Product Liability

The Consumer Protection Act 1987

This legislation covers both the civil and criminal aspects of the safety of goods. The civil aspect is known as 'product liability'.

Product Liability - What does it mean?

The product liability provisions of the Consumer Protection Act 1987 create a strict liability for damage caused by defective products. Damage is defined as death or personal injury or any loss of or damage to any property including land. The Act is additional to actions for negligence.

Are there any Exemptions?

Agricultural produce and game that has not undergone any industrial process is exempt, but otherwise the law includes any goods and components or raw materials. The Act does not however, apply to suppliers who are not in business.

What about Components?

If you are a manufacturer of finished goods it is important that you can identify the suppliers of components to you. It could be necessary if the finished product is defective, a claim arises and the fault is traced to a particular component.

It may also be prudent for a component supplier to include some means of identification to a product to avoid being held liable for a component that has been made by another company.

Who is Liable?

The Act specifies those who are liable for damage caused, wholly or partly, by a defect in a product. These are:

• The 'producer', i.e. manufacturer, abstracter, etc (in the case of raw materials), or processor.
• Any person putting his name or mark on the product, i.e. if you make something for X and he then sells it as his own, X is liable.
• Importers from countries outside the EEC.
• The Act also states that if any person who supplied a product cannot identify his sources, he will be liable for the damage.

If two or more parties are liable for the same damage, their liability will be joint and several.

What is a defect?

The definition of a defect is very wide. A defective product is one where the safety of the product is not such as persons are generally entitled to expect.

Is there a defence?

The defences for businesses are limited but include what is known as 'the development risk defence'. However, this defence may not always be available as the UK is out of step with much of the EEC by allowing it.

Can I contract out of liability?

No, you cannot escape liability by any contract term, notice or other provision.

What should I be doing?

• Make sure there are instructions and warnings for the safe use of the product.
• If the Act applies to your business, you may need to check your contractual arrangements with suppliers and customers, and your systems of Quality Control and record keeping may need to be reviewed.
• You should investigate the possibilities of insurance cover for liabilities arising under the Act.

Where Can I Get Further Information?

The Department of Trade and Industry has produced an on-line guide to product liability that can be found at www.dti.gov.uk/ccp/topics1/pdf1/act1987.pdf

If you are exporting goods you will need to ensure that products and product literature comply with all local regulatory requirements. The British Standards Institution's Technical Help to Exporters service can help to research this. Visit their site at www.bsi-global.com

Please Note

This leaflet is not an authoritative interpretation of the law and is intended only for guidance. For further information please contact your local Consumer Protection or Trading Standards office.

Trading Standards Division, 3rd Floor, Wallasey Town Hall, Brighton Street, Wallasey, Wirral CH44 8ED
Telephone: (0151) 691 8020    Fax: (0151) 691 8098
Internet World Wide Web http://www.tradingstandards.gov.uk/wirral/
Electronic Mail: tradingstandards@wirral.gov.uk