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Defective products: liability

Defective products: liability

SUMMARY OF:

Directive 85/374/EEC – product liability

WHAT IS THE AIM OF THE DIRECTIVE?

Directive 85/374/EEC establishes the principle of liability without fault applicable to European Union (EU) producers. Where a defective product1 causes damage to a consumer, the producer may be liable even without negligence or fault on their part.

KEY POINTS

Damage covered

The directive applies to damage:

  • caused by death or by personal injuries,
  • caused to private property.

EU Member States may set a limit for the total liability of a producer in the case of death or personal injury caused by identical items with the same defect.

Liability

A producer can mean:

  • the producer of a raw material, the manufacturer of a finished product or of a component part,
  • the importer of the product,
  • any person putting their name, trade mark or other distinguishing feature on the product,
  • any person supplying a product whose producer or importer cannot be identified.

Where two or more persons are liable for the same damage, they shall be liable jointly.

Proof of damage

A product is defective where it does not provide the safety which a person is entitled to expect, taking all circumstances into account, including:

  • the presentation of the product,
  • the reasonable use of the product,
  • the time when the product was put on the market.

The injured person carries the burden of proof. They must prove:

  • actual damage,
  • a defect in the product,
  • a causal link between the damage and the defect.

However, he does not have to prove the negligence or fault of the producer or importer.

Exemption from liability

A number of factors can exempt a producer from liability including if:

  • they did not put the product into circulation,
  • the defect appeared after the product was put into circulation,
  • the product was not manufactured by them to be sold or distributed for profit
  • the product was not manufactured or distributed by them for any purpose within the usual transactions and practices of their business,
  • the defect is due to compliance of the product with mandatory regulations issued by public authorities,
  • the defect of a component was caused during the manufacture of a final product.

When the injured person is at fault, the producer’s liability may be reduced.

Expiry of liability

  • The injured person has 3 years within which to seek compensation. This period starts from the date on which the injured person became aware of the damage, the defect and the identity of the producer.
  • The producer is no longer liable 10 years after the date the product was put on the market.
  • No contractual clause may allow the producer to limit his liability in relation to the injured person.
  • National laws on civil liability still apply.

Repeal

Directive 85/374/EEC will be repealed and replaced by Directive (EU) 2024/2853 (see summary) as of .

FROM WHEN DO THE RULES APPLY?

The directive had to be transposed into national law by . The rules applied from the same date.

BACKGROUND

For further information, see:

KEY TERMS

  1. Product. All movable objects, even when incorporated into another movable or into an immovable object. It includes electricity, primary agricultural products (products of the soil, of stock-farming and of fisheries, excluding products which have undergone initial processing – e.g. cutting, peeling and freezing fruit and vegetables) and game.

MAIN DOCUMENT

Council Directive 85/374/EEC of on the approximation of the laws, regulations and administrative provisions of the Member States concerning liability for defective products (OJ L 210, , pp. 29–33).

Successive amendments to Directive 85/374/EEC have been incorporated into the original text. This consolidated version is of documentary value only.

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