{"id":136994,"date":"2026-04-02T09:38:19","date_gmt":"2026-04-02T09:38:19","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=136994"},"modified":"2026-04-02T09:38:19","modified_gmt":"2026-04-02T09:38:19","slug":"taiwan-product-liability","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/taiwan-product-liability\/","title":{"rendered":"Taiwan: Product Liability"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-136994","comparative_guide","type-comparative_guide","status-publish","hentry","guides-product-liability","jurisdictions-taiwan"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Lee and Li, Attorneys-at-Law<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/Firm-Logo_Lee-and-Li.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Lee and Li, Attorneys-at-Law<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/03\/Firm-Logo_Lee-and-Li.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Product Liability laws and regulations applicable in Taiwan<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the main causes of action upon which a product liability claim can be brought in your jurisdiction, for example, breach of a statutory regime, breach of contract and\/or tort? Please explain whether, for each cause of action, liability for a defective product is fault-based or strict (i.e. if the product is defective, the producer (or another party in the supply chain) is liable even if they were not individually negligent).<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Taiwan, the main legal bases for a product liability claim include the Consumer Protection Act as well as the tort clauses and contract law as outlined in the Civil Code.<\/p>\n<p><strong>(1) Consumer Protection Act (\u2018CPA\u2019)<\/strong><\/p>\n<p>Under the CPA, manufacturers\/service providers, importers, designers, and distributors all bear product liability. They are responsible for ensuring that their products and services meet the safety standards that could reasonably be expected based on the scientific or professional standards prevailing at the time of market launch.<\/p>\n<p>Product manufacturers, designers, and importers as well as service providers are subject to strict liability. Even if they can demonstrate the absence of negligence, this will only mitigate their liability, not eliminate it entirely. In contrast, distributors face a \u2018presumed negligence\u2019 standard, i.e., they can avoid liability by proving that they exercised due care in preventing the underlying damage or that the damage would have occurred regardless of their precautions. However, if a distributor modifies or repackages the product, it will be subject to strict liability just like a manufacturer.<\/p>\n<p>In addition to the above, some products are regulated by special laws and regulations, which may provide special rules regarding product liability. For example, food products are subject to the Act Governing Food Safety and Sanitation; medical devices are subject to Medical Devices Act.<\/p>\n<p><strong>(2) Tort law<\/strong><\/p>\n<p>A manufacturer is responsible for any harm resulting from the normal use of its products, unless (a) the product is free from defects, (b) there is no causation between the harm and the defect, or (c) the manufacturer has exercised reasonable care to prevent such harm. This is generally considered a special type of tort liability under the Civil Code, which is fault-based and presumes negligence.<\/p>\n<p><strong>(3) Contract law<\/strong><\/p>\n<p>Under the Civil Code, the seller of products bears the \u2018statutory guarantee\u2019 and must ensure that, upon the transfer of title and risk of the product to a consumer, it is (a) free of any defect that diminishes or reduces its value, usefulness\/functionality for normal use, or the intended use as specified in the contract, and (b) of the quality promised by the seller. The general rule of contract law also applies, i.e., if a seller fails to meet their contractual obligations, such as providing a defect-free product, due to reasons attributable to them, they will be liable for damages compensation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is a \u2018product\u2019 for the purpose of the relevant laws where a cause of action exists?  Is \u2018product\u2019 defined in legislation and, if so, does the definition include tangible products only?  Is there a distinction between products sold to, or intended to be used by consumers, and those sold for use by businesses?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The CPA provides the strict liability statutory regime for product manufacturers, designers, importers, and service providers (collectively, \u2018Business Operators\u2019), i.e., it covers both tangible products and intangible services. By definition, a \u2018product\u2019 refers to any real property and personal property that is the object of a transaction, which could be finished goods, semi-finished goods, raw materials, or components. Agricultural, forestry, fishery, and animal husbandry are also included.<\/p>\n<p>It is worth noting that the CPA only applies to products and services sold to or intended to be used by consumers. The term \u2018consumers\u2019 may potentially include not only individuals but also legal entities, so long as the product\/service is purchased primarily for personal, family or household purposes and not for business purposes. Transactions that do not involve final consumption\u2014such as business-to-business sales where the product is to be further processed or resale\u2014fall outside the scope of the CPA. Occasional sales by individuals or by government agencies are also excluded from the purview of the CPA.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who or what entities can bring a claim and for what type(s) of damage? Can a claim be brought on behalf of a deceased person whose death was caused by an allegedly defective product?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the CPA, consumers are defined as individuals who (a) engage in transactions, (b) utilize products, or (c) accept services, for consumption (end-use) purposes. That is, third parties injured by the use of a defective product or service may also seek damages through product liability claims.<\/p>\n<p>Where a defective product has resulted in death, courts in Taiwan generally recognise the following types of compensation:<\/p>\n<p><strong>(a) Medical and Funeral Expenses:<\/strong> Individuals who have borne the cost of the deceased person\u2019s medical treatment, enhanced living needs, or funeral arrangements may claim such expenses.<\/p>\n<p><strong>(b) Maintenance or Dependency Claims:<\/strong> Third parties with a statutory right to receive support from the deceased person may claim for the loss of such support.<\/p>\n<p><strong>(c) Moral Damages:<\/strong> The deceased person\u2019s immediate family (i.e., parents, children, and spouse) may claim reasonable amounts as moral damages.<\/p>\n<p>The aforesaid claims, however, are not brought on behalf of a deceased person but are based on the claimant\u2019s own rights. In addition to the above, case precedents indicate that if the death of a consumer or a third party results from a product or service due to the Business Operator\u2019s willful misconduct or negligence, the heirs of the deceased or the estate administrator may seek punitive damages under the CPA on her behalf.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available against a defendant found liable for a defective product? Are there any restrictions on the types of loss or damage that can be claimed?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the CPA, a consumer may seek damages for life, body, health, or property harms caused by a defective product. These damages include both pecuniary losses (such as financial expenditures) and non-pecuniary losses (such as emotional distress or loss of life quality).<\/p>\n<p>Importantly, claims for damages under the CPA do not extend to losses arising solely from a reduction in the value, utility, or quality of the defective product itself. That is, diminution in value or functionality of the product due to its defect\u2014absent any consequential harm to person or property\u2014is not compensable under the CPA.<\/p>\n<p>In addition to compensatory damages, the CPA allows for the recovery of punitive damages under certain circumstances. Where the damage is caused by the Business Operator\u2019s intentional misconduct, the consumer may claim punitive damages of up to five times the amount of actual damages. In cases involving gross negligence, punitive damages of up to three times the actual damages may be awarded, whereas for ordinary negligence, the cap is set at an amount not exceeding the actual damages sustained.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">When is a product defective?  What must be shown in order to prove defect?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the CPA, a product or service is considered defective if, at the time it is introduced to the market or provided to consumers, it does not meet the safety standards that could reasonably be expected based on the scientific or professional standards prevailing at that time. Furthermore, for products or services that may pose a risk to the consumer\u2019s life, body, health, or property, the Business Operator should clearly display warning labels and instructions for emergency handling of dangers. Failing to fulfil this labelling\/warning obligation may also lead to product liability claims if the product\/service causes any harm to a consumer or third party.<\/p>\n<p>In view of the foregoing, the Business Operators must demonstrate that (a) its products or services, upon being provided, conformed to the level of safety reasonably expected based on the then-current scientific or professional knowledge and (b) adequate warning labels and instructions for emergency handling of dangers, where necessary, are provided. If they fail to prove these, the product\/service will be deemed defective. Please see our response to Q7 below for more information in this regard.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which party bears the burden of proof?  Can it be reversed?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The burden of proof concerning product defects lies with the Business Operators. Specifically, when an injured party files a claim under the CPA, a defect or fault is presumed to exist. It is the obligation of the Business Operator to refute this presumption by demonstrating that no such defect or fault is present. Such allocation of burden of proof is almost never reversed.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What factors might the court consider when assessing whether a product is defective?   To what extent might the court account for a breach of regulatory duty, such as a breach of a product safety regulation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Courts in Taiwan will evaluate the totality of various surrounding factors and circumstances when assessing whether a product is defective. As per the definition of \u2018defect\u2019 outlined above, they key factors may include:<\/p>\n<p>(a) Whether the product is properly labeled in accordance with applicable labeling regulations;<\/p>\n<p>(b) Whether adequate warnings and emergency instructions are provided with the product or service;<\/p>\n<p>(c) The intended purposes and reasonably expected uses of the product or service, and whether it is used in accordance with those expectations; and<\/p>\n<p>(d) The prevailing safety standards at the time the product or service was introduced to the market, and whether it conforms to those standards.<\/p>\n<p>Item (d) above includes, for example, whether the product has passed any required regulatory inspections, received necessary government approval, and complied with other applicable statutory requirements, if any.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who can be held liable for damage caused by a defective product?  If there is more than one entity liable, how is liability apportioned?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Every Business Operator, including manufacturers, importers, designers, service providers and distributors, may be held jointly and severally liable for damage caused by a defective product. Consumers have the right to claim damages from any or all of them, either sequentially or simultaneously. Once a Business Operator compensates the consumer, they may seek contribution from the other operators based on their respective shares of liability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What defences are available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Defenses commonly asserted in product liability actions include but not limited to the following:<\/p>\n<p><strong>(i) Lack of Negligence:<\/strong> If a product manufacturer\/service provider, designer, or importer can demonstrate that the defect in the product was not caused by its negligence, the court may reduce its liability under the CPA (although it cannot be eliminated entirely due to the principle of strict liability.). As to distributors, since they are subject to fault-based liability under the CPA, they might not be held liable at all if they can prove the absence of negligence.<\/p>\n<p><strong>(ii) Comparative Negligence:<\/strong> A consumer\u2019s negligence may reduce the Business Operator\u2019s liability, based on each party\u2019s degree of fault.<\/p>\n<p><strong>(iii) Lack of Causation:<\/strong> If the consumer is unable to establish a causal connection between the product defect and the alleged damage, her claim will fail.<\/p>\n<p><strong>(iv) Development Risk:<\/strong> A Business Operator may avoid liability by proving that, at the time the product\/service was introduced to the market, it has met the safety standards that could reasonably be expected based on the then-prevailing scientific or professional standards.<\/p>\n<p><strong>(v) Statute of Limitations:<\/strong> Product liability claims must be brought within two years from the date the consumer became aware of the damage and the identity of the liable party, and in any event no later than ten years from the occurrence of the underlying incident.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the relevant limitation period(s) for bringing a claim? Does a different limitation period apply to claims brought on behalf of deceased persons?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The CPA does not expressly specify any statute of limitations for product liability claims. However, Courts in Taiwan generally categorize product liability claims as a special type of tort claim and apply the same statute of limitations, i.e., two years from the date the injured party becomes aware of both the damage and the identity of the liable party, and no later than ten years from the date of the incident that caused the harm. In consumer class actions, the statute of limitations is assessed individually for each consumer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can liability be excluded, if at all?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Business Operators cannot preemptively exclude or limit their liabilities for damages caused to consumers or third parties under the CPA.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any limitations on the territorial scope of claims brought under a strict liability statutory regime?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Neither the CPA nor the Civil Code imposes specific territorial restrictions on the application of the strict liability statutory regime. Under Taiwan\u2019s choice of law framework, in product liability cases involving foreign elements, the legal relationship between the consumer and the Business Operator is generally governed by the law of the Business Operator\u2019s home country. However, if the Business Operator has agreed to or could reasonably foresee that the product would be sold in that certain jurisdiction, the consumer may choose to apply the law of (a) the place where the damage occurred, (b) the place where the consumer purchased the product, or (c) the consumer\u2019s home country.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What does a claimant need to prove to successfully bring a claim in negligence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to Article 191-1 of the Civil Code, product manufacturers and importers are responsible for any harm resulting from the normal use of their products, unless they can prove that (a) there is no defect in the manufacturing, processing or design of the product, (b) there is no causation between the harm and the defect, or (c) it has exercised reasonable care to prevent such harm. In other words, the law has established the aforesaid three critical presumptions for the claimant and shifted the burden of proof in these regards to the defendant.<\/p>\n<p>Hence, when a plaintiff asserts product liability claims based on tort law, her burden of proof primarily involves demonstrating that (i) the defendant is the manufacturer or importer of the product, (ii) the plaintiff has suffered certain harm, and (iii) such harm occurred as a result of using the product in a manner that is considered normal or foreseeable.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In what circumstances might a claimant bring a claim in negligence?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Taiwan, plaintiffs often pursue product liability claims under both the CPA and tort law. The strict liability framework established by the CPA is generally more favourable to claimants; however, many plaintiffs also assert tort claims based on presumed negligence in parallel, as having an additional legal basis may strengthen their case.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available?  Are punitive damages available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the tort clauses in Civil Code, unless otherwise provided by law or contract, a person obligated to compensate for an injury must restore the injured party to the status quo ante. Accordingly, punitive damages, which go beyond the scope of restoration, are not available under general tort claims based on the Civil Code.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If there are multiple tortfeasors, how is liability apportioned?  Can a claimant bring contribution proceedings?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>When multiple tortfeasors jointly cause wrongful harm to another\u2019s rights, they are jointly and severally liable for the resulting injury. The claimant may seek all or part of the damages from one or more of the tortfeasors simultaneously or sequentially. The liability among joint tortfeasors is allocated in proportion to each tortfeasor\u2019s degree of negligence. If one tortfeasor pays more than its proportionate share of the liability, that tortfeasor may seek contribution from the others by asserting its right to indemnity.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any defences available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Please refer to Question 9 for available defences. With respect to the \u2018lack of negligence\u2019 defence, in product liability claims based on tort law, which operate under a presumed negligence framework, the defendant will not be held liable if they can demonstrate the absence of negligence.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the relevant limitation period(s) for bringing a claim?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Tort claims for product liability must be brought within two years from the date the claimant became aware of the damage and the identity of the liable party, and in any event no later than ten years from the occurrence of the underlying incident.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can liability be excluded, if at all?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a general rule, liabilities resulting from intentional acts or gross negligence cannot be excluded by agreement. While liabilities stemming from (ordinary) negligence may be excluded, if a standard-form contract prepared by one party (typically a Business Operator) contains provisions that attempt to release or limit the liability of the drafting party and are clearly unfair given the surrounding circumstances, those provisions will be deemed as void.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the laws governing contractual liability provide for any implied terms that could impose liability where the product that is the subject of the contract is defective or does not comply with the terms of sale?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Article 354 of the Civil Code provides for the seller\u2019s statutory guarantee, which requires that, upon the transfer of title and risk of the product to the buyer, such product must be (a) free from any defect that diminishes or reduces its value, usefulness, or functionality for normal use, or the intended use as specified in the contract, and (b) of the quality promised by the seller. However, the Civil Code allows the seller and the buyer to explicitly modify, limit or waive the statutory guarantee provided by the Civil Code via a contract. Such an arrangement will be valid unless the seller is found to have intentionally concealed the defects.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available, and from whom?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In case of a defective product, the buyer may (a) claim a price reduction against the seller; (b) rescind the contract (unless the defect is not material and rescission of the contract is unfair to the seller); (c) claim damages compensation from against seller; or (d) demand a defective-free replacement of the same kind from the seller.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What damages are available to consumers and businesses in the event of a contractual breach?  Are punitive damages available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the event of contractual breach, claims for actual damages (to compensate for the injury actually suffered) and loss of profits (to compensate for the foreseeable interests that have been lost) are available, unless otherwise provided for in a contract or the law.<\/p>\n<p>Punitive damages are generally not available for breaches of contract unless the parties have explicitly agreed otherwise in their contract. However, if the stipulated penalty is deemed unreasonably high, the court has the authority to reduce it to a reasonable amount. Additionally, a penalty clause in a standard-form contract may be considered void if it is found to be unfair.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can liability be excluded, if at all?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned above, the seller\u2019s liability under the statutory guarantee outlined in the Civil Code can be excluded by contract. However, if the seller is found to have intentionally concealed defects, such exclusion will be void. Notably, if this contractual waiver is included in a standard-form contract with consumers, it may be deemed void if it is inconsistent with the principle of good faith or is clearly unfair to the consumer.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any defences available?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The seller\u2019s defences under contract law may include the buyer\u2019s awareness (or reasonable expectation of awareness) of the defect at the time of contract formation, as well as the buyer\u2019s failure to notify the seller of the defect following a standard inspection (except in cases where the defect is not discoverable through ordinary inspection). The statute of limitations can also serve as a defence; for instance, if the buyer does not make any statutory guarantee claims within six months of notifying the seller of the defect identified during a standard inspection, or within five years from the date of delivery, such claims will be barred. Other general defences to breach of contract may also apply, such as lack of capacity or standing, mistake, or fraud, which could render the contract invalid and relieve the seller of the obligation to provide a defect-free product under the agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please summarise the rules governing the disclosure of documents in product liability claims and outline the types of documents that are typically disclosed.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Although Taiwan, as a civil law jurisdiction, does not have discovery procedures under the common law system, parties in a civil lawsuit may make a request to the court to investigate relevant evidence, including witnesses, expert testimony, documentary evidence and court inspection. The court may also investigate evidence it deems necessary to decide the case on its initiative.<\/p>\n<p>While a party may submit relevant documentary evidence to the court, if a documentary evidence is retained by the opposing party, the party seeking to investigate such evidence may make a request to the court to order the disclosure of such documents, or the court may order for such disclosure on its initiative.<\/p>\n<p>In a product liability lawsuit, the documents disclosed can vary based on the complexity of the case, the types of products involved, and the specific claims and requests made by consumers. Typically, the following documents may be disclosed, either voluntarily or at the court\u2019s request: (a) transaction records, such as contracts between consumers and merchants, orders, and invoices that detail the purchase and sale of the product in question; (b) evidence of consumer damages, such as invoices that support the value of damaged property, hospital receipts that verify medical expenses incurred, and pay stubs from the consumer\u2019s employer that indicate lost wages; and (c) documents related to product defects, such as quality control or inspection records, product-related certificates, technical expert testimony, and documentation regarding safety standards, policies or measures adopted in order to prevent product defects.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are product liability claims usually funded?  Is third party litigation funding permitted in your jurisdiction and, if so, is it regulated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In Taiwan, legal costs associated with a product liability claim are generally borne by the claimant, among which the litigation expenses, such as court fees, may be further recovered through a favourable judgement against the defendant.<\/p>\n<p>In principle, the plaintiff needs to advance the court fees as calculated based on the value of her claim. However, a plaintiff who lacks the financial means to pay the fee may apply with the court for litigation aid. Unless there is clearly no prospect for the plaintiff to prevail in the action, the court shall, by ruling on a motion, grant litigation aid. Once the case is concluded, the costs will be charged to the responsible party. If the judgment is unfavourable to the plaintiff, they may still be required to cover certain litigation expenses as determined by the court. A plaintiff may also apply with the Legal Aid Foundation for pro bono legal services or other litigation aids.<\/p>\n<p>As to attorney fees, the Attorneys\u2019 Code of Ethics prohibits attorneys from accepting payment of attorney fees from a third party unless (a) the client has provided informed consent in advance, and (b) such an arrangement will not influence the attorney\u2019s independent professional judgment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can a successful party recover its costs from a losing party?  Can lawyers charge a percentage uplift on their costs?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A successful party may generally recover court fees and other incidental expenses from the losing party unless an exception applies, such as where the successful party causes the delay in the proceedings, in which event the court may order the successful party to bear all or part of the costs resulting from the delay.<\/p>\n<p>Unless expressly agreed by the parties in advance, each party should bear its own attorney\u2019s fees for the first and second instances. For the third instance, however, attorney fees of up to NT$500,000 (around US$15,600) may be recovered from the losing party.<\/p>\n<p>In Taiwan, except for family, criminal, or juvenile cases, it is generally permissible for lawyers to charge success fees in a civil lawsuit, such as agreeing on a certain percentage of the amount awarded or collected.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can product liability claims be brought by way of a group or class action procedure?  If so, please outline the mechanisms available and whether they provide for an \u2018opt-in\u2019 or \u2018opt-out\u2019 procedure.  Which mechanism(s) is most commonly used for product liability claims?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. In Taiwan, product liability claims can be brought by way of a class action. If so agreed by the representative of the plaintiffs, the court may issue a public notice inviting potential plaintiffs to \u2018opt-in\u2019 and join the lawsuit within a designated period of at least 10 days.<\/p>\n<p>Additionally, consumer protection groups are permitted to acquire the rights of claims from at least 20 consumers in and file a lawsuit in its own name. The compensation received as a result of the litigation should be distributed to such consumers after deducting the litigation fees and necessary expenses for the lawyer.<\/p>\n<p>The above mechanisms are both commonly utilized by consumers in Taiwan for pursuing product liability claims.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please provide details of any new significant product liability cases in your jurisdiction in the last 12 months.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><ul>\n<li>Polam Kopitiam Food Poisoning Case: In March 2024, a food poisoning outbreak at a branch of Polam Kopitiam, a famous restaurant chain in Taiwan, caused 6 deaths and 33 food poisoning reports. The Consumers\u2019 Foundation, Chinese Taipei, a leading consumer protection organization, initiated a class action for 30 claims in December 2024, including those from the families of the deceased individuals and the injured parties. The total claims amounts to NT$293 million (around US$9.1 million), including those based on the Food Safety Act, the CPA, and the Civil Code. The case is complex due to the intricate causes and evidence collection. As of February 2026, the case is still under the first-instance trial proceedings at the Taipei District Court in Taiwan.<\/li>\n<li>The Kobayashi Red Yeast Rice Incident: This widespread supplement contamination was first identified in March 2024, and has resulted in numerous health issues for individuals in both Japan and Taiwan. Japan\u2019s Ministry of Health, Labour and Welfare found that a red yeast rice health supplement produced by Kobayashi Pharmaceutical was contaminated with \u2018Puberulic Acid,\u2019 causing kidney function abnormalities among users. As of June 2024, Taiwan\u2019s Food and Drug Administration had received 68 reports of adverse reactions from consumers. Subsequently, in September 2024, the Consumer Protection Association in Taiwan filed a class action lawsuit on behalf of 55 consumers. The lawsuit seeks compensation exceeding NT$1.7 billion (around US$53 million) from the Taiwan branch of Japan\u2019s Kobayashi Pharmaceutical and five other importers, covering the product price, medical expenses, and compensation for emotional distress. As of March 2026, the case is still under the first-instance trial proceedings at the Taipei District Court in Taiwan.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any policy proposals and\/or regulatory and legal developments that could impact the current product liability framework, particularly given the advancements in new technologies and increasing focus on the circular economy?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The deployment of AI technologies and the launch of AI products raise a variety of legal challenges. In the context of product liability, this may potentially include difficulties in defining and identifying any \u2018defect\u2019 in the AI product, establishing relevant safety standards, and determining causation and attributing liability to specific AI users, etc. In January 2026, Taiwan\u2019s Artificial Intelligence Basic Act (\u2018AI Basic Act\u2019) was officially promulgated and entered into force, which aims to create a foundational, high-level administrative framework for AI development in Taiwan and to guide future legislation on various matters such as liabilities, remedies, indemnification, and insurance related to AI-related harms. The impact of this Act and future regulations on the current product liability framework, particularly for AI-related products and services, is worth monitoring.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What trends are likely to impact upon product liability litigation in the future?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>With the rise of social media, an increasing number of consumers are turning to these platforms to voice their concerns, including those relating to product defects and product liability claims. This is often supplemented by online media coverage to attract public attention, thereby rallying the collective power of numerous consumers. Consequently, in product liability cases, companies must not only address the specific products and legal issues raised by consumers but also prioritize effective public relations strategies.<\/p>\n<p>Furthermore, in recent years, Taiwan has witnessed several notable product liability incidents. Increased media coverage and public attention may prompt consumers to turn to class actions or express their concerns through consumer protection groups. It is also common for these groups to take the initiative to engage with consumers, gather their claims, and take legal actions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4876<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/136994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=136994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}