Product liability

What product liability means

Product liability means liability for damage caused by a defective product. It is stricter than warranty, because it does not require fault: anyone placing a defective product on the market is liable for the damage, even if they worked carefully. It concerns personal injury and damage to private property, not annoyance about a late delivery.

Under the EU product liability directive the manufacturer of a finished product, a raw material or a component is liable. A manufacturer also includes anyone putting their name or brand on the product, and the importer bringing goods into the EU from a third country.

How liability and warranty differ

The two terms are constantly confused and are legally different. Warranty concerns the relationship with the customer: the product sold has to match what was promised. It applies to defects, has fixed periods and falls on the seller.

Product liability concerns damage arising from the defect, and it falls on the manufacturer and the importer. It has its own periods and requires no contract. A customer can therefore claim warranty against the retailer and at the same time have a damages claim against the manufacturer.

When the retailer is liable

• As importer: anyone bringing goods into the EU from a third country counts as the manufacturer and is liable accordingly.
• As owner of an own brand: anyone putting their name on the product becomes the manufacturer in law, even when production is outsourced.
• Without labelling: if the manufacturer is not identifiable, the supplier can be liable, because the customer has nobody else to turn to.
• With visible danger: anyone offering a product whose danger is obvious cannot plead ignorance.

Which evidence decides a dispute

The first piece of evidence is the origin. Anyone who can say for every batch where the goods came from can defend against a supplier. Without that trail the damage stays with the retailer. The second is conformity, meaning the documents on CE marking and product safety. Anyone who does not have them cannot claim a careful check.

The third is product description and warnings. If a danger is stated in the description and it was observed, that changes the assessment. If it is missing, that is a fault of its own. The fourth point is the complaint file: anyone who collected recurring complaints and reported them to the supplier documents diligence.

A simple rule follows in practice: the check happens on goods receipt and not on sale, because afterwards there is no leverage left. Further basics are covered under CE marking.

Frequent questions

• Is the retailer liable for every damage? No, for product damage the manufacturer is usually liable.
• How long does liability last? It is tied to periods that can reach up to ten years.
• Does insurance protect? Product liability insurance covers part of the risk but does not replace the check.