Fraudulent Actions in a Product Liability Claim

Fraudulent Actions in a Product Liability Claim: What You Need to Know

Every year, millions of people are injured by defective products, leading to significant medical expenses and lost income. While most product liability claims center on design flaws, manufacturing errors, or inadequate warnings, a lesser-known but critical aspect involves fraudulent actions. When a manufacturer or seller engages in deceptive practices regarding a product’s safety or quality, it can significantly impact the outcome of a product liability case. Understanding what constitutes fraudulent actions and how they affect your claim is crucial.

What Are Fraudulent Actions in Product Liability?

Fraudulent actions in a product liability claim occur when a manufacturer, distributor, or retailer knowingly misrepresents the safety, quality, or effectiveness of a product, leading to consumer harm. These actions go beyond simple negligence and involve intentional deception. If a personal injury attorney can prove the misrepresentation was intentional, it could be considered fraud [7].

Types of Fraudulent Actions

Several types of fraudulent actions can arise in product liability cases:

  • Misrepresentation: This involves making false or misleading statements about a product’s features, benefits, or safety. For example, a manufacturer might falsely advertise that a product is “safe for all ages” when it contains components that could harm children [7, 10].
  • Concealment: This occurs when a company intentionally hides known defects or risks associated with a product. A classic example is the Volkswagen Diesel Emissions scandal, where VW deliberately attempted to conceal a defect in its diesel vehicles that would evade U.S. emissions standards, by installing software that would only activate emissions controls during emissions testing [9].
  • False Claims: This includes exaggerating a product’s benefits or minimizing its risks. A company might exaggerate a product’s benefits or minimize its risks [7].
  • Bait and Switch Schemes: Advertising a product at a low price to attract customers, then substituting it with a higher-priced or lower-quality item [9].
  • False or Misleading Advertising: Marketing materials provide statements that don’t accurately reflect a product’s use or possible dangers [7, 9].

Proving Fraud in a Product Liability Claim

Proving fraud in a product liability case requires demonstrating that the defendant:

  1. Made a false representation: The defendant made a false statement of fact about the product.
  2. Knew the representation was false: The defendant knew the statement was untrue or was reckless about its truthfulness.
  3. Intended to deceive: The defendant intended for the plaintiff to rely on the false representation.
  4. The plaintiff relied on the representation: The plaintiff justifiably relied on the false statement.
  5. The plaintiff suffered damages: The plaintiff suffered damages as a result of their reliance on the false statement [1].

Legal Theories in Product Liability Claims

Plaintiffs can pursue product liability claims under different legal theories, each of which has distinct requirements for proving liability [1]. The most common theories include strict liability, negligence, breach of warranty, and, in rare cases, fraud [1].

  • Strict Liability: Strict liability claims focus on the defect itself rather than the conduct of the defendant. Under strict liability, plaintiffs only need to prove that the product was defective and caused harm when used as intended [1]. This standard simplifies the plaintiff’s burden, making it the preferred approach in many product liability cases [1].
  • Negligence: Negligence claims require the plaintiff to prove that the defendant failed to exercise reasonable care in designing, manufacturing, or warning about the product’s risks [1]. This theory focuses on the defendant’s conduct, so plaintiffs must show that the defendant’s actions were unreasonable and led to the defect [1].
  • Breach of Warranty: The manufacturer may make express warranties about the quality of the product [10]. In addition, there are certain implied warranties relating to products, including an implied warranty of merchantability, and an implied warranty of fitness for a particular purpose [10].

The Impact of Fraudulent Actions on Your Claim

Establishing fraudulent actions can significantly strengthen a product liability claim. It can lead to:

  • Increased Compensation: Courts may award punitive damages in cases involving intentional fraud to punish the defendant and deter similar conduct in the future [19].
  • Overcoming Defenses: Evidence of fraud can help overcome common defenses raised by manufacturers, such as misuse of the product or assumption of risk [21].
  • Enhanced Credibility: Demonstrating that a company acted fraudulently can enhance the plaintiff’s credibility with the jury [12].

Examples of Product Liability Cases Involving Fraudulent Actions

  • Pharmaceuticals: A drug company knowingly conceals adverse side effects of a medication, leading to patient injuries [6].
  • Automotive: An automaker knowingly sells vehicles with a defective ignition switch, putting drivers at risk of accidents [2, 9].
  • Consumer Products: A manufacturer falsely claims that a product is BPA-free when it contains the chemical, leading to health problems for consumers [3].

Advice

If you suspect that you have been injured by a defective product and that the manufacturer or seller engaged in fraudulent actions, it is essential to take the following steps:

  1. Preserve Evidence: Keep the product, packaging, instructions, and any documentation related to the purchase [5].
  2. Document Injuries: Seek medical attention and keep detailed records of your injuries and medical expenses [1].
  3. Consult an Attorney: Contact a product liability attorney experienced in handling fraud claims [4, 8]. An attorney can investigate the case, gather evidence, and advise you on your legal options [4].

Finding the Right Attorney

When choosing a product liability attorney, look for someone with a proven track record of success in handling complex cases involving fraudulent actions [2, 6]. They should have the resources to conduct a thorough investigation, including consulting with experts and gathering evidence of the defendant’s misconduct [1, 3].

Conclusion

Fraudulent actions in a product liability claim can significantly impact the outcome of your case. By understanding what constitutes fraud and how it affects your claim, you can take steps to protect your rights and seek the compensation you deserve. If you believe you have been injured by a defective product and that the manufacturer or seller engaged in deceptive practices, consult with an experienced product liability attorney to explore your legal options.