If food that is sold to the public for consumption is not sealed properly, it could lead to a variety of negative consequences for your company. Although leak detection equipment may be expensive for a business, it may be cheaper than the penalties associated with selling a tainted product.
1. Companies May Face Class-Action Lawsuits
If improperly sealed food makes customers sick, they may file a lawsuit against your company. Depending on how many people get sick, customers may band together and sue as a class. This may increase the time and money that it takes to defend the company against such claims. It may also increase the award that customers receive for medical bills, money spent on spoiled food and other damages.
2. Government Agencies May Investigate the Matter
The FDA has jurisdiction over cases in which food was not properly packaged. If it finds that your business was negligent in not following protocols to keep customers safe, it could levy a significant fine. OSHA may also want to conduct an investigation to determine if other workplace rules were violated. For instance, it may want to know if food was improperly packaged because equipment was broken or otherwise not functioning properly. If this is the case, it could result in fines or other penalties for breaking workplace safety rules.
3. The Brand May Be Tarnished
Few people are going to want to buy products from a brand that has shown a blatant lack of respect for its customers. Even if the issue was limited to a certain product or only impacted a certain geographic area, people don’t want to risk their health. If there is another option that they know is safe, they will take that one instead. This may be especially true for those who are buying food for their children.
4. Product May Need To Be Destroyed
Instead of selling chicken, cereal or other foods to customers, it may need to be thrown away if it may cause a health hazard. This could result in thousands of dollars or more worth of product being wasted. The resulting lost revenues could mean lower profit margins or missed profit or revenue estimates. Ultimately, shareholders who are angry at losing money may call for the CEO to resign or simply sell off their stakes entirely.
Failing to package food in a safe manner consistent with existing regulations may be disastrous for a company. Therefore, be sure to have quality leak detection equipment on hand to prevent these situations from occurring. It may also be best to have humans check goods before they are shipped to ensure that they don’t pose a risk to anyone.