The recent example of The Reject Shop being ordered to pay a penalty of $140,000 highlights the need for awareness in labelling of products, and also the vital importance of having a Management Liability coverage that includes protection for statutory fines.
Whilst The Reject Shop co-operated with Consumer Affairs Victoria, withdrew the products from sale, and issued a recall notice, the size of the Federal Court penalty is an important reminder on having the right insurance in place to protect the cashflow of your business, as well as access to expert legal advice.
The ACCC has issued mandatory product Safety Guides across many categories, which can be referenced here.
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