European Commission Updates Liability Rules to the Digital Age

On September 28, 2022, the European Commission adopted two proposals that adapt liability rules to the digital age, circular economy and the impact of global value chains. These proposals are related to (i) the Revised Product Liability Directive, fit for the green and digital transition and global value chains, and (ii) the AI Liability Directive to provide easier access to redress.

The topics that the Revised Product Liability Directive, fit for the green and digital transition and global value chains, addressed include:

• Modernizing liability rules for circular economy business models.
• Modernizing liability rules for products in the digital age.
• Creating a more level playing field between EU and non-EU manufacturers.
• Putting consumers on equal footing with manufacturers.

The Easier access to redress AI Liability Directive, among other features, is intended to simplify the legal process when it comes to proving that someone's fault led to damage by introducing two main features: first, the so-called presumption of causality, and second, a right of access to evidence so that claimants have more tools to seek legal reparation.

The Commission's proposal will now need to be adopted by the European Parliament and the Council. It is proposed that five years after entry into force of the AI Liability Directive, the Commission will assess the need for no-fault liability rules for AI-related claims if necessary.