Product Liability Under Different Indian Laws

Product liability in India has evolved over time with the introduction of specific consumer protection legislation. Let’s examine how it has developed under different laws:

Before the Consumer Protection Act, 2019

• Sale of Goods Act, 1930: This act primarily dealt with contracts of sale and provided remedies for breach of implied conditions or warranties. However, it had limitations in addressing product liability issues comprehensively.
• Indian Contract Act, 1872: This act covered contractual relationships but was not specifically designed for product liability claims.
• Tort Law: Principles of negligence and strict liability under tort law were used to address product liability claims, but these were often complex and uncertain.

The Consumer Protection Act, 1986

• Expanded Consumer Rights: This act introduced a more consumer-friendly approach, providing remedies for unfair trade practices and defective goods.
• Limited Product Liability: While it addressed some aspects of product liability, it did not have a dedicated chapter for comprehensive product liability claims.

The Consumer Protection Act, 2019

• Dedicated Product Liability Regime: This act introduced a specific chapter on product liability, providing a clear and comprehensive framework.
• Strict Liability: The law imposes strict liability on manufacturers, sellers, and service providers for harm caused by defective products.
• Expanded Definition of Product: The definition of ‘product’ is broader, encompassing not just goods but also services.
• Consumer Rights: The act strengthens consumer rights by providing for compensation, product recall, and other remedies.

Key Differences and Improvements:

• Comprehensive Coverage: The 2019 Act provides a more comprehensive legal framework for product liability compared to previous laws.
• Strict Liability: The shift towards strict liability strengthens consumer protection.
• Expanded Definition of Product: The inclusion of services within the definition of ‘product’ broadens the scope of the law.
• Remedies: The 2019 Act provides for a wider range of remedies, including product recall and compensation.

In conclusion, the legal landscape of product liability in India has evolved significantly, with the Consumer Protection Act, 2019, providing a robust framework for protecting consumer rights.

Definition of a Defective Product Under the Consumer Protection Act, 2019

The Consumer Protection Act, 2019, defines a ‘defective product’ as one that fails to satisfy the safety standards expected of it by an ordinary consumer under the circumstances. A product is considered defective if:

• It does not comply with the safety standards prescribed by the statutory standards, codes, or guidelines.
• It does not conform to the express or implied warranties made by the manufacturer, seller, or service provider.
• It lacks adequate information about its risks or hazards.
• It does not conform to the general rules and standards of safety.

Remedies Available to Consumers Under the Consumer Protection Act, 2019

The Consumer Protection Act, 2019 provides for various remedies to consumers who have suffered loss or injury due to a defective product:

• Removal of defects: The manufacturer or seller can be directed to rectify the defect in the product.  
• Replacement: The defective product can be replaced with a new and non-defective one.  
• Refund: The consumer can claim a refund of the price paid for the product.  
• Compensation: The consumer can claim compensation for any loss or injury suffered due to the defective product.  
• Product recall: In case of widespread defects, the consumer protection authority can order a product recall.
• Public notice: The authority can issue public notices to warn consumers about the defective product.
• Discontinuation of the sale of the product: The authority can order the discontinuation of the sale of the defective product.

It’s important to note that the choice of remedy depends on the specific circumstances of the case and the extent of the harm caused. The Consumer Protection Act, 2019 aims to provide effective and speedy redressal to consumers who have been wronged.