The European Union (EU) has initiated the enforcement of its modernised Product Liability Directive (PLD) as of 8 December 2024, which allows victims to seek compensation for damages caused by defective products purchased both online and offline.  

The directive mandates member states to integrate the provisions into their domestic legal frameworks.  

The legislative update provides a robust structure for individuals seeking redress for harm caused by malfunctioning products while also clarifying the obligations of businesses. 

Applicable to an array of goods ranging from everyday consumer items to digital offerings and advanced technologies such as AI systems, the directive facilitates claims for damages, including injury, property damage and data loss. 

In response to the growing presence of non-EU manufactured products within the single market, the directive ensures that there is always a responsible entity within Europe that can be approached for compensation. This requirement extends to goods purchased via online platforms. 

The directive eases the evidentiary challenges faced by claimants in complex cases by reducing their burden of proof.  

In cases where a product is found to be faulty, the individual affected may seek reparation from the manufacturer. However, complications arise when the manufacturer operates outside the European Union. Despite their location, non-EU manufacturers are accountable under the PLD, but claimants may also pursue claims against certain entities within the EU. 

These entities include the importer or an authorised representative of the manufacturer, and the fulfilment service provider, if there is no importer or authorised representative present. 

To ascertain the identity of the responsible EU-based entity, an individual may request such information from the retailer distributing the defective item. 

Should there be no identifiable EU-based responsible entity or if a response to an information request is not received within one month, the claimant has the right to seek damages directly from the retailer. 

Recent regulations have expanded liability to encompass online marketplaces when they assume the role of any of the economic operators defined by the new directive – this includes manufacturers, importers, authorised representatives, fulfilment service providers or retailers. 

Online marketplaces that solely provide a platform for transactions involving defective products can also be held accountable under certain conditions as outlined in the Digital Services Act. In these scenarios, such platforms are subject to obligations equivalent to those of a retailer. 

To further aid in the interpretation of these new regulations, the European Commission will create and maintain a publicly available database cataloguing court decisions related to product liability. 

The updated PLD will be enforced for products introduced to the market from 9 December 2026. Products that entered the market before this date will continue to be governed by the provisions of the 1985 directive. 

These two years are intended to facilitate uniformity and coherence in applying these regulations across the European Union.  

Following this integration phase, consumers will be positioned to take full advantage of the protections offered by this updated liability framework.