The UK Law Commission today (8 October) launched a consultation on major reform to bring product liability law up to date, including expanding the definition of “product” to include software and AI systems. The reforms would introduce new rights of consumer redress if a “product” is deemed to be defective.

The law governing defective products was introduced almost 40 years ago, before smartphones, apps, social media and artificial intelligence. The previous definition was limited to physical items. In a white paper, the Commission said that the law has not kept pace with how these technologies have transformed everyday life. New proposals would, in addition to bringing software, AI systems, and online platforms within scope, also provide greater clarity on when people harmed by defective products are entitled to compensation, the Commission said.

Expanding the definition of a “product” to include software, AI systems, the design components and features of social media and other online platforms, regardless of how they are supplied.

Extending liability to online marketplaces, reflecting the way people increasingly buy products today.

Clarifying when compensation may be available for psychiatric illness caused by defective products.

Making the law on what counts as a defective product clearer and easier to apply.

Introducing a new mechanism to balance risks fairly where claimants face exceptional difficulty obtaining evidence to prove that a product was defective.…

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