In just under four weeks, on December 9, 2026, the implementation deadline for the new EU Product Liability Directive (Directive (EU) 2024/2853) will expire: Software will now be explicitly considered a product; when imported from third countries, importers, fulfillment service providers, and in some cases even online marketplaces will be held liable, and injured parties will be able to file lawsuits with significantly relaxed evidentiary requirements. What this means for online retailers—especially when it comes to direct imports and private labels.
At a Glance: The New Product Liability Rules
- Effective date: December 9, 2026. By then, Directive (EU) 2024/2853 must be transposed into national law; it applies to products placed on the market on or after that date.
- Software is a product: AI systems and digital design documents are also subject to liability—regardless of whether they are provided locally, from the cloud, or as SaaS.
- Liability cascade: In the absence of an EU manufacturer, liability falls secondarily on the importer, authorized representative, fulfillment service provider—and, under certain conditions, the online marketplace.
- Eased Burden of Proof: Disclosure requirements and presumption rules significantly lower the hurdles for injured parties.
- Expanded scope of damages: The €500 deductible for property damage is eliminated, as is the maximum liability amount; the destruction of personal data is also compensable.
- Legacy products: For goods placed on the market before December 9, 2026, the previous Product Liability Act remains applicable.
What does the new EU Product Liability Directive change?
After more than 40 years, it replaces the 1985 Product Liability Directive and adapts strict liability for defective products to the digital economy. The basic mechanism remains the same: Anyone who suffers injury to their body, health, or personal property due to a defective product can claim compensation without having to prove fault. Three things are particularly new: the expanded definition of a product (software, AI, digital construction documents), the broader circle of liable parties (a liability cascade extending all the way to the marketplace), and the procedural easing of the burden of proof. Member states must implement the directive by December 9, 2026; in Germany, the legislative process for a completely new product liability law is underway at the Federal Ministry of Justice—whether it will take effect on time by the deadline was still unclear at the time of publication. A possible delay does not change the overall direction: The requirements of the directive are set.
Will software be liable as a product starting in December 2026?
Yes. In the future, software will be explicitly considered a product for the purposes of product liability—including AI systems and regardless of how it is delivered: locally installed, from the cloud, or as SaaS. Digital design documents, such as print files for 3D printing, are also covered. Free open-source software developed and made available outside the scope of commercial activity remains exempt. The temporal aspect is noteworthy: A product can become defective even after it has been placed on the market—for example, due to a faulty update, machine learning, or the failure to provide an update necessary for safety. Liability extends as long as the manufacturer retains control over the product. For retailers of smart products, this means that manufacturers’ update commitments become relevant to liability.
Who is liable for imports from third countries—and when does liability fall on the marketplace?
The principle remains that the manufacturer is liable—but the directive ensures that injured parties in the EU always have a tangible party against whom to assert a claim. If the manufacturer is based outside the EU, the importer or the manufacturer’s authorized representative is liable in its place; if neither of those exists, the fulfillment service provider that stores and ships the product is liable. Online platforms are liable if they act as a seller during the sale—that is, if the impression is created that the product comes from the platform itself or from a retailer acting under its control. Furthermore, any retailer can be held liable if, upon request, they fail to identify their upstream supplier or the responsible party within one month. Retailers who import directly from non-EU countries are directly affected by this—as importers, they are at the top of the chain of liability.
| Party | Is liable if … |
|---|---|
| Manufacturer | … their defective product causes damage—including defects resulting from updates or missing security updates. Anyone who sells a third-party product under their own name or brand (private labels!) is also considered a manufacturer. |
| Importer / Authorized Representative | … the manufacturer is based outside the EU. In this case, the importing retailer is liable in the same way as the manufacturer. |
| Fulfillment service provider | … there is neither an EU manufacturer, an importer, nor an authorized representative, and the fulfillment service provider stores, packages, or ships the product. |
| Online marketplace | … if the platform presents itself in such a way that consumers may reasonably assume the product is provided by the platform itself or under its control. |
| Any retailer | … if, upon request by the injured party, they fail to identify within one month from whom they obtained the product. |
Does the new product liability law also apply to existing inventory?
No. The new rules apply to products placed on the market on or after December 9, 2026; for everything prior to that date, the previous Product Liability Act remains applicable. “Placing on the market” refers to the first time a specific unit of the product is made available on the EU market—not the product model. In practice, this means that the same item number can fall under both liability regimes, depending on when the individual batch was imported. Directly imported goods that do not enter the EU until December are therefore already subject to the new law—including importer liability.
What do the relaxed standards of proof mean for litigation risk?
They noticeably shift the balance of power in favor of the injured party. Courts can order the disclosure of evidence—such as technical documentation; if a party fails to comply with the order, the product is presumed to be defective. Presumptions also apply in cases of obvious malfunctions and in scientifically or technically complex situations where full proof would be unreasonable—intended in particular for AI systems. In addition, the scope of compensable damages has been expanded: The previous €500 deductible for property damage is eliminated, as is the maximum liability limit, and for the first time, the destruction or damage to data used for private purposes is compensable. Bottom line: Product liability lawsuits are becoming more promising—and thus more likely.
What should online retailers do now?
The focus is on the supply chain and documentation:
- Clarify your role for each product: Am I a retailer with an EU supplier, an importer, or a de facto manufacturer (private label)? The answer determines your liability status.
- Document EU representatives: For each product, record who the manufacturer, importer, or authorized representative in the EU is—including contact information.
- Make sources of supply verifiable: The one-month deadline for identifying suppliers requires that the upstream supplier can be quickly identified for each batch.
- Review private-label products: Anyone selling under their own name is liable as the manufacturer—align quality assurance and product liability coverage accordingly.
- Organize update processes: For software and connected products, clarify who provides security-related updates and for how long—and set this out in a contract.
- Adjust insurance: Have your product liability insurance reviewed to account for the new types of claims and your own role (as an importer!).
As a shop system manufacturer based in Chemnitz, XONIC Solutions has been navigating the legal upheavals in e-commerce since 2005—from one-click checkout solutions to the GDPR. If you sell through platforms in addition to your own online store, our comparison of sales platforms will help you determine which channels are suitable for which merchants.
Note: This article does not constitute legal advice. The assessment of specific products, supply chains, and insurance issues should be handled by specialized law firms.
Frequently Asked Questions About the New Product Liability Laws
Sources
- Directive (EU) 2024/2853 on Liability for Defective Products – EUR-Lex (Primary Source)
- BMJV: Legislative Process for the New Product Liability Law
- Hanover Chamber of Industry and Commerce (IHK): New Product Liability Act Effective in December—What’s Changing?
- Onwalt Academy: An Overview of Product Liability Law
Stephan Dunger
Stephan Dunger is one of the brains behind the XONIC store system. He has been developing the platform together with the team since 2012 - from the database to the interfaces to the checkout.
A passionate programmer, technical mind and consultant at the same time: with his in-depth knowledge of store systems and e-commerce, Stephan combines the depth of a developer with an eye for the big picture. Together with the XONIC team, he shapes the technical direction, consistently thinks about functions from the retailer's perspective and advises on customized solutions.
The result is software with a face: customers don't get an anonymous provider, but a direct line to the people who develop XONIC. Pragmatic, fast and at eye level.
