Global Product Liability Reforms Signal What May Be Coming To U.S. Courts
Product liability law is changing and moving past the traditional notions of physical defects and manufacturing errors. For example, recent changes in the European Union and the United Kingdom are broadening product liability law to include software, artificial intelligence, and digital components of everyday products. Although these changes are not binding on the United States, they provide a clear roadmap of the direction of product liability law and the changes manufacturers of products sold into the global marketplace should be preparing for.
The EU’s expanded view of product liability
The European Union has enacted substantial changes to the Product Liability Directive in 2024. It updated outdated legislation that has not seen changes in decades. The changes expand the definition of “product” to include software, AI, and digital updates. With this new definition of “product”, it can be considered defective not only due to physical defects but also because of defective algorithms, cybersecurity issues, or software updates.
The changes to the EU’s Product Liability Directive also relax the burden of proof requirements for consumers in some cases. It is assumed that the product is defective when the manufacturer does not provide information on the safety of the product or when the technical nature of the product makes it difficult for the consumer to pinpoint the exact cause of the failure. This is because the EU recognizes the fact that consumers are not always able to understand the technical nature of the products they use.
Product liability overhaul in the UK
The United Kingdom is currently undertaking a similar process of modernizing its product liability rules. The proposed changes are intended to address the shortcomings of the current system of liability, which has not factored in the concept of digital products, products with connectivity, or AI-based products. There has been some concern on the part of the regulators that the traditional system of liability may not be sufficient to protect consumers in the case of autonomous products.
The proposed changes in the UK are likely to deal with issues of accountability, transparency, and consumer protection, especially in the case of products that are likely to be modified after purchase, as is the case with software updates. It is a fundamental shift from the traditional system of liability, which viewed products as static rather than dynamic entities.
Why these changes matter for the U.S.
While the foundation of product liability law in the U.S. is still state common law, there is an increasing tendency for courts to look to worldwide trends in answering novel legal issues. In an increasingly technological world with more and more products using AI, machine learning, and remote software updates, U.S. courts will increasingly face the issue of whether these types of digital products should be classified as products or services.
The worldwide reforms offer persuasive authority for plaintiffs to argue that software defects and algorithmic safety issues should give rise to claims of strict liability for products. In addition, there are issues of failure to warn, especially where there are efforts to push updates that change the performance and safety of products after they are sold.
Talk to a Florida Product Liability Lawyer Today
Halpern, Santos & Pinkert represent the interests of Florida residents who have been injured by a dangerous or defective consumer product. Call our Florida personal injury lawyers today to schedule an appointment, and we can begin discussing your next steps right away.
