No, this does not normally mean that the seal is faulty.
The lid seal on our cool boxes is designed as a push-fit seal, which means it sits securely inside a channel around the lid rather than being permanently glued or bonded into place. During use, cleaning, transport or opening and closing the lid, a small section of the seal can occasionally work its way out of the groove.
If this happens, simply press the seal firmly back into the channel, working your way around the lid until the full seal is seated evenly and securely.
Once the seal has been pushed fully back into position, the lid should close and seal correctly again.
For the best cooling and ice-retention performance, please also make sure:
The seal is sitting evenly around the entire lid.
There are no sections twisted, folded or trapped outside the groove.
The lid is able to close fully without anything obstructing it.
The seal and surrounding channel are kept clean and free from dirt or debris.
A seal temporarily coming out of the channel is therefore generally a fitment issue rather than a fault and does not normally require a replacement seal.