Following the Directive (EU) 2024/2853 of the European Parliament and the Council dated 23 October 2024 on liability for defective products (the “Directive“), the public consultation on the amendment to the Civil Code closed on 26 January 2026.
Key updates from the Directive and the related amendment to the Civil Code:
The Directive updates the existing EU rules on liability for damage caused by defective products. The definition of “product” is now specifically extended to include software, including all types of applications and artificial intelligence (AI) systems.
The manufacturer will bear strict liability for damage:
- that may have occurred after a software update or upgrade carried out under its control;
- arising as a result of the continuous learning of an AI system, as long as the system remains under the manufacturer’s control.
The Directive also ensures that there will always be a responsible person in the EU to whom a claim for compensation can be made if the manufacturer is located outside the EU.
Damage
A claim for compensation arises if the defective product caused one of the following types of damage:
- death or personal injury (including psychological damage),
- property damage,
- destruction or damage to data not used for professional purposes.
Previously, only damage exceeding EUR 500 was compensable; this limitation will now be removed.
Limitation Period
Businesses are liable for their defective products for 10 years from the product’s market launch. The 10-year limitation period is extended to 25 years if the symptoms of health damage did not appear earlier.
Rebuttable Presumptions
Under the new rules, a product is considered defective if it does not provide the safety that a person is entitled to expect or that is directly required by EU or national law. National courts should presume the defectiveness of a product or the causal link between damage and defect, if it would be too difficult for the claimant to prove the defect or causal link, especially given the technical complexity of the case, even after the defendant has provided information.
Transposition Deadline
The Directive must be transposed into national law by 9 December 2026, and the new rules will apply to products placed on the market or put into service from that date. Products placed on the market before this date will continue to be governed by the previous regulation.
The draft amendment to the Civil Code also provides for the effectiveness of the law from 9 December 2026.
Spring Digital Legal Update 2026 here.