AMZ123 has learned that the German Bundestag recently passed the Product Liability Law Modernization Act to fully align with the EU's new Product Liability Directive.

The main provisions will take effect on 9 December 2026 and will apply only to products placed on the market or put into use after that date. Products already on the market before then will remain governed by the old law.

This is the first major revision of Germany's product liability law since its introduction in 1989. The reform mainly adapts to digitalization, the circular economy, and the realities of globalized supply chains, further strengthening consumer protection.

The most critical change is the expansion of entities subject to no-fault strict liability, significantly increasing compliance risk for sellers from non-EU countries such as China and the United States. If the product manufacturer is located outside the EU, and there is no EU importer or written authorized EU representative, the fulfilment service provider may be held liable. A fulfilment service provider here means an operator that provides at least two of the following services: warehousing, packaging, address handling, and shipping.

If none of the above responsible parties can be identified, and the supplier fails to identify the primary liable party or its own upstream source within one month of receiving a liability notice, the supplier will be deemed the product manufacturer and bear the corresponding compensation obligations.

Under certain conditions, online marketplaces may also be drawn into the liability chain. If consumers have reasonable grounds to believe that a product is supplied by the platform itself or by merchants controlled by the platform, and the platform fails to identify the liable party within one month, the platform will also bear liability.

The scope of compensation covers personal injury and property damage. Damage to non-commercial data is also included as claimable, and some previous provisions on liability caps and deductibles have been abolished.

For cross-border sellers, sourcing products locally within the EU and reselling them directly generally will not lead to being deemed a product manufacturer, so overall risk is relatively low. However, if sellers import goods directly from outside the EU, make substantial modifications—including remanufacturing, functional upgrades, or applying their own brand in a way that misleads consumers into believing the seller is the manufacturer—their legal risk will increase significantly. The new law also improves rules on evidence disclosure, making it easier for injured parties to obtain evidence.

This adjustment stems from the EU's updated product liability regime in 2024, which addresses new issues arising from cross-border e-commerce, software products, and artificial intelligence products, ensuring there is always a clearly accountable economic operator in the EU market.

Germany is among the EU member states that completed domestic implementation relatively early. The new rules will directly bind all third-party sellers selling into the EU market. Relevant businesses and sellers should identify their role in the supply chain as soon as possible, improve contractual terms, and make corresponding preparations for liability insurance.

Author ✎ TEN/AMZ123

Seller Home Comment

Germany's new rules extend liable entities to e-commerce platforms and non-EU sellers, significantly increasing compliance risks for cross-border sellers. It is advisable to promptly check product compliance documents and EU Authorized Representative arrangements, and complete preparations before 9 December.

Source: European E-commerce News
Original link: https://www.amz123.com/t/aF3hYaHe