Mitigating Legal Exposure in Consumer Goods Companies


Jequiti Cosmetics pic

Jequiti Cosmetics

A corporate lawyer for over 15 years, Claucio Mashimo has filled various legal and compliance leadership positions in top organizations. Most recently the legal and regulatory affairs manager of Jequiti Cosmetics, a Brazilian subsidiary of Silvio Santos Group, Claucio Mashimo was in charge of mitigating the company’s legal exposure.

For companies dealing in consumer goods, mitigating legal exposure is the very reason for the existence of in-house legal counsel. The legal team will have a lot on their plate in terms of pre-empting legal claims even before they happen. For this, they employ various strategies.

First, legal counsel considers the various claims made by the company in advertising or packaging whether actual or perceived, intentional or unintentional. Tracking these claims will help discover the products within the scope of complaints.

Once these claims have been established, the legal team analyzes the strength of substantiations under statutory and regulatory laws. It analyzes whether the product sold is identical to the one tested, whether the tests were done under required conditions, and whether testimonials are in line with regulatory requirements.

Legal teams also monitor regulatory and judicial advancements in consumer protection. New regulations reveal areas of interest for government authorities. Monitoring them can help companies steer clear of risky advertising or marketing.

In addition, legal teams prepare for product recalls. They review existing recall procedures and where necessary, develop new ones to ensure effective notice to distributors, retailers, and end-consumers when safety risks arise.