Burkhart said that as more products are manufactured overseas, consumers have turned to local retailers [image-nocss] and distributors for such lawsuitsand that can have consequences beyond cash damages. He used the example of someone importing toothpaste.
"But then you find out the product is contaminated, and next thing you know you're going to jail," he said. "That's a scary proposition."
Understanding liability is particularly important as c-store retailers turn to private-label products to enhance their brand, provide consumers with lower cost products and increase traffic. "But it goes back to [the fact that] your name's on it, so you're responsible. And the consumer's going to identify it with you," he said.
Some precautions Burkhart recommended are having a certificate of insurance, controlling purchasing up front and planning ahead. "Maybe you can't have a plan for everything, but it's just the process of planning that prepares you for whatever happens," he said. "One of the outcomes of doing the planning is you get the message out to your team."
Watch for the June issue of CSP magazine for more in-depth coverage of CSP's Leadership, Liability & Crisis Prevention Forum.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.