The provisional agreement on the liability of economic operators for damage caused by defective products aims to respond to the increase in online shopping (including from outside the EU) and the emergence of new technologies (such as AI) as well as to ensure the transition to a circular economic model. In order not to stifle innovation, the rules will not apply to open-source software developed or supplied outside of a commercial activity.

New rules ensure that there is always an EU-based business, such as a manufacturer, importer or their authorised representative that can be held liable for a product that caused damage, even if the product was not bought in the EU. MEPs insisted that in cases when such a liable business cannot be identified, member states may provide compensation using national compensation schemes.

Easier access to compensation

The negotiators agreed to simplify the burden of proof for the person requiring compensation, who would normally have to prove that…