EU Product Liability Directive impacts software, digital products, cybersecurity
10 months ago
- #Product Liability
- #EU Directive
- #Cybersecurity
- The EU's Product Liability Directive (PLD) now includes software, AI, and digital services under 'products' subject to strict liability.
- Non-compliance with cybersecurity requirements or failure to provide security updates can be considered a product defect.
- Companies cannot limit liability for software or cybersecurity defects through contracts.
- The PLD introduces rebuttable presumptions, making it easier for claimants to prove defectiveness or causation in complex cases like software or AI.
- Courts can require companies to disclose evidence in an understandable manner, especially for digital products.
- The PLD works alongside the Representative Actions Directive, increasing the risk of collective consumer lawsuits.
- Companies must enhance cybersecurity practices, document compliance, and monitor vulnerabilities to mitigate risks under the new PLD.