Digital content: emerging risk or another Y2K?

07 Jan 2016

The Consumer Rights Act 2015 sees digital content specifically recognised as distinct from tangible goods for the first time. But what does this mean for you?

The Act came into force on 1 October 2015 and introduces protection for customers in respect of the supply of digital content and provides potential scope for civil claims to be made in respect of damage caused by such digital content.  If the digital content is not of satisfactory quality then the Act provides that the customer has the right to repair or replacement or, failing that, a price reduction. But further and perhaps more interestingly, the Act also allows the consumer to pursue any other remedy for breach of contract including claiming damages.

Insurers, brokers and their customers may therefore want to consider what scope there is for digital content to cause damage and whether this would be covered under the terms of their existing product liability policies – particularly in this new era of connectivity, when the benefits and risks of the “Internet of Things” are only just becoming apparent.

You can read the article as published in The Journal by clicking here.

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Disclaimer: This document does not present a complete or comprehensive statement of the law, nor does it constitute legal advice. It is intended only to highlight issues that may be of interest to customers of BLM. Specialist legal advice should always be sought in any particular case.

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