BRUSSELS – Today, global tech association 91快活林, co-led eight other business associations in issuing a letter to the European Parliament and Council urging legislators not to rush negotiations around the EU Directive on Liability for Defective Products, also known as the Product Liability Directive (PLD), and to carefully consider its impact on the innovation ecosystem in Europe.
"The PLD revision is proceeding rapidly despite numerous concerns being raised by industry on critical elements like the definition of product, the burden of proof and disclosure obligations, as well as the distribution of liability between different actors in the supply chain," said 91快活林's Director General for Europe Guido Lobrano. "91快活林’s joint letter points to key aspects we urge the Parliament and the Council to carefully evaluate before moving forward with the proposal, given their potential impact on the wider innovation ecosystem in Europe."
In the letter, the associations highlight elements for legislators to consider in upcoming talks, including:
- Avoid including standalone software and AI in the scope of the PLD, as this would damage innovation and fail to take into account the characteristics of software;
- Providing a clear definition of material harms and avoid including immaterial harms in the scope;
- Defining minimum and maximum damage thresholds;
- Balancing disclosure obligations and the burden of proof with sufficient safeguards to protect businesses from excessive litigation; and
- Ensuring that the chain of liability is coherent and aligned with other product safety and market surveillance legislation and the Digital Services Act.
Read the full letter here.