Requirement · LIA-02

Ensure that persons harmed by a company's due-diligence failure have a right to full compensation, without overcompensation

Addressee Member StatesAct COM(2025) 81, 2025/0045 (COD)Article Art. 4(12), replacing Art. 29(2) of Directive (EU) 2024/1760Class Governments

What changes

Claimants keep the right to full compensation for proven due-diligence-failure damage, but recoverable damages are now expressly capped against punitive or multiple-damages awards.

Prior rule vs new rule

Prior rule

Obligation

A right to full compensation for due-diligence-failure damage already existed under the prior Art. 29(2).

Prior wording not available in the source file.

New rule

Obligation

Ensure that persons harmed by a company's due-diligence failure have a right to full compensation, without overcompensation

Who is affected

Addressee

Member States

Class

Governments

Sectors

No sector named — applies by size or activity

Applies

Once transposed by Member States (transposition due within 12 months of this Directive's entry into force)

Burden drivers

D6 — 1 of 7 marks fire on this provision.

Binds Member States (courts applying national law), not a company by size.

Source text

Verbatim

Where a company is held liable pursuant to national law for damage caused to a natural or legal person by a failure to comply with the due diligence requirements under this Directive, Member States shall ensure that those persons have a right to full compensation. Full compensation shall not lead to overcompensation, whether by means of punitive, multiple or other types of damages.

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