Product caused damage to other property

Consumers can seek compensation from the store or manufacturer when a faulty product causes damage to other property belonging to them. This is particularly the case if the defect means the store or manufacturer failed to comply with a consumer guarantee.

The loss or damage must have been reasonably foreseeable and not caused by something outside human control, such as a natural disaster.

Anyone (not only the consumer) can seek compensation for loss or damage if they or their property were injured by safety defects in a product.

A consumer can apply to the business directly for damages or compensation. If the business refuses to pay or to reach an agreement to settle a dispute, the consumer can take their claim to formal dispute resolution services or take legal action.

Putting a value on loss or damage

It can be hard to put a dollar figure on loss or damage. Compensation should put the consumer in the position they would have been in if the product had met the consumer guarantees.

Case Study

Examples only (outcomes may differ in individual cases):

A faulty toaster sets fire to Ben’s kitchen. Ben is entitled to compensation to make up for that loss and damage, not just to a refund for the faulty toaster.

Lina buys a car, which leaks oil on her driveway. A neighbour’s dog runs through the oil and into her house, dirtying the carpet. The car dealer does not have to pay for carpet cleaning, as the dealer could not predict that a dog would run through the oil and into the house – the damage was not 'reasonably foreseeable'.

Susan’s washing machine breaks down due to a fault. As a result, there is water damage to carpet in part of her house. The supplier would be responsible for the cost of replacing the carpet damaged by flooding from the faulty washing machine, because this loss could have been expected to result from the breach of a consumer guarantee.

Warren used a liquid cleaner according to instructions on the pack to remove a stain on his new curtains. The product badly damaged a curtain in the living room. As the curtain was new, the supplier would probably have to meet the cost of replacement. Compensation would be less for curtains in poorer condition.

Disputes

If you are having a dispute with the store or seller about a problem with a product, view Resolve your problem or complaint.