Following consultation, the Law Commission of England and Wales has announced its fourteenth programme of reform. It has agreed to work on ten new projects, three of which will be of particular interest to our readers.
Deeds
The Commission says that the current law of deeds is outdated, in part due to technological developments. For example, it is not clear whether current law supports the creation of deeds which are wholly or partly defined by code. In R (on the application of Mercury Tax Group and another) v HMRC [2008] EWHC 2721, Underhill J (as he then was) referred to a document as needing to be “a discrete physical entity (whether in a single version or in a series of counterparts) at the moment of signing”. Some argue that certain deed requirements, such as witnessing, attestation, and delivery, should be amended, replaced or removed.
The project will review the law of deeds, including consideration of:
- broad issues about the efficacy of deeds, including whether the concept remains fit for purpose;
- if there should be changes to the existing requirements of deeds, including witnessing, attestation, and delivery; and
- if amendments to the law of deeds are required to ensure that compliance with the requirements of deeds can be facilitated by smart contracts.
The Commission says that it will take a holistic approach, and deal with both deeds executed on paper and electronically. It also aims to make sure that necessary protections for individuals are not lost.
Product liability and emerging technologies
The UK’s product liability regime in the Consumer Protection Act 1987 (CPA), has not kept pace with the rapid development of emerging technologies, including AI and the increased use of digital products. Emerging technologies pose a range of legal challenges to the existing product liability regime, particularly in relation to the CPA definitions of “product”, “defect” and what qualifies as “damage” under the CPA. The Law Commission says that because the CPA is a significant bulwark of consumer protection, it must apply to technological advances.
Other international jurisdictions are already working on law reform in this area. For example, the CPA is based on an EU directive that was updated by the EU in 2024.
Issues this project will address include:
- the question of updating the definition of “product” in the CPA to expressly include software, whether supplied via tangible or intangible medium.
- if the “long-stop” liability period of ten years should be extended, as some products arising from emerging technologies can be upgraded iteratively.
- if the “state of the art” defence should be amended to account for emerging technologies that can be updated iteratively.
- difficulties for claimants in pursuing claims with respect to highly technical and opaque technology, such as AI; and
- if the definitions of “defect” and “damage” in the CPA should be amended to consider the impact of emerging technologies.
Public sector automated decision-making
Automated decision making (ADM) encompasses decisions made by or for public bodies using algorithmic processes and AI. These processes involve varying degrees of human input and oversight. There is no specific legal framework governing the use of ADM by the state to make decisions affecting the public: public law developed to ensure the accountability of human officials and not automated systems. Fundamental legal questions – such as whether it is lawful to use an ADM system to discharge a particular statutory function – remain unanswered. At the same time, judicial review is not well-suited to scrutinising decisions made using ADM.
The Law Commission believes that developing a coherent legal framework to facilitate good and lawful ADM is the most significant current challenge in public law. There are legal risks and potential harms to the public and public confidence in government when ADM goes wrong. This will undermine the potential benefits of ADM.
The project will seek to make recommendations about the legal framework necessary to promote good, lawful ADM. It may recommend legislative change, if needed, as well as focusing on when ADM systems can be effectively regulated by the common law or governmental guidance. It will start with a scoping phase, considering the extent to which public law facilitates or presents barriers to the use of ADM and identifying significant ADM systems across government and the legal barriers they face. It will then move on to a subsequent phase looking at general solutions and involving targeted work with specific departments on particular systems. Potential outcomes from the project include recommendations for:
- an overarching legal framework for ADM;
- bespoke law reform for ADM in particular departmental areas; or
- a best practice guide on the lawful use of ADM and considerations to take account of when developing policy and legislation.
Digital assets and electronic trade documents in private international law
As well as the new projects above, the Law Commission has also been working on a project about digital assets and electronic trade documents in private international law.
Modern technologies challenge the territorial premise on which the existing rules of private international law have been developed. The internet was a catalyst of socio-economic change that has posed significant challenges for private international law. More recent innovations, such as crypto-tokens and distributed ledgers, add novel problems to these existing challenges.
The Ministry of Justice asked the Law Commission to consider how private international law rules will apply in the digital context. In particular, the Law Commission was asked to consider the disputes which are likely to arise in the digital context (including contractual, tortious and property disputes). Its project has a particular focus on crypto-tokens and trade documents in electronic form (such as electronic bills of exchange). The Commission has published two FAQ documents explaining how the current law applies in the context of electronic trade documents and crypto-tokens respectively. It published a consultation paper in June 2025 and expects to publish a final report in 2026.
Data reform
The Law Commission has also discussed a project on data reform, but this may have been superseded by the passing of the Data Use and Access Act 2025.
