Computer & Communication Industry Association
PublishedJune 14, 2023

EU Product Liability: Council Position Is Missed Opportunity To Improve New Rules

Brussels, BELGIUM – The Council of the European Union adopted the position of Member States on the revision of the Directive on the Liability for Defective Products (PLD) today.

The Computer & Communications Industry Association (CCIA Europe) takes note of the decision, but is surprised to see that such an important proposal, with wide-ranging implications for consumers and businesses alike, was adopted by the Council without any debate.

While the new PLD risks disrupting today’s carefully-balanced framework that governs the liability of economic operators in the EU, the impact of the changes brought by the revision have not been thoroughly considered since the European Commission proposed it in September 2022.

Going forward, EU decision makers are encouraged to make sure the proposal properly reflects the realities of the tech sector. Otherwise the PLD risks hampering innovation and driving up insurance costs for businesses in the EU, which in turn would make products more expensive for Europeans.

Most problematic is the suggestion to include standalone software and AI in the definition of what constitutes a “product” under the PLD, even though neither are tangible goods, as well as the extension of damages to psychological health and to data corruption and loss.

Other changes that would be burdensome for businesses, without necessarily improving consumer protection, are the de facto reversal of the burden of proof – with consumers no longer having to prove that a defective product caused damage – and the obligation for companies to disclose evidence in the broadest sense as part of legal proceedings.

The revision of the PLD is a technical and complex file, but its impact on consumers and companies should not be underestimated. CCIA Europe hopes that the upcoming interinstitutional negotiations will be used to address the PLD revision’s remaining flaws. Those negotiations will start once the European Parliament adopts its position in early July.

The following can be attributed to CCIA Europe’s Senior Policy Manager, Mathilde Adjutor:

“Decision makers should carefully evaluate the concrete impact these new EU product liability rules will have on European consumers and businesses. Nobody will benefit from far-reaching changes to Europe’s already-strict liability regime if they are adopted without much discussion or reflection.”

News

Digital Networks Act Opens Clear Path to Network Fees, Study Warns, as Parliament Risks Making It Worse

Brussels, BELGIUM – A new independent study launched today warns that the European Commission’s proposed Digital Networks Act (DNA) already opens two legal pathways to network fees.  The warni...
reading-tablet
  • Press Releases
    European Union
News

Matt Mandel Joins CCIA as Federal Affairs VP

Washington -- The Computer & Communications Industry Association is pleased to welcome Matt Mandel as Vice President for Federal Affairs. Mandel served as Vice President of Government Affairs at W...
reading-tablet
  • Press Releases
  • Federal Affairs
News

Supreme Court Opts not to Intervene and Block a Texas App Store Law that Likely Violates First Amendment

Washington – In response to an emergency request, the Supreme Court has decided not to intervene in an Appeals Court ruling allowing Texas to enforce its App Store law. The law requires people to sh...
reading-tablet
  • Press Releases
  • Privacy
News

CCIA Files Joint Brief on Internet Content and Federal Legal Protections

The Computer & Communications Industry Association, NetChoice, and the Electronic Frontier Foundation filed a joint amicus brief in Bogard v. Alphabet, asking an appeals court to affirm a lower co...
reading-tablet
  • Press Releases
  • Online Safety