EU introduces comprehensive digital-era Product Liability Directive
Summary
With the goal of ensuring maximum harmonization and minimizing disparities, the Directive prevents Member States from maintaining or introducing national provisions diverging from those set out thereunder, whether they are more or less stringent. Economic operators face expanded liability, now including logistics providers, entities substantially modifying products, and online platforms – although they can be exempted under specific circumstances. With respect to online platforms specifically, the Directive introduces nuanced liability provisions, holding them accountable when they assume roles beyond mere intermediation – such as manufacturer, importer, authorized representative, fulfilment service provider, or distributor of a defective product. Furthermore, the Directive recognizes the complexity of proving damage caused by defective products, including AI systems, for claimants and introduces measures to facilitate the disclosure of evidence in legal proceedings. The added complexity posed by this Directive will be that of navigating potential legal intersections with the AI Act and existing cybersecurity and data protection regulations and that of ensuring compliance with all obligations from a holistic and integrated perspective.