European Union: Adopted Directive on liability for defective products by Council of EU

On 10 October 2024, the Council of the European Union adopted a 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. Member States are required to transpose the directive into their national legislation within 2 years following the directive’s entry into force.