Dutch Cabinet Approves Expansion of Product Liability to AI and Software
The Hague, Friday 13 February 2026
The Dutch government has approved legislation modernising liability laws. Crucially, it classifies AI and software as products, significantly strengthening consumer protection and easing the burden of proof for digital defects.
Modernising the Civil Code for the Digital Age
On Friday, 13 February 2026, the Council of Ministers agreed to a proposal by State Secretary Rutte of Justice and Security and Minister Karremans of Economic Affairs to transpose the revised European Product Liability Directive into national law [1]. The legislation mandates a one-to-one incorporation of these new rules into the Dutch Civil Code, aligning domestic statutes with broader European standards [1]. This regulatory update explicitly extends product liability rules to cover new digital technologies, including artificial intelligence (AI), as well as circular products [1]. By formally recognising complex digital systems and recycled goods as ‘products’ under the law, the cabinet aims to close the gap between traditional industrial liability and the realities of the modern digital economy [1].
Redefining Liability in the Digital Ecosystem
The bill introduces a comprehensive expansion of accountability that is likely to reverberate through the tech sector, from SaaS providers to online marketplaces. Crucially, the legislation targets products originating from outside the EU, ensuring that liability can now be placed on authorised representatives, logistics service providers, distributors, and online platforms established within the Union [1]. This measure effectively prevents non-EU manufacturers from evading responsibility, thereby integrating global digital supply chains into the Dutch legal framework [1]. For the fintech and software industries, this implies that intermediaries and platforms can no longer easily claim neutrality regarding the safety of the digital products they distribute [1][GPT].
Legislative Path and Market Impact
Beyond consumer protection, the government argues that these updates will provide necessary legal certainty for businesses and foster a more level playing field within the European Union [1]. By standardising liability for digital and circular assets, the law aims to prevent market distortion where traditional manufacturers face stricter compliance costs than digital entrants [1]. The cabinet has submitted the bill to the House of Representatives (Tweede Kamer) for consideration [1]. Following the lower house’s review, the Senate (Eerste Kamer) must also vote on the proposal; the legislation will enter into force once it has been adopted by both chambers [1].