1. The Paradigm Shift: From "Buyer Beware" to "Seller Beware"

Prior to the CPA 2019, the legal landscape for product liability in India was fragmented, relying on principles of contract law, tort law (negligence), and the older Consumer Protection Act, 1986. Consumers often faced the arduous task of proving negligence on the part of the manufacturer, a process that was expensive, time-consuming, and difficult, especially in cases where the defect was inherent or complex.

The CPA 2019 marked a fundamental shift from the traditional "caveat emptor" (buyer beware) to "caveat venditor" (seller beware). It explicitly introduced the concept of Product Liability, providing a clear legal framework and imposing strict liability on manufacturers. This means that a consumer no longer needs to prove the manufacturer's negligence; simply proving that the product was defective and caused harm is often sufficient to trigger liability.

2. Defining Product Liability Under CPA 2019

Section 2(34) of the CPA 2019 defines "product liability" as:

"the responsibility of a product manufacturer or product seller, of any product or service, to compensate for any harm caused to a consumer by such defective product manufactured or sold or by deficiency in services relating thereto."

This definition is expansive, covering not just physical products but also services related to those products. It clearly establishes the duty to compensate consumers for harm caused by a defective product.

3. Who Can Be Held Accountable? The Scope of Product Liability

The CPA 2019 extends product liability to three key entities in the supply chain:

3.1. Product Manufacturer: This is the primary target of product liability claims. A product manufacturer is defined as someone who:

1.1. Makes any product or parts thereof.

1.2. Assembles parts thereof made by others.

1.3. Puts or causes to be put his own mark on any product made by any other person.

1.4. Makes a product and sells, distributes, leases, installs, prepares, packages, labels, markets, or repairs it.

Liability of a Product Manufacturer (Section 84): A product manufacturer shall be liable if:

1.1. The product contains a manufacturing defect.

1.2. The product is defective in design.

1.3. There is a deviation from manufacturing specifications.

1.4. The product does not conform to an express warranty.

1.5. The product fails to contain adequate instructions for correct usage to prevent any harm or any warning regarding improper or incorrect usage.

Crucially, the CPA 2019 imposes strict liability on the product manufacturer for these defects, meaning even if they were not negligent, they can still be held liable if the defect caused harm.

3.2. Product Service Provider: This addresses the services associated with a product. A product service providermeans a person who provides any service in respect of such product.

Liability of a Product Service Provider (Section 85): A product service provider shall be liable if:

1.1. The service provided by it was faulty, imperfect, deficient, or inadequate in quality, nature, or manner of performance.

1.2. There was an act of omission or commission or negligence or conscious withholding of any information which caused the harm.

1.3. The service provider did not issue adequate instructions or warnings to prevent any harm.

1.4. The service did not conform to express warranty or the terms and conditions of the contract.

This covers situations where, for example, a service center improperly repairs an appliance, leading to further damage or injury.

3.3. Product Seller: This includes anyone in the chain of distribution, from wholesalers to retailers and direct sellers. A product seller is defined as a person who, in the course of business, imports, sells, distributes, leases, or installs products.

Liability of a Product Seller (Section 86): A product seller (who is not a product manufacturer) shall be liable if:

1.1. They had exercised substantial control over the designing, testing, manufacturing, packaging, or labelling of a product that caused harm.

1.2. They altered or modified the product and such alteration or modification was the substantial factor in causing the harm.

1.3. They made an express warranty of a product independent of any express warranty made by a manufacturer, and such product failed to conform to the express warranty made by the product seller which caused the harm.

1.4. They failed to exercise reasonable care in assembling, inspecting, or maintaining such product.

1.5. The product seller knew or had reason to know of the defect in the product at the time of issue and failed to give a due warning to the consumer.

This is crucial for instances where retailers might sell counterfeit goods, improperly assemble products, or fail to pass on critical warnings.

4. What Constitutes "Harm" in Product Liability?

The CPA 2019 broadly defines "harm" in relation to a product liability action to include:

4.1. Damage to any property other than the product itself.

4.2. Personal injury, illness, or death.

4.3. Mental agony or emotional distress.

This broad definition ensures that consumers can claim compensation for a wide range of damages caused by a defective product, extending beyond just the value of the product itself.

5. Types of Product Defects Giving Rise to Liability

The CPA 2019 identifies three primary types of defects for which a product manufacturer can be held liable:

5.1. Manufacturing Defect: This occurs when a product deviates from its intended design or specifications during the manufacturing process. It's an anomaly in a specific unit of a product that is otherwise safely designed. Example: A batch of mobile phones where the battery swells due to improper assembly, or a car with a faulty brake component from the factory.

5.2. Design Defect: This is a flaw inherent in the design of the entire product line, making it inherently dangerous, even if manufactured perfectly according to its design. Example: A particular model of a mixer-grinder whose design allows for easy accidental contact with blades, or a vehicle model with an unstable design leading to rollovers.

5.3. Warning/Marketing Defect (Failure to Warn): This arises when a product is safe in its design and manufacturing but lacks adequate warnings or instructions for its safe use, leading to potential harm. Example: A medicine that doesn't adequately warn about potential severe side effects, or a toy that fails to warn about choking hazards for small children.

6. Defenses Against Product Liability Claims

While the CPA 2019 imposes strict liability, it also provides certain defenses for product manufacturers and sellers:

6.1. Product Misuse, Alteration, or Modification: The product manufacturer or seller is generally not liable if the harm was caused due to the product being misused, altered, or modified by the consumer.

6.2. Obvious or Commonly Known Danger: No liability for failure to warn about a danger that is obvious or commonly known to the user or consumer.

6.3. Compliance with Law: If the product was required to be sold or used in a certain way by law and the manufacturer complied, and the harm was caused due to non-compliance by the consumer, there might be a defense.

6.4. Component Manufacturer's Defense: A component manufacturer might not be liable if they supplied the component to a larger product manufacturer with proper warnings, and the harm was caused by the end product.

6.5. Professional/Workplace Use: Specific defenses apply if the product was used in a workplace, and warnings were provided to the employer, or if the product was meant for use only by or under the supervision of an expert, and warnings were given to that expert.

6.6. Alcohol/Drug Influence: If the consumer was under the influence of alcohol or non-prescribed drugs and this caused the harm.

It's important to note that these defenses aim to ensure fairness and prevent frivolous claims, but the burden of proving these defenses typically lies with the manufacturer or seller.

7. Seeking Product Liability Redressal in Kerala

For consumers in Kochi, Ernakulam, and other parts of Kerala who suffer harm from a defective product, the steps to seek redressal under CPA 2019 are critical:

7.1. Preserve the Defective Product: Do not discard or attempt to repair the defective product. It serves as crucial evidence.

7.2. Document the Harm: Gather medical reports, repair bills for other damaged property, photos/videos of the harm and the product, and any other evidence of the loss suffered.

7.3. Collect Purchase Records: Retain bills, invoices, warranty cards, and any communication with the seller or manufacturer.

7.4. Legal Notice: Send a formal legal notice to the product manufacturer, seller, and/or service provider, detailing the defect, the harm caused, and demanding compensation.

7.5. File a Complaint with Consumer Forum: If the legal notice doesn't yield a satisfactory resolution, file a formal complaint with the appropriate Consumer Disputes Redressal Commission (District, State, or National) based on the pecuniary jurisdiction (value of goods/services + compensation for harm claimed).

1.1. District Consumer Commission (Kerala): For claims up to ₹50 Lakh.

1.2. State Consumer Commission (Kerala): For claims above ₹50 Lakh and up to ₹2 Crore. 1.3. National Consumer Disputes Redressal Commission (NCDRC): For claims above ₹2 Crore. The CPA 2019 allows for electronic filing of complaints, making the process more accessible.

7.6. Role of Central Consumer Protection Authority (CCPA): The Central Consumer Protection Authority (CCPA), established under CPA 2019, also plays a significant role. It can initiate suo motu (on its own motion) investigations into product liability cases, especially when the defective product poses a significant public safety risk or involves widespread unfair trade practices. The CCPA can order the recall of dangerous defective products and impose penalties on manufacturers.

Conclusion

The introduction of Product Liability under the Consumer Protection Act, 2019, marks a landmark achievement in India's consumer protection law. By placing clear accountability on product manufacturers, sellers, and service providers for harm caused by defective products, the Act has significantly bolstered consumer rights. This robust legal framework, coupled with the proactive powers of the Central Consumer Protection Authority (CCPA), ensures that businesses are incentivized to prioritize product safety and quality, transforming the market into a more consumer-centric environment. For every individual in Kochi, Ernakulam, and across Kerala, understanding their rights under product liability is crucial for securing justice and fostering a culture of accountability in the marketplace.

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