwide. Could we see similar legislation put in place in the UK? Only time will tell.

Stay tuned for further insights in the commercial law sphere.