EU Directive
Product Liability Directive (PLD) – (EU) 2024/2853
Background
Background
The new Product Liability Directive (PLD), formally Directive (EU) 2024/2853, replaces the original Product Liability Directive from 1985 (85/374/EEC) that has governed product liability in the EU for nearly four decades.
The new directive modernises the framework to address the challenges of the digital economy. Software, AI systems and digital services integrated into products are now explicitly covered – a fundamental expansion of scope.
The directive must be transposed into national legislation in all EU member states by 9 December 2026. Unlike a regulation, a directive requires national implementation, meaning details may vary between countries.
Scope
Who is affected?
The directive affects all economic operators responsible for a product on the EU market:
- Manufacturers – primarily responsible for product safety and any defects
- Importers – can be held liable if the manufacturer is established outside the EU
- Authorised representatives – responsible on behalf of the manufacturer within the EU
- Distributors – can become liable under certain circumstances
- Software developers – those who develop and provide software or AI systems are treated as manufacturers under the new directive, with corresponding liability
Important: Fulfilment providers and online marketplaces can under certain conditions be treated as importers or distributors, expanding the chain of liability compared to the old directive.
The directive applies to all products, including raw materials, components and software – regardless of whether they are sold as standalone or integrated into other products.
Requirements
Key requirements
The most important changes compared to the old directive:
- Evidentiary relief and presumption of defect: Courts can presume a product is defective if the manufacturer fails to provide relevant technical documentation or does not cooperate with information requests. The burden of proof still lies with the claimant, but evidentiary requirements are substantially lowered
- Software in scope: Software and AI systems are explicitly covered as products – including updates and the absence of necessary updates
- Extended liability period: The absolute limitation period is raised from 10 to 15 years. For personal injuries with long latency (e.g. exposure to harmful substances), claims can be made up to 25 years after the product was placed on the market
- Lower threshold for claimants: The injured party does not need to prove the exact defect – it is sufficient to show that the product was likely defective
- Broader damage concept: Compensation now also covers medically documented psychological harm and destruction or corruption of personal data
- Collective claims: The possibility of collective compensation claims, already enabled by the EU's Representative Actions Directive (2020/1828), is strengthened in practice through PLD's new evidentiary relief and broader damage concept
Timeline
Timeline and milestones
- 18 November 2024: The directive was published in the Official Journal of the EU
- 8 December 2024: The directive entered into force
- 9 December 2026: Deadline for member states to transpose the directive into national legislation
- 9 December 2026: The new rules become applicable
The old Product Liability Directive (85/374/EEC) is repealed on 9 December 2026. Compensation claims arising before this date are governed by the old directive.
Compliance
Consequences of non-compliance
The new Product Liability Directive significantly increases economic exposure:
- No-fault liability: Liability for defective products applies regardless of whether the manufacturer was negligent – strict liability
- Presumption of defect: If the manufacturer refuses to disclose technical documentation, the court can presume the product is defective
- Long time window: The absolute limitation period is raised to 15 years, and to 25 years for personal injury with long latency
- Software liability: Absence of security updates or faulty updates can establish liability
- Chain liability: If the manufacturer is not within the EU, importers and representatives can be held fully liable
- Collective claims: The possibility of group claims can lead to significantly higher aggregate compensation amounts
- Insurance premiums: Companies may need to reassess their insurance coverage in light of the expanded liability
Action plan
What should you do now?
- Review product documentation: Ensure technical documentation is complete and can be provided on request – refusal can lead to presumption of defect
- Map software in products: Identify all products with software or AI components and assess how the new directive affects your liability situation
- Update risk assessments: Include digital risks, cybersecurity aspects and software updates in your product risk assessments
- Review insurance coverage: Contact your insurer to assess whether existing product liability insurance covers the expanded risks
- Prepare for information requests: Establish processes to quickly provide technical documentation when requested by courts or claimants
- Monitor national transposition: Follow how Sweden and other relevant markets implement the directive – details may vary
- Document software updates: Ensure traceability for all security updates and their distribution to end users
Verca
How Verca helps
Verca supports your PLD readiness by ensuring product documentation is complete, version-controlled and accessible – exactly the type of documentation the new directive requires in compensation claims.
The platform's documentation workflow creates a coherent chain from risk assessment and technical specification to testing and CE marking, providing you with structured evidence to present in potential disputes.
For products with software, Verca helps you map and document digital components, their update history and security status. Regulatory monitoring notifies you when national transposition of PLD is published in relevant markets.