Product Liability
Details – Expert information
Overview
Objectives of the Directive
The Directive 85/374/EEC on liability for defective products (Product Liability Directive) seeks to ensure that:
- Products introduced to the EU market are safe;
- Innovation is strengthened;
- Consumers who suffer injury because of defective products are able to claim compensation when damage occurs.
The main challenge, in the age of digitalization, lies in a fair balance of risks between consumer, distributor and producer.
Statistics on Product Liability: product categories concerned
Within the period 2000-2016, the recurrence of claims in the EU, subject to national case law, can be clustered by different product categories1:
- 52% of the claims are related to three product categories;
- Raw materials (21%);
- Pharmaceutical products (16%);
- Vehicles (15%).
- Nuclear reactors, boilers, machinery and mechanical appliances amounted to more than 12%;
- Although involving lesser percentages, the following sectors are also represented:
- Chemicals (7%);
- Agricultural goods (7%);
- Electrical machinery and equipment and others (6%);
- Food & beverage (3%);
- Clothes and accessories (2%);
- Cosmetics (nearly 2%).
Systems used to settle claims
Directive-related claims are settled through direct negotiation in 46% of the cases, whereas 32% are resolved in court and 15% through alternative dispute resolution (ADR) systems. Only a small share (7%) of the claims under the Directive are settled through other means, such as settlements with the insurer of the responsible entity.
Broken down per Member State, 60% or more of the claims are settled:
- In court in Estonia, France, Poland, Romania and Finland;
- Through alternative dispute resolution mechanisms, such as arbitration, mediation, negotiation, conciliation or other mechanisms provided for by national legislation in Bulgaria, Greece, Lithuania;
- Through direct negotiation in Czechia, Croatia, Italy, Hungary, Cyprus, Portugal and Sweden;
- Through settlement with the insurer, in Slovenia.
Number of claims over the years
The following table shows the development by number of claims per year from the year 2000 to 2016, adjusted per new Member State entries.
Source: Study for the evaluation of Directive 85/374/EEC in 2018, p. 22
Other related legal frameworks
Other legal initiatives demonstrate the EU’s strategic, permanent interest in product safety. The responsibilities of economic operators are also notably addressed by the precautionary principle, the General Product Safety Directive, the Product Safety and Market Surveillance Package.
Current research
Product Liability: European Laws and Practice, Prof. Christopher Hodges, Oxford University
Abstract – The enforcement of the Product Liability Directive 85/374 has applied a uniform system of strict liability to producers within the EC (now EU) in addition to the pre-existing fault liability systems.
Other countries in Europe have also changed their national laws to bring them into line with the Directive, thereby promoting trade in Europe. “European Product Liability” provides the text of the directive in English, French and German, a detailed commentary on its provisions and gives a clear overview of the major differences in the implementing legislation throughout Europe.
There is a chapter on the steps which can be taken to reduce manufacturers’ risks and one covering product liability insurance. The book also includes an analysis of the legal provisions affecting product liability in every EC (now EU) Member State and five EFTA countries.
The established theories of liability, and new implementing legislation are discussed in each case by a lawyer practising in that country.
The contributing editors also give outline guides to the litigation system of their countries, and the implementing legislation is reproduced in English and the national language.
- Product Liability: European Laws and Practice, Prof. Christopher Hodges, Oxford University
- August Debouzy: Product Liability in France
- August Debouzy: The prospects of Product Safety regulation
Convergence with the Regulation of the Digital Space
As digital technologies increasingly interact with multiple pieces of EU legislation – including the AI Act, Cyber Resilience Act, and Data Act – greater consistency with the revised PLD (now including software as a product) is needed to ensure legal certainty and proportionality.
The Digital Fitness Check of the European Commission – like the Digital Package and Omnibus – offers an opportunity to review how these frameworks operate together and to ensure that Europe’s liability rules evolve consistently with its wider digital legislation.
EJF has identified key areas where targeted clarifications and guidance could improve coherence across EU digital legislation and reduce administrative complexity:
- Streamlining evidence disclosure obligations under the “provide once, use many times” principle;
- Clarifying how compliance with EU safety rules interacts with presumptions of defect;
- Harmonising key definitions of “product” and “service”;
- Providing proportionate guidance on the 25-year limitation period for digital elements; and
- Promoting coherence across Member States’ implementation of PLD provisions.
Read EJF’s contribution to the European Commission’s consultation, submitted in October 2025.
EJF position
In October 2025, EJF submitted its contribution to the European Commission’s consultation on the upcoming Digital Package and Omnibus, which seeks to improve coherence across EU digital legislation and reduce administrative complexity. EJF sees here the need for more coherence with the PLD due to enlarged scope including software.
Read the full paper.
In the 2021 developed Position Paper EJF asked for further analysis on potential root causes for risks and options of dealing with them before rushing into intervention with more detailed ruling.
EJF contribution_PLD Statement_October 2021
For more information please contact us.