Understanding EU Files  Product Liability Directive (PLD)

What’s changing?

The updated directive introduces new products in scope: the EU PLD has been updated to encompass the changing nature of products, as they become more complex and increasingly digitised. It introduces new provisions to address liability for products such as software, including AI, and digital services that affect how a product works.

It extends the definition of ‘damage’: existing product liability rules focus primarily on physical injury and tangible property damage. The new framework now includes compensation for psychological harm and destruction of personal data.

It will ease the burden of proof for claimants: courts will be able to presume defect and/or causation where the producer/manufacturer fails to disclose relevant evidence to the contrary.

It eliminates the threshold for lower value damage: existing rules mean consumers cannot sue for damages below €500. The updated directive removes that threshold completely.

It extends accountability across the entire supply chain: it widens the net for liable actors to include importers, distributers, digital marketplaces and manufacturers. This means that those in scope may pass liability up the supply chain, increasing legal risk even for those who operate outside the EU.

It extends the liability period for latent injury: the maximum liability period will increase from 10 years to 25 years for injury that takes longer to manifest, such as those relating to chemical exposure or unsafe medical equipment.

For UK exporters, the consequence is that EU importers, distributors and other intermediaries are likely to demand stronger assurances, documentation, contractual protections and insurance from UK suppliers, increasing compliance costs and shifting more liability risk up the supply chain.