Some product-injury cases involve more than defective design or careless manufacturing.
In certain cases, manufacturers or sellers know a product is dangerous and make a deliberate decision to mislead consumers or hide the truth. When that happens, California law allows injured consumers to bring claims for fraudulent misrepresentation and fraudulent concealment.
These causes of action focus on intentional deception, not mere negligence—and they can significantly increase a defendant’s exposure.
What Is Fraud in a Products Liability Case?
Under California law, fraud occurs when a defendant intentionally deceives a consumer and that deception causes harm.
In the products-liability context, fraud typically arises when a company:
- Makes false statements about product safety
- Conceals known defects or hazards
- Suppresses unfavorable testing or incident data
- Misrepresents compliance with safety standards
- Continues marketing a product despite known risks
Fraud claims are governed by California Civil Code §§ 1709–1710, which impose liability for deceit and intentional misrepresentation.
Fraudulent Misrepresentation
Fraudulent misrepresentation occurs when a defendant makes a false statement of material fact, knowing it is false, with the intent that consumers rely on it.
Common Examples in Product Cases
- Claiming a product is “safe” despite known hazards
- Advertising compliance with safety standards that were never met
- Representing that a product has been tested when it has not
- Minimizing known risks in marketing materials
If a consumer reasonably relies on the false statement and suffers injury as a result, the defendant may be liable for fraud.
Fraudulent Concealment
Fraudulent concealment occurs when a defendant fails to disclose a material fact that it has a duty to disclose.
In product cases, a duty to disclose may arise when:
- The defendant has exclusive knowledge of a defect
- The defect poses safety risks not obvious to consumers
- The defendant actively suppresses or hides information
- Partial disclosures are made that are misleading without full disclosure
Concealment is especially common in cases involving internal testing failures, prior incidents, or delayed recalls.
What Must Be Proven in a Fraud Claim?
To establish fraudulent misrepresentation or concealment, a plaintiff generally must prove:
- The defendant made a misrepresentation or concealed a material fact
- The defendant knew the representation was false or misleading
- The defendant intended the plaintiff to rely on it
- The plaintiff reasonably relied on the deception
- The deception was a substantial factor in causing harm
Because fraud involves intent, these claims often rely heavily on internal documents, emails, testing data, and whistleblower evidence.
How Fraud Claims Apply in Product Injury Cases
Fraud claims commonly arise in cases involving:
- Known defects concealed from consumers
- Long-term exposure to dangerous products
- Delayed recalls or safety warnings
- Corporate decisions prioritizing profit over safety
- Repeated injuries before corrective action is taken
These cases often reveal patterns of misconduct rather than isolated mistakes.
Fraud vs. Negligence and Strict Liability
Fraud claims are fundamentally different from other product-liability theories:
- Strict liability focuses on the defective product
- Negligence focuses on unreasonable conduct
- Fraud focuses on intentional deception
Because fraud involves deliberate wrongdoing, it can support punitive damages in appropriate cases.
Why Fraud Claims Matter
Fraudulent misrepresentation and concealment claims play a critical role in exposing corporate misconduct.
They prevent companies from avoiding responsibility by hiding behind technical compliance or silence, and they ensure accountability when consumers are intentionally misled about product safety.
In many products-liability cases, fraud claims transform the case from a defect dispute into a broader examination of corporate ethics and decision-making.
How Fraud Fits Into California Products Liability Law
Fraud claims are often pleaded alongside:
- Strict liability
- Negligence
- Failure-to-warn claims
- Warranty-based causes of action
Together, these theories provide a comprehensive framework for holding manufacturers and sellers accountable for dangerous and deceptive products.
For a broader overview of California product-injury law, see our Products Liability Master Guide.
Get Help From WIN Injury & Accident Trial Lawyers
Why Legal Representation Matters
Insurance companies often undervalue pain and suffering—offering minimal settlements that ignore your daily struggles. A skilled attorney can:
- Present powerful evidence of your emotional and physical suffering
- Retain expert witnesses to quantify your losses
- Use verdict data to justify higher multipliers or per diem rates
- Argue your case persuasively before a jury
At WIN Trial Lawyers, our team fights to ensure that your recovery reflects the full extent of your suffering—not just your bills.
At WIN Trial Lawyers, we know how personal injury claims can be can be. Victims often face mounting medical bills, lost wages, and emotional trauma. Our team has successfully taken on insurance companies and third parties, recovering millions for injured clients.
If you or a loved one has been injured in an accident, don’t leave your future in the hands of the insurance company. You need experienced trial lawyers who know how to prove liability and fight for maximum compensation.
If you or a loved one has been injured, don’t face this alone. The sooner you act, the stronger your case will be.
