Consumer Liability

Consumer liability refers to the accountability of consumers when purchasing products or services.

Updated: November 24, 2023

Consumer liability refers to the accountability of consumers when purchasing products or services. Consumer liability policies are generally written into the contracts of companies and warnings are placed on their products to protect themselves from potential consumer negligence.

Consumer liability is outlined in the fine print of contracts in most cases and is left to the consumer to read, obey, and understand. However, contracts must be distributed by businesses and signatories read must be ensured and review by businesses. 

Consumer liability clauses should be included by businesses in their contracts to protect themselves in liability lawsuits. Product testing, supplier reviews and proper warnings should be considered by businesses to best protect against product liability.

Clear language, close reading for loopholes and the use of attachments are some general best practices that help signatories understand protections and reduce liability. Concise language should be used in the contracts of businesses so that most readers can understand. Miscommunications and lack of understanding can be avoided by being as specific as possible. Individuals should carefully review liability policies to check for loopholes when signing a contract since loopholes can cause harm for all signatories if they are not addressed. Additional liability conditions should ne included in attachments that all signing parties should review and consider.

Consumer liability best practices


  • Regularly monitor and review financial statements.
  • Set up account alerts for suspicious activities.
  • Use strong, unique passwords for online accounts.
  • Enable two-factor authentication whenever possible.
  • Keep personal information confidential.
  • Regularly check credit reports for unauthorized activity.
  • Be cautious of phishing scams and fraudulent emails.
  • Update software and security features on devices.
  • Use secure and encrypted Wi-Fi connections.
  • Report lost or stolen cards immediately.