German Product Liability Law Modernized for Digital Age
Germany's Bundestag and Bundesrat have passed a significant update to the product liability law, set to take effect in December 2026. This reform modernizes the 1989 law to address digitalization and global supply chains.
On October 16, 2026, Germany's Bundesrat gave final approval to a modernized product liability law, following the Bundestag's earlier vote on October 8. This comprehensive reform, the first since 1989, implements EU Directive 2024/2853 into German law by the December 9, 2026 deadline.
The updated law addresses key areas including digitalization, the circular economy, and global value chains. Software is now explicitly considered a product regardless of its delivery method, extending liability to manufacturers of artificial intelligence systems. The legislation also accounts for ongoing manufacturer control over products through updates and digital connections.
For the circular economy, the law now regulates products modified after their market release, with liability falling on the manufacturer that introduces the significantly altered product. In global value chains, other actors like importers, authorized representatives, and certain online platform providers may be held liable under specific conditions.
The new product liability framework aims to simplify claims for injured parties through expanded disclosure rights and eased burden-of-proof rules, particularly for technically complex products. A product defect can be presumed if evidence is not disclosed, the product violates safety regulations, or if a malfunction is evident. Medical devices are now included under the law's scope, though pharmaceuticals remain an exception.
The key provisions of the modernized product liability law will come into force on December 9, 2026, ensuring legal frameworks keep pace with technological advancements and international commerce.