European product liability legislation updated

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The European Commission has presented two proposals for directives updating product liability legislation. The purpose of these directives is to create greater legal certainty, as a growing number of products exists which, should they cause harm, currently leave consumers with no legal recourse for compensation.

The revised Product Liability Directive is intended to be applicable to products of all types. In the future, this will also include software updates, artificial intelligence systems, smartphone apps and refurbished or modified products not covered by the previous directive. Liability will rest with the manufacturer or responsible parties irrespective of fault. In the case of products not manufactured in the EU, provision is to be made in future for liability claims to be asserted not solely against the importer, but also against manufacturers' representatives in the EU and dealers (including online shops).

The scope of the AI Liability Directive further extends to fault-based liability for AI providers in the event of discrimination, data loss or violations of other legally protected rights. Those suffering harm should not have to demonstrate in detail how the harm was caused by an AI malfunction, but only show that a causal relationship with the AI behaviour is probable. In contrast to the Product Liability Directive, claims under the AI Liability Directive can also be brought by legal persons.

Proposal for the Product Liability Directive
Proposal for the AI Liability Directive