What is the law on product liability?

The law states that even if your business did not directly manufacture the product that caused the harm, you company will still be liable if your business name is on the product, if the product was modified in some way by your business, if the original manufacturer can’t be easily identified or has gone out of business, or if you imported the products from outside of the EU. Your solicitor can inform you if you are liable in one of these ways.

The main piece of legislation to be aware of is the Consumer Protection Act 1987 (the Act). Your business will be liable for possible compensation for faulty goods if you can’t show that the goods were faulty when they were supplied to your company. In addition, you may be liable if you did not give the consumer all the required safety instructions or if your terms of sale do not clearly state that any faulty goods should be returned to the manufacturer. Your specialist solicitor can apply the Act to your situation.

To protect your business from potential claims for compensation you can take out product liability insurance. This insurance does not replace good quality control that your business is expected to have in place. A commercial solicitor can help you identify the right type of insurance and ensure you have the correct level of cover to protect your business.

The law clearly protects consumers against goods that are either completely unfit for purpose or have been manufactured to a low-level of craftsmanship. It is in the best interests of your business to ensure all the goods it sells or manufacturers meet the level of quality that the law demands. For further legal advice regarding product liability, you can contact a commercial solicitor with expertise in this area of law.

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