Read Time: 13 minutes
TL;DR
On December 9, 2026 — a few months from now — the new EU Product Liability Directive ((EU) 2024/2853, “PLD”) starts applying to products placed on the EU market. For the first time, software is explicitly a product under strict liability rules: standalone apps, firmware, SaaS, AI systems, even digital manufacturing files. A product is legally defective if it lacks the cybersecurity a person is entitled to expect — and the directive says out loud that failing to ship security updates for a vulnerability under your control can make your product defective. Compensable damage now includes destruction or corruption of your personal, non-professional data and medically certified psychological harm, the old €500 threshold is gone, courts can order you to disclose technical evidence, defectiveness gets presumed when cases are too technically complex for the claimant, and you cannot disclaim any of this in your EULA. There is no US equivalent: the US still runs product liability on state tort law where “is software a product?” remains unresolved, and the 2026 US Cyber Strategy explicitly walked back the previous administration’s plan to shift liability onto software makers. The two biggest software markets on Earth are now driving in opposite directions — and if you sell into the EU, your vulnerability management program just became your legal defense file. Here’s my security-practitioner read.
The usual disclaimer, doubled: I am not a lawyer, and this is not legal advice — it’s a security practitioner reading a liability regime the way an attacker reads a network diagram, looking for where the pressure actually lands. If you ship software into the EU, talk to actual counsel. What I can tell you is what this changes operationally for the people who build and secure products, because I have spent twenty-plus years watching the industry treat security as a best-effort promise backed by a liability disclaimer. That era has an expiry date in Europe, and the date is December 9, 2026.
I have been circling this theme on the blog for a while — who owns the risk when AI writes your code, why companies have no AI strategy but plenty of AI exposure, what happens when nobody is accountable for an agent’s actions. The PLD is the EU answering a chunk of those questions with a blunt instrument: someone in the supply chain is always liable, and it is never the victim.
This post has a companion. A few weeks after I first drafted it, the regulatory half of Europe’s push went live: the AI Act’s GPAI enforcement, in force since August 2. A regulator that fines you and a courtroom that bills you are two different doors — that post is the regulator; this one is the courtroom.
What Changed: From 1985 to 2024
The old Product Liability Directive dates from 1985 — the year of the Amiga and the C64 in its prime. It was written for toasters and lawnmowers: physical products, physical harm. Software mostly escaped it. Whether code was even a “product” was debated for four decades, pure data loss wasn’t compensable damage, there was a €500 floor on property claims, and proving that a specific defect in a complex system caused your harm was on you, alone, against the manufacturer’s information advantage.
Directive (EU) 2024/2853 replaces all of that for products placed on the market from December 9, 2026 (products shipped before that date stay under the 1985 rules — a long-tail dual regime worth understanding). Member states must transpose it into national law by that same date, and they are predictably behind: as of mid-2026, Hungary has transposed, a handful of countries (Croatia, Slovakia, Bulgaria) have drafts moving, and much of the EU has published nothing yet. Late transposition won’t save anyone — the deadline and the direction are fixed.
The headline changes, from a builder’s chair:
Software is a product. Full stop. Standalone software, embedded firmware, mobile apps, AI systems, SaaS and cloud-delivered functionality, related digital services integrated into a product (think the health-monitoring service behind a wearable’s sensors), and even digital manufacturing files (the CAD file that 3D-prints the part). If you place it on the EU market, strict liability attaches — no fault, no negligence required. The claimant needs defect, damage, and causal link. Not your intent, not your process, not your apology.
Someone is always on the hook. Liability cascades: the manufacturer (which includes the software developer) first; for non-EU manufacturers, the importer or authorized representative; failing that, the fulfilment service provider; even distributors and online marketplaces if they can’t identify who’s upstream within a month. The EU has deliberately closed the “the vendor is a shell in another jurisdiction” escape hatch. If you develop from outside the EU and sell in, your EU representative is holding your liability.

Figure 1. The cascade: liability flows manufacturer → importer / authorised representative → fulfilment provider → distributor / marketplace until it lands on someone reachable in the EU. Non-EU shells don’t break the chain, and none of it can be disclaimed.
You can’t contract out. Liability toward injured persons cannot be excluded or limited. The all-caps AS IS, WITHOUT WARRANTY OF ANY KIND block at the bottom of the license? In this regime, decorative.
The Security Part: Defectiveness Now Speaks CVE
This is the section that made me write this post. The directive doesn’t treat security as an add-on; it bakes it into the legal definition of “defective.”
A product is defective when it does not provide the safety a person is entitled to expect, and the assessment explicitly includes, among other factors, relevant cybersecurity requirements and the product’s ability to withstand foreseeable third-party actions — i.e., attacks. Read that again: a foreseeable attack exploiting a weakness you should have addressed is part of the defect analysis. The exploit doesn’t excuse you; its foreseeability indicts you.

Figure 2. What a claimant has to line up for strict liability — defect AND damage AND causation — and the security failures that make software “defective”: missing cybersecurity, unshipped updates, a foreseeable exploited weakness, or CRA/NIS2 non-compliance. Damage now includes destroyed data and psychological harm; causation can be presumed.
Three consequences I’d put on any product team’s wall:
1. Unpatched vulnerabilities are now a legal category, not just a backlog item. The directive holds manufacturers responsible for products after they ship, to the extent the product stays within their control — software updates, upgrades, cloud-side behavior, and machine-learning-driven change all count. Failing to supply the security updates needed to maintain safety can itself make the product defective. The mental model shifts from “we ship, users assume the risk” to “the product carries an ongoing duty of care as long as we can push code to it.”
2. Your compliance posture feeds the defect analysis. The PLD interlocks with the Cyber Resilience Act, NIS2, and sectoral rules like the Medical Devices Regulation. Non-compliance with mandatory security requirements doesn’t just bring regulatory fines anymore — it becomes evidence of defectiveness in a private damages claim, and breach of mandatory safety requirements can trigger a presumption of defect. The CRA tells you how to build and maintain; the PLD is what a claimant beats you with when you didn’t. Regulatory compliance and civil liability used to be separate lanes. They just merged.
3. The development-risk defense has a software-shaped hole. Manufacturers keep the classic “state of scientific and technical knowledge” defense — the defect was unknowable when we shipped. But it does not rescue you for defects that emerge from software updates or evolving ML behavior under your control after shipment. And “substantial modification” of a product — which a major update can be — restarts the liability clock. For a continuously-deployed SaaS with a learning model in the loop, the 10-year longstop is less a finish line and more a treadmill.
The Privacy Part: Data Loss Is Now Damage
Here is the sleeper provision. Compensable damage under the new PLD includes the destruction or corruption of data not used for professional purposes. Alongside death, personal injury — now including medically certified psychological harm — and property damage, with the €500 threshold deleted.
Think about what that covers in practice:
- Ransomware tears through a consumer NAS because of a known, unpatched vulnerability in its firmware → the family photos it encrypted are compensable damage in a strict-liability claim against the manufacturer.
- A defective sync client corrupts a decade of personal documents → damage.
- An IoT hub update bricks devices and wipes local data → damage.
And this stacks alongside GDPR, it doesn’t replace it. GDPR Article 82 already gives compensation for unlawful processing; the PLD adds a parallel track where the claim isn’t “you processed my data unlawfully” but “your defective product destroyed my data.” Different defendant theory, no need to prove a GDPR infringement, strict liability instead of the controller-accountability dance — and consumer organizations can bring these as representative (collective) actions. A widespread incident caused by a negligent-patch-cadence product is no longer just a PR problem and a possible DPA fine; it’s a class-action-shaped liability with per-user damages that now include the data itself.
The evidentiary machinery makes it bite. Courts can order disclosure of technical documentation and evidence — logs, risk assessments, internal vuln reports — presented in an accessible form; refuse, and defectiveness is presumed. And when the claimant faces excessive difficulty proving defect or causation due to technical or scientific complexity — which describes essentially every AI system and most distributed software — courts can presume those elements too. The information asymmetry that quietly protected software vendors for forty years was a design flaw, and the EU patched it.
One more wrinkle for my corner of the industry: the AI Liability Directive is dead — the Commission announced its withdrawal in early 2025 and formally scrapped it later that year. So for AI systems in the EU, the liability stack in 2026 is exactly this PLD (AI systems are software, software is a product) plus the AI Act’s regulatory duties plus national fault-based rules. The PLD’s complexity presumption was practically written with “explain your model’s decision chain to a judge” in mind.
Is There a US Equivalent? No — and It’s Getting Less Equivalent
Short answer: no. Longer answer: the US has product liability, but nothing like this, and the gap is widening on purpose.
US product liability is state tort law — strict liability, negligence, and warranty theories, shaped by the Restatement of Torts §402A and a patchwork of fifty state variations. There is no federal product liability statute, no EU-style harmonized regime. And critically for us:
- Whether software is a “product” at all is unresolved. The Restatement’s strict liability tradition covers tangible goods; courts remain split on apps, platforms, and algorithms, and vendors argue software is a service precisely to stay out of products-liability land. The EU spent 2024 settling by statute the question US courts are still litigating case by case.
- The economic loss doctrine blocks most of what the PLD just opened. In most states, if a defective product only damages itself or causes purely economic/data harm, tort recovery is barred — you’re pushed into contract, where the EULA is waiting.
- And the EULA works. US software licensing lives on disclaimers and liability caps that are broadly enforceable. The exact instrument the PLD voids is the load-bearing wall of the US software industry’s risk model.
What the US does have is a patchwork of pressure: FTC Section 5 enforcement against companies with sloppy security, state IoT security laws like California’s SB-327, FDA premarket cybersecurity for medical devices, the voluntary Cyber Trust Mark label. Real, but scattered, mostly regulatory rather than private-liability, and nothing that hands a consumer a strict-liability claim for a destroyed hard drive.
The trajectory is the interesting part. The 2023 US National Cybersecurity Strategy (Pillar 3) proposed exactly the EU move: shift liability onto software makers that ship insecure products, paired with a safe harbor for those who demonstrably develop securely. It was the boldest software-liability language ever to come out of the White House — and it was never legislated. The March 2026 Cyber Strategy for America then explicitly departed from it: deregulation, “cyber defense should not be reduced to a costly checklist,” compliance-burden reduction, no liability shift, no safe harbor.
So as of mid-2026 the divergence is official policy on both sides: the EU made insecure software a defective product; the US decided not to. If you ship globally, you will build to the EU bar anyway — the same Brussels-effect logic as GDPR — because maintaining two security postures is more expensive than maintaining one. Which means the PLD is de facto setting the global floor for software liability, from Brussels, without the US Congress ever voting on it.
Open Source: Mostly Safe, With a Commercial Tripwire
The directive excludes free and open-source software developed or supplied outside the course of a commercial activity. The hobbyist maintainer, the academic project, the community library on GitHub — out of scope, and rightly so; strict liability on unpaid maintainers would have been an extinction event for the commons.
But the tripwire is the word commercial. Charge for the software, sell support around it, or monetize personal data beyond what’s needed for security/compatibility, and the exemption evaporates. And the moment an OSS component is integrated into a commercial product, the integrator owns the liability for it. Your product’s SBOM is now a liability map: every dependency in it is a component you answer for in an EU courtroom. I wrote about the dependency trap in AI-generated code — the PLD is that post with a court attached. “The vulnerability was in an upstream library” has never been much of an excuse technically; from December it isn’t one legally either.
My Read: What Security Teams Should Actually Do
Strip the legalese and the PLD is a list of operational demands. Most of them are things good security teams already preach; the difference is that “we didn’t get around to it” now has a price tag with a court attached.
1. Your vulnerability management program is now your legal defense file. SLA-driven patching, documented triage decisions, EOL and support-window policy, coordinated disclosure handling — these stop being maturity-model line items and become the evidence you’ll produce under a disclosure order. Run vuln management assuming every decision may be read aloud to a judge, because under the disclosure regime, it may. If you can’t show why you deprioritized the bug that later destroyed someone’s data, the presumption machinery does the rest.
2. Update capability is a liability boundary. “Within the manufacturer’s control” is the load-bearing phrase of this directive. If you can push updates, you carry the duty; how long you promise to is your support-lifecycle policy. Define it, publish it, honor it, and treat end-of-support as a formal, dated, communicated event — not a quiet cessation of patches. And notice the perverse incentive worth designing around: teams may be tempted to reduce update capability to shrink the control window. Wrong answer — the CRA independently mandates security support. The only way out is through.
3. Logs are exculpatory evidence now. The same telemetry I keep demanding for agent security does double duty here: proving what your product did, when you knew, and how fast you moved is how you rebut a defect presumption. A product that can’t reconstruct its own behavior can’t defend itself — in the SOC or in court.
4. Compliance artifacts are double-edged — keep them honest. CRA conformity work, risk assessments, threat models: they’re your defense when real, and a claimant’s Exhibit A when aspirational. A threat model that lists a risk you then demonstrably ignored is worse than no document at all. Write what you’ll do; do what you wrote.
5. If you’re a US vendor, don’t relax. Your home regulator just stood down, but your EU importer or authorized representative is holding your strict liability, and they will pass that risk back to you through contracts, audits, and insurance requirements. The commercial chain will transmit the PLD’s pressure across the Atlantic faster than any regulation would have.
So What
For forty years, software has been the only mass-market engineering discipline allowed to ship known-defective products to the public and disclaim the consequences in a click-through. Bridges can’t do it, cars can’t do it, toasters can’t do it. From December 9, 2026, in the EU, software can’t do it either.
The cynical read is “more European red tape.” I don’t buy it, and you know I’m no reflexive fan of regulation. Strict liability is not a checklist — it’s the opposite of one. It doesn’t tell you how to build; it tells you that if what you build hurts someone, you pay, and lets you engineer your own way to that bar. That’s the deal every other engineering field has operated under for a century, and those fields responded by inventing safety engineering, not by collapsing.
Meanwhile the US just bet the other way: that market incentives without liability will produce secure software. We’ve run that experiment for four decades. The result is the CVE list.
The vendors who treated security as engineering all along have little to fear from December. The vendors who treated it as a disclaimer are about to discover their EULA was never load-bearing. Patch like it’s a legal duty — because in Europe, it now is.
Stay paranoid. Ship patches. Keep your logs.
- X (Twitter): @SimonRoses
Further Reading:
- Directive (EU) 2024/2853 — full text on EUR-Lex
- Reed Smith — The new EU PLD: implications for software, digital products and cybersecurity
- Gibson Dunn — EU PLD: responding to software, AI and complex supply chains
- Hogan Lovells — EU introduces comprehensive digital-era Product Liability Directive
- Wolf Theiss — EU PLD transposition tracker 2026
- Taylor Wessing — OSS and liability under the new PLD
- IBA — Liability for software under the new European PLD
- ICLG — Product Liability Laws and Regulations 2026: USA
- Mayer Brown — Trump administration’s 2026 Cyber Strategy for America
- IAPP — European Commission withdraws AI Liability Directive
Questions or feedback? Reach out via:
- Website: vulnex.com
- AI Security Strategy: vulnex.ai
- Twitter/X: @SimonRoses
- LinkedIn: linkedin.com/in/simonroses
- GitHub: github.com/vulnex
Need help getting your product ready for the PLD/CRA era? VULNEX offers:
- Product & application security assessments (secure-by-design gap analysis, SBOM and supply-chain review)
- Vulnerability management program design (SLA-driven patching, disclosure handling, support-lifecycle policy)
- AI system security assessments and liability-aware threat modeling
- Red team engagements and security automation
For AI security strategy — where model and agent risk meets board-level decisions — see vulnex.ai.
Contact: info@vulnex.com




