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LEGAL: 🇪🇺 EU Consumer Rights Update

New EU Product Liability Directive (PLD)

The European Union has introduced a comprehensive update to its product liability laws, effective from December 2024. Key highlights include:

Expanded Definition of 'Product': Now encompasses software, digital files, and AI-driven products.
Extended Liability Period: Consumers can seek compensation for up to 25 years for latent defects.
Enhanced Consumer Protection: Includes provisions for psychological harm and data loss.
Post-Sale Liability: Manufacturers are responsible for defects arising from software updates or machine learning modifications.
Broadened Scope of Defendants: Online marketplace operators and non-EU manufacturers' representatives can be held liable.

Conclusion
The EU's revised Product Liability Directive (PLD) reflects a progressive and forward-thinking approach to consumer rights, particularly in the context of an increasingly digital and AI-driven world. By expanding the scope of what constitutes a "product," extending liability periods, including non-physical harm, and introducing post-sale liability, the directive significantly strengthens consumer protections.

Manufacturers, software developers, and online marketplace operators will need to adapt to these new obligations, investing in improved product quality, more robust consumer communication, and enhanced data privacy protocols. While these changes may increase operational costs, they also offer an opportunity to build consumer trust in a market that is rapidly evolving towards digital and AI technologies. As these provisions take effect, they are likely to have broad implications for both the business landscape and the legal environment, potentially setting new global standards in consumer protection.