Consumers rely on manufacturers and sellers to provide them with products that are safe and free from defects. However, when a defective product causes harm or injury, questions concerning compensation and liability arise.
Consumer legislation stipulates that goods sold to consumers must be as promised during the sale, fit for the purposes for which the goods were bought and for which goods of the same type are normally used. Purchased goods must also be of the quality and deliver the performance consumers can reasonably expect given the nature of the goods.
If these criteria are not met, goods are considered not in conformity with the contract of sale, and consumers may request a free remedy from the seller.
However, faulty goods may be dangerous and cause damages to consumers’ property, or even worse, physical harm. A product is considered defective and dangerous when it fails to provide the safety a person is entitled to expect taking all circumstances into account, including:
■ the presentation of the product, how it was marketed, and any directions and warnings provided;
■ the use to which it could reasonably be expected that the product would be put; and
■ the time when the product was put into circulation.
If the producer cannot be identified, then the final seller becomes legally liable
It is primarily manufacturers who are responsible for dangerous products. If, however, the producer cannot be identified, and the retailer fails to meet the consumer’s request to provide the identity of the producer or the importer, then the final seller becomes legally liable.
The Consumer Affairs Act gives consumers the right to claim compensation for any injury or damage suffered due to defective goods. Other than the defective product itself, the value of the damage incurred must be at least €500. Damages to property are recoverable provided that the property was used by the injured party mainly for private use or consumption.
To claim compensation, consumers only need to present proof that the product was defective and that most likely it was the cause of the injury or damage. Furthermore, the law stipulates that consumers may seek compensation for the damages suffered within a maximum of three years from when they become aware, or should reasonably have become aware of the defect, the damage, and the identity of the producer. In any case, action is limited to 10 years from when the product is first put in circulation. A producer cannot exclude or limit his liability by any term of a contract, by any notice or any other manner.
When the consumers’ claim for compensation is denied, legal action may be taken against the producer. Should the producer be found guilty of placing dangerous products on the market, the company, besides financially compensating affected consumers, is also obliged to recall from the market all faulty goods.