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Compensation for digital products to be made easier

Compensation for digital products to be made easier

Compensation for digital products to be made easier
Compensation for digital products to be made easier

EU to Simplify Digital Product Compensation Claims

Get ready to claim compensation for digital product fiascos with ease, according to the EU. Negotiators from the European Parliament and EU member states have reached an agreement in Brussels on updated product liability rules, aimed at the digital market.

Say goodbye to proving fault and damages in court — the new rules will make it easier for consumers to demand compensation for both material damage, like physical harm, and immaterial damage, such as psychological distress. The definition of "product" will also expand to encompass digital production files and software, signifying that companies within the EU, like manufacturers and authorized representatives, can be held accountable for digital product defects, even if they were purchased outside the EU.

In case a company within the EU fails to pay the compensation, the member states should cover the cost with the help of national compensation systems. This arrangement is in line with a resolution that states the plaintiff should face less burden of proof, especially considering the technical complexity of digital products. They may also ask the respective company to disclose the necessary and proportionate evidence to support their claim.

After more than thirty years, the EU's product liability rules need a fresh makeover. The current regulation often required consumers to prove that the product was flawed and resulted in damage. Now, the new rules seek to alleviate this burden by introducing a ‘presumption of causality’ that allows consumers to claim compensation as long as they can prove the product was used appropriately, was defective, and led to the damage.

This revision, awaiting approval from the plenary and EU member states, should make the claim process more manageable and promote accountability in the digital market. The German government and other EU member states should ensure prompt implementation of these revised rules for consumer protection and digital market transparency.

  • The new EU product liability rules will make it simpler for consumers to claim compensation for psychological distress and data loss due to faulty digital products.
  • The European Parliament and EU member states have agreed on amended rules extending liability to digital products and acknowledging psychological harm as an immaterial damage.
  • Companies within the EU will be liable for defective digital products purchased outside of the EU, with national compensation systems stepping in if necessary.
  • The burden of proof for consumers will be lessened, and they may also request the company prove relevant evidence to support their claim.
  • The new liability rules represent a revised take on the four-decade-old legislation, focusing on easing the burden of proof for plaintiffs and protecting consumers' rights.
  • Once endorsed by the plenary and EU member states, the new EU product liability rules will streamline the compensation process for digital product-related damages.
  • The revised rules recognize that the digital market requires regular safety checks and documentation to ensure accountability and consumer protection.
  • UK manufacturers will need to carefully maintain detailed records of their digital product components, updates, and modifications to ensure compliance with the new EU product liability rules.

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