Software Product Quality Defects and Customer Liability
Definition
SMB software publishers face significant liability exposure when shipping software with bugs or design defects. Customers may file class-action lawsuits for negligence, breach of warranty, and consumer protection violations. Product support costs escalate when publishers must decide whether to fix known defects (expensive) or deny service and refunds (litigation risk). According to industry polling, nearly 80% of software users report purchasing buggy software, indicating systematic quality control failures across the industry. For SMBs, even a single class-action lawsuit can threaten solvency due to defense costs, settlement obligations, and reputation damage.
Key Findings
- Financial Impact: $50,000-$500,000
- Frequency: annual
Why This Matters
QA automation/testing software, product liability insurance, customer support outsourcing, software maintenance platforms
Affected Stakeholders
CEO/Founder, VP Sales/Head of Sales
Deep Analysis (Premium)
Financial Impact
Data available with full access.
Current Workarounds
Data available with full access.
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
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