Germany: Bill on Modernisation of Product Liability Law was introduced to Federal Parliament

On 25 February 2026, the Federal Government introduced the Bill on the Modernisation of Product Liability Law to the lower house of the Federal Parliament. The Bill transposes Directive (EU) 2024/2853 into national law. The Bill covers products including software, except free and open-source software developed or supplied outside a business activity, and digital construction files, among others. In assessing defectiveness, courts must consider factors such as the product’s presentation, technical characteristics, reasonably foreseeable use, learning capabilities, interactions with other products, and compliance with relevant safety requirements, including cybersecurity requirements. Liability extends to connected digital services and to the destruction or corruption of data not used for professional purposes. A natural person may claim compensation where a defective product causes death, personal injury (including medically recognised mental health impairment), damage to property not used exclusively for professional purposes (excluding the defective product itself), or damage to non-professional data. The Bill also provides for court-ordered disclosure of evidence and introduces statutory presumptions concerning defect and causation. The limitation period is three years, with a long-stop period of ten years, extended to 25 years in cases involving latent personal injury. The Bill will enter into force on 9 December 2026. Transitional provisions apply to products placed on the market before 8 December 2026.