Analysis
Council negotiating position
Today (14 June 2023), COREPER met and endorsed the negotiating position of the Council on the Commission proposal to revise the Product Liability Directive (PLD).
While the text of the negotiating position has not been made available, the Council issued a press release indicating key provisions:
Definition of “product” is extended to digital manufacturing files and software.
Circular economy: A product can be considered new if it is modified substantially or put into service.
Products bought from non-EU manufacturers: The same level of protection is provided as for products from EU manufacturers.
Entitlement to Compensation: The entitlement to compensation period is extended to 20 years if symptoms/injuries of a person are slow to appear.
Burden of proof: In cases of excessive difficulties, claims are only required to prove the likelihood that the product was defective.
Once the European Parliament has also finalised its position, inter-institutional discussions (trilogues) are expected to begin after the summer break of 2023.
European Parliament
The Committees on Legal Affairs (JURI) and on Internal Market and Consumer Protection (IMCO) have been designated to work jointly on the file. Amendments 61-253 and 254-447 and potential compromise amendments (not yet publicly released) are tentatively scheduled to be discussed on 27 June 2023 ahead of the Committee vote on the text on either 3 or 6 July 2023.
Four separate files of compromise amendments having been drafted (to be released soon). The compromise amendments focus on the following five issues:
1. Scope of the proposal: No liability for the Directive to apply to free and open-source software.
2. Assessing the defectiveness of a product: A product can be considered defective, according to the text, when the safety of an average person as required by the law is not provided. Also, IMCO and JURI Committee MEPs seem to have deleted the provision on reasonably foreseeable use and misuse and adopted a narrower notion instead. Finally, a regulator’s decisions should be limited to recalls.
3. Limitation period: Member States would have to ensure that the rights of defendant’s should only be applied for a maximum of 10 years, except for claims resulting from software updates that did not cause a substantial change.
4. Reduction of liability: the liability of an economic operator would be reduced if the damage was caused because of the actions of the injured person.
5. Transparency: IMCO and JURI Committee MEPs appear to want to make the provision of setting up and maintaining a database with relevant court rulings at the EU and national level under the Directive, mandatory.
Next steps
Once approved, the Committee Report is then likely to be submitted to the European Parliament plenary session for endorsement in July. The text would constitute the European Parliament’s negotiating position for trilogue negotiations which are expected to begin after the summer break.
|
