Manufacturer, Distributor, or Store: Who Is Liable When a Defective Product Causes Injury?

KEY TAKEAWAYS:

Under current South Carolina strict liability law, manufacturers, distributors, wholesalers, and retailers can all potentially qualify as sellers of a defective product. Which parties may ultimately be liable depends on who sold or supplied the product, whether it reached the user without substantial change, and what role each party played in the defect and resulting injury. Bills introduced in the South Carolina General Assembly in 2026, including H.5444 and S.940, would significantly narrow liability for certain downstream sellers, but those proposals have not been enacted.

Under current South Carolina law, more than one party in a product’s chain of distribution can potentially be held liable when a defective product causes injury. That can include the manufacturer, distributors or wholesalers, and the retailer that sold it.

The legal theory matters, though. Strict liability can reach commercial sellers even if they did not personally create the defect, while negligence claims focus more closely on what a particular defendant did, knew, or should have known.

What Does South Carolina Law Say About Seller Liability?

South Carolina’s Defective Products Act, codified at S.C. Code § 15-73-10, imposes strict liability on a seller that places a product into commerce in a defective condition that is unreasonably dangerous to the user or consumer.

The statute applies when the seller is engaged in the business of selling that type of product and the product reaches the user without substantial change in the condition in which it was sold. Liability can apply even if the seller exercised all possible care and even if the injured person did not buy directly from that particular seller.

That framework can potentially reach manufacturers, distributors, wholesalers, and retailers throughout the chain of distribution.

Can You Sue the Manufacturer?

Potentially, yes. The manufacturer may be a potentially responsible party when it controls the product’s design, materials, manufacturing process, or warnings.

A manufacturer may face liability for:

• Design defects. The product is unreasonably dangerous even when manufactured as intended.
• Manufacturing defects. Something went wrong during production and the finished product departed from its intended design.
• Failure to warn or instruct. Adequate warnings or instructions about a non-obvious danger were not provided.

Our overview of product liability in South Carolina explains these theories in more detail.

Can You Sue a Distributor, Wholesaler, or Retailer?

Potentially, yes. A distributor or wholesaler that did not design or manufacture the product can still qualify as a seller under the current strict liability statute if it is engaged in the business of selling that type of product.

The same is true for a retailer. Under current law, a store may face strict liability for selling a defective, unreasonably dangerous product even if it did not create the defect or know it existed.

That does not mean every defendant faces the same legal theory. For a negligence claim against a retailer or distributor, the focus more often turns to what that company knew or reasonably should have known — for example, whether it ignored a recall, continued selling a product after receiving safety complaints, or failed to act on known hazards.

Strict liability operates differently because it does not require proof that the seller itself was careless.

What Defenses Can a Seller Raise?

South Carolina law gives defendants several ways to challenge a product liability claim.

• Substantial change. A material change after the product leaves the seller can defeat strict liability when that change breaks the connection between the original defect and the injury. A foreseeable alteration does not necessarily eliminate liability.
• Product misuse. Using a product in an unforeseeable way may affect liability when that misuse caused or contributed to the injury.
• Knowing assumption of the danger. Under South Carolina’s strict liability statute, recovery is barred when the user discovers the defect, understands the danger, and nevertheless unreasonably proceeds to use the product and is injured.
• Not engaged in the business. A casual private seller generally falls outside the statute’s strict liability rule because the law targets commercial sellers.

What About Products Bought From Online Marketplaces?

Online marketplaces complicate the traditional manufacturer-distributor-retailer model.

When a third-party seller uses a large online platform, questions may arise over whether the marketplace itself qualifies as a seller under South Carolina law. That issue can depend on the marketplace’s role in the transaction, including whether it merely hosted the listing or also stored, fulfilled, or shipped the product.

South Carolina appellate courts have not clearly resolved every version of that issue, so identifying who actually sold, stored, fulfilled, and shipped an online purchase can be an important part of a product liability investigation.

Can More Than One Party Be Held Liable?

Yes, potentially, under certain circumstances. A single product liability case may involve a manufacturer, component supplier, distributor, and retailer, particularly before discovery establishes where the defect originated.

When multiple parties contributed to the same injury, South Carolina law provides rules for allocating responsibility among defendants and other tortfeasors. How those rules apply can depend on the specific claims, the evidence of causation, and the relationships among the parties.

That is one reason identifying multiple potentially responsible parties early in a case may be appropriate when the available evidence has not yet established exactly where the defect entered the chain.

How Does This Play Out in Other Injury Cases?

Product liability issues frequently overlap with other types of claims.

A defective truck part, such as faulty brakes or a failed trailer component, may give rise to a claim against the part manufacturer or supplier into a truck accident case. A defective propeller or steering system may similarly give rise to a product liability claim in a boating accident.

A worker injured by defective equipment on the job may also have a third-party product liability claim against the equipment manufacturer in addition to a workers’ compensation claim against the employer.

Does It Matter Which Defendant You Pursue?

It can.

Medical expenses, lost income, and pain and suffering may be recoverable when supported by the evidence, regardless of which liable party ultimately pays them. Punitive damages are different. They require separate proof of sufficiently culpable conduct and are not available merely because a defendant is strictly liable.

The practical ability to recover can also depend on available insurance coverage, corporate assets, indemnity agreements, and other sources of payment. That makes early investigation into potentially responsible party important.

How Do You Identify the Parties in the Supply Chain?

The product itself carries useful information. Preserve manufacturer markings, model and serial numbers, country-of-origin information, and any importer or distributor information on the product or packaging.

Purchase records can also help identify the retailer and seller. Keep:

• Receipts
• Credit card statements
• Online order histories
• Packaging
• Instructions and warnings
• Photographs of the product and damage

When formal discovery is available, an attorney may seek purchasing, distribution, and supply-chain records to trace the product back to its source.

What Role Does Insurance Play?

Manufacturers, distributors, and retailers may carry commercial liability insurance that potentially responds to product-related claims. Some supply and distribution agreements also require upstream companies to provide additional-insured protection to downstream sellers, creating additional potential sources of coverage.

Determining which policies apply can become an important part of a multi-defendant case, separate from the question of who is legally responsible.

What Should You Do If You Are Not Sure Who Is Responsible?

Preserve the product in its post-incident condition. Do not repair it, discard it, or return it to the seller or manufacturer before getting legal advice. Keep the packaging, receipt, instructions, warnings, and any photographs or video related to the incident.

Before allowing destructive testing or an uncontrolled inspection by another interested party, speak with an attorney about preserving the evidence properly.

Identifying potentially liable parties — and determining whether strict liability, negligence, warranty, or another theory applies — may require tracing the product through the chain of distribution rather than assuming the manufacturer is the only possible defendant.