[Home](/)/[Resources](/resources)/EU Product Liability Directive 2024 EU complianceproduct liabilityGPSR # EU Product Liability Directive 2024: What Hardware Companies Must Know The EU's original Product Liability Directive dated from 1985 — before software, IoT, or AI existed as product categories. Directive 2024/2853 replaces it with a framework that explicitly covers firmware updates, AI systems, and pure economic loss, removes the 500 EUR damage floor, and introduces claimant-friendly evidence disclosure obligations. Here is what changed and how it affects hardware companies. Copy Link[Share on WhatsApp](https://wa.me/?text=https%3A%2F%2Fkrono-labs.com%2Fguides%2Feu-new-product-liability-directive) [Map my EU compliance obligations](/platform/new) What changed ## From 1985 to 2024: the key differences The 1985 Product Liability Directive established strict liability for defective physical products. Manufacturers were liable if a product caused damage and the product was defective — but the claimant bore the burden of proving the defect, the damage, and the causal link. Courts across the EU struggled to apply this framework to digital products: Is firmware a product? Does a software update that introduces a defect trigger liability for the original manufacturer? Directive 2024/2853 resolves these questions in ways that materially increase hardware exposure. Software — including firmware, software updates, and cloud services integrated into products — is now explicitly treated as a product. AI systems are covered. Pure economic loss is compensable for the first time. The 500 EUR minimum damage threshold is removed. Two procedural shifts are especially significant for manufacturers defending claims. First, defendants must disclose evidence they hold that is plausibly relevant to the claimant's case — creating a discovery-like obligation that did not exist under the 1985 framework. Second, courts must presume causation where the product was defective and the type of damage is consistent with that defect — shifting the practical burden of disproving the link to the manufacturer. Software liability ## When firmware updates trigger product liability Under the new Directive, a product remains subject to liability for its entire operational lifetime if the manufacturer retains control over it through software updates, remote configuration, or feature additions. This departs significantly from the 1985 framework, which fixed liability at the time of placing the product on the market. If a firmware update introduces a defect causing personal injury or property damage, the manufacturer bears liability for that defect — even if the hardware was originally defect-free. The practical implication: update testing protocols that can demonstrate conformity with safety requirements before deployment are now liability management tools, not just engineering best practice. Version control, pre-deployment testing evidence, post-deployment monitoring, and rollback capability all contribute to the manufacturer's ability to defend claims. The Directive also covers AI systems embedded in or interacting with products. If an AI system's output contributes to a product defect causing damage, both the AI system provider and the hardware manufacturer may face liability. Risk management ## Practical steps for hardware manufacturers 01 Treat every significant firmware update as a product launch from a liability perspective — apply the same testing rigor, risk assessment, and documentation standards as new hardware releases 02 Maintain test evidence for each firmware version: the manufacturer must be able to demonstrate what safety assessment was conducted before each update was deployed 03 Review product liability insurance against the expanded scope — the 1985 framework-era policies may not adequately cover software update claims, AI liability, or pure economic loss 04 Update supply chain contracts to clearly allocate liability and indemnification between hardware OEMs, ODMs, software providers, and AI system developers 05 Retain technical documentation, test records, and design rationale files for at least 11 years after placing a product on the EU market — the new disclosure obligations mean this documentation is your primary defense 06 Review EU AR and importer contracts — expanded economic operator obligations under GPSR and the new PLD interact; importers who bring products into the EU now bear greater exposure if they have not verified compliance ## Learn this properly, not just for one product In-depth courses and books that teach the process — not a one-off answer you'll need to look up again next time. [Browse courses](/courses)See your free roadmap [Prefer to read? Get the book](/books) ## Frequently asked questions ### What products does the new EU PLD cover? Directive 2024/2853 covers all movable products including software — whether embedded in hardware, sold separately, or delivered as firmware updates. AI systems are also explicitly covered. The key expansion from the 1985 framework is the treatment of digital products and software as products subject to strict liability. ### When does the new EU PLD apply? The Directive entered into force December 2024. Member states have until December 2026 to transpose it into national law. Products placed on the market after the national transposition date in each member state will be subject to the new rules. ### Does a firmware update trigger product liability under the new PLD? Yes. Under Directive 2024/2853, a product remains subject to liability for its operational lifetime if the manufacturer retains control through updates. A firmware update that introduces a defect causing personal injury or property damage triggers liability for that defect, even if the original hardware was defect-free at first sale. ### What is the damage threshold under the new PLD? The new Directive removes the 500 EUR minimum damage threshold that existed under the 1985 framework. Claims can be brought for any quantifiable personal injury, property damage, or — for the first time — pure economic loss caused by a defective product. 🇪🇺 CE Marking roadmap for your product Every standard, document, and test that applies — free, no account required. See your free roadmap[ Want an expert to take your product through 🇪🇺 CE Marking compliance for you? One consultant from Krono's compliance team takes your product from requirements to legal sale, with a fixed quote before any work starts. See compliance services](/services) Related guides * [EU Economic Operators ExplainedThe EU product safety framework assigns distinct compliance obligations to each economic operator in the supply chain.](/guides/eu-economic-operators-explained) * [EU Market Surveillance RegulationEU Regulation 2019/1020 strengthens market surveillance across all CE-marked product categories by expanding economic operator …](/guides/eu-market-surveillance-regulation) * [EU AI Act for HardwareThe EU AI Act (Regulation 2024/1689) classifies AI systems by risk and imposes conformity assessment, technical documentation, …](/guides/eu-ai-act-hardware) * [EU Supply Chain Due Diligence (CSDDD)The EU CSDDD (Directive 2024/1760) requires large companies to identify, prevent, and address adverse human rights and environm…](/guides/eu-supply-chain-due-diligence) Educational resource only. This is a summary of Directive 2024/2853 for informational purposes. Member state implementation varies. Obtain qualified legal advice for your specific situation.