Authorised representatives: are you ready to be held liable?

The EU’s new Product Liability Directive (Directive (EU) 2024/2853), also known as the PLD, is a game-changer – and not in the way many authorised representatives (ARs) hoped.

For the first time, authorised representatives will be directly and statutorily liable under the EU’s product liability regime. This means that if you’re an AR acting on behalf of a non-EU manufacturer, you can be sued for damages resulting from defective products, even if you did nothing wrong yourself.

Let that sink in for a moment.

Until now, the liability burden fell primarily on the manufacturer. But with the growing number of non-EU companies selling into the EU, the European Commission has shifted its focus: it now wants to ensure that there is always an EU-based entity available to hold accountable when something goes wrong.

Under the new PLD, ARs stand shoulder-to-shoulder with manufacturers, importers, and fulfilment service providers in the liability hierarchy. And when the manufacturer is based outside the EU, you, the AR, may become the primary legal target.

• Direct statutory liability: This cannot be waived through a contract. You are legally on the hook, even if you’ve signed the best indemnification agreement in the world.
• 25-year liability window: The PLD allows claims for latent defects to be brought up to 25 years after the product was placed on the market.
• Burden of defense: You’ll likely be the first to respond to legal claims, incurring legal costs and reputational damage, regardless of what your indemnity clause says.
• Enforcement difficulties: If the manufacturer is in Asia or another non-EU country, good luck enforcing those indemnification clauses. Cross-border litigation is expensive, slow, and uncertain.
• Manufacturer insolvency: If the manufacturer goes bust, you may be left footing the bill – alone.

The PLD is reshaping the liability landscape in the EU. For ARs, it’s a potential existential threat to your business.

If you’re acting as an authorised representative for a non-EU manufacturer, now is the time to revisit your contracts, your risk exposure, and your business model. Because come December 2026 (or sooner in some Member States), you won’t just be representing products.

You’ll be representing risk.