Product Liability under the Consumer Protection Act ,2019

Introduction

In the modern consumer market, products move through complex chains involving manufacturers, distributors, sellers, and service providers before reaching consumers. While industrial and technological growth has brought comfort and convenience, it has also increased the risks of defective and unsafe products. The concept of product liability has therefore gained great importance in protecting consumer rights and ensuring accountability.

Before the enactment of the Consumer Protection Act, 2019, India lacked a strong legal mechanism to hold product manufacturers and sellers directly responsible for harm caused by defective products. The earlier Consumer Protection Act, 1986 offered remedies against “deficiency in service” and “defect in goods,” but it did not clearly define the scope of product liability. The 2019 Act filled this gap by introducing a comprehensive chapter dedicated to product liability, aligning Indian law with international standards and the changing dynamics of consumer markets.

Meaning and Concept of Product Liability

The term product liability refers to the legal responsibility of a manufacturer or seller to compensate consumers for injury, loss, or damage caused by defective products. The idea is rooted in the principle that those who profit from putting goods into the market should also bear the responsibility for ensuring that such goods are safe for use.

Under the Consumer Protection Act, 2019, product liability is not limited to the manufacturer alone; it extends to product service providers and product sellers as well. The law thus recognizes that liability can arise at any point in the supply chain if negligence or omission leads to consumer harm.

Legal Framework under the Consumer Protection Act, 2019

The Consumer Protection Act, 2019, which came into force on 20 July 2020, repealed the earlier 1986 Act and brought several reforms. The introduction of Chapter VI (Sections 82 to 87) is a landmark provision, as it specifically deals with product liability. It provides detailed definitions, grounds for liability, and exceptions, thereby offering clarity and strength to consumer protection law in India.

Section 2(34) – Definition of Product Liability

This section defines “product liability” as “the responsibility of a product manufacturer or product seller, of any product or service, to compensate for any harm caused to a consumer by such defective product manufactured or sold or by deficiency in services relating thereto.”

Section 82 – Product Liability Action

It allows a consumer to file a product liability action against a manufacturer, seller, or service provider for compensation arising out of injury, damage, or death caused by a defective product.

Section 83 to 86 – Grounds for Liability

These sections explain when and how a manufacturer, seller, or service provider becomes liable for harm caused by their product.

Parties Liable under the Act

1. Product Manufacturer Liability (Section 84)

A product manufacturer is primarily responsible because they have control over the design, composition, production, and quality of the product. A manufacturer is liable if:

• The product has a manufacturing defect.
• The product design is defective or the product deviates from prescribed specifications.
• The manufacturer fails to provide adequate instructions or warnings about proper usage and potential risks.
• The product fails to conform to express warranty.
• The product does not meet the safety standards expected by consumers.

2. Product Service Provider Liability (Section 85)

This category covers those who provide services related to a product, such as installation, maintenance, or after-sales services. A service provider can be held liable if:

• The service was faulty or deficient.
• There was an act of omission or negligence in providing the service.
• The service provider failed to issue adequate warnings or instructions that could have prevented harm.

For instance, if an air-conditioner explodes due to improper installation by a technician, the service provider can be held liable even if the product itself was not defective.

3. Product Seller Liability (Section 86)

A product seller can also be held liable under certain circumstances. Although sellers are often intermediaries, they may be liable if:

• They exercised substantial control over the product’s design, testing, or manufacturing.
• They altered or modified the product, contributing to its defect.
• They failed to warn consumers about known defects.
• They sold the product despite knowing it was defective.
• They failed to issue adequate instructions or warnings.

This inclusion ensures that sellers cannot escape liability by simply claiming they were not the manufacturers. It creates accountability throughout the supply chain.

Grounds for Product Liability Action

A consumer can file a product liability action when harm results from a defective product or deficient service. The Act broadly defines “harm” to include:

• Physical injury or illness caused to a consumer.
• Mental agony or emotional distress resulting from injury.
• Damage to property (other than the product itself).
• Death caused due to product defect or service deficiency.

This wide definition ensures that the consumer is protected not only from financial losses but also from physical and emotional harm.

Defense Available to Parties

The Act also provides certain exceptions to product liability to ensure fairness. A manufacturer, seller, or service provider can avoid liability if:

1. The product was misused, altered, or modified by the consumer in a way that caused the harm.
2. The product was purchased by the consumer after the expiry of its shelf life or warranty period.
3. The product was used contrary to instructions or warnings provided.
4. The manufacturer or seller was complying with mandatory government regulations or standards.
5. The harm was caused due to an act of God or natural disaster, and not due to product defect.

These defense maintain a balance between consumer rights and the reasonable expectations from businesses.

Introduction of Product Liability Insurance

The Act’s provisions have also encouraged the growth of product liability insurance in India. Many companies now purchase such policies to cover potential compensation claims arising from defective products. This is an important step toward aligning India’s consumer law with international best practices and promoting business responsibility.

Role of Consumer Commissions

Under the 2019 Act, the District, State, and National Consumer Disputes Redressal Commissions are empowered to hear and decide product liability cases. The consumer can file a complaint directly against any or all responsible parties. The commissions can grant compensation, order product recall, discontinue manufacturing, or direct corrective advertisements to prevent further harm.

The Act also introduced Central Consumer Protection Authority (CCPA), which plays a proactive role in ensuring product safety, recalling hazardous goods, and penalizing misleading advertisements. The CCPA’s intervention has made enforcement more effective compared to the earlier system.

Judicial Approach and Case References

While product liability under the 2019 Act is relatively new, Indian courts have long recognized similar principles under tort and contract law.

In Donoghue v. Stevenson (1932), the famous English case that laid the foundation of modern product liability, Lord Atkin established the “neighbour principle,” holding manufacturers responsible for defects that cause harm to consumers.

In India, even before 2019, courts had imposed liability for defective goods under consumer law. For example:

• Consumer Unity & Trust Society v. Hindustan Coca Cola Beverages Pvt. Ltd. (2006) – The National Commission held the manufacturer liable for supplying contaminated soft drinks.

• T.T.K. Prestige Ltd. v. Aruna Rodrigues (2010) – The manufacturer was held responsible for a pressure cooker explosion due to a manufacturing defect.

The 2019 Act now gives statutory recognition to these principles, offering clearer procedures and broader remedies.

Significance of Product Liability Provisions

The introduction of product liability under the Consumer Protection Act, 2019, has several far-reaching implications:

1. Enhanced Consumer Confidence: Consumers now feel secure that they have a clear remedy if harmed by a defective product or deficient service.

2. Corporate Accountability: Manufacturers and sellers are encouraged to maintain higher safety and quality standards.

3. Fairness in the Marketplace: It creates an equitable balance between consumers and powerful corporate entities.

4. Prevention over Cure: The fear of legal liability promotes preventive measures like better product testing, accurate labeling, and transparent marketing.

5. Alignment with Global Practices: India’s framework now resembles developed nations like the U.S. and U.K., where product liability is an established area of law.

Challenges and Criticisms

Despite its strengths, the new regime faces certain challenges:

• Lack of Awareness: Many consumers still remain unaware of their rights under the Act.

• Complex Supply Chains: In globalized markets, identifying the actual party responsible for a defect can be difficult.

• Evidentiary Burden: Proving that harm was caused directly by a product defect may be challenging without expert evidence.

• Limited Judicial Experience: Since product liability law is new in India, the courts and commissions are still developing consistent precedents.

To overcome these hurdles, there is a need for better consumer education, specialized benches, and clearer procedural guidelines.

Conclusion

The introduction of product liability provisions under the Consumer Protection Act, 2019, marks a historic shift in Indian consumer law. By extending responsibility to manufacturers, service providers, and sellers alike, the Act ensures that every participant in the supply chain upholds their duty of care toward consumers. It provides not only a legal remedy but also a moral and social safeguard against exploitation and negligence in the marketplace.As India moves toward becoming a global manufacturing and consumer hub, the importance of ensuring product safety and corporate accountability cannot be overstated. The 2019 Act, through its robust product liability framework, has laid a strong foundation for a fair, transparent, and consumer-friendly market. However, continuous judicial interpretation, regulatory vigilance, and consumer awareness will determine how effectively this law fulfills its promise of justice and safety for all.

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