Each year, thousands of business owners are targeted for individual and class action consumer claims. To protect against these actions, businesses can adopt measures that help reduce the risk of being targeted while at the same time developing plans that improve the chances of successfully defending against such claims. Below are five steps to help safeguard against individual and class consumer claims.
1. KNOW THE SOURCES OF CONSUMER CLAIMS.
Most consumer claims originate from a company’s website, marketing and advertising, or products and packaging. Websites can lead to claims related to ADA accessibility and data privacy. Marketing and advertising risks include issues such as consent for text and email marketing, false or misleading advertising, and greenwashing claims. Products and packaging can result in claims under California’s Proposition 65 or based on misleading package design, such as “slack-fill” claims, where the product amount is deceptive relative to the packaging size.
2. UNDERSTAND IF YOUR COMPANY IS A TARGET.
Every company, regardless of its size, is a potential target for consumer claims. Plaintiff’s attorneys in these cases do not discriminate; they target businesses ranging from small “mom and pop” shops to Fortune 500 corporations.
3. HAVE A COMPLIANCE PLAN IN PLACE.
Assessing and understanding your company’s potential vulnerabilities to consumer claims is the first step in mitigating liability. For instance, hospitality groups and restaurants are particularly vulnerable to ADA claims, while producers and sellers of consumer packaged goods face a higher risk of Proposition 65 and misleading packaging claims. Once a company understands its vulnerabilities, it should thoroughly review its current practices to ensure legal compliance and make necessary adjustments. Examples of strong compliance practices include:
• Use an accessibility tool or consult with a web designer to ensure that your website is compliant with the Web…
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