Who is liable when an imported product hurts someone
Under section 2 of the Consumer Protection Act 1987, liability for damage caused by a defective product falls on the producer, on anyone holding themselves out as the producer, and on any person who imported the product into the United Kingdom in order, in the course of business, to supply it. Importing puts you in that list alongside the factory.
The Consumer Protection Act treats the importer as a producer. The factory's insurance is not yours, and a clause in your purchase order does not move it.
The statute puts the importer in the same list as the producer
Section 2 of the Consumer Protection Act 1987 sets out who is liable where a defect in a product causes damage. It names the producer; anyone who, by putting a name or trade mark on the product, has held themselves out to be the producer; and, in its own words, any person who has imported the product into the United Kingdom in order, in the course of any business of his, to supply it to another.
Read that third limb slowly, because it is the one people do not expect. It does not say the importer is liable if the producer cannot be found, or if the importer was careless, or if the importer knew about the defect. Importing the product into the country in the course of business, to supply it on, is itself the qualifying act. That is why the common assumption that the factory is the one on the hook is wrong in the only jurisdiction that matters to you.
The second limb catches something else worth noticing. If you put your own brand on a product made by someone else, you have held yourself out as the producer, which is a separate route to the same place. A private-label product therefore attracts liability twice over: once because you imported it and once because your name is on it.
What this means for the things buyers usually rely on
The first is the supplier's insurance. A Chinese factory's policy is a contract between the factory and a Chinese insurer, and a UK claimant is not a party to it. Even where the factory genuinely holds cover, pursuing it means pursuing a claim in China, which our guide on goods that arrive wrong covers and which is a different proposition from being indemnified. Ask whether the factory has insurance by all means, but do not treat the answer as your protection.
The second is the purchase order clause. An indemnity from the supplier is worth having, because it may let you recover from them afterwards, but it does not stop the claim landing on you first. Liability under the Act runs from the claimant to you; whether you can pass the cost back along your own contract is a separate question, answered in a different forum, possibly in another country, some time later.
The third is the idea that a compliance certificate is the same as insurance. Meeting the applicable standards reduces the chance of a defect and is strong evidence that you took care; it is not a defence against the claim existing. Our guide on certifications covers what those documents do and do not establish.
| What you have | What it does | What it does not do |
|---|---|---|
| The factory's own insurance | May let the factory meet a claim against the factory | Give a UK claimant anything to claim against, or indemnify you |
| An indemnity in your purchase order | May let you recover from the supplier afterwards | Stop the claim landing on you first |
| Test reports and a declaration of conformity | Reduce the chance of a defect and evidence that you took care | Prevent liability arising if a defect causes damage |
| Your own product liability insurance | Respond to a claim made against you | Exist unless you have bought it, and read what it excludes |
The practical consequences, in the order they bite
Buy your own cover, and buy it before the first consignment sells rather than before the first claim. Product liability insurance is the mechanism that responds to a claim made against you; the factory's policy is not, and the Act does not care which of you was careless.
Read what the policy excludes rather than what it covers, because that is where the surprises live for importers: sales into particular territories, recall costs as distinct from injury, product categories the insurer will not touch, and requirements to hold specific evidence of compliance. An insurer who asks to see your technical file is telling you something about what the claim process will look like.
Then make traceability real, because a claim about a product you cannot identify a batch for becomes a claim about everything you sold. Batch codes, dated records of which consignment went where, and the sample you approved are the difference between a contained problem and a general one. That is the practical argument for the discipline in our inspection guide and for keeping the approved sample described in minimum orders and sampling.
And accept the boundary honestly. A sourcing agent, us included, cannot take this liability off you. We can help you choose a factory that is less likely to produce a defect, get the evidence that you exercised care, and keep the traceability that limits the scope of a problem. We cannot be the producer in your place, and anyone implying otherwise is selling reassurance rather than a service. This is a matter for your insurer and, if a claim arrives, your solicitor; nothing here is legal advice.
Frequently asked questions
If the factory made a faulty product, why am I liable?
Because section 2 of the Consumer Protection Act 1987 lists the importer alongside the producer. It applies to any person who imported the product into the United Kingdom in order, in the course of business, to supply it to another. Importing to supply on is itself the qualifying act, regardless of fault.
Does the supplier's insurance protect me?
No. A Chinese factory's policy is a contract between that factory and its insurer, and a UK claimant is not a party to it. Even where genuine cover exists, relying on it means pursuing the factory in China after the claim has already landed on you. Ask about it, but do not treat it as your protection.
Will an indemnity clause in my purchase order help?
It is worth having, because it may let you recover from the supplier afterwards, but it does not stop the claim reaching you first. Liability under the Act runs from the claimant to you; whether you can pass the cost back is a separate question answered later, in a different forum and possibly another country.
Can a sourcing agent take this liability off me?
No, and you should be wary of anyone who suggests otherwise. An agent can help you choose a factory less likely to produce a defect, obtain the evidence that you exercised care, and keep the traceability that limits a problem's scope. None of that changes who the Act names. Your insurer and, if needed, your solicitor are the right people here.