New Product Liability Law Enters into Force on 9 December 2026
The Bundestag (German Federal Parliament) adopted on 8 October 2026, in its second and third readings, the “Act to Modernise Product Liability Law and to Amend Further Provisions”. The version adopted was based on the recommendation for a resolution and the report of the Ausschuss für Recht und Verbraucherschutz (Committee on Legal Affairs and Consumer Protection) of 7 October 2026. The bill was adopted with the votes of the CDU/CSU, SPD and Bündnis 90/Die Grünen, with one vote against.
The Bundesrat (Federal Council) conclusively dealt with the Act in its second passage on 16 October 2026 and did not refer it to the Vermittlungsausschuss (Mediation Committee). Since the Act does not require consent, the legislative procedure has thus been completed at parliamentary level. The new rules will take effect on 9 December 2026. This date also marks the end of the implementation period for Directive (EU) 2024/2853.
Background to the Reform of Product Liability Law
With the new rules, German product liability law is being comprehensively recast for the first time since 1989. The basis is Directive (EU) 2024/2853 of the European Parliament and of the Council of 23 October 2024 on liability for defective products and repealing Council Directive 85/374/EEC.
The draft had been adopted by the Bundeskabinett (Federal Cabinet) on 17 December 2025. The Bundesministerium der Justiz und für Verbraucherschutz (Federal Ministry of Justice and Consumer Protection) had lead responsibility. Following the statement of the Bundesrat in the first passage on 30 January 2026, the draft was debated for the first time in the Bundestag on 4 March 2026 and subsequently referred to the Ausschuss für Recht und Verbraucherschutz.
Hearing and Parliamentary Deliberation
On 13 April 2026, the Rechtsausschuss (Legal Affairs Committee) held a public hearing. There, the envisaged 1:1 implementation of the European requirements was assessed in some respects as going too far and in others as not ambitious enough. The experts involved included a legal scholar as well as other representatives from academia, practice and associations.
Criticism related in particular to the planned rules on the disclosure of evidence. In this context, the DIHK had objected that these requirements could be in tension with fundamental principles of German civil procedure law. In the further course of the procedure, the Rechtsausschuss made adjustments in particular to the disclosure of evidence in product liability proceedings.
New Principal Act Replaces the Previous Produkthaftungsgesetz
The previous Produkthaftungsgesetz (Product Liability Act) will be replaced by a new principal act. In addition, the Act also contains an amendment to the Arzneimittelgesetz (Medicinal Products Act).
The central objectives of the reform are adaptation to digital products and business models, consideration of global supply and value chains, and the classification of product modifications in connection with the circular economy and reuse.
Expanded Definition of Product and Inclusion of Software
Software as a Product under the Liability Regime
In future, software will be covered irrespective of the form in which it is provided or used. Product liability law may therefore also become relevant for manufacturers of artificial intelligence systems.
Open-source software remains excluded insofar as it is developed or provided outside the scope of a business activity. This limitation is of considerable significance for the reach of the new liability regime, since not every form of software provision is included in the new liability system to the same extent.
Digital Design Documents
In future, the definition of product will also include digital design documents. Product liability law will therefore no longer be geared exclusively toward tangible objects and traditional product forms, but will also take account of digital preliminary stages and digital components of modern manufacturing processes.
Liability in the Event of Substantial Product Modifications
Another key focus concerns products that are substantially modified after being placed on the market. This may cover, in particular, situations in which a product acquires an altered risk profile as a result of subsequent redesign.
One example would be a product significantly redesigned through “upcycling”. If, as a result, a product is regarded under liability law as a new product, the legislature generally considers it appropriate to also include in liability the person who places the substantially modified product on the market.
This rule does not apply to any and every modification, but to a substantial modification with relevance under liability law. The distinction may be of considerable importance for companies in individual cases.
Expanded Group of Potential Defendants
Since products on the Union market increasingly originate from manufacturers established outside the European Union, injured persons may face practical difficulties in enforcing their claims. The new rules therefore expand, subject to certain conditions, the group of persons who may be held liable in addition to the manufacturer.
In future, this may include in particular:
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importers,
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authorised representatives of the manufacturer,
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fulfilment service providers,
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suppliers,
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certain providers of online platforms.
The legislature is thereby responding to global distribution structures and to business models in which the direct manufacturer may be difficult for injured parties to reach. However, the liability of these additional actors does not exist unconditionally, but only under the conditions provided for by law.
Changes to Compensable Damage and Liability Limits
The reform also changes the scope of compensable damage. The previous deductible of EUR 500 for property damage will be abolished. The previous liability cap of EUR 85 million for personal injury will also be abolished.
Damage to data not used for professional purposes will also newly be compensable. In addition, medically recognised damage to mental health will be included. The concept of damage is thus being adapted to digital forms of use and to recognised health impairments.
Claims will generally continue to become time-barred three years from knowledge. As a general rule, they expire ten years after the product is placed on the market. In the case of bodily injury or damage to health occurring with delay, i.e. in cases involving latency periods, the period is extended to 25 years.
Disclosure of Evidence and Burden of Proof
Facilitating the Enforcement of Claims
The new rules contain provisions on the disclosure of evidence and on the burden of proof. They are intended to make it easier for claimants to enforce claims for damages.
The background is the increasing technical complexity of modern products. For injured persons, it may be difficult to present a product defect, the cause of the damage or internal information on product development and product safety. The new rules are intended to counteract this imbalance in part.
Adjustments in the Legal Affairs Committee
During the legislative procedure, the Ausschuss für Recht und Verbraucherschutz made changes in particular to the rules on the disclosure of evidence. These adjustments were made against the background of the concerns expressed during the procedure and the requirements of the Directive.
The disclosure provisions nevertheless remain a central component of the reform. They may play a significant role in product liability proceedings where relevant information is typically held by the manufacturer or another economic operator involved.
Additional Resolution of the Bundestag
In addition to the Act, a resolution was adopted. In the resolution, the Bundesregierung (Federal Government) is requested to examine whether, for authorised representatives of manufacturers established outside the European Union, an obligation to take out liability insurance or comparable instruments could be suitable. The aim would be to ensure that authorised representatives have sufficient financial resources to satisfy potential claims by consumers.
It is also to be examined whether requirements regarding the quality of the authorised representatives’ activities are necessary. In particular, accessibility, reliability and sufficient expertise are mentioned. In addition, it is to be assessed whether further measures to secure justified product liability claims might be necessary beyond liability insurance or comparable security instruments.
The Bundesrat had already pointed out critically in its statement that additional requirements could increase the financial burden on companies.
Significance for Companies
The new product liability law applies to products placed on the market or put into service on or after 9 December 2026. Companies are therefore confronted with a changed liability framework that gives greater consideration in particular to digital products, software, global supply chains and subsequent product modifications.
The reform may be relevant, among others, for manufacturers, importers, distributors, platform providers, fulfilment service providers and authorised representatives of non-European manufacturers. Companies that further process, substantially modify or re-place products on the market may also be affected by the new requirements.
The modernisation of product liability law affects numerous contractual relationships along the supply and distribution chain. For legal questions concerning the contractual classification of liability risks, supply relationships or responsibilities, MTR Legal Rechtsanwälte is available with comprehensive legal advice in contract law.
