Need incident response?

Home › Legal Alerts

08.10.2026Priority 4: LowUnited Kingdom

Law Commission consults on strict product liability for software and AI

What changed

The Law Commission of England and Wales published a consultation paper proposing reform of product liability under the Consumer Protection Act 1987, including whether software and AI systems should be treated as products. The proposal would extend strict liability, currently limited to physical goods, to software and AI systems. The consultation applies to software and AI developers, platform operators and online marketplaces. It closes on January 14, 2027.

Source: View the official source

Why it matters

Software and AI systems could be treated as products subject to strict liability in England and Wales.
Developers, platform operators and online marketplaces are within the scope of the proposals.
Responses to the consultation are due by January 14, 2027.

Our comment

If adopted, the reform would create a clearer route to compensation claims against developers of defective software and AI, not only against the business that deploys them. This raises questions about how liability, indemnities and insurance are allocated in technology contracts along the AI supply chain.

Questions about this alert?

Sara Derbel

Paralegal

Our team can explain what this development means for your organization.

Related services

Regulatory Intelligence
Regulatory intelligence and legislative monitoring for AI, privacy and cybersecurity across Canada, the US, EU, UK and Australia, filtered, prioritized and reviewed by legal experts.
View service
Fractional General Counsel
Fractional and virtual general counsel (vGC) for technology companies in Canada: embedded legal leadership, contracts, templates, playbooks and multi-jurisdiction regulatory support.
View service
Tech RFP Management
Technology RFP management and procurement support: RFI, RFP and RFQ structuring, vendor due diligence, third-party risk and negotiation of SaaS, cloud and AI contracts.
View service
The Vox
Our regulatory intelligence magazine, with the latest issues and Legal Alerts.
Read The Vox

Related expertise

Artificial Intelligence
AI law and AI governance advice in Canada: responsible AI policies, data use, accountability and AI contracts for companies that build or deploy AI.
View expertise
Technology Procurement
Technology contracts lawyers for SaaS, cloud, software, AI and managed services agreements with clear data, security and exit terms.
View expertise
Corporate Law
Corporate law for technology companies: structure, governance and commercial agreements that support your growth in Canada.
View expertise

Similar alerts

23.10.2026ConsultationCanada
Privacy Commissioner of Canada comments on AI transparency consultation
The Office of the Privacy Commissioner of Canada released its comments on Innovation, Science and Economic Development Canada's consultation on AI transparency, which ran from July 23 to September 23, 2026. The OPC agrees that transparency issues arise in all five areas ISED identified: AI generated content, AI interaction, information about AI systems, AI incidents and AI agents. It argues that information about a system must be understandable at the point where it affects an individual's decision. The OPC anchors its position in its existing consent guidelines and names developers and deployers of generative AI as bearing transparency responsibilities.
- Privacy
- Artificial Intelligence
Read the alert
22.10.2026LegislationEuropean Union
EU Council adopts its negotiating mandate on the Digital Omnibus
The Council of the EU agreed its negotiating mandate on the Digital Omnibus Regulation, which amends the GDPR, the ePrivacy Directive, the EUDPR and the Data Act. The mandate keeps the current definition of personal data but states that pseudonymised data is not personal data for a recipient without reasonable means to reidentify the individual. It allows processing for AI development to rely on legitimate interest, subject to a right to object and added safeguards for children. It would also limit breach notification to the supervisory authority to breaches likely to result in high risk, and add exemptions to cookie consent for security updates, audience measurement and requested functionality. This is a Council position only. Trilogue begins once Parliament adopts its own position.
- Privacy
- Artificial Intelligence
Read the alert
16.10.2026Legal precedentQuebecCanada
Court of Québec upholds CAI order against Clearview AI
The Court of Québec dismissed Clearview AI’s appeal of the 2021 order issued by the Commission d’accès à l’information (CAI). The order requires the company to stop collecting images of Quebecers and to destroy their images and biometric identifiers. The Court found a real and substantial connection with Quebec even though Clearview has had no office, staff or clients there since 2020. It also held that information collected in breach of the law cannot rest on a serious and legitimate interest.
- Privacy
- Artificial Intelligence
Read the alert