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ARTICLE · 24 SEPTEMBER 2003

Telematics – A Risky Business?

United KingdomStrategy
Jayne Dye
Jayne Dye

Originally published in August 2003

As consumer demand for safer, more comfortable state-of-the-art vehicles intensifies the telematics industry is gearing itself for unprecedented growth over the next few years. Industry experts predict that telematics will break out of the luxury vehicles market into the mid-range car market in the next twelve months and will become standard in smaller cars within two to three years. But as with the development of any new product, the telematics sector faces a number of challenges and none more so than the issue of product liability. As a result businesses are now more aware of their potential liability than at any time in the past.

There are several reasons for this. Firstly, tougher consumer protection laws are in place and, consequently, producers are exposed to greater risk of civil and criminal liability for harm caused by defective products. In tandem with this, consumers have become increasingly aware of their rights and have become a

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