Product liability refers to the liability of a manufacturer, seller, or supplier of a product for injuries caused by a defect in the design or manufacture of that product. Products liability law aims to protect consumers when products containing defects cause damage. Under this law, the manufacturers of the defective product are considered liable for any harm caused to consumers during their usage of the product.

A defective product is one that causes damage or injury to a consumer by way of a defect in the product, its labeling or marketing, and the way the product is used.

When a person is injured because of medical treatment, many times the first assumption is that the physician has made a mistake. On further analysis, the real culprit turns out to be the equipment or device used to treat the injured person, for which the manufacturer is liable. Not all devices are error free and due to some fatal flaw in the design or manufacture, they, at times, cause devastating injuries to the patients. The liability chain is long in such cases and can encompass the entire supply chain until it reaches the ultimate customer. This places the manufacturer on the top rung, then the wholesaler, and the retail store owner at the lowest rung. In between, there could be assembling manufacturers or agents as well. This area of the law encompasses three legal theories: strict liability, breach of warranty, and negligence.

The aggrieved consumer has to prove that the product was defective, the defect was there prior to the manufacturer releasing the product, and it has caused damages.

Defective toys and defective children’s products are an especially significant area of product liability law. In spite of being banned as dangerous items, many toys continue to remain on the shelves of the toy stores, making its way to the children. These toys and children’s products may look apparently very attractive and safe, but it may lead to various hazards. Examples of the hazards include: choking on balloons, screws or other small parts that come off easily; strangulation from toys with long strings such as a Yo-Yo; entanglement such as mosquito nets; hazardous metal or chemicals, for instance, presence of lead can result in lead poisoning in children; some small toys like teethers and pacifiers labeled as “phthalate-free” (Phthalates are a class of chemicals used to soften otherwise hard PVC plastic, exposure to phthalates can cause reproductive defects, early onset puberty, and even cancer) contain the potentially hazardous chemicals; respiratory ailments (bronchitis and allergies) are caused by various other items like soft toys and furry children’s blankets.

There are various heads under which an action against a defective toy can be brought: design defects (inbuilt defect), marketing defects (lack of warning), and manufacturing defects (defect during the production). All product liability claims including defective toys and children’s product claims are strict liability claims. In order to have a valid legal claim, the claimant needs to demonstrate the following: that the toy was unreasonably dangerous, the toy did not have a warning sign on it, and that the toy or the item was used the way the manufacturer instructed it to be used. The vital factor to be established is that the product was defective from the day it was manufactured.

A person bringing a timely action has the right to claim damages for both economic and non-economic losses sustained. It shall include: medical expenses, pain and suffering etc. Wrongdoers are also penalized for their negligent behavior. Thus, a successful claim can compel suppliers and manufacturers to improve the quality of their materials, increase product safety features, and provide thorough cautions regarding a product's potential dangers.

A drug manufacturer has a duty to warn of side effects of a drug when such effects are understood to occur, but it is not expected to warn of unknown dangers. Usually, the manufacturer discharges this duty by providing the necessary information to the patient's prescribing physician or to the pharmacist. The drug manufacturer is considered an expert in its field and, as such, has a continuing duty to keep abreast of knowledge regarding its products and take all reasonable steps to update medical professionals on their potential adverse effects. There is no duty to warn of possible reactions in unusually susceptible consumers; however, just because a reaction is rare does not mean the manufacturer has no duty to warn about it or that the persons experiencing the reaction are unusually susceptible.