15 - Sales & Marketing

Sales and marketing have the greatest impact on how the products are represented to the customers. Undesired implied / express warranties, product brochure statements, webpage contents, advertising materials are potential exposures that can significantly increase the liability risk of a product. Effective sales and marketing arrangements (such as selection, monitoring and training dealers / distributors, provision of technical or legal support etc) to manage the downstream supply chain and any advertising, can help to minimise the risk to customers and end users.

What do we look for?

Exposures

  • Complex or extended wholesale and retail sales networks, including overseas, or
  • Difficult to access or contact customers and end users
  • High level of marketing and advertising activity with multiple communication channels.

Controls

  • Clearly defined distribution channels (product handling, consulting
  • Crisis management plans exist
  • Legal reviews of all printed and electronic brochures, advertisements and any other materials  involving any of the products
  • Sales and distribution training.

Risk improvement ideas

  • Sales team should undergo training so they are completely familiar with the product, its uses and limitations.
  • Sales training should also include adequate legal orientation in product liability loss control.

Risk topics

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