What are the key requirements of the UK product liability reform?

Software and AI systems treated as products whether embedded, downloaded or accessed remotely; social media design features, including recommendation algorithms, also in scope A product can become defective after supply through a faulty software update or a missing update needed to address a safety risk The original producer stays liable for substantial modifications within its control; an AI system's ordinary self-learning is not a substantial modification

UK·Proposed

UK Product Liability Reform: Law Commission Consultation on Software and AI

Dates and status re-checked against primary sources on October 16, 2026. How we verify

On October 8, 2026 the Law Commission of England and Wales published Consultation Paper 279 on reforming Part 1 of the Consumer Protection Act 1987, the strict liability regime for defective products. Software and AI systems would be treated as products in their own right, whether embedded in a device, downloaded or accessed remotely. These are provisional proposals: the consultation runs until January 14, 2027 and final recommendations are expected in late 2027.

What this means for your team

If you sell or supply software or AI products to UK customers, the proposals would let people harmed by a defect claim without proving fault, including when the defect comes from a faulty update or a missing safety update. Giving software away does not take it out of scope if you supply it in the course of business or with a view to profit, and the paper proposes no specific exemption for non-commercial open-source software. If the design would hit your product, respond before the consultation closes.

Key requirements

Software and AI systems treated as products whether embedded, downloaded or accessed remotely; social media design features, including recommendation algorithms, also in scope
A product can become defective after supply through a faulty software update or a missing update needed to address a safety risk
The original producer stays liable for substantial modifications within its control; an AI system's ordinary self-learning is not a substantial modification
New liable persons: fulfilment service providers, "core participants" and UK authorised representatives
Presumption of defect where proof is exceptionally difficult; the defendant can rebut it or accept it and pay partial compensation under a risk-sharing mechanism
Destroyed or corrupted data becomes compensable unless it is used only for professional purposes, and the £275 minimum for property damage would be removed

Penalties

Proposals only. Today's Consumer Protection Act already makes producers liable for damage caused by defective products without proof of fault.

Key terms

AI Liability

UK Product Liability Reform: Law Commission Consultation on Software and AI

What this means for your team

Key requirements

Key terms

Further reading