European Union: Reached Parliament and Council of EU agreement on Directive on liability for defective products

On 14 December 2023, the European Parliament and the Council of the European Union reached an agreement on the proposed Directive on liability for defective products including rules establishing liability for digital products. The directive adapts the EU liability rules, specifically, the Product Liability Directive, which ensures that a person suffering damages from a product can claim compensation from EU-based businesses and non-EU-based businesses, including online platforms. The directive updates the Product Liability Directive to include digital products, such as software and artificial intelligence (AI) systems. Further, the directive simplifies the burden of proof for the person suffering damages. The directive will enter into force after is formally approved by the European Parliament and the Council and is transposed into the Member States’ domestic legislation. The directive will apply to products placed on the market 24 months after it enters into force.