General information, not legal advice. Penalties and defences vary by place and change over time. Have your lawyer confirm what applies to you.
Licence to operate
Food businesses must be notified, registered or licensed, depending on the place and activity. Operating without one where required is an offence, and regulators can restrict or stop trading.Fines and prosecution
Breaching the is an offence, and unsafe food offences are treated more seriously still. Some places publish offences on public registers.Consumer law and negligence
Injured customers may have claims under consumer law and in negligence. A supplier may also be liable to customers further along the chain.Contractual liability
Customer contracts often require , audit access and indemnities. A failure can mean termination or claims, even with no regulator involved.Insurance
Product liability and cover can help, but insurers may look at your controls, and insurance doesn't restore trust.Personal exposure
Depending on the law and the facts, people who manage a business can face personal exposure. Ask your lawyer how this applies to your directors and managers.| Maximum penalty for breaching the Food Standards Code | Individual | Corporation | Source |
|---|---|---|---|
| NSW Food Act 2003, s 21 | 500 penalty units | 2,500 penalty units | Act, as held in MFC's law library |
| Food Act 1984 (Vic), s 16 | 40,000 dollars | 200,000 dollars | Act, as held in MFC's law library |
| Food Act 2006 (Qld), s 39 | 500 penalty units | Check the Act for corporations | Act, as held in MFC's law library |
How a good programme protects the business
| What you have | How it helps | What it doesn't do |
|---|---|---|
| A documented, followed programme | Supports a due diligence defence, where the law provides one (for example NSW Food Act 2003 s 26, and Food Act 2006 (Qld) s 44), by showing reasonable precautions | Excuse a failure if the paper wasn't followed |
| records | Evidence of what happened and when, for regulators, insurers and courts | Help if they were filled in afterwards |
| certification | Independent evidence of a system, often a condition of supply. Opens doors commercially | Transfer liability to the certifier, or guarantee every batch |
| Supplier approval and | Shows care in what you buy. May support claims back up the chain | Remove your own duty to check |
| A rehearsed and crisis plan | harm and scale, and shows responsibility | Prevent the event |
| Lab testing by labs | Credible evidence that controls work | Prove the whole batch is safe |
Schemes protect a business by making its care visible and independently checked. That protection only holds while the system is real and followed, and doesn't move responsibility away from the business.