Introduction

Product liability is an important obligation under the Consumer Protection Act, 2019. It requires companies to compensate consumers for harm caused by defective products or deficient services. Sections 2(34) and 83 to 87 define the scope of liability, specify who is responsible, and provide defenses for manufacturers, sellers, and service providers.

What Is Product Liability

Product liability is the responsibility of a manufacturer or seller to compensate consumers for harm caused by defective products or deficient services. The definition covers both goods and services connected with the product. This ensures that consumers receive protection not only against defective items but also against poor service linked to the product.

The Consumer Protection Act imposes liability on product manufacturers, sellers, and service providers. Manufacturers are responsible for making, assembling, labeling, or marketing defective products. Sellers become liable if they play a role in distribution, installation, or influence the condition of the product. Service providers are responsible for harm caused by deficient services such as repair or installation.

How Does Product Liability Action Work

Section 83 of the consumer protection act allows consumers to bring a product liability action against a manufacturer, seller, or service provider. Section 84 makes a manufacturer liable for defects in design or manufacturing, deviation from warranties, or failure to give proper instructions and warnings. Section 85 places liability on sellers if they alter the product, conceal important information, or exercise control over its quality. Section 86 makes service providers accountable if their deficient services cause harm. Section 87 provides defenses such as when the defect did not exist at the time of supply or when the consumer misused or altered the product.

What Are The Features of Product Liability

The Act establishes strict liability, which means companies may be held responsible even without proof of negligence. The coverage is wide and includes design, labeling, marketing, and safety instructions. However, the law excludes harm to the product itself, breach of warranty alone, or purely financial loss unless it results from physical harm.

What Are The Remedies for Consumers

Consumer Commissions have wide powers to grant remedies. They can order the removal of defects, replacement of goods, refund of the purchase price, or payment of interest. They may also direct product recalls, withdrawal from the market, or ban hazardous products. In addition, they can award compensation for damages and legal costs to affected consumers.

How Can Companies Comply

Companies must adopt risk management practices to avoid liability. They should assess products for safety, maintain quality control, and ensure proper documentation. Clear instructions and warnings must be given to consumers, and advertisements must remain accurate. Businesses must also establish strong grievance redressal systems to handle complaints quickly and effectively.
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Conclusion

The Consumer Protection Act, 2019 creates a strict framework for product liability. Manufacturers, sellers, and service providers must ensure safe products and reliable services. By following compliance requirements and maintaining transparency, companies can reduce risks while consumers receive strong protection against harm.