With 33 votes in favour, 2 against and no abstention the Legal Affairs Committee (JURI) and Internal Market and Consumer Protection Committee (IMCO) approved their position on updated rules governing the liability of economic operators for damage caused by defective products.
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The aim of the new legislation is to eliminate differences between member states and to adequately respond to the emergence of new technologies (such as AI), the transition to a circular economic model, and the increase in online shopping (including from outside the EU).
The draft legislation seeks to ensure that even when something defective was bought outside the EU, there is an EU based business that can be held liable for the damage it causes. MEPs say that in case a liable business cannot be found, consumers could still be compensated via national schemes.
The proposal aims to simplify the procedure around the burden of proof (i.e. the need, in order to obtain compensation, to prove the product was defective and that this caused the damage suffered).
People who suffered harm can request a court to order the operator to disclose evidence that may help with their compensation claim. It also cancels the minimum damage threshold of 500 EUR.
MEPs want national consumer protection authorities to provide guidance to consumers on their compensation claims.
Extended liability period and no impact on free software
According to the adopted text, it will be possible to claim against not only physical damage but also medically recognised psychological damage, and the destruction or irreversible corruption of data (e.g. deletion of files from a hard drive) when the economic loss exceeds 1000 euro.
MEPs further extended the liability period from the Commission’s proposed 20 years to 30 in exceptional cases when symptoms are slow to emerge. To help boost innovation, the rules would not apply to free of charge open source software.
If Parliament as a whole adopts this draft mandate at an upcoming plenary session, talks with EU countries on the final shape of the legislation can start. ■