We all use products every day – from phones and kitchen appliances to apps and wearable tech. We expect them to work safely. But when a product fails and causes harm or injury, consumers should have a clear and fair way to seek compensation.
That’s where product liability law comes in.
But is the current legal protection still working as it should, especially with the rise of digital technologies?
The Law Commission has announced that its major review of the product liability regime is expected to begin in 2025, marking the first serious reconsideration of this legal framework in nearly four decades.
The law today
The Consumer Protection Act 1987 (the Act) established the UK’s strict liability regime for damage caused by defective products. This law was introduced to make it easier for consumers to claim compensation for harm they suffered by a defective product, without needing to prove who was at fault. It is only necessary to prove that the product was defective and that the harm or injury was most likely caused by this product.
A product can be goods, electricity or even a product which is comprised in another product. A product is considered defective if, taking all circumstances into account, it does not provide the level of safety (to both people and property) that the general public is reasonably entitled to expect at the time it was put on the market.
The Act applies to products used by consumers. Anyone can bring a claim under the Act if they were injured by the defective product. A claim may be brought for death, personal injury or damage to private property in excess of £275.
However, a claim cannot be made for the damage to the defective product itself (which is called pure economic loss).
Under the Act, the producer of the defective product is liable for any defects. This is either a manufacturer or anyone responsible for an industrial process that gives the product one of its essential characteristics or anyone that holds themselves out as the producer (for example by placing a brand name or trade mark on the product). There may be more than 1 person liable under the Act.
The meaning of “product” excludes services, which can mean that certain services more widely regarded as products by consumers will not fall within the scope of the Act – such as software.
The Law Commission review
However, the law discussed above was written nearly 40 years ago. Since then, the types of products available, especially digital and smart products (as touched on above), have changed dramatically.
Questions are now being asked about whether the law still offers the protection people need. Concerns are also growing that the current framework may be failing to strike the right balance between protecting consumers from harm and supporting innovation in product development.
To address these issues, the Law Commission (the independent body responsible for reviewing and recommending reform of the law in England and Wales) plans to launch a full review of the product liability regime in 2025.
The review will aim to ensure the law remains fit for purpose and will:
- assess the current law’s effectiveness in protecting people from harm caused by defective products
- explore whether new types of products, especially in the digital space, are adequately covered
- consider whether reforms are needed to improve fairness, clarity, and consistency across the product liability regime
The Law Commission has stated that the first step will be to define the scope of its project, including agreeing the terms of reference with the Government. The full scope of the project will be published once it has been confirmed.
As part of the review, the Law Commission also plans to engage with stakeholders to gather their views and insights, which will help it formulate the proposals for reform of the product liability law.
Conclusion
Products have evolved and our laws need to evolve too. This review is a timely opportunity to modernise the UK’s product liability regime, ensuring it offers clear, fair and up-to-date protection for everyone.
At EM Law, we advise clients on all aspects of product liability, consumer protection, and risk management, including issues involving software, AI, and smart products. Whether you’re a manufacturer, distributor, digital service provider or startup launching a new product, it’s vital to understand how upcoming legal reforms may affect your business.
We are here to help so do not hesitate to contact us here.
