[{"data":1,"prerenderedAt":552},["ShallowReactive",2],{"blog-en-new-product-liability-2026-software-ai-smes":3},{"id":4,"title":5,"body":6,"categories":532,"date":534,"description":535,"draft":536,"excerpt":537,"extension":538,"image":539,"lang":540,"meta":541,"modified":534,"navigation":542,"noindex":536,"path":543,"related":537,"seo":544,"seoDescription":545,"seoTitle":546,"slug":547,"sourcePath":548,"sourceRoute":537,"stem":549,"tags":537,"translated":536,"type":550,"wpId":537,"__hash__":551},"blog\u002Fen\u002Fblog\u002Fnew-product-liability-2026-software-ai-smes.md","New product liability from 9 December 2026: what SMEs need to know now",{"type":7,"value":8,"toc":511},"minimark",[9,18,21,24,29,36,39,43,48,55,81,84,88,91,132,135,139,150,161,165,168,191,194,198,213,217,224,227,238,240,244,251,267,274,293,300,311,315,346,350,364,367,403,409,411,415,422,429,436,442,448,455,462,464,468,471,478,487,493,495,499],[10,11,12,13,17],"p",{},"On ",[14,15,16],"strong",{},"9 December 2026",", product liability in the EU changes fundamentally. The new Product Liability Directive (EU) 2024\u002F2853 replaces rules dating back to 1985 – a time when a \"product\" was still something you could hold in your hand.",[10,19,20],{},"The headlines sound dramatic: software is liable, AI is liable, no more caps. In this article we explain, without scaremongering, what really changes, who is affected and what your company can sensibly prepare now.",[22,23],"hr",{},[25,26,28],"h2",{"id":27},"what-is-product-liability-in-the-first-place","What is product liability in the first place?",[10,30,31,32,35],{},"Product liability means that whoever places a defective product on the market is liable for the damage it causes – ",[14,33,34],{},"even without fault",". The injured party does not have to prove that the manufacturer was careless, only that the product was defective and caused the damage.",[10,37,38],{},"In Austria this is currently governed by the Product Liability Act (PHG), in Germany by the Product Liability Act (ProdHaftG). Both countries must align their laws with the new directive by 9 December 2026.",[25,40,42],{"id":41},"the-five-most-important-changes","The five most important changes",[44,45,47],"h3",{"id":46},"_1-software-and-ai-are-now-products","1. Software and AI are now products",[10,49,50,51,54],{},"Until now it was disputed whether software fell under product liability at all. Now it is clear: ",[14,52,53],{},"software is a product"," – whether it is installed on a device, runs as an app or is used as a cloud solution (software as a service). This explicitly includes:",[56,57,58,64,69,75],"ul",{},[59,60,61],"li",{},[14,62,63],{},"AI systems",[59,65,66],{},[14,67,68],{},"updates and upgrades",[59,70,71,74],{},[14,72,73],{},"digital services"," integrated into a product (such as the app without which a smart device does not work)",[59,76,77,80],{},[14,78,79],{},"digital manufacturing files",", for example files for 3D printing",[10,82,83],{},"Free and open-source software is exempt as long as it is not supplied in the course of a commercial activity.",[44,85,87],{"id":86},"_2-more-companies-can-be-held-liable","2. More companies can be held liable",[10,89,90],{},"So far the focus was mainly on the manufacturer. In future, depending on the situation, the injured party can also turn to others:",[56,92,93,103,109,119,125],{},[59,94,95,98,99,102],{},[14,96,97],{},"importers"," and ",[14,100,101],{},"authorised representatives"," of manufacturers outside the EU",[59,104,105,108],{},[14,106,107],{},"fulfilment service providers"," that store, pack and ship goods",[59,110,111,114,115,118],{},[14,112,113],{},"distributors"," – if, on request, they cannot say ",[14,116,117],{},"within one month"," who supplied them with the product",[59,120,121,124],{},[14,122,123],{},"online platforms",", if they act like a distributor",[59,126,127,128,131],{},"anyone who ",[14,129,130],{},"substantially modifies"," a product – for example converts or retrofits it – is considered the manufacturer for that modification",[10,133,134],{},"The point about distributors matters to many SMEs: if you cannot prove where an item came from, you may end up liable yourself.",[44,136,138],{"id":137},"_3-no-more-threshold-and-no-more-cap","3. No more threshold and no more cap",[10,140,141,142,145,146,149],{},"Until now, property damage was only compensated above ",[14,143,144],{},"500 euros",". This threshold disappears. Germany also had a ",[14,147,148],{},"ceiling of 85 million euros"," for personal injury – this goes as well.",[10,151,152,153,156,157,160],{},"Also new: the ",[14,154,155],{},"loss or corruption of data"," can be compensable damage – but only for data that is not used for professional purposes (more on that shortly). And recognised ",[14,158,159],{},"psychological health damage"," explicitly counts as personal injury.",[44,162,164],{"id":163},"_4-evidence-becomes-easier-for-the-injured-party","4. Evidence becomes easier – for the injured party",[10,166,167],{},"Many claims used to fail simply because the injured party could not prove a defect in a complex product. That changes:",[56,169,170,177,184],{},[59,171,172,173,176],{},"Courts can order companies to ",[14,174,175],{},"disclose evidence"," – for example technical documentation or logs.",[59,178,179,180,183],{},"If a company fails to do so, the product is ",[14,181,182],{},"presumed"," to be defective.",[59,185,186,187,190],{},"Where technical complexity is high – typical of software and AI – the court can ",[14,188,189],{},"presume"," the defect or the causal link to the damage if the injured party has shown it to be likely.",[10,192,193],{},"In plain terms: if you cannot prove what you delivered, checked or updated and when, you are in a weak position when it matters.",[44,195,197],{"id":196},"_5-updates-and-security-vulnerabilities-count-too","5. Updates and security vulnerabilities count too",[10,199,200,201,204,205,208,209,212],{},"With software, responsibility does not end at the point of sale. A manufacturer is also liable for defects caused by an ",[14,202,203],{},"update"," and for ",[14,206,207],{},"failing to fix"," a known ",[14,210,211],{},"security vulnerability",", as long as the product remains under its control.",[25,214,216],{"id":215},"when-does-this-apply-and-to-which-products","When does this apply – and to which products?",[10,218,219,220,223],{},"The new rules apply to products placed on the market ",[14,221,222],{},"from 9 December 2026",". For products sold before that date, the old law continues to apply.",[10,225,226],{},"With software, however, the line is less clear than it sounds: a cloud solution or app that is updated continuously is never really \"finished and delivered\". You should assume that software which continues to be developed after the cut-off date falls under the new rules.",[10,228,229,230,233,234,237],{},"Claims become time-barred three years after the injured party learned of the damage and of the liable party. They expire at the latest ",[14,231,232],{},"ten years"," after the product was placed on the market – or after ",[14,235,236],{},"25 years"," for health damage that only becomes apparent later.",[22,239],{},[25,241,243],{"id":242},"the-good-news-for-b2b-companies","The good news for B2B companies",[10,245,246,247,250],{},"Amid all the excitement, one point is often overlooked: ",[14,248,249],{},"product liability protects private individuals."," Only natural persons receive compensation, namely for:",[56,252,253,256,262],{},[59,254,255],{},"death and bodily injury (including psychological health damage)",[59,257,258,259],{},"damage to property used ",[14,260,261],{},"privately",[59,263,264,265],{},"loss or corruption of data used ",[14,266,261],{},[10,268,269,270,273],{},"Product liability does ",[14,271,272],{},"not"," cover:",[56,275,276,281,287],{},[59,277,258,278],{},[14,279,280],{},"exclusively for professional purposes",[59,282,283,284],{},"loss of ",[14,285,286],{},"data used professionally",[59,288,289,292],{},[14,290,291],{},"pure economic loss"," – such as lost revenue or an incorrectly calculated invoice",[10,294,295,296,299],{},"An example: if faulty software causes customer data to be lost in your company, that is not a product liability case. As before, ",[14,297,298],{},"your contract"," with the provider applies, together with warranty and damages.",[10,301,302,303,306,307,310],{},"Still, B2B companies should not sit back entirely. As soon as ",[14,304,305],{},"consumers"," are at the end of the chain – your customers, their end customers or people who also use a device privately – product liability applies again. And towards these injured parties it ",[14,308,309],{},"cannot be excluded by contract",".",[25,312,314],{"id":313},"who-should-take-a-closer-look-now","Who should take a closer look now",[56,316,317,323,329,335],{},[59,318,319,322],{},[14,320,321],{},"Retailers and online shops:"," can you name the supplier of every product you sold within one month? If not, you are liable yourself.",[59,324,325,328],{},[14,326,327],{},"Trades, installation, service:"," anyone who converts or retrofits devices or replaces components may be considered the manufacturer for that modification. Complete installation and inspection records become even more important.",[59,330,331,334],{},[14,332,333],{},"Manufacturers with software in their products:"," controllers, apps, firmware – everything counts. That includes a clear process for updates and security vulnerabilities.",[59,336,337,340,341],{},[14,338,339],{},"Companies building their own apps or AI solutions for customers:"," anyone who supplies software to consumers – even an app built quickly with AI – is a manufacturer within the meaning of the directive. ",[342,343,345],"a",{"href":344},"\u002Fen\u002Fblog\u002Fvibe-coding-1tool-platform-as-a-service\u002F","Read here why a solid foundation matters.",[25,347,349],{"id":348},"documentation-is-the-best-protection","Documentation is the best protection",[10,351,352,353,356,357,360,361,310],{},"The new directive noticeably shifts the burden of proof towards companies. The best protected are those who can show at any time ",[14,354,355],{},"what"," they sourced, delivered, checked and changed, ",[14,358,359],{},"when"," and from ",[14,362,363],{},"whom",[10,365,366],{},"This is exactly where central business software like 1Tool helps:",[56,368,369,375,381,392],{},[59,370,371,374],{},[14,372,373],{},"Trace suppliers and goods receipts:"," in merchandise management, purchasing, goods receipt, sales and invoicing are linked. Even months later you can still say where a product came from – the one-month deadline for distributors becomes a formality.",[59,376,377,380],{},[14,378,379],{},"Document complaints properly:"," with the ticket system, every customer report is recorded with its history, replies and solution.",[59,382,383,386,387,391],{},[14,384,385],{},"Prove inspections and on-site work:"," with ",[342,388,390],{"href":389},"\u002Fen\u002Fblog\u002Fsoftware-tool-for-checklist-inspection\u002F","checklists and inspection reports"," in the app, your field staff record inspections, photos and signatures directly at the customer's site.",[59,393,394,397,398,402],{},[14,395,396],{},"Store documents centrally:"," data sheets, certificates, installation instructions and delivery notes are kept in ",[342,399,401],{"href":400},"\u002Fen\u002Fmodules\u002Forganization-service\u002Fdocuments\u002Ffunctions-documents-module\u002Fdocument-management\u002F","document management"," with the relevant customer, project or order – not scattered across email inboxes.",[10,404,405,406,310],{},"Important: with 1Tool, this data is held by an ",[14,407,408],{},"Austrian provider in an Austrian data centre",[22,410],{},[25,412,414],{"id":413},"checklist-are-you-prepared","Checklist: are you prepared?",[10,416,417,418,421],{},"✅ Do you know whether your products or services (also) end up with ",[14,419,420],{},"private individuals","?",[10,423,424,425,428],{},"✅ Can you name the ",[14,426,427],{},"supplier"," of every product you sold within one month?",[10,430,431,432,435],{},"✅ Are ",[14,433,434],{},"inspections, installations and modifications"," to products documented – with date and person responsible?",[10,437,431,438,441],{},[14,439,440],{},"complaints"," recorded centrally rather than just handled by phone or email?",[10,443,444,445,421],{},"✅ If you offer software or apps: is there a fixed process for ",[14,446,447],{},"security updates",[10,449,450,451,454],{},"✅ Have you clarified with your ",[14,452,453],{},"insurer"," whether your business liability insurance covers the new product liability – including for software?",[10,456,457,458,461],{},"✅ Have your ",[14,459,460],{},"supplier contracts"," been adapted so that you can take recourse in the event of a claim?",[22,463],{},[25,465,467],{"id":466},"conclusion","Conclusion",[10,469,470],{},"The new product liability rules finally bring software, AI and online retail into liability law. For pure B2B business less changes than the headlines suggest – but anyone who deals with consumers or sells, installs or modifies products should use the time until December.",[10,472,473,474,477],{},"The most important step is not a legal one but an organisational one: ",[14,475,476],{},"document everything, without gaps",". If you can prove where a product came from, how it was checked and what happened to it, you hold the best cards when it matters.",[10,479,480,481],{},"👉 Would you like to see how to bring purchasing, complaints and inspection reports together in one solution? ",[342,482,484],{"href":483},"\u002Fen\u002Fappointment-request\u002F",[14,485,486],{},"Book a demo now.",[10,488,489],{},[490,491,492],"em",{},"Note: this article provides a general overview and does not replace legal advice. The details depend on how the directive is transposed into Austrian and German law.",[22,494],{},[44,496,498],{"id":497},"you-might-also-be-interested-in","You might also be interested in",[10,500,501,504,508],{},[342,502,503],{"href":344},"Vibe coding with 1Tool: the platform beneath your AI app",[342,505,507],{"href":506},"\u002Fen\u002Fblog\u002Feu-packaging-regulation-ppwr-online-shop-checklist\u002F","EU Packaging Regulation (PPWR): do I have to shut down my online shop now?",[342,509,510],{"href":389},"Software tool for checklist & inspection",{"title":512,"searchDepth":513,"depth":513,"links":514},"",2,[515,516,524,525,526,527,528,529],{"id":27,"depth":513,"text":28},{"id":41,"depth":513,"text":42,"children":517},[518,520,521,522,523],{"id":46,"depth":519,"text":47},3,{"id":86,"depth":519,"text":87},{"id":137,"depth":519,"text":138},{"id":163,"depth":519,"text":164},{"id":196,"depth":519,"text":197},{"id":215,"depth":513,"text":216},{"id":242,"depth":513,"text":243},{"id":313,"depth":513,"text":314},{"id":348,"depth":513,"text":349},{"id":413,"depth":513,"text":414},{"id":466,"depth":513,"text":467,"children":530},[531],{"id":497,"depth":519,"text":498},[533],3330,"2026-10-08T09:00:00","On 9 December 2026, product liability in the EU changes fundamentally. The new Product Liability Directive (EU) 2024\u002F2853 replaces rules dating back to 1985 – a time when a \"product\" was still something you could hold in your hand.",false,null,"md","\u002Fimg\u002Fblog\u002Fprodukthaftung\u002Fneue-produkthaftung-2026.jpg","en",{},true,"\u002Fen\u002Fblog\u002Fnew-product-liability-2026-software-ai-smes",{"title":5,"description":535},"EU Product Liability Directive from 9 Dec 2026: software and AI become products, retailers share liability. What changes, who is affected, how to prepare.","Product liability 2026: what SMEs need to know now","new-product-liability-2026-software-ai-smes","\u002Fen\u002Fblog\u002Fnew-product-liability-2026-software-ai-smes\u002F","en\u002Fblog\u002Fnew-product-liability-2026-software-ai-smes","posts","x0gbLONmsnM44K7o_kJGWOc9XW2Y-T6Q2lM9Kkvx-NM",1791582058494]