Product Liability
9. Managing Liability
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 15 Aug 2015
- The Australian Consumer Law can hold the manufacturer, importer or retailer liable for product defects. You must ensure that all consumer products are safe and meet the relevant consumer guarantees. It is unlawful to sell products that have been banned. It is also your responsibility to make sure that all products and product-related services you offer for sale satisfy the required performance and safety standards.
- If you are a manufacturer, importer or retailer you should be aware of your potential liability for defective products. In order to minimise your exposure to risk under the product liability provisions of the Australian Consumer Law you should seek advice on how to implement safe and responsible business practices.
- Safe practices should be present throughout all elements of your business including quality assurance, production, marketing, consumer information and by providing complaint and resolution avenues for consumers in the event that they purchase a defective product.
- If a claim is made against you there are some situations where you may have a defence.
- You may have a defence against a claim if:
- the defect did not exist at the time you supplied the product;
- you only manufactured a component part and the safety defect results not from the component part but from the way the finished product was designed or packaged;
- there was a lack of scientific or technical knowledge at the time the product was supplied which made it impossible to discover the defect; or
- the defect only existed because of mandatory compliance with a particular safety standard.
- If you are a manufacturer or supplier you may also want to consider taking out product liability insurance to protect you in the event that a consumer makes a complaint against you or suffers harm as a result of a defective product.
- Our free Find a Lawyer directory may help you get in touch with an experienced product liability lawyer near you. A product liability lawyer can advise you on the types of insurance that would best suit your business needs as well as how to ensure your business practices are in compliance with the Australian Consumer Law.
View more Information on Compensation & Insurance