Since December 2024, new EU regulations on product liability have been in force. Although these changes were introduced a few months ago, many businesses have yet to fully comply with the new requirements.
We remind you of the key aspects of the regulation that may significantly impact companies operating in Germany and across the European Union. Check if your business is ready for the new rules and avoid legal risks.
The New EU Product Liability Directive – What Has Changed?
On December 9, 2024, the EU Directive 2024/2853 on defective products liability came into effect, replacing the previous 1985 regulations. This is the most significant reform in this area in 40 years. The key changes include:
- Expanded definition of a product – now covering not only physical goods but also software, AI systems, and digital manufacturing instructions.
- New liability rules for importers, distributors, and online sales platforms – companies selling products in the EU are now more accountable, even if the manufacturer is based outside the Union.
- Obligation to provide software updates – if a product requires updates to maintain safety, failing to provide them may result in compensation claims.
- Easier legal claims for consumers – reduced burden of proof for consumers increases legal risks for businesses.
What Risks Do Polish Companies Face?
The new regulations introduce a broad scope of liability. Businesses must be prepared for stricter product compliance and monitoring requirements. Here are the key risk areas:
a) Extended Product Liability
- Manufacturers are responsible not only for design defects but also for failing to provide software updates that could prevent hazards.
- Importers and distributors bear liability for product safety if they cannot identify the manufacturer.
b) Longer Liability Period
- Mandatory documentation retention for 10 years.
- Consumers can file claims for up to 25 years if long-term health effects arise.
c) New Product Safety Obligations
- Companies must implement systematic market monitoring and risk analysis.
- If hazardous product defects are detected, a fast and effective recall system is mandatory.
How to Prepare Your Business for the New Regulations?
To avoid legal risks and severe penalties, Polish entrepreneurs should take proactive measures:
- Review Contracts and Procedures
- Implement a Market Monitoring System
- Ensure Documentation Compliance with EU Standards
- Train Employees
Consequences for Companies – What Are the Risks of Non-Compliance?
The new regulations impose strict financial penalties for non-compliance. Additionally, increased requirements for evidence in product liability cases mean that consumers now have a greater chance of winning legal disputes.
Conclusion
The new EU directive brings fundamental changes for companies operating in the European market. To avoid financial and legal risks, it is crucial to ensure your business is fully compliant with the new regulations as soon as possible.
Grau Rechtsanwälte PartGmbB offers legal support in your daily business, especially for foreign companies that operate subsidiaries in Germany or are suppliers of German companies – the entire spectrum of German commercial law, starting with corporate and commercial law, through distribution law, labour law, insolvency law and claims management.
If you have any further questions, please contact our law firm on +49 (0) 40 180 364 020 or office@graulaw.eu.
