European Union: Adopted Council general approach on Directive on liability for defective products

On 14 June 2023, the Council of the European Union adopted its general approach on the Directive on liability for defective products. The proposed Directive would expand the definition of product to include software and digital manufacturing files and clarifies when the related services should be regarded as a component of a product. Under the Council approach, the liability over modified products is clarified. The products that were substantially modified and made available on the market will have to comply with consumer protection regulations, and in case of non-compliance, the manufacturer of the modified product, not the original manufactures, will be held liable. Furthermore, the general approach specifies that Member States are required to ensure that non-EU manufacturers can be held liable for defective products. Finally, in the Council's amended version of the proposed Directive, the consumers would be required to prove the "likelihood that the product was defective", and their right to compensation would expire after 10 years from the defective product placing on the market and for cases in which the symptoms of injury emerge slower, the expiration period would be 20 years. The Council will start the negotiations on the final version of the Directive after the European Parliament adopts its position.