Market Share Liability: An Analysis since Sindell

Abstract

The market share liability (MSL) theory generated much concern among marketers when it was introduced in the Sindell case in California in 1980. In the twelve years since that decision, courts in several states have considered the applicability of MSL in a variety of situations and have refined the theory considerably. This paper surveys key cases since 1980 and concludes that MSL has been upheld only by a handful of states and only in cases involving diethylstilbestrol (DES). The issues raised in Sindell and the ways in which courts have dealt with these issues are examined, and a policy solution for the recurring problems is proposed.