What you should know about product liability as a buyer or seller of cosmetic products.

First of all, no one can claim their product will not cause an allergic reaction. If they say this, they are lying! It can happen with any cosmetic, regardless of price or quality. Most people are allergic to something at some point in their life. That is why it is essential as a cosmetics seller to have product liability insurance or buy from a manufacturer with product liability.

Sellers:

Even if the manufacturer has product liability, as a seller, you should still carry it to protect yourself. (It’s very inexpensive if you do not manufacture products or do very little manufacturing of your own.)

Big manufacturers have big lawyers. If they can find a way to transfer some or all of the liability over to you in a case, you better believe it, they will try!

If you repackage the product – the manufacturer is no longer liable. This includes sending out make up samples that you packaged yourself. If someone buys repackaged make up from you and has an allergic reaction or a severe bacterial infection and goes blind – kiss your business goodbye, and possibly your house and your car too!

Just because you have liability insurance does not mean you have product liability – READ THE FINE PRINT!

Buyers:

Use the same product line – by using products manufactured by different companies together you nullify the liability of the company. There is no way they can guarantee their product is safe when combined with another product and the liability now lies with you.

When buying repackaged brand name products as samples, realize that the seller you are buying from is the one you must deal with if something happens.

I’m sure a book could be written, if it already hasn’t on this subject. There’s plenty of information that could be added to this, but I wanted to keep it simple. The point I want to make is that bad things happen – but buyers and sellers can take small and simple steps to avoid financial disaster when it does happen.