Objective: The BMJV draft bill (September 11, 2025) implements the new EU Product Liability Directive. It adapts the law to digitalization, the circular economy, and global supply chains—with significantly higher liability risks for manufacturers and suppliers.

Overview of key changes:

1. Expanded scope Products:

Product: Now also includes software, AI systems, cloud services, and digital design files (e.g., CAD).

Errors: Also includes cybersecurity faulty updates/upgrades, digital services, and self-learning processes.

Damages: Data damage (non-professional data) is now also eligible for compensation.

2. Extended circle of liable parties

In addition to manufacturers, the following will also be liable in future: Importers, suppliers, agents Fulfillment service providers (except pure transport services) Online platforms Component and upcycling companies

⚖️ Relief for injured parties Reversal of the burden of proof light Legal presumptions of fault and causality make lawsuits easier.

Disclosure obligation: Courts can compel manufacturers to hand over internal documents.

Publication obligation: Product liability judgments by higher courts must be made publicly available.

🚨 Need for action for companies Risk assessment:

Adjust liability and insurance coverage.

Compliance & documentation: Document development, security, and update processes transparently.

Cybersecurity: Strengthen IT and data security requirements. Review contracts: Clearly define roles and responsibilities in supply chains.

📅 Timeline Implementation by December 9, 2026. Are you prepared?

Further information

The BMJV's draft bill on the modernization of product liability law dated September 11, 2025, serves to implement the new EU Product Liability Directive. The focus is on adjustments to digitalization, the circular economy, and global value chains. In addition, there are civil procedure regulations that provide relief for the procedural enforcement of product liability claims. The modernization will significantly increase the liability risks for manufacturers and other obligated parties.

Summary of the planned changes:

Expansion of the definition of product, defect, damage, and obligated parties The Product Liability Act regulates who is liable under what conditions for damage to persons or property caused by a defective product. The new Product Liability Act expands the scope of some key terms. For example, software will also be explicitly covered by the wording of the law in future (although this was already the prevailing opinion under the previous terminology), the definition of defect will be revised, damages will be compensable to a greater extent, and the law will expand the circle of liable parties:

Product definition: Previously, any movable object and electricity were considered products under the Product Liability Act. In future, all types of software (including AI and cloud solutions) will also be explicitly considered products. Open source software developed or provided outside of a business activity is excluded. Digital design documents (digital templates for manufacturing a product), such as templates for drilling, turning, and milling machines or CAD files, are also covered.

Definition of defect: According to the Product Liability Act, a product is defective if it has a safety defect. This is assessed based on the legitimate safety expectations of the anticipated user group. In future, this defect assessment will also have to take into account the product's self-learning capabilities, foreseeable interactions with other products, and cybersecurity requirements. Defects can also arise from updates, upgrades, failure to perform updates or upgrades, or associated digital services. The relevant point in time for determining defectiveness is also extended: if the manufacturer subsequently retains control over the product, e.g. through (possible) software updates and upgrades, the relevant point in time is postponed.

Damage: If a defective product causes death, bodily injury, or damage to another item intended for private use or consumption, the resulting damage is covered by liability. What is new is that damage to (even non-personal) data is also compensable, provided that it is not used for professional purposes. The previous deductible for the injured party in the case of property damage and the total liability limit for a manufacturer in the case of personal injury no longer apply.

Liable parties: Previously, the actual manufacturer, the “quasi-manufacturer” who, for example, presents himself as the manufacturer through his trademark, and the importer into the EEA were primarily liable. If the manufacturer or importer cannot be identified, the supplier is liable. In future, in the case of manufacturers outside the EU, in addition to importers and suppliers, agents, fulfillment service providers (except pure freight/postal services) and online platforms may also be liable under certain conditions. In the case of composite products, in addition to the product manufacturer, the component manufacturer or the provider of an associated service is also liable, provided that the integration was carried out with consent. Anyone who significantly modifies a product (e.g., upcycling) is considered the manufacturer of the modified product.

Relief for injured parties, transparency of decisions

The new Product Liability Act also aims to make it easier for injured parties to provide evidence and introduces an obligation to disclose evidence. In future, certain legally binding court decisions will also have to be published:

Presumptions: Anyone asserting a claim for damages in legal proceedings must, in principle, prove all the requirements for the claim. In favor of injured parties, certain legal presumptions regarding defectiveness and causality between the defect and the infringement of legal rights will apply in future. A special rule of evidence applies in complex technical or scientific cases in order to make it easier for injured parties to provide evidence. For manufacturers, this means an even more unfavorable starting position in product liability lawsuits: the burden of proof for the injured party is further weakened compared to the current situation, which is already unfavorable to manufacturers.

Discovery “light”: If a claim for damages is asserted, the court will in future be able to order the manufacturer to disclose relevant evidence that is in the manufacturer's possession. This is intended to address the problem that injured parties often have no information about how the product was manufactured and how it works technically, whereas such information is usually available to the manufacturer.  Manufacturers must therefore be prepared in future for the possibility that internal documents and records may have to be disclosed in court proceedings. A restriction will only apply in individual cases if trade secrets are involved or if the order goes beyond what is necessary.