FINLAND Trends and Developments Contributed by: Jussi Laasonen and Saara Järvinen, Ruoholahti Law
The Impact of the New Product Liability Directive on Finnish Legislation The new Directive (EU) 2024/2853 of the European Parliament and of the Council of 23 October 2024 (the “Product Liability Directive”) on liability for defective products, repealing Council Directive 85/374/EEC, was published in the Official Journal of the European Union on 18 November 2024. The Directive must be implemented by the member states of the EU by 9 December 2026. In Finland, the Ministry of Justice established a work - ing group in 2025 to prepare the national provisions required for the implementation of the Directive. The provisions of the Product Liability Directive will be implemented in Finland primarily through amendments to the Product Liability Act (694/1990). The Product Liability Directive may also necessitate amendments to the Consumer Protection Act (38/1978). The nation - al legislative amendments are intended to enter into force in accordance with the Directive on 9 December 2026. At present, Finnish product liability regulation is based on the old Product Liability Directive 85/374/ EEC adopted in 1985. In other words, the legislation has been in force for a considerable period. However, according to a report by a working group of the Min - istry of Justice, the regulatory framework contained in the Product Liability Act has generally functioned well. Consequently, Finnish case law relating to prod - uct liability matters is also well established. For this reason, the intention is to amend national legislation in light of the new Directive only to the extent that is strictly necessary. Although the provisions of the new Product Liability Directive will introduce changes in Finland, particu - larly with regard to the scope of application of the law, compensable damage, liable parties, limitation periods, and the disclosure of evidence, the reform of product liability regulation does not, for example, require a comprehensive reform of the Product Liability Act. This is because several of the rules contained in the Directive are already reflected in Finland’s existing product liability and tort law framework. One exam - ple is the compensability of damage to psychological health included in the new Product Liability Directive.
In Finland, the concept of personal injury within the scope of the Product Liability Act already covers both physical and psychological harm, meaning that the new Directive does not require legislative changes in this respect. The Impact of Regulatory Changes on Businesses and Product Liability Insurance Liability insurance policies marketed in Finland cur - rently provide relatively comprehensive cover for liabil - ity under the existing Product Liability Act. Especially now, following the legislative amendments in question, it is vital for businesses to ensure that they maintain adequate insurance coverage. Accord - ing to a report by the working group of the Ministry of Justice, businesses that have caused damage or are otherwise liable for it are more likely to face product liability claims than they were before. Current product liability insurance policies cover per - sonal injury and property damage incurred, which under Finnish law also includes financial losses aris - ing from such damage. However, the new regulatory framework expands the scope of compensable dam - age so that, in addition to personal injury and property damage (and the directly related economic losses), compensable damage will also include various forms of digital harm, such as corruption, destruction and loss of data. Such various forms of digital harm are not, at least not always, property damage within the meaning of Finn - ish law, but rather, so-called pure financial loss, which existing insurance policies do not generally cover. Consequently, the scope of insurance protection in relation to liability risks is, in principle, reduced. It is, however, likely that insurers will, at least over time, expand the scope of insurance coverage in these respects, although this will naturally have an impact on insurance premiums. The range of parties who may be held liable for dam - age is also being expanded. For example, in relation to digital products, software developers or producers will in future be regarded as manufacturers of the product. Liable parties will also include, among others, online
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