European Union: European Commission launches consultation as part of initiative aiming to adapt liability rules to the digital age and circular economy

On 18 October 2021, the European Commission launched a public consultation on adapting the civil liability rules for the digital age. The consultation period will run until 10 January 2022. The consultation builds on the challenges previously identified in the White Paper on AI and the Report on Liability for AI, IoT, and Robotics as part of the Commission’s strategy to modernize EU regulations for the digital age. The Commission in its inception impact assessment roadmap noted that Directive 85/374/EEC on Product Liability is no longer fit for the digital age and identified shortcomings as classification of digital elements as products, unclarity over who is to be held liable, and how to establish causal when AI systems are involved. Finally, the framework should lead to legal certainty, limit damages and in the case of damages, secure compensation for damaged parties.