EU Updated Product Liability Directive: New Exposure for Indian Exporters of Digital and AI Products

The EU revised Product Liability Directive (PLD) — replacing the 1985 original — explicitly covers software (standalone and embedded), AI systems, and digital files. For Indian exporters of technology-enabled products, the changes are material.

Key changes affecting Indian exporters:

Expanded product definition: The new PLD explicitly covers software and AI systems. Indian software companies selling directly to EU consumers or embedding software in exported hardware are clearly within PLD scope.

Damage to data: The new PLD covers damage to data — not just physical goods or personal injury. Indian software that corrupts EU user data creates PLD liability. This is a genuinely new category of exposure.

Disclosure obligations: Courts can now order manufacturers to disclose technical documentation to plaintiffs. Indian manufacturers should ensure technical documentation is accurate and complete.

10-year liability period maintained: Indian manufacturers must retain technical documentation for 10 years. The EU authorised representative is the liable party in EU for PLD purposes — choose your EU AR carefully and ensure appropriate indemnity provisions in your AR contract.

Review your EU product liability insurance coverage. Consult EU product liability counsel if you have high-volume EU consumer product sales.