The EU is fundamentally modernizing product liability law. With the new Product Liability Directive (EU) 2024/2853, consumers are set to be better protected in a digital world. Germany must implement the requirements by December 9, 2026. To this end, the Federal Ministry of Justice and Consumer Protection (BMJV) presented a draft bill on September 11, 2025.

What does this mean? In the future, not only traditional goods will be considered products but also software, AI systems, digital blueprints for 3D printers, smart devices, and connected services. Companies not previously affected will now face liability – such as software providers, online platform operators, fulfillment service providers, or companies that refurbish products.

The financial limits are falling: the previous deductible of 500 euros and the liability ceiling of 85 million euros will be abolished. Injured parties will therefore be able to claim full damage compensation. Additionally, an increased risk of class action lawsuits is anticipated.

New disclosure duties are also introduced: In liability processes, companies must submit relevant evidence such as construction data or insights gained from product surveillance upon the claimant's request. Ignoring this duty puts companies in a weak position since the directive foresees a statutory presumption: If the claimant plausibly argues their compensation claim, it will be presumed that the product is defective.

To protect their trade secrets, companies can request that certain documents be treated confidentially. If the court grants the application, penalties may be imposed if the claimant uses these secrets outside of the proceedings.

For companies, this means they must review and adjust their processes, documentation, and IT security.

Further information is available on the BMJV website.