HEGS | Product Liability

Product liability is the legal liability a manufacturer or trader incurs for

producing or selling a faulty or damaging product, when the consumer suffers
loss or damage because of such fault. In Australia the ACCC states that
products sold in Australia are held to Australian consumer laws, and that goods
produced in Australia and are exported, are liable to these overseas laws. HEG’s
product liability in a global sense would be informing consumers for the
appropriate use of their product, i.e. information on a website or packaging, and
then displaying warnings against the inappropriate use, or dangers of the
product. In HEG’s case, they would display the proper way to use the pegs, as an
appropriate use of the product, and have warnings for keeping their products
away from kids, and other inappropriate uses of their products. If this was not
done correctly, there would be a large fine, set by the ACCC, as well as a major
P.R. consequence if there was any injury or death as a result of these products
if there were no warnings. This would lead to a large economic loss for the
business, as a fine would cost the business money which would otherwise be used
for growth, and a P.R. disaster would lose them consumer loyalty and sales,
reducing their profits, and once again reducing growth as a result.