If a customer gets injured after purchasing a product from you, you may be wondering what your responsibilities are. As a business owner, it’s vital to report any serious injuries to the relevant authority promptly and to have robust precautionary measures in place.

It’s always best to take every precaution in your power to protect both your business and your consumers from any potential incidents. Staying updated with the latest legal requirements keeps you ahead of the curve and ensures your operations remain compliant in 2025.

In such situations, understanding your rights and obligations as a supplier under Australian Consumer Law (ACL) is key. In this article, we’ll discuss: 

  • Your liability if a consumer is harmed
  • Legal obligations and reporting in case of an incident
  • Liability waivers
  • Consumer guarantees, safety and harm

What Is Consumer Protection Liability?

Consumer protection liability refers to the responsibility of suppliers and manufacturers to ensure that the products they sell are safe for use. Under the ACL, consumers have the right to purchase goods that do not cause harm, meaning that any injuries caused by faulty products can extend liability to suppliers as well.

This principle means that even if you are not directly involved in the manufacturing process, you still share a duty of care. For more insights on how to manage your legal exposure, consider reading our guide on excluding liability for negligence.

What Should I Do If A Customer Injures Themselves?

If a customer injures themselves, they may be eligible to claim damages and compensation. Once you become aware of an incident that results in a serious injury, it is your duty to report it to the Australian Competition and Consumer Commission (ACCC).

All supply chain members – from manufacturers and suppliers to sellers – must report the matter to the ACCC. Regardless of where you sit in the supply chain, ensuring that the ACCC is notified of any incidents is essential.

Reporting to ACCC

The ACCC updated its guidelines on reporting customer injuries in early 2024. Under section 131(1) of the ACL (as amended for 2025), suppliers are required to notify the ACCC of any serious injury, illness, or death that is directly linked to their product within two business days of discovering the incident, failing which substantial fines may apply.

The updated guidelines offer further guidance on injury reporting. For more detailed instructions, you can review the latest information on the ACCC Product Safety Priorities page.

What About My Liability?

If you’re selling goods, it’s likely that you have little to no control over their manufacturing process (unless you personally manufacture the product). In these cases, considering a waiver of liability for personal injury may be a practical risk management strategy.

Implementing a personal liability waiver can clearly communicate to consumers that you are not responsible for manufacturing defects. Such waivers can significantly reduce your legal exposure if a customer suffers harm from a product purchased from your business.

These waivers play a crucial role in protecting your business and are recommended as part of your overall risk management strategy.

What Are My Other Obligations?

Business owners have numerous obligations towards their customers. From initial interactions to post-sale support, it is important to take every reasonable step to ensure that your customer’s experience is both safe and satisfying.

Safety

If your business operates from a physical space, you are responsible for providing an environment that is safe for customers. Even though COVID-19 restrictions have eased, maintaining clean and hazard-free premises remains essential. Ensure that areas such as entryways, floors, or commonly-used paths are well maintained and clearly marked when necessary.

Similarly, for online businesses, it is crucial to secure your website against data breaches, scams, and online harassment. Robust cybersecurity measures and clear user guidelines help protect not only your business reputation but also your customers’ personal information.

You can mitigate these risks by implementing comprehensive Website Terms & Conditions and a Data Breach Response Plan, which outline the steps to be taken in case of any online incidents.

Consumer Guarantees

Under the ACL, consumers automatically have the right to certain guarantees when purchasing products. These guarantees cover aspects such as:

  • Product quality
  • Misrepresentation
  • Accuracy of product description
  • Warranty
  • Correct labelling and titles
  • No hidden charges
  • Availability of spare parts

If these guarantees are not met, consumers are entitled to a range of remedies. There are, however, specific exceptions; for instance, goods or services costing more than $100,000 and normally used for business purposes may be exempt. For further insights into your obligations, please see our guide on How Can Your Business Comply With Consumer Guarantees?

If you are ever unsure about your standing or the extent of these guarantees, do not hesitate to contact our team for a friendly, no-obligation chat.

Consumer Harm

Consumers have the right to be kept out of harm’s way when using any product or service. It is imperative to take reasonable care to ensure that your products are not capable of causing harm. For more guidance on implementing these safety measures, you might also find our insights on service agreements useful.

To minimise consumer harm, consider the following methods:

  • Conduct thorough testing of products in various scenarios with safety as a key focus
  • Include detailed care and usage instructions with the product
  • Apply appropriate hazard labels to alert users of potential risks

If you are a business owner who does not manufacture the products you sell, these factors are crucial in determining which items to associate with your brand. While ultimate liability might not fall entirely on you, it’s always wise to aim for a record free of consumer complaints.

Product Safety And Negligence

Manufacturers are primarily liable for injuries caused by product defects due to negligence, which allows consumers to claim compensation and damages. However, several defences may be available to manufacturers to limit or even avoid liability. These include instances where:

  • The defect could not reasonably have been detected by the manufacturer
  • The safety issue was not present at the time of purchase
  • The product complied with another commonwealth standard, transferring responsibility to the government
  • The issue arose from inadequate packaging or instructions

If you manufacture your own products – for example, handmade candles – it is crucial to ensure that every step of production prioritises consumer safety. Nonetheless, should an incident occur that is outside your control, certain waivers may help limit your liability.

Example
Juan makes handmade wooden toys for children. After creating them, he always sands down the surface to ensure it’s smooth and includes a complimentary care kit with usage instructions. Recently, Juan received a complaint about a toy he made five years ago that caused a splinter on a child’s hand. Since the defect did not exist at the time of purchase and appears to have resulted from inadequate care in the product’s maintenance, Juan likely does not have any liability for the injury. As the fault does not qualify as a serious injury under current guidelines, Juan is not required to report it to the ACCC.

In addition to the measures mentioned above, it is crucial to periodically review your internal policies and update your legal documents – such as waivers and website terms – to ensure full compliance with the latest 2025 regulations. Staying proactive not only protects your business but also builds consumer trust over the long term.

Key Takeaways

Avoiding consumer harm is your responsibility as a business owner. Should an incident occur, remember the following points:

  • You have a legal obligation to report serious product-related injuries to the ACCC within two business days of becoming aware of the incident.
  • Invest in robust liability waivers to help mitigate potential legal exposure.
  • Implement comprehensive safety measures both online and offline – such as updated Website Terms & Conditions and regular product testing – to ensure your customers are protected.

If you would like a consultation regarding customer injuries or need help reviewing your legal documents to ensure compliance in 2025, please reach out to us at 1800 730 617 or email team@sprintlaw.com.au for a free, no-obligations chat.

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