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The development of liability laws in recent decades in the United States has produced both positive and negative results for producers of new products. The concept of “strict liability” says a consumer injured by a product can sue the manufacturer, even if they bought the item from a retailer. An implied warranty follows products down the purchasing chain, and a user merely has to show a defect to prove the maker’s negligence. It’s understandable that consumers like this degree of protection, since such a defect could produce calamitous results, particularly with health and vitamin products.

One initial result of this stricter legislation, however, was that entire lines of products vanished from the marketplace. Or, choosing a different route, businesses started relying on product liability lawyers to find loopholes that might get them out of complying with the strictest regulations. One argument was that most judgments were made in hindsight, perhaps based on scientific information that wasn’t available when the products were made. Many companies also claimed these liability laws removed any incentive to develop new products. According to Jules L. Coleman in “Risks and Wrongs,” a 1985/86 survey showed that 47% of American manufacturers had removed product lines, and 39% had decided not to introduce anything new.

As a result of the liability pressures on manufacturers of new products, many other companies took what was perhaps a more responsible route. Rather than decreasing or altogether ceasing new product research and innovation, they increased these activities. They actually spent more time researching how to produce better quality products, rather than seeking legal ways to avoid responsibility for producing those of lower quality.

Retailers and manufacturers often argue that strict liability laws on new products place no responsibility on consumers to use products properly. Furthermore, the laws stifle growth in the market. Those on the other side argue in their turn that if something protects users of a product from injury due to defects, then it’s ultimately a good thing. If these laws encourage manufacturers to produce superior products and prevent defective goods from being sold, they say, then this can only be beneficial.

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