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How can a retail corporation reduce its liability?

Large retail companies must do their best to protect customers and avoid lawsuits. Risk management strategies may help companies reduce injury and liability. Lawsuits are often brought against retail companies regarding safety standards or regulations.

Two retailers that had issues

The Wall Street Journal recently found that Amazon.com was selling products deemed unsafe by U.S. federal standards—4,152 products. After Amazon found out about the unsafe items, they stopped selling most of the products. Amazon ensured customers that it is committed to safety.

A few years ago, Target had one of the biggest data breaches any U.S. retailer has faced. Nearly 40 million customers’ credit card information was affected by the breach. The result of the breach ended with Target facing an $18.5 million payout.

Both of these situations illustrate the importance of product safety and risk management strategies.

Ways to reduce liability

There are numerous situations that could negatively affect companies. Retailers should be aware of potential issues in order to avoid them. Slip and falls, product safety violations, data breaches and employee fault could all lead to lawsuits.

Here are a few ways companies can reduce liability and avoid potential lawsuits:

  • Ensure its products comply with safety standards
  • Protect customer information
  • Properly label products
  • Include warning information
  • Follow safety guidelines in-store
  • Educate and train employees

When faced with a lawsuit, companies will need legal representation. Taking preventative steps may help retailers better prepare for legal issues.

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