On December 8, 2024, Directive (EU) 2024/2853 came into force, replacing Directive 85/374/EEC with a modern framework for product liability. It applies to products placed on the market after December 9, 2026, addressing challenges deriving from technological advancements (such as AI and software-based products) and global supply chains.
The Directive introduces a broader definition of products, covering tangible and intangible items (such as software and AI systems) and liability extends to all economic operators in the supply chain.
As set in the legislation’s provisions, defectiveness now incorporates compliance with safety regulations and compensation includes material losses (such as personal injury, property damage, and data corruption), as well as non-material losses (like pain and suffering).
Strict liability principle is introduced, requiring claimants to prove only defectiveness, damage and a causal link between the two in order to claim compensation. The Directive also mandates that defendants disclose relevant evidence and product records when the claim to compensation is sufficiently reasonable, reducing information asymmetry between claimants and defendants. This disclosure is subject to the principles of necessity, proportionality, and the protection of confidential information, including trade secrets.
In order to address the challenges posed by the complexity of technological products, the Directive establishes presumptions of defectiveness and causality in specific circumstances. These circumstances include situations where a defendant fails to disclose relevant evidence, a product violates mandatory safety standards, or where the damage results from an obvious malfunction during foreseeable use. Defendants retain the right to rebut these presumptions.
Moreover, the period in which a person is entitled to compensation for hidden damages has been prolonged from 10 to 25 years, raising potential liability risks for all parties involved in long – term product deployment.
Implementing the new Liability Directive into Greek national law brings new challenges to Greek manufacturers, importers, and other economic operators, as well as the Greek State.
Greek manufacturers, including small and medium-sized enterprises (SMEs), will face stricter liability standards for defective products, particularly those incorporating digital components. This includes liabilities associated with embedded software, updates, upgrades and cybersecurity vulnerabilities. In addition, to defend themselves, Greek economic operators in the supply chain will need to maintain detailed records of the products and ensure compliance with record disclosure requirements, while also maintaining business confidentiality.
In the event of a compensation claim, claimants may seek damages from both the product manufacturer and the supplier of the defective components. Responsibility extends to all parties within the production and distribution chain, including companies that market products under their own brand or incorporate defective components into their goods.
Directive (EU) 2024/2853 must be implemented into Greek national law by December 9, 2026. This process may require amendments to the Greek Civil Code, consumer protection laws, and procedural rules, as clear provisions addressing software-related damages and incorporating digital products into liability definitions are likely necessary. This type of changes in law are time-consuming and demand certain expertise to ensure proper alignment with legal and technical standards, as well as to safeguard effective application of the law.
Edited by Michales Kamposos