This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn how to claim compensation for loss from faulty goods in England and Wales, including rights under the Consumer Protection Act 1987 and Consumer Rights Act 2015, what losses you can recover, time limits, and practical steps to pursue claims for injury, damage or financial loss.
When goods you purchase are faulty, you are often entitled not only to a refund, repair or replacement under consumer contract law but, in some cases, to compensation for loss or damage caused by those faulty goods. This article explains how compensation claims work when a defective product causes financial loss, damage to property, personal injury or other eligible harm in England and Wales. You will learn what legal protections apply, who you can claim against, how long you have to take action, and practical steps to pursue a claim through the civil justice system.
Faulty goods can range from an electrical appliance that overheats and damages your flooring to a power tool that causes a personal injury. While the Consumer Rights Act 2015 governs basic statutory rights to refunds, repairs and replacements, product liability compensation claims are mainly founded on the Consumer Protection Act 1987 (CPA 1987) and, in some cases, on negligence principles. These laws work together to protect consumers from losses caused by products that fall below legal safety standards.
Legal Basis for Compensation Claims
Compensation Under the Consumer Protection Act 1987
The Consumer Protection Act 1987 implements a regime of strict liability for defective products. Strict liability means you do not need to prove the producer was negligent; you need only show:
- The product was defective;
- The defect caused the loss, damage or injury.
“Defectiveness” is judged by whether a product's safety is what a reasonable person would generally expect given how it was marketed, its instructions and warnings, and its intended use. A defective product under this Act includes almost any physical good sold for use by consumers.
Under the CPA 1987, you may claim compensation for:
- Personal injury or death caused by a defective product;
- Damage to property used ordinarily for private purposes, provided the value of the damage exceeds £275.
The Act excludes claims for damage to the product itself and pure financial loss (e.g., loss of profit) unconnected to physical damage.
Contractual Claims and the Consumer Rights Act 2015
The Consumer Rights Act 2015 (CRA 2015) governs statutory rights when goods are faulty, including refunds, repairs and replacements. While the CRA 2015 may not directly offer compensation for damage or injury, it establishes obligations on traders to supply goods that are:
- Of satisfactory quality;
- Fit for purpose;
- As described.
If a trader breaches these standards and causes loss, you may be able to claim additional losses (special damages) through common law breach‑of‑contract claims in the county court where the fault leads to consequential financial loss. This is separate from product liability claims under the CPA 1987.
Who Can Claim and Against Whom
Eligible Claimants
Under the Consumer Protection Act 1987:
- The injured person can claim compensation even if they did not buy the product themselves. For example, a visitor injured by a defective product in your home may have a claim.
- Non‑buyers can also claim for damage to their private property subject to the same exclusions.
Potential Defendants
Claims under the CPA 1987 can be brought against:
- Producers (manufacturers of the finished product);
- Own‑branders (retailers or businesses that sell products under their own trade mark);
- Importers into the UK for commercial sale.
In some situations, multiple parties may be potentially liable, but each claim must establish the responsible party's connection to the defective product. Liability cannot be excluded by contract or terms imposed on consumers.
What Losses You Can Claim
Personal Injury and Death
If a faulty product causes physical injury or contributes to a death, you can claim:
- General damages for pain, suffering and loss of amenity;
- Special damages for financial losses such as medical expenses and loss of earnings.
Compensation amounts vary with the severity and impact of the injury.
Damage to Property and Other Losses
Damage to property - such as your home, possessions or other personal items - caused by a defective product can be claimed if:
- The property was intended for private use; and
- The value of the loss exceeds £275.
You may also seek compensation for related consequential losses (e.g., temporary accommodation costs) in appropriate cases.
Contractual Loss Beyond Damage
Separate to CPA 1987 claims, if a trader breaches statutory standards and you suffer financial loss not covered by CPA 1987 (such as business interruption or pure economic loss), you may pursue a contract claim for special damages in the county court. Legal advice is recommended for complex economic loss claims.
Time Limits for Making a Claim
Time limits are strict:
- Under the Consumer Protection Act 1987, you must bring a claim in court within three years from the date you realised the damage and its cause.
- There is also a 10‑year “longstop” limit from when the product was first put into circulation.
Contract claims under the CRA 2015 are generally subject to the Limitation Act 1980, which also provides a three‑year time limit for most claims in tort and contract, calculated from the date of loss.
Practical Steps to Pursue a Claim
- Document the Defect and Loss:
Take photographs, retain the defective product where safe, collect receipts and note dates of incident and losses. - Notify the Company Promptly:
Contact the retailer and/or manufacturer to alert them to the defect and type of claim. Keep written records. - Assess Applicable Law:
Decide whether your claim is under the CPA 1987 (strict liability), CRA 2015 (contractual remedies), negligence, or a combination. - Seek Professional Evidence:
For serious injury or complex loss, expert reports (e.g., engineering or medical) can support causation. - Consider Alternative Dispute Options:
Before court proceedings, formal complaints, mediation or Alternative Dispute Resolution (ADR) may help resolve matters. - Commence Court Proceedings if Necessary:
If negotiation fails, you may issue a claim in the county court. For personal injury and property damage, standard civil procedure applies.
Prompt action and clear evidence strengthen claims. For complicated cases, consult a solicitor specialising in product liability and personal injury.
Common Questions
Can I claim if the product was second‑hand?
Yes, you may still claim compensation if the product was defective and caused loss or injury; however, proving defectiveness and causation is central to any claim.
Does the seller's warranty affect compensation?
Manufacturer warranties or guarantees do not replace statutory rights; they may offer additional benefits but cannot remove your legal entitlement to compensation under statutory regimes.
Can I claim for inconvenience or distress?
Claims primarily cover tangible loss, injury and damage. Compensation for distress alone without other loss is generally limited outside personal injury valuations.
Final Thoughts
Consumers in England and Wales are protected not only by statutory rights to refunds, repairs and replacements under the Consumer Rights Act 2015 but also by strong legal remedies for compensation when faulty goods cause loss, damage or injury. The Consumer Protection Act 1987 provides a strict liability regime that enables consumers to pursue compensation without proving negligence. Understanding which regime applies, what losses are recoverable, and how to structure a claim can make a significant difference in outcome. Documenting the defect, acting within statutory time limits, and following practical steps as outlined here will help you protect your legal rights and pursue fair compensation for loss arising from faulty goods.
