With manufacturing outsourced to factories around the globe, controlling product quality becomes a significant challenge. Take for example the dangers presented by faulty e-cigarettes, which can explode in a person’s pocket if the product has a defective battery. The battery, charging component and the rest of the device may come from separate factories, but the retailer will shoulder liability in the end for producing a safe final product, often with little chance of recovering losses from its foreign suppliers.
As regulators ramp up their efforts to protect consumers, product liability risks stand to increase dramatically. The costs associated with product recall can be staggering, and companies that don’t take swift action after the discovery of a defective product stand to face class action lawsuits and plenty of bad press.
Sponsor’s Information: Learn more about how Starr Companies’ crisis management solutions can help with your product liability risks