Product liability

Section 2(34) of the Consumer Protection Act, 2019 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. A product liability action under Section 2(35) is a complaint before a District, State or National Commission claiming compensation for that harm. Chapter VI (Sections 82 to 87) contains the substantive rules.

Harm is defined in Section 2(22). It includes damage to property other than the product itself, personal injury, illness or death, mental agony or emotional distress attendant on these, and loss of consortium or services. It excludes harm to the product itself, damage to property on account of breach of warranty conditions, and commercial or economic loss.

Liability differs for each defendant. A product manufacturer is liable under Section 84(1) for a manufacturing defect, a design defect, deviation from manufacturing specifications, non-conformity with an express warranty, or failure to give adequate instructions or warnings. Under Section 84(2) he is liable even if he proves he was not negligent or fraudulent in making the express warranty, so the liability is strict. A product service provider is liable on the grounds in Section 85. A product seller who is not the manufacturer is liable only in the situations in Section 86, such as exercising substantial control over design or labelling, altering the product, giving his own express warranty, or selling a product whose manufacturer cannot be identified or reached.

Section 87 sets out exceptions. No action lies against the seller if the product was misused, altered or modified when the harm occurred. In warning-based claims the manufacturer is not liable in the cases listed in Section 87(2), and under Section 87(3) there is no duty to warn of a danger that is obvious or commonly known. Unlike negligence at common law, the complainant need not prove a breach of a duty of care. Examiners test the Section 84 grounds, the exclusions from harm and the Section 87 exceptions.