When Can a Consumer Be Liable for Damaging Goods in a Store?

Signs saying “you break it, you pay for it” do not tell the full legal story.

The issue

The Consumer Protection Act provides that a consumer is not responsible for loss or damage to goods displayed by a supplier unless the damage results from gross negligence, recklessness, malicious behaviour or criminal conduct.

An example

A salon owner had a customer enter with a young child. Concerned that the child might damage products, the owner warned the customer. If goods are later damaged, the question is not simply whether the goods broke. The question is how the damage happened and whether the conduct met the legal threshold.

Practical point

Businesses should not assume that a warning sign automatically creates liability. Consumers should also understand that reckless or malicious conduct may still carry consequences.