The new EU Product Liability Directive

The new EU Product Liability Directive is a gamechanger for manufacturers, importers, distributors and other service providers. To bring the PLD up to speed with the digital age, circular economy business models and global value chains, the compromise text includes:

• a significant extension of the scope of covered economic actors, products and damages;
• new presumptions for the defect and/or causality;
• disclosure rights;
• changes to the liability exemptions; and
• longer expiry periods in case of latent damages.

Following formal adoption by the EU Parliament and the Council and transposition into national law, we expect the new national rules to enter into force in mid-2026. The period until the rules apply should be used by companies to adapt their processes to the new rules, monitor the transposition in the Member States in which they are active, and implement appropriate risk prevention mechanisms.