Title page 1

Contents 1

EXECUTIVE SUMMARY 4

1. INTRODUCTION 7

2. THE NORDIC MODEL OF CONSUMER PROTECTION 8

2.1. Public Versus Private Regulatory Enforcement 8

2.2. Consumer Redress Mechanisms in the Nordic Countries 10

2.3. Consumer Protection in the Nordic Countries 12

3. CHALLENGES IN IMPLEMENTING THE NEW PRODUCT LIABILITY DIRECTIVE 14

3.1. The Concept of 'Defectiveness' in Digital Technologies 14

3.2. Extending Liability Across Supply Chains and Over Time 15

3.3. Reversal of the Burden of Proof 16

4. THE IMPACT OF THE NEW PRODUCT LIABILITY DIRECTIVE ON INNOVATION 17

4.1. The New Product Liability Directive, Mass Litigation and Its Impact on Innovation 17

4.2. The Economic Impact of Mass Litigation on Innovation 18

5. POLICY RECOMMENDATIONS 21

6. CONCLUSION 27

REFERENCES 28

ANNEX 1: THE ROLE OF THE OMBUDSMEN IN THE NORDIC COUNTRIES AND THE USE OF COLLECTIVE ACTIONS 33

ANNEX 2: THE IMPORTANCE OF INNOVATION IN THE NORDIC ECONOMIES 37

ANNEX 3: METHODOLOGY OF THE SCENARIO-BASED ANALYSIS 41

ANNEX 4: THE IMPACT OF MASS LITIGATION ON THE NORDIC ECONOMIES 46

ANNEX 5: 54 TOP NORDIC R&D INVESTORS 50

Tables 20

TABLE 1. REDUCTION IN MARKET CAPITALISATION FOR THE TOP 42 NORDIC R&D INVESTORS 20

TABLE 2. REDUCTION IN MARKET CAPITALISATION FOR THE TOP NORDIC R&D INVESTORS IN LIFE SCIENCES AND ICT 21

Figures 13

FIGURE 1. SHARE OF THE POPULATION WHO AGREE THAT RETAILERS RESPECT CONSUMER RIGHTS 13

Boxes 12

BOX 1. VOLKSWAGEN DIESEL CASES IN SWEDEN: WHAT WAS DIFFERENT? 12

Annex Tables 40

ANNEX 2: THE IMPORTANCE OF INNOVATION IN THE NORDIC ECONOMIES 40

TABLE 1. SECTORAL ECONOMIC INDICATORS (2022) 40

ANNEX 3: METHODOLOGY OF THE SCENARIO-BASED ANALYSIS 41

TABLE 1. SCENARIOS FOR ECONOMIC MODELLING 41

ANNEX 4: THE IMPACT OF MASS LITIGATION ON THE NORDIC ECONOMIES 47

TABLE 1. INCREASE IN LITIGATION COSTS BASED ON SCENARIO-BASED ANALYSIS (AS A SHARE OF THE CLAIM VALUE) 47

TABLE 2. COST OF PRIVATE ENFORCEMENT AS A SHARE OF GDP BASED ON SCENARIO-BASED ANALYSIS 47

TABLE 3. US DATA SOURCES 48

TABLE 4. NORDIC DATA SOURCES 49

ANNEX 5: 54 TOP NORDIC R&D INVESTORS 50

TABLE 1. HIGHEST R&D INVESTING COMPANIES IN DENMARK, FINLAND, AND SWEDEN 50

Annex Figures 37

FIGURE 1. SHARE OF ENTERPRISES WITH HIGH AND VERY HIGH DIGITAL INTENSITIES (2024) 37

FIGURE 2. SHARE OF FIRMS USING AT LEAST ONE TYPE OF AI TECHNOLOGY (2024) 38

FIGURE 3. GROSS EXPENDITURE ON R&D PER CAPITA (2023) 39

FIGURE 4. GROSS BUSINESS EXPENDITURE ON R&D PER CAPITA (2023) 39

Annex Boxes 34

BOX 1. DENMARK CASE STUDY 34

BOX 2. FINLAND CASE STUDY 35

BOX 3. SWEDEN CASE STUDY 36