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The law governing liability for defective products is undergoing its most significant reform in almost 40 years. While product liability reform is being considered across the UK, Northern Ireland occupies a unique position because of the Windsor Framework and the continued application of certain EU laws relating to goods.
As a result, the new EU Product Liability Directive (Directive (EU) 2024/2853) will apply in NI from 9 December 2026, ahead of the rest of the UK. Given NI’scontinued alignment with certain EU rules governing goods under the Windsor Framework, it is likely to be the first part of the UK to experience the practical effects of these reforms. Unless similar changes are adopted across Great Britain, this could lead to increasing divergence between the product liability regimes operating in NI and the rest of the UK.
The new directive is designed to modernise product liability law for the digital age and has potentially significant implications for manufacturers, software developers, distributors, online marketplaces and technology providers.
Key changes
Software, AI and digital products
Perhaps the most significant change is the express inclusion of software within the definition of a "product". Liability may now arise in relation to a wide range of digital products, including stand-alone software, mobile applications, artificial intelligence systems, firmware, software updates and digital manufacturing files.
This represents a substantial shift from the current regime and means that software developers and technology providers may be exposed to strict product liability claims without any requirement for claimants to establish fault.
Cybersecurity and ongoing product safety
The directive recognises that product safety is no longer limited to physical defects. A product may be considered defective because of inadequate cybersecurity protections, vulnerabilities exposing users to harm, a failure to provide necessary software updates, or defects arising through modifications or updates under the manufacturer's control.
Manufacturers and developers will therefore need to view cybersecurity, product monitoring and software maintenance as continuing obligations rather than one-off compliance exercises.
Expanded liability and easier consumer claims
The directive broadens both the damage for which compensation may be available and the parties that may face claims. Compensation may extend to medically recognised psychological injury and the destruction or corruption of non-professional data. Liability may also extend beyond traditional manufacturers to include importers, distributors, fulfilment service providers, online marketplaces and businesses that substantially modify products after they have been placed on the market.
The reforms are also intended to reduce evidential barriers for consumers. Courts will have powers to order disclosure of relevant evidence and, in certain circumstances, presumptions regarding defectiveness and causation may assist claimants, particularly where products are technically complex.
Extended exposure
The directive retains the general ten-year long-stop period for product liability claims. However, for certain latent personal injury claims, the long-stop period may be extended to 25 years. This has significant implications for businesses producing long-life products and highlights the importance of maintaining robust record-keeping, document retention and insurance arrangements.
What does this mean for NI businesses?
NI is likely to be the first part of the UK to experience the practical effects of these reforms.
The changes extend far beyond traditional manufacturers and are likely to affect organisations involved in software development, AI systems, connected products, e-commerce and digital supply chains.
Businesses should begin preparing now by reviewing their product liability risk profile, cybersecurity arrangements, update and patch-management procedures, supply-chain contracts, technical documentation and insurance coverage.
Conclusion
The new Product Liability Directive reflects the realities of an increasingly digital and interconnected economy. While the reforms are intended to strengthen consumer protection, they also expand the scope of potential liability and increase litigation risk for businesses.
Organisations operating in NI should consider the implications of the new regime at an early stage, particularly where they develop, distribute or support software-enabled products. Early preparation will be key to managing the increased compliance and litigation risks associated with the reforms.
For more information, please contact Keith Dunn, Kathy Regan, Leigh Taylor and Aimee Fullen.
Date published: 18 September 2026