The European Parliament adopted the new #PLD #ProductLiabilityDirective yesterday: here are some key points to remember.
Context: Faced with new challenges posed by intangible products such as software and artificial intelligence systems (AIS), the European Commission proposed the #PLD, a revision of the legislation on product liability, which has been in place for nearly 40 years, in September 2022.
Broadening the notion of “product”: The new directive includes AIS in the scope of “products,” including software (excluding open-source) and digital manufacturing files. Open-source software not linked to commercial activity is not affected.
Easing the burden of proof: To simplify the repair of damages caused by defective products, including AIS, the directive removes the €500 threshold and proposes “discovery” mechanisms and presumptions, shifting the burden of proof in favor of the claimant in a context of information asymmetry between victim and producer.
Extension of compensable damages: In addition to bodily and material damages, the proposal expands compensation to non-professional data losses.
Extended liability for delayed damages: The double prescription period for the victim’s action, 3 years following the damage and 10 years from the product’s circulation, is maintained, except for latent damages that manifest late, for which the last deadline is set at 25 years.
Responsible party: The directive requires that there must always be a business based in the EU, whether a manufacturer, importer, or authorized representative, to assume liability for damages caused by defective products, including for online purchases made outside the EU.
Next steps: The directive must now be formally approved by the Council. It will enter into force on the twentieth day following its publication in the Official Journal of the European Union. The new rules will apply to products placed on the market 24 months after the entry into force of this directive.
Once adopted, and given their close link with the recently adopted AI Act, the PLD will impose enhanced monitoring obligations on companies, which must prepare accordingly.
Benjamin May, Amina Kahlal, and Lou Mailhac analyzed the current and future liability mechanisms of AI in the Expertise magazine, taking into account the European directives #AILD and #PLD, to help understand the upcoming changes.
Clik here to read the full article.