Product Liability and Product Liability Insurance: A new dimension to the Consumer Laws

ADYA PANDEY,

Asst. Professor, Ph.D (pursuing), Amity University, Lucknow, U.P

Best Citation – ADYA PANDEY, Product Liability and Product Liability Insurance: A new dimension to the Consumer Laws, 2 ILEMJ 51, 2022

Abstract

The Doctrine of, “Let the buyer be aware” was what that dominated the consumer’s laws in India until the passing of New Consumer Laws 2019. The new consumer laws propose to change this notion and make the seller liable for product sold by him. The concept of product liability as introduced under the New Consumer Laws 2019 fixes liability of a manufacturer or all persons associated with manufacturing in the production chain, for any damage caused by the product as sold by him. This shall include the manufacturer, wholesaler as well as the retail store owner. The introduction of product liability into the Indian Consumer Laws shall prove as a turning point in ensuring the protection of rights of the consumer. The New Consumer Laws 2019 has become the first legislation to introduced Product Liability as a statutory liability. By the enactment of this provision manufacturer or seller of a defective product is made compulsorily liable for harm caused due to selling of any defective product. the nature of the liability imposed is strict without the requirement of proving negligence on part of the manufacturer or seller. Product liability law provides the consumers with legal recourse for any injuries suffered by them due to a defective product. it is estimated that millions of people around the globe are negatively affected by defective products and the manufacturers or sellers end up paying large sums. The new Consumer Laws have unleased the era of caveat venditor it shall now have to be seen how businesses and consumers adapt prudently to this change.