India's Consumer Protection Act 2019 and AI Liability Gaps

A recent working paper, arXiv:2608.12863, investigates the effectiveness of India's Consumer Protection Act, 2019, in addressing damages from defective AI products and services. This preprint evaluates the Act's relevance to AI-related issues such as personal injury, psychological damage, biased results, and loss of control. The findings indicate that although the Act's broad definitions concerning product liability and harm may apply, there are notable deficiencies. Establishing a link between AI defects and consumer damage poses a technical hurdle, as failures often arise from design decisions rather than specific flaws. Furthermore, the Act presumes clear roles for manufacturers, sellers, and service providers, while the AI value chain features overlapping duties. The paper emphasizes the need for clearer liability distribution in light of the increasing use of AI in consumer applications, contributing to the ongoing dialogue regarding AI regulation and consumer protection in India.