DENMARK Law and Practice Contributed by: Heidi Bloch, Rasmus Tommerup and Rasmus Estrup, Kennedys
2.17 Summary of Significant Recent Product Liability Claims In 2024, the Danish High Courts have rendered two judgments in which key statutory definitions of Danish Product Liability were subject to inter - pretation indicating potential adverse effects on all electricity distribution system operators and their insurers. Both matters concerned electricity supplied by electricity distribution system operators, which was over-voltage upon delivery to consumers, causing damage to their properties. The judg - ments establish that electricity distribution com - panies are deemed as producers of electricity under the Danish Product Liability Act, as they alter the voltage level before distributing it to end-users. Moreover, it clarifies that the point of connection, where the operator’s supply net - work meets the consumer’s property, marks the commencement of electricity circulation. Thus, this point is pivotal in determining whether the electricity is defective. Since the electricity in question was over-voltage at the connection point, the grid operators were held liable under the Danish Product Liability Act. 3. Recent Policy Changes and Outlook 3.1 Trends in Product Liability and Product Safety Policy The EU has adopted the new Product Liability Directive, which will come into force on 9 Decem - ber 2026. The updated Directive broadens the definition of a product to also include digital files, software, and AI solutions. It additionally recognises mental and data-related damages and expands the scope of liable parties.
In addition to third-party funding, alternative methods of funding for product liability claims are available. These include legal expenses insurance and legal aid. 2.16 Existence of Class Actions, Representative Proceedings or Co- Ordinated Proceedings in Product Liability Claims In essence, product liability claims may be pur - sued through class-action proceedings, subject to meeting specific eligibility requirements. Up until now, class actions have rarely been used in product liability proceedings, however, the potential rise of, for example, PFAS-related product liability claims (see 3.2 Future Policy in Product Liability and Product Safety ) could change this and lead to an increase in product liability class actions as well. According to Danish law, a class action suit must be initiated by a group representative and meet the criteria set out in Section 254b(1) of the Administration of Justice Act, before the court will allow the suit to proceed. These criteria include ensuring that the claims share a similar essence, that they all fall under Danish jurisdic - tion, and at least one of the claims is within the court’s jurisdiction. Additionally, the court must have subject-matter jurisdiction over all claims, and class action must be deemed the best pro - cedural option. Moreover, the group members must be identifiable and informed about the class action suit. These criteria are stringent. Specifically, the requirement that a class action suit must be the most suitable procedural option to address a certain claim implies that the court will only issue a group certificate if no other option for addressing the claim is better suited, making this condition difficult to fulfil.
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