Product liability in modern conditions: European reform experience

Abstract

At the end of September 2022, the European Commission presented two notable documents designed to fundamentally change the current system of product liability in Europe. In part, these projects were a response to the challenges posed by digitalization and modern technology. The first document is designed to regulate liability for harm caused by artificial intelligence systems, while the second is aimed at adapting the EU Council Directive of July 25, 1985 No. 85/374/EEC to contemporary conditions. The present article sets out to review the key developments in the field of product liability in Europe. To this end, a review of the existing system of product liability in Europe is carried out. The existing product liability system is comprised of two parts: norms enshrined in national laws, as well as harmonized liability under the EU Council Directive of July 25, 1985 No. 85/374/EEC 1985. However, there is no consensus in European doctrine and practice regarding the regime of harmonized liability. While on the one hand, this regime is based on the idea of strict liability, on the other hand, there is also a reasoned opinion that the Directive factually establishes a regime of liability based on fault. On the example of German law, it is revealed that, despite the strict liability regime approved by special law, courts often focus in practice on a manufacturer’s breach of the duty of care, which once again testifies to liability based on fault. Possible factors behind the decision on the part of the European regulator to reform the existing liability system include: the increasing complexity of the goods themselves; the expansion of intermediary chains and emergence of new potential subjects of liability, including owners of aggregators; difficulties in proving the existence of a product defect and a causal link between such a defect and the resulting harm; the concept of harm in the digital age and the special role of data; providers’ liability for goods equipped with artificial intelligence technology.

Keywords

• product liability
• tort liability
• european product liability
• defective product
• modern technologies