Bundestag adopts modernisation of product liability law
The Deutscher Bundestag (German Federal Parliament) considered the draft act introduced by the Bundesregierung (Federal Government) on the modernisation of product liability law in its second and third readings. The basis for the deliberations was the draft legislation on Drucksache 21/4297 (Bundestag printed paper 21/4297) as well as the recommendation for a decision and the report of the Ausschuss für Recht und Verbraucherschutz (Committee on Legal Affairs and Consumer Protection) on Drucksache 21/8429.
On Thursday, 8 October 2026, the Bundestag adopted the draft legislation with the votes of CDU/CSU, SPD and Bündnis 90/Die Grünen. AfD and Die Linke abstained or, with one vote against and one abstention, did not vote unanimously in favour. In addition, a resolution on the act was adopted; CDU/CSU, SPD, Bündnis 90/Die Grünen and Die Linke voted in favour, while AfD voted against.
Implementation of the EU Product Liability Directive
The act implements Directive (EU) 2024/2853 into German law. The implementation deadline under Art. 22 para. 1 of the Directive runs until 9 December 2026. The draft was adopted by the Bundeskabinett (Federal Cabinet) on 17 December 2025; the lead ministry was the Bundesministerium der Justiz und für Verbraucherschutz (Federal Ministry of Justice and Consumer Protection).
According to the draft legislation, the act does not require consent. The first passage in the Bundesrat (Federal Council) took place on 30 January 2026, and the first reading in the Bundestag on 4 March 2026. In its opinion, the Bundesrat had expressed doubts regarding the cost estimates for the justice administrations of the Länder; the Federal Government addressed this in a counterstatement.
Deliberation in the Legal Affairs Committee and amendments to the draft
Recommendation for a decision of 7 October 2026
The Committee on Legal Affairs and Consumer Protection submitted its recommendation for a decision on 7 October 2026. It recommended adopting the draft legislation in amended form, with AfD and Die Linke abstaining. The government draft was therefore not adopted unchanged.
Public hearing in April 2026
At its 29th meeting on 18 March 2026, the Legal Affairs Committee had resolved to hold a public hearing, which took place in April 2026. At the hearing, the planned implementation was assessed differently. Prof. Dr. Dr. h. c. Christiane Wendehorst criticised the 1:1 implementation that had taken place; other experts warned of fundamental expansions of liability and possible burdens for Germany as a business location.
Associations also commented on individual provisions. The DIHK considered the disclosure provisions of §§ 19 and 20 (Sections 19 and 20) of the government draft to be incompatible with principles of German civil procedure law. By contrast, the Verbraucherzentrale Bundesverband advocated a right to disclosure vis-à-vis market surveillance authorities.
Key elements of the reform
Expanded scope of application for products and digital components
The modernisation of product liability law takes account of technological developments and new distribution models. In future, the concept of damage will also cover damage to or destruction of data not used for professional purposes. In addition, the injured person’s previous deductible will be abolished.
Open-source software remains excluded from product liability insofar as it is developed or made available outside the course of a business activity. This restriction is decisive for the scope of the exception.
Additional potential defendants
In addition to manufacturers, importers and suppliers, other parties may in future also be held liable. According to the draft legislation, these include in particular:
- authorised representatives of the manufacturer,
- fulfilment service providers,
- certain providers of online platforms.
In the case of substantially modified products, for example in connection with “upcycling”, the person who made the substantial modification will in future be liable as the manufacturer. The decisive factor is therefore not solely the original manufacture, but also a subsequent substantial modification of the product.
Disclosure of evidence
A key subject of the deliberations was the provisions on disclosure of evidence. With regard to § 19 para. 1 (Section 19(1)), the Committee added that disclosure of evidence may also be ordered against third parties. This concerns, for example, information from market surveillance authorities.
The provision is connected with the judicial enforcement of product liability claims. At the same time, the parliamentary deliberations revealed differing assessments of its compatibility with German civil procedure law and of its practical scope.
Deadlines, transitional provisions and entry into force
Limitation and expiry of claims
Claims generally expire ten years after the product is placed on the market or put into service. In the case of latency periods for personal injury or damage to health, this period is extended to 25 years. The limitation period remains three years.
Transitional provision for older products
For products placed on the market or put into service up to and including 8 December 2026, § 23 (Section 23) provides that the Produkthaftungsgesetz vom 15. Dezember 1989 (Product Liability Act of 15 December 1989) will continue to apply in the version in force until then. The transitional provision thus delineates the temporal scope of application of the new law.
Entry into force of the act
Subject to one exception, the act enters into force on 9 December 2026. Art. 2 enters into force on the day after promulgation. In addition to the new principal act, the act contains consequential amendments to the Arzneimittelgesetz (Medicinal Products Act) and the Gentechnikgesetz (Genetic Engineering Act).
Significance for companies, distribution and the capital market
The reform affects companies along the supply and distribution chain. By expanding the potential defendants, parties may in future also be covered that have not previously been at the centre of product liability law to the same extent. For companies with digital products, online distribution or a platform connection, the delineation of their respective role may be of particular importance.
The development may also be relevant for investors and capital-market-oriented companies. Product liability risks may affect risk reports, transactions, company valuations and governance structures. The legal classification remains dependent on the respective product, the specific market role and the time at which the product is placed on the market or put into service.
Frequently asked questions
When will the new product liability law enter into force in 2026?
Subject to one exception, the act enters into force on 9 December 2026. Art. 2 applies from the day after promulgation.
What practical consequences does the modernisation of product liability law have for companies?
Companies must note that, in future, in addition to manufacturers, importers and suppliers, authorised representatives of the manufacturer, fulfilment service providers and certain providers of online platforms may also be held liable. In the case of substantially modified products, the person who made the substantial modification may also be liable as the manufacturer.
Does the new product liability law also apply to products before 9 December 2026?
For products placed on the market or put into service up to and including 8 December 2026, the transitional provision states that the Product Liability Act of 15 December 1989 will continue to apply in the version in force until then.
Assessment by MTR Legal Rechtsanwälte
The modernisation of product liability law changes the legal framework for manufacturers, distribution actors, platforms, investors and companies with digital business models. Its precise significance depends on the specific market role, the product design and the relevant time at which the product is placed on the market or put into service.
For legal questions in connection with corporate obligations, management body responsibility, capital-market-relevant risks or corporate law implications of the reform, MTR Legal Rechtsanwälte provides commercially focused legal advice. Further information can be found at legal advice on stock corporation law.
