The new European Union regulation on liability for defective products is gaining particular importance, as it effectively redefines the range of entities that may bear financial responsibility for damage caused by unsafe goods. Adopted on 23 October 2024, Directive (EU) 2024/2853 of the European Parliament and of the Council will replace the existing framework and must be implemented by 9 December 2026. Member states will not be allowed to introduce either stricter or more lenient provisions. In practice, this means fully harmonised liability rules across the EU and the end of national modifications to the level of consumer protection.
The directive carries significant implications for manufacturers, importers, distributors, logistics operators and online sales platforms, as it directly affects their exposure to claims and will require a redesign of contractual relationships and risk management systems.
The new rules introduce a broad category of “economic operators.” Liability will no longer rest solely with the manufacturer; it may also apply to providers of digital services linked to the product, authorised representatives in the EU, importers, fulfilment service providers and distributors. This means that risk may extend to nearly every entity involved in the circulation of goods.
Manufacturers will be the first to feel the impact of the changes, including those based outside the EU. If pursuing claims against them proves difficult, liability may shift to their authorised representative, importer, or even a logistics operator. As a result, entities previously viewed merely as technical links in the supply chain may become direct targets of claims.
A major innovation is the extension of liability to providers of digital services integrated with products. In an economy increasingly driven by software, a faulty update may cause consequences comparable to those resulting from a defective physical component. While the manufacturer remains responsible for a defective integrated component under its control, the producer of that component also bears liability. This development is likely to trigger recourse disputes and will require highly precise clauses in B2B contracts.
Distributors will also face increased risk. If, within one month of a request from an injured party, they fail to identify the responsible entity established in the EU, they themselves may be deemed liable. This will necessitate the introduction of supplier identification procedures and robust data archiving systems.
An entity that significantly modifies a product outside the control of the original manufacturer and reintroduces it to the market will also be treated as a manufacturer. This includes companies that modernise devices or install new software if such modifications affect the product’s functioning or risk profile.
The new regulations leave little doubt: product liability will no longer be solely a matter for quality control departments. Businesses will need to reassess their role within supply chains, review contracts with partners and subcontractors, establish internal procedures for handling claims, and adapt systems for monitoring and documenting product changes, including digital updates. Companies will also have to identify areas of real liability risk and decide on appropriate financial safeguards. Without such organisational and strategic preparation, the entry into force of the new rules may result in significant and difficult-to-predict burdens for many firms.
Ignoring regulatory changes may quickly turn into a costly legal and financial crisis. Under the new liability model, a single oversight may have consequences that affect the entire balance sheet of a company. For example, if product safety audits are not conducted systematically and it becomes possible to conclude that a product caused damage, the company may face substantial compensation claims.
Author: Zbigniew Cieślak, Attorney-at-law, Chałas & Partners Law Firm
Source: CEO.com.pl
