Directive (EU) 2024/2853 on liability for defective products (Revised Directive) was published in the EU Official Journal on 18 November 2024 and came into effect on 8 December.

Member States, including Ireland, are required to transpose the Revised Directive into national law by 9 December 2026.

Liability for defective products under Irish law is regulated by the Liability for Defective Products Act 1991 (1991 Act), which is regarded as inadequate in attending to the needs of the digital era and modern economy. Plaintiffs trying to to prove their case in certain product liability claims faced challenges due to the scientific and technical complexity of the issues. Claims relating to medical devices and pharmaceuticals are becoming increasingly complex and unclear due to advancements in digital technologies and artificial intelligence, which are not captured under the 1991 Act.

The Revised Directive aims to alleviate these difficulties by bringing new products and economic operators within its scope, extending limitation periods and easing the burden of proof for plaintiffs.

How will the Revised Directive change the existing law on Product Liability?

As set out in our previous publication (access here), the main changes under the Revised Directive include:

• Modernising liability rules for circular economy businesses so that economic operators who make substantial modifications to a product can be liable when those modified products are defective and cause damage.
• Compensating for damage where products incorporating AI are made unsafe by software updates or services needed to operate them and for a manufacturer’s failure to address cybersecurity vulnerabilities.
• Ensuring there will always be a business in the EU that will be liable for harm caused by unsafe products even when the product is imported from outside the EU. Where there are no EU importers or authorised representatives to sue, the Revised Directive allows for claims to be brought against ‘fulfilment service providers’, which involves warehousing, packaging, addressing and dispatch services.
• Providing a level playing field for consumers and manufacturers by requiring manufacturers to disclose relevant evidence in court proceedings claiming compensation for a defective product; introducing more flexibility to the long-stop time restrictions for initiating claims, and easing the burden of proof for victims in complex cases.

The Revised Directive has maintained its core content throughout the legislative procedure, except for small linguistic changes to improve clarity and address specific concerns.

What does the Revised Directive mean for Product Liability in Ireland?

The Revised Directive will not immediately impact product liability in Ireland as it will only apply to products placed on the market or put into service after 9 December 2026 or at the date for which it is transposed into Irish Law. Products placed on the market or put into service prior before this date will continue to be governed by the 1991 Act.

Transposition of the Revised Direct will provide a significant but necessary overhaul of product liability rules under Irish law, creating stricter liability and imposing greater obligations on manufacturers. The Revised Directive could disrupt existing contractual agreements in the supply and distribution chain, forcing companies to revise their terms to account for the new risks and responsibilities set out in the Revised Directive.

The changes introduced under the Revised Directive are intended to modernise the rules on manufacturer’s liability for defective products. It may well result in an increased risk of litigation for in-scope economic operators, including manufacturers, given the inclusion of digital products and AI in the expanded definition of products, and the extended limitation period in latent personal injuries claims.

For more information on any of the matters discussed in this article, please contact Mary Cooney, or your usual William Fry contact.

Contributed by Niamh Brennan and Luke Moloney.