What legal responsibilities do companies have to their customers?


2 Answers

Robert Adlington Profile

This will vary from country and industry, but most industries in the developed world must comply with the individual regulations that govern a particular inudstry.

For example, a catering industry (which serves food to customers) is legally obliged to deliver food to a good, safe standard of hygiene.

A builder must build in compliance with Building Regulations.

Any business that collects private information (such as banking, payment and personal details) must adhere to Data Protection laws.

And all businesses must adhere to health and safety guidelines to protect their customers and staff on their business premises.

The list is endless, and the responsibilities unique to any particular business will vary from industry to industry.

All industries, however, must follow the legal frameworks as set out by the government/law which ensure the protection of the customer's legal rights.

James Hopes Profile
James Hopes answered

Business owners have many different kinds of responsibilities under the
federal, state, and local laws. In fact, as a business owner, you may
not even be aware of some of your legal responsibilities. For this
reason, one important responsibility is to always consult with an
attorney who is familiar with laws and business obligations in your area
to ensure you are in full legal compliance.

The General Data Protection regulation must be observed by any organizations with more than 250
employees, which on the face of it may give the impression that many UK
small businesses will be exempt. However it isn’t quite that simple. A business must still comply if it’s involved in regular “processing” of certain categories of personal data, which legally is taken to include collecting and storing as well as actually using data.

Speaking of employees, any business that employs workers has the
responsibility to follow a number of labor-related laws. First, you
should always know how to properly classify a worker as an employee or
an independent contractor. Some business owners think they may not have
to comply with taxes or certain labor laws if they simply treat and pay
workers as independent contractors. However, both the Fair Labor
Standards Act and California labor laws have a strict test for
independent contractors, examining factors such as who decides hours,
payments, and who has control over other aspects of the work.

If you manufacture or sell products, you must ensure that these products
are safe for their intended use. This includes making sure a product is
safely designed, safely assembled, and that it includes any warnings of
potential hazards that may not be readily identifiable to a consumer.
You also must be familiar with the laws involving warranties and other
customer guarantees. If a customer is injured by a defective product
that you made or sold, you may be held liable for their injuries.

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