An Overview Of Product Liability Laws In Canada: What You Need To Know

What Is A Product Liability Claim?

The concept of product liability comes into play when a claim arises regarding a defective design or manufacturing of a product. Product liability law is a legal mechanism to hold manufacturers, distributors, suppliers, and sellers accountable for their unfair practices and product unreliability. It plays a critical role in promoting consumer safety and commercial accountability in the marketplace.

In Canada, there is one primary federal statute dealing with product liability claims, while each province also has its own statutory regulations to address such claims. Product liability claims can generally be dealt with through tort law principles and common law practices, federal statutes, and provincial statutes.

Common Law Practices

In any product liability claim brought by the plaintiff or a consumer, the first step is the establishment of the fact that the defendant owed a duty of care to the plaintiff or consumer. To succeed in a claim of product liability, the plaintiff must be able to prove that:

• there is a duty of care,
• there is a breach of that duty of care, and
• a resulting injury or loss was caused to him or her by the breach.

The failure to meet the applicable standard of care might include, but is not limited to, the following instances:

• the use of substandard quality or harmful materials,
• inadequate testing of products before launch or advertisement,
• ineffective quality assurance mechanisms,
• negligent manufacture, marketing or design defects, etc.

The Federal Law

The Canada Consumer Product Safety Act, S.C. 2010, c. 21 (CCPSA) is the most prominent federal law statute dealing with the safety of consumer products sold in Canada at the federal level. Violations of such standards may result in penalties, imprisonment, and civil liabilities.

In addition to the CCPSA, there are federal statutes governing product-specific liability claims, including:

• Food and Drugs Act, R.S.C., 1985, c. F-27
• Motor Vehicle Safety Act, S.C. 1993, c. 16
• Hazardous Products Act, R.S.C., 1985, c. H-3

These statutes include additional regulatory layers depending on the type of the product.

Provincial Statutes/Laws

Each province in Canada has its own set of product-specific liability laws. A few provincial-level laws dealing with product liability claims include:

• Sale of Goods Act, S.O. 1990, c. S.1
• Consumer Protection Act, 2002, S.O. 2002, c. 30

These statutes typically include implied warranties of quality, safety, and fitness for purpose. Under these statutes, a consumer can seek damages, recessions, and compensation for defective products.

How To Prevent The Product Liability Claims?

Since strong product liability laws are in place in Canada, manufacturers, and suppliers must adopt preventive measures to mitigate the risks of product liability claims. To avoid such claims, a few advisable measures include:

• Maintaining regular testing and assessments before introducing goods to the market
• Keeping detailed records of testing procedures
• Including clear warnings and instructions with the product, as they may help reduce liability
• Ensuring customer service teams are trained to recognize early signs of product defects so that they can defend against legal claims

Last but not the least, the best way to prevent such claims is to adhere to applicable regulations, legislations, and industry guidelines. This will ensure that the products and practices are in line with the relevant laws and industry standards while maintaining a strong reputation for safety and quality.

Get In Touch With Us For Legal Support!

While consumers are well protected under the product liability legal mechanisms, businesses must also adhere to the safety and quality standards to minimize their risk of exposure to product liability claims. For tailored legal assistance regarding a product liability claim or any consumer protection claim, please reach out to our legal team.

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