Product Liability
Category: compliance
Legal responsibility of manufacturers and sellers for defective products causing harm.
Product liability refers to the legal responsibility of manufacturers, distributors, and sellers for injuries or damages caused by defective products. In cross-border e-commerce, sellers and importers can be held liable for product defects regardless of where the product was manufactured. The EU Product Liability Directive and US product liability laws (strict liability in most states) create significant exposure for cross-border sellers.
Examples
- • A US consumer injured by a defective Chinese-made product can sue the importer and the Amazon marketplace under strict product liability laws.
- • Under the EU Product Liability Directive, importers into the EU are treated as manufacturers and bear full liability for defective products.
- • Product liability insurance is essential for cross-border sellers; many Amazon programs require proof of insurance above $1M in coverage.