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Liability Rules Open Path for Class Actions on AI and Software

A quietly disruptive overhaul of European consumer law moves into its final implementation stretch as member states accelerate transposition of Directive 2024/2853, the revised Product Liability Directive, ahead of its 9 December 2026 application date. The text replaces an architecture written for industrial-era goods with one purpose-built for software, AI systems and platform-mediated commerce, and the practical consequences for manufacturers, importers and online marketplaces are now coming into sharp focus.

The most consequential change is definitional. Under the new Directive, a “product” expressly covers software, operating systems, firmware, applications and AI systems whether sold separately or embedded in physical hardware. A defective autonomous driving update, a misconfigured chatbot integrated into a smart appliance or a security flaw introduced by a connected toy’s firmware can all trigger strict liability for the producer. That is a structural break with the 1985 regime, which struggled to capture intangible goods and left consumers exposed in litigation over machine-learning systems whose internal logic is largely opaque.

Equally important is the recalibration of evidence. The Directive introduces disclosure obligations that compel manufacturers to share technical documentation that injured parties cannot reasonably obtain. National courts will be able to presume defectiveness and causation where evidence is unreasonably difficult to produce, a rebuttable presumption that effectively transfers parts of the proof burden in complex AI cases. Combined with the elimination of the previous EUR 500 threshold for property damage and the removal of financial caps for personal injury, the changes lower the entry price for litigation, particularly for collective actions brought under the 2020 Representative Actions Directive.

Online platforms emerge as a new addressable defendant. Where a marketplace presents a third-party product in a way that an average consumer would attribute to the platform itself or to a trader acting under its control, the platform becomes strictly liable as a producer unless it identifies the actual seller within one month of a request. The provision targets dropshipping models and own-brand presentation strategies that have multiplied across the single market, and dovetails with parallel obligations under the Digital Services Act on trader traceability.

National authorities expect compliance to be uneven, particularly among small and medium-sized importers that rely on Chinese marketplaces. To support enforcement, the Commission is preparing a Q4 2026 revision of the Consumer Protection Cooperation Regulation, the network that coordinates cross-border sweeps and joint actions by national consumer agencies. The revision is expected to centralise some enforcement powers, give the CPC network access to real-time data from large online interfaces and consider direct EU-level sanctioning of the worst recidivists. BEUC and several national consumer organisations have lobbied for the Commission to gain investigatory powers comparable to those held by DG COMP for competition cases, though the political appetite for that step is not yet clear.

Industry’s pushback has concentrated on three pressure points. Cybersecurity patching obligations under the Cyber Resilience Act create overlapping but not identical triggers for product withdrawal, and producers worry about parallel liability streams. The treatment of open-source software remains contested even after carve-outs were introduced during the trilogue. And the ten-year limitation period applicable to certain damages categories is expected to push insurance premiums upward, particularly for AI-heavy product lines whose long-tail risk is difficult to model.

For consumers, however, the practical test will come in the first cross-border representative actions filed after 9 December 2026. Class certification mechanisms remain a national prerogative under the Representative Actions Directive, and only a handful of member states have built efficient infrastructure for them. If the new liability rules deliver in court only where domestic procedural law is already advanced, the promised uplift in protection could remain uneven for some time. Commission officials acknowledge as much, while arguing that even uneven implementation will reset baseline incentives for safe-by-design software across the single market.