Same Rules; Different Routes: How Europe Is Rewriting Product Liability

What does the New PLD do?

The New PLD modernises EU product liability rules to address the challenges and opportunities arising from:

• Digital technologies and artificial intelligence (AI)
• The circular economy (refurbished, remanufactured, and substantially modified products)
• Increasingly complex global supply chains and online marketplaces
• The need to ensure effective access to justice for injured persons

It maintains strict, no-fault, liability as its foundational principle. A person who has suffered damage may claim compensation by proving (a) a defect in the product, and (b) a causal link between the defect and the damage suffered. The claimant is not required to demonstrate that the manufacturer or any other economic operator was at fault.  Liability extends beyond traditional manufacturers to include importers and authorised representatives, own branders, fulfilment service providers, online platforms (where they present a product in a way that would lead a consumer to believe it is provided by the platform itself), modifiers (i.e. any person or entity that substantially modifies a product outside the original manufacturer's control and places it back on the market is legally deemed to be the manufacturer for liability purposes) and distributors.

The scope of recoverable damages is also broadened significantly to include specifically for the first time, medically recognised psychological harm within the scope of personal injury. Destruction or corruption of data not used exclusively for professional purposes will be included, and all previous financial liability caps, including the current EUR 500 threshold for property damage claims will be removed.

It will apply to products placed on the market or put into service after 9 December 2026. This important distinction means that we will see the two regimes running side by side for a time – with new products falling under the new PLD, while products already placed on the market or put into service before that date will continue to be governed by the old regime (Directive 85/374/EEC).

Key changes

Once transposed into national law, the New PLD will introduce a number of key changes. These include:

1. A Modernised Defect Test: Generally a product will still be defective if it does not provide the safety a person is entitled to expect or that is required under EU or national law. This assessment will now include (among other factors) the product's ability to continue to learn after deployment (AI products) as well as Interconnection risks (e.g., smart home ecosystems), cybersecurity requirements and the effect of software updates or upgrades performed under the manufacturer's control
2. Eased Burden of Proof: The New PLD introduces claimant-friendly evidential presumptions.  Claimants need only present facts and evidence to support the "plausibility" of their claim, and rebuttable presumptions of defectiveness and causation may be triggered where the claimant faces "excessive difficulties" due to technical or scientific complexity. Non-compliance with court disclosure orders can also trigger a presumption of defectiveness
3. New Disclosure Obligations: The New PLD introduces for the first time a procedural disclosure mechanism. Courts may order defendants to disclose relevant evidence where a claimant has presented sufficient facts and evidence to support the plausibility of their claim. Defendants may also seek disclosure from claimants.
4. Post-Sale Liability: Manufacturers may be held liable for defects that appear following a software update or upgrade performed under their control, and for defects arising from an AI system's continuous learning where the AI remains under the manufacturer's control.
5. Limitation Periods: The 3-year limitation period for bringing claims and the 10 year long-stop period for general claims both remain unchanged, unless latent personal injuries are involved.  In that case the long-stop period is increased to 25 years.
6. Development Risk Defence: The "state of the art" defence is retained but Member States will be able to derogate from it (in whole or in part). The defence applies where the objective state of scientific and technical knowledge was incapable of discovering the particular defect at the time of placing the product on the market, putting it into service, or during the period in which the product was within the manufacturer’s control.  The test is specific to the product and defect in question.
7. Full Harmonisation: The New PLD intends for full harmonisation, significantly limiting Member States' discretion in national implementation. However, some areas of discretion do remain.  As mentioned above, Member States may choose to derogate from the Development Risk Defence in whole or in part.  One example of this is that Hungary has limited its use for pharmaceuticals. There is also discretion in relation to certain presumption thresholds. For example, Finland and Sweden have dropped the word "excessive" from the difficulty threshold for triggering presumptions, adopting a more claimant-friendly approach

Mind the gap: Member State progress on transposition of the New PLD

EU Member States have until 9 December 2026 to fully transpose the New PLD into national law.  With the deadline now only two months away, only Hungary and Croatia have completed this process.  Whilst a further 12 Member States, including Cyprus, Lithuania and Poland, have started the process, the remaining 13, including France and Spain, have not, at the time of writing, reported any significant progress. It appears increasingly likely that numerous member states will struggle to achieve timely transposition.

Check our interactive heat map for the latest transposition status across the EU.

What about Northern Ireland?

Although it is part of the UK, Northern Ireland is subject to special rules under the Windsor Framework.  The Windsor Framework is the 2023 agreement between the UK and the EU that modifies the operation of the Northern Ireland Protocol, reducing checks on goods moving from Great Britain to Northern Ireland while preserving Northern Ireland's access to the EU Single Market and avoiding a hard border on the island of Ireland.

Under the Windsor Framework (formerly the Northern Ireland Protocol), Northern Ireland must also implement the New PLD by 9 December 2026. As of September 2026, no significant progress has been reported toward implementation in Northern Ireland.

Whilst the rest of the UK will continue to be governed by its domestic product liability legislation, Northern Ireland will be more closely aligned with EU product liability standards. This creates the potential for regulatory divergence within the UK, requiring distributors, manufacturers and technology providers placing products on the UK market to navigate different liability standards depending on whether the product is supplied in Northern Ireland or Great Britain. Organisations operating in NI should consider the implications that the new directive will have, particularly where software enabled products, AI systems or digital services are involved, in order to minimise any potential litigation or compliance risks that may arise from its implementation.

Comparison with UK Product Liability Law

As it is not a member of the EU, the new PLD will not apply in the UK.  UK product liability is primarily governed by Part I of the Consumer Protection Act 1987 ("CPA 1987"), which originally implemented the 1985 EU Product Liability Directive (Directive 85/374/EEC) into UK law. Following Brexit, the UK retained the CPA 1987 but is no longer bound by EU directives. The UK has not adopted the New PLD, and UK domestic law therefore continues to reflect the 1985 framework, although reform here is also imminent, courtesy of the Product Regulation and Metrology Act 2025 and forthcoming secondary legislation – see below.

UK Reform Prospects:  Will the UK be forced to fall into line?

UK businesses selling products into the EU will be subject to the New PLD for products placed on the EU market after 9 December 2026, regardless of the position under UK domestic law. Businesses with EU market exposure should therefore ensure compliance with the New PLD irrespective of the current state of UK law.

The UK regime is in any event under scrutiny. The UK Law Commission announced a review of the CPA 1987 as part of its 14th Programme of Law Reform (launched July/September 2025). The review is examining whether the CPA is fit for purpose in light of emerging technologies, AI, digital products, and online marketplaces.

The terms of reference cover the definition of product, defect, damage, and producer; the burden of proof; the 10-year long-stop; and the state-of-the-art defence. A further consultation paper is anticipated in October 2026, with a final report and recommendations expected in October 2027.

The Product Regulation and Metrology Act 2025 ("PRAM Act") received Royal Assent in July 2025. While it recognises software as a component of products for safety regulatory purposes, it does not immediately reform product liability law.  See our briefing for more detail on the UK product safety reforms here UK product safety reform: new rules, new risks.

What are the main differences between the EU and UK

Area	EU Directive 2024/2853	UK CPA 1987
Product Scope	Explicitly includes software, AI systems, digital manufacturing files, raw materials, electricity	Limited to movables/tangible goods; unclear whether standalone software is covered
Liable Parties	Expanded to include fulfilment service providers, online platforms (under certain conditions), and substantial modifiers	Producer, own-brander, importer into UK, supplier (if fails to identify producer)
Recoverable Damage	Personal injury (including psychological harm), consumer property, data destruction/corruption; no minimum threshold; no caps	Personal injury and property damage only; GBP 275 minimum threshold for property claims
Burden of Proof	Plausibility standard; rebuttable presumptions of defect and causation triggered by excessive difficulties	Claimant bears burden of proving defect, damage, and causation
Disclosure	Statutory disclosure regime; court-ordered evidence production where claim shown to be plausible	No specific statutory disclosure regime in CPA (general CPR disclosure rules apply)
Limitation Period	10 years; extended to 25 years for latent personal injuries	10 years only (no extension for latent injuries)
Development Risk Defence	Available, but Member States may derogate	Available (section 4(1)(e) CPA 1987)
Liability Caps / Thresholds	No caps or minimum thresholds	GBP 275 minimum threshold for property damage
Post-Sale Liability	Liability for defects from updates/upgrades under manufacturer's control; AI continuous learning	No explicit post-sale or post-supply obligation in CPA
Online Platforms	Can be held liable under certain conditions	No specific platform liability provisions

Key Takeaways

The New PLD will apply to products placed on the market or put into service after 9 December 2026. Businesses should use the remaining time to complete any necessary operational, contractual, and compliance adjustments. Some important considerations as we move into 2027 include:

• Review existing stock inventories:  The PLD will apply  to products that are placed on the market, and also those put into service, on or after the December date.  Businesses should check if they already hold products which are not yet on the market but will be put into use or sold after the December date, and so which will be subject to the PLD,  even though they were manufactured before it came into force.
• Broader product scope: Companies developing or distributing software, AI systems, or digital products should assess their exposure under the expanded definition of "product."
• Supply chain mapping: Businesses should map their supply chains to identify which entities may now fall within the expanded categories of liable parties (including own branders, fulfilment service providers and online platforms).
• Post-sale risk management: Manufacturers who issue software updates or whose AI products continue to learn post-deployment face potential liability for defects arising from those post-sale activities. Update and monitoring processes should be reviewed.
• Evidence and documentation: Given the new disclosure obligations and the presumptions that may be triggered by non-compliance, businesses should ensure robust documentation of product design, testing, technical files and quality assurance processes.
• Insurance review: The expansion of recoverable damages, and changes to definitions of what constitutes a “product” may warrant a review of product liability insurance coverage.
• Monitor national transposition: While the Directive is fully harmonizing, limited areas of Member State discretion (particularly regarding the development risk defence) mean that national implementing legislation should be monitored for any material divergences.
• UK dual exposure: UK-based businesses with EU market exposure should prepare for compliance with the New PLD for products placed on the EU market, while also monitoring the UK Law Commission review for potential future domestic reforms.

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Disclaimer: This briefing is provided for general informational purposes only and does not constitute legal advice. The content is current as of 7 October 2026 and is subject to change as Member States progress their transposition activities and as further guidance becomes available. Clients should seek specific legal advice tailored to their particular circumstances.

This article was co-authored by: Hannah Nichols, Richard Matthews, Helen Amison, Phillip Crosbie, Teresa Hitchcock, Matthew Howse Fabian Volz, Matthaeus Weinfurtner and Denisa Krasniqi