An amendment to the Civil Code is currently being prepared, with provisions governing liability for damage caused by a defective product expected to take effect by December 2026 at the latest. The proposal by the Ministry of Industry and Trade is based on Directive (EU) 2024/2853 of the European Parliament and of the Council on liability for defective products. This directive updates the existing 1985 framework to account for modern technologies and new business models within the circular economy. The primary goal is to ensure better consumer protection and greater legal certainty for businesses, extending the scope to providers of digital services, digital products, and software developers.
The amendment brings a fundamental expansion of what is categorized as a product. While current regulations apply primarily to tangible goods, the new framework will include electricity and raw materials, as well as all types of software, including artificial intelligence and other digital elements. The amendment thus adapts to contemporary reality, where defects in digital products can cause damage just as easily as defects in physical goods.
The range of entities that can be held liable for damage caused by a defective product is being significantly expanded to accelerate the identification of responsible parties and streamline the claims process. In addition to the manufacturer and the importer (as currently stipulated in Sections 2939 and 2940 of the Civil Code), liability under the planned amendment may also be borne by:
Substantial modifiers: Any person who substantially modifies a product outside the original manufacturer's control and places it on the market. (Control includes component integration, interconnection, updates, or software improvements, including those by third parties acting with the manufacturer’s consent).
Component manufacturers: Manufacturers of defective components, including digital components or services.
Authorized representatives and fulfillment service providers: If the manufacturer is based outside the EU, the importer and their authorized representative are jointly and severally liable. If neither has a seat in the EU, the person providing storage, packaging, or dispatching services (fulfillment service providers) may be held liable.
Distributors and online platforms: Distributors on the European market or online platform operators may be liable if the primary responsible party cannot be identified.
The approach to evaluating whether a product is defective is also evolving. Assessment will no longer rely solely on physical properties and safety, but will also consider:
The correct functioning of digital components;
Whether software is updated and interoperable;
Whether the product fulfills its function for the duration expected by the consumer;
Compliance with cybersecurity requirements.
Given the broader definition of a product, the scope of recoverable damage is also increasing. The new wording explicitly adds the right to compensation for the destruction or loss of data and, in certain cases, non-pecuniary damage. As digital data has become a vital commodity, protecting the rights of individuals and companies in the event of its loss is essential.
Furthermore, the limitation period for filing claims will be extended to account for defects that manifest over a longer period. The amendment also strengthens the procedural position of the consumer, making it easier to prove that damage occurred. This is intended to level the playing field between consumers and manufacturers or developers, particularly in the complex field of digital products.
The modernization of the product liability regime will require manufacturers, importers, and other supply chain entities to revise their internal processes to reflect these new legal requirements. This will particularly impact software developers and providers of digital content and services—entities that were not previously covered by this specific legislation.
This text was translated by AI
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