Product Liability in Fulfillment: Who Is Liable for Damages?
Product Liability in Fulfillment: Who Is Liable and When?
Basic Principle of Product Liability
Under the Product Liability Act, the manufacturer or distributor of a product is generally liable for damages caused by a product defect—regardless of who stores or ships the goods.
Where the fulfillment partner's responsibility begins
A fulfillment service provider is generally liable only for damages resulting from improper storage, order fulfillment, or transportation within its area of responsibility—not for product defects themselves.
Why Clear Contracts Are Crucial
A detailed service agreement should clearly define liability limits, insurance coverage, and reporting requirements in the event of damage. This provides clarity for both parties and speeds up the claims process.
Conclusion
Product liability and logistics liability are two distinct legal concepts—establishing clear contractual provisions in this area helps prevent future disputes with your fulfillment partner.
