Everything you’ve ever wanted to know about compensation for faulty products

Posted on 12 February, 2025

You all know the feeling – you’ve splurged your cash on something and it’s already broken.

Whether it’s a toy you’ve brought for your child, the latest beauty gadget, or a box of choccies from that new brand you’ve been waiting to try, each product should be safe for its intended purpose. As a Canberra consumer, you have rights when it comes to product safety and compensation.

If you are injured or disadvantaged by a faulty or defective product, it’s important you understand your rights and the role of product liability. Canberra residents can seek compensation through various legal channels when products don’t meet safety standards.

We spoke to MEJ Partner James Treloar, a leading Canberra product liability expert, on the three main types of product liability claims where consumers may be entitled to compensation.

Understanding Product Liability Claims in Canberra

First of all, you might be wondering ‘What is product liability’? Product liability relates to the responsibility of retailers, manufacturers, and distributors to ensure that the products they sell are safe for consumers. 

What that means is if a product is found to be flawed, those involved in the making and selling of the product can be held liable for any injuries or damage caused by the product, and you may be eligible for compensation under Australian Consumer Law.

When Can You Claim Product Liability Compensation? 

A defectively manufactured product is, as its name suggests, flawed because of some error in making it. For example, maybe a machine used to put the product together wasn’t working properly, and as a result, some of the products created on the assembly line had a manufacturing defect. Those products are dangerous when put to an ordinary, expected use. In Canberra, this is when you may have grounds for a product liability compensation claim.

Common Product Liability Cases in the ACT

Successful product liability cases are varied, however, a few common examples include:

• A playset with a crack that injures a child or a building set with magnets that separate and cause injury or death if ingested.
• Contaminated food that causes sickness or death.
• A lawnmower with a defect that causes the motor and blade to turn on unexpectedly.

Design Defects and Compensation Claims

In a defective design case, a product’s faulty design makes it dangerous or defective. A faulty defective design claim alleges that because of a flaw in the way the product was designed means the entire line of products would be considered dangerous. This makes the product unsafe, even though it was made according to the manufacturer’s specifications.

Need Some Examples of Design Defects Leading to Compensation Claims?

These could include faulty products like:

• Sunglasses that fail to protect the eyes from ultraviolet rays.
• A car that has a tendency to flip over when turning corners.

Now for the real question: Can I seek compensation if a product doesn’t warn me about the potential dangers of using it?  

Yes, you can seek compensation, this is called a ‘failure to warn’ claim. It often involves dangers that aren’t obvious to the user, or a product that requires the user to take special precautions or be especially diligent when using it. It could include things like cough syrup, which doesn’t warn about drug interactions if taken in combination with other common medicines, or a cleaning product that causes burns to the skin that’s sold without adequate warnings or instructions.

Product liability claims can be complex, so it’s important to work with an experienced lawyer who can help you navigate the legal process. The team of skilled public and product liability experts at Canberra’s leading law firm Maliganis Edwards Johnson can help you get the compensation you deserve.