What happened
On 8 October 2026 the Law Commission of England and Wales published a consultation proposing a major overhaul of Part 1 of the Consumer Protection Act 1987: expanding the definition of 'product' to include software, AI systems, digital manufacturing files and the design features of online platforms (e.g. recommendation algorithms, infinite scroll); adding a rebuttable presumption of defectiveness with a risk-sharing mechanism where claimants face exceptional evidential difficulties; extending liability to online marketplaces; and expanding recoverable damage to include data loss and recognised psychiatric illness. Consultation closes 14 January 2027; final recommendations expected late 2027.
Why it matters
It is the first overhaul of UK product-liability law for the AI age and would make AI/software vendors and platform operators strictly (no-fault) liable for defective AI systems, with eased evidential burdens for claimants — a materially expanded liability surface for UK AI deployers, developers and platform operators, and it tracks the EU's 2024 revised Product Liability Directive.
Action needed
AI developers, platform operators, insurers and online marketplaces should respond to the consultation before 14 January 2027 and start mapping defect/liability risk in design and supply chains now.