Compensation for digital products to be made easier

EU - Compensation for digital products to be made easier

Anyone who suffers damage from a defective product should be able to claim compensation more easily in future, according to the EU. Negotiators from the European Parliament and EU member states reached an agreement in Brussels on new rules on product liability, which are to be geared much more towards the digital market.

The new liability rules will apply not only to material damage, but also to immaterial damage such as psychological harm. The term "product" will also be extended to digital production files and software. For example, in future it may be possible to claim compensation if data is deleted from a private hard disk, it was said.

The new rules are also intended to ensure that a company within the EU, such as a manufacturer, importer or their authorized representative, can always be held liable - even if the product was purchased outside the EU. If this does not work, the member states should pay compensation with the help of national compensation systems, according to the resolution.

Revision after almost four decades

According to the information provided, consumers have generally had to prove that a product is faulty and has caused damage as a result. The burden of proof for this is now to be eased - especially if the plaintiff has difficulties due to the technical complexity of a product. In addition, according to the announcement, plaintiffs could in future demand that the respective company disclose the "necessary and proportionate" evidence.

The law is a revision of its almost 40-year-old predecessor and still needs to be officially confirmed by the plenary and the EU member states.

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1. Under the new liability rules in the EU, consumers may seek compensation for immaterial damages such as psychological harm caused by defective software or deleted data from a private hard disk.
2. The European Parliament and EU member states have agreed on amended product liability rules that will apply to digital production files and software, allowing for claims of damages in the digital market.
3. Companies within the EU, such as manufacturers or importers, will be held accountable for defective digital products, even if purchased outside of the EU, according to the new rules.
4. If a company within the EU fails to compensate a consumer for damages caused by a defective digital product, the member state should cover the compensation with the help of national compensation systems.
5. The new liability rules are a revision of the previous 40-year-old legislation, seeking to ease the burden of proof for plaintiffs and requiring defendants to disclose relevant evidence.
6. Once officially confirmed by the plenary and EU member states, the new liability rules will make it easier for consumers to claim compensation for damages resulting from defective digital products.
7. According to the European Parliament, the new liability rules will play a vital role in promoting a secure and reliable digital market across the EU, especially in the face of increasing digitization.
8. The German government and other EU member states will need to implement these new liability rules to ensure transparency, consumer protection, and accountability in the digital market.

Source: www.stern.de