Introduction
Modern consumer law recognises that consumers may suffer harm due to defective products or poor services related to those products. In such cases, the law allows the consumer to claim compensation.
The Consumer Protection Act, 2019 introduces the concept of product liability, which holds manufacturers, sellers, and service providers responsible for harm caused to consumers.
Meaning / Definition
According to Section 2(34) of the Consumer Protection Act, 2019, product liability means the responsibility of a product manufacturer or product seller to compensate a consumer for any harm caused by a defective product or by deficiency in related services.
According to Section 2(35), a product liability action means a complaint filed by a person before a District Commission, State Commission, or National Commission seeking compensation for harm caused by a product.
Thus, when a consumer files such a complaint against the manufacturer, seller, or service provider, it becomes a consumer dispute under the Act.
Modes or Types
Liability of Product Manufacturer
A product manufacturer may be liable when the product manufactured by them is defective and causes harm to the consumer.
This may occur due to poor design, poor manufacturing process, or lack of proper safety measures.
Liability of Product Seller
A product seller may also be liable when the product sold by them causes harm due to defects or unsafe conditions.
This may include situations where the seller knowingly sells a defective or unsafe product.
Liability of Product Service Provider
Sometimes services related to a product, such as installation, repair, or maintenance, may be performed poorly.
If deficiency in these services causes harm to the consumer, the service provider may be liable under product liability.
Distinction / Comparison
| Basis | Product Liability | Defect in Goods |
|---|---|---|
| Nature | Liability to compensate for harm caused by defective product or service | Focus on the existence of a defect in goods |
| Purpose | To provide compensation to consumers for harm | To identify defects in the product |
| Parties responsible | Manufacturer, seller, or service provider | Usually manufacturer or seller |
Practical Example
A consumer purchases an electric mixer from a store. Due to a manufacturing defect, the mixer overheats and causes injury to the consumer.
The consumer may file a product liability action before the appropriate Consumer Commission and claim compensation from the manufacturer or seller responsible for the defective product.
Summary
- Product liability refers to the responsibility of manufacturers or sellers to compensate consumers for harm caused by defective products.
- It is defined under Section 2(34) of the Consumer Protection Act, 2019.
- A product liability action is a complaint filed before a Consumer Commission for compensation.
- Liability may arise against the manufacturer, seller, or service provider.
- The purpose of product liability is to ensure that consumers are compensated when defective products cause harm.