Update of 27 October 2026: The Gesetz zur Modernisierung des Produkthaftungsrechts (Act on the Modernisation of Product Liability Law) and the amendment of other provisions were promulgated in the Bundesgesetzblatt (Federal Law Gazette) on 27 October 2026 (BGBl. 2026 I No. 321). The legislative process has thus been concluded; under Art. 17(2), Articles 2 and 5 to 16 enter into force on 28 October 2026, while Articles 1, 3 and 4, including the recast Produkthaftungsgesetz in Art. 1, apply from 9 December 2026.
Modernisation of product liability law adopted
The Deutsche Bundestag (German Federal Parliament) adopted the Gesetz zur Modernisierung des Produkthaftungsrechts introduced by the Bundesregierung (Federal Government) at its 99th sitting on 8 October 2026. It was based on the government bill set out in Bundestagsdrucksache 21/4297 (Bundestag printed paper 21/4297) and the recommendation for a resolution by the Ausschuss für Recht und Verbraucherschutz (Committee on Legal Affairs and Consumer Protection) set out in Bundestagsdrucksache 21/8429.
The Bundesrat (Federal Council) considered the Act at its second reading on 16 October 2026 and did not request that the Vermittlungsausschuss (Mediation Committee) be convened. Following its execution on 22 October 2026, the Act was promulgated on 27 October 2026 under the title “Gesetz zur Modernisierung des Produkthaftungsrechts und zur Änderung weiterer Vorschriften” (Act on the Modernisation of Product Liability Law and the Amendment of Other Provisions).
The extended title of the Act originated during the committee proceedings. The government bill had initially been introduced under the shorter title “Gesetz zur Modernisierung des Produkthaftungsrechts”. In addition to the Act, the Bundestag adopted a resolution.
Implementation of the European Product Liability Directive
The new legislation implements Directive (EU) 2024/2853 of 23 October 2024 into German law. This Directive repeals the previous Directive 85/374/EEC. The transposition deadline under Art. 22(1) of Directive (EU) 2024/2853 expires on 9 December 2026.
The Bundesministerium der Justiz und für Verbraucherschutz (Federal Ministry of Justice and Consumer Protection) described the legislative process as, in principle, the complete implementation of a fully harmonising directive. National legislative discretion was therefore limited within the Directive’s scope of application.
Stages of the legislative process
The Bundeskabinett (Federal Cabinet) adopted the government bill on 17 December 2025. The first reading in the Bundesrat took place on 30 January 2026, after the corresponding Bundesratsdrucksache (Bundesrat printed paper) had already been dated 19 December 2025. Among other matters, the Bundesrat expressed doubts regarding the estimated costs for the judicial systems of the federal states, which the Federal Government addressed in its response.
The first reading in the Bundestag took place on 4 March 2026. The Ausschuss für Recht und Verbraucherschutz held a public hearing of experts on 13 April 2026 and submitted its recommendation for a resolution on 7 October 2026. The Bundestag adopted the government bill with amendments.
Subject matter of the committee deliberations
At the public hearing, differing assessments were made of the effects of the reform. The matters discussed included, in particular, the scope of strict liability, the burdens on businesses and the structure of the procedural provisions governing the disclosure of evidence.
Associations also took differing positions on the disclosure provisions. While some questioned whether the provisions were compatible with the principles of German civil procedure, others supported the inclusion of information held by market surveillance authorities.
Key changes to product liability law
Software and digital components as products
The new Produkthaftungsgesetz (German Product Liability Act) takes account of digital products and modern forms of distribution. Software is deemed to be a product regardless of how it is supplied or used. The definition of a product may therefore also encompass artificial intelligence systems.
An exception applies to open-source software insofar as it is developed or supplied outside the course of a commercial activity. The exception is therefore not unrestricted but requires the development or supply not to take place as part of a commercial activity.
In future, recoverable loss will also include the corruption or destruction of data, provided that the data is not used for professional purposes. The Act thus expressly brings certain digital assets within the scope of product liability law.
Expansion of the group of potential defendants
The new principal Act expands the group of economic operators against which claims may be brought where the respective statutory requirements are met. These include, in particular:
- In addition to the manufacturer, the manufacturer of a defective component may also be liable.
- Any person who substantially modifies a product may be liable for the modified product as if they were its manufacturer.
- Importers and authorised representatives of the manufacturer may be defendants in the cases provided for by law.
- Fulfilment service providers and suppliers may incur subsidiary liability.
- Certain operators of online platforms may also be included where the statutory requirements are met.
In the case of substantially modified products, liability therefore does not depend exclusively on the original manufacturing process. If an economic operator subsequently makes a substantial modification, the Act may assign it the status of a manufacturer in respect of the modified product.
Removal of existing liability limits
The existing maximum aggregate liability amount of EUR 85 million for personal injury will be abolished. The existing EUR 500 deductible for property damage will likewise be abolished. The reform therefore changes both the potential aggregate amount of liability for personal injury and the recoverability of property damage below the previous deductible.
Evidence and statutory rules facilitating proof
Court order for disclosure
§ 19 of the new Produkthaftungsgesetz contains provisions on the disclosure of evidence. Where the statutory requirements are met, the court may order the disclosure of relevant evidence. Following the addition made in committee, such an order may also be directed against third parties, such as market surveillance authorities.
Disclosure forms part of the judicial enforcement of product liability claims. Its requirements and limits are determined by the statutory framework governing the respective proceedings.
Presumptions and assumptions in favour of injured persons
§ 20 provides for statutory presumptions and assumptions in favour of injured persons. Where the respective requirements are met, these relate in particular to whether a product is defective and to the causal link between the product defect and the damage.
Where technical or scientific complexity gives rise to excessive difficulties in proving a claim, proof of a likelihood may suffice where the statutory requirements are met. This does not generally release the injured person from the obligation to plead and prove their case but applies only within the limits laid down in § 20.
Limitation, extinguishment and temporal scope
Three-year limitation period
Under § 16, the limitation period remains three years. Its commencement and running are governed by the statutory requirements. The limitation of a claim must be distinguished from its statutory extinguishment upon expiry of a specified long-stop period.
Ten-year and 25-year long-stop periods
Under § 17(1), claims are generally extinguished ten years after the product has been placed on the market or put into service. In the case of personal injury or damage to health with a latency period, the long-stop period is extended to 25 years. The extended period therefore does not apply to all types of damage but to the statutorily defined latency cases.
Continued application of previous law to older products
§ 23 defines the temporal scope of the new Produkthaftungsgesetz. The Produkthaftungsgesetz vom 15. Dezember 1989 (Product Liability Act of 15 December 1989), in the version applicable up to that date, will continue to apply to products placed on the market or put into service on or before 8 December 2026.
Whether the previous or the new law applies therefore depends in particular on the date on which the product was placed on the market or put into service. The transitional provision prevents the new liability regime from applying retrospectively to products already placed on the market or put into service by the cut-off date.
Entry into force and further legislative amendments
Under Art. 17(1), the Act enters into force on 9 December 2026. Articles 2 and 5 to 16 apply under Art. 17(2) from the day following promulgation and thus from 28 October 2026; only Articles 1, 3 and 4 enter into force on 9 December 2026.
The amending Act is not limited to recasting the Produkthaftungsgesetz. It also contains consequential amendments, particularly to the Arzneimittelgesetz (German Medicinal Products Act) and the Gentechnikgesetz (German Genetic Engineering Act). Pursuant to § 21(1), the Produkthaftungsgesetz remains inapplicable to medicinal products falling within §§ 84 et seq. of the Arzneimittelgesetz.
Resolution on insurance coverage for liability risks
The additionally adopted resolution calls on the Federal Government to examine whether authorised representatives of manufacturers based outside the European Union should be required to take out liability insurance or obtain comparable coverage. The resolution itself does not yet establish any corresponding insurance obligation.
Significance for businesses, distribution and capital markets
The new legislation affects various parties along the manufacturing, supply and distribution chain. In addition to producers, component manufacturers, importers, authorised representatives, fulfilment service providers, suppliers and certain online platforms may, in particular, fall within the scope of liability.
For businesses with digital business models, the inclusion of software, including artificial intelligence systems, is particularly significant. The specific classification depends on the product concerned, the manner in which it is supplied, the commercial activity and the role of the economic operator concerned.
Product liability risks may also be relevant to investors and capital-market-oriented companies. Potential effects include impacts on risk reports, corporate transactions, valuations and governance structures. Their extent and scope always depend on the circumstances of the individual case and the law applicable at the relevant time.
Frequently asked questions about the new product liability law
When does the modernised Produkthaftungsgesetz apply?
The Act was promulgated in the Bundesgesetzblatt on 27 October 2026. Under Art. 17(2), Articles 2 and 5 to 16 enter into force on 28 October 2026; Articles 1, 3 and 4, including the recast Produkthaftungsgesetz, apply from 9 December 2026.
Who may face claims under the new law?
In addition to manufacturers, component manufacturers, persons or companies that substantially modify a product, importers and authorised representatives may be liable where the respective statutory requirements are met. Fulfilment service providers, suppliers and certain operators of online platforms may also be considered as potential defendants on a subsidiary basis.
Does product liability law also cover software?
Software is treated as a product regardless of how it is supplied or used. This includes artificial intelligence systems. Open-source software remains exempt, provided that it is developed or supplied outside the course of a commercial activity.
Which law applies to products before 9 December 2026?
Under § 23, the Produkthaftungsgesetz vom 15. Dezember 1989, in the version applicable up to that date, will continue to apply to products placed on the market or put into service no later than 8 December 2026.
How long may claims continue to exist?
The limitation period remains three years. Irrespective of this, claims are generally extinguished ten years after the product has been placed on the market or put into service. A 25-year long-stop period applies to personal injury or damage to health with a latency period.
Assessment by MTR Legal Rechtsanwälte
The modernised product liability law changes the legal framework for manufacturers, distributors, digital service providers, platform operators and other parties in the supply chain. The legal assessment depends, among other things, on the specific market role, the product design, any substantial modification and the date on which the product was placed on the market or put into service.
Businesses, investors and other market participants with legal questions concerning the commercial-law implications of the reform may seek advice from MTR Legal Rechtsanwälte. Further information is available from our commercial law advisory practice.
