The Influence of Liability Law on Food Safety on Preventive Effects of Liability Claims and Liability Insurance

Abstract

Most research on food safety has focused on direct forms of food safety regulation.

This paper explores product liability law as a driver of food safety measures in firms. Its purpose is to widen the debate on liability law to include discussion of the actual impact on firm behaviour. Liability law is assumed to promote food safety. The author distinguishes three ways in which liability law could act as an incentive for firms to implement enhanced food safety controls: liability claims, liability insurance and direct effects of liability law on management strategy. The paper concludes that the assumption that liability laws make firms sensitive to the prevention of food safety risks is too optimistic. However, liability law could stimulate a culture within firms to take responsibility for food safety. Existing economic and legal analysis would gain from a sociological analysis of the actual impact of liability on company decisions.

Keywords: Liability law, food safety, food industry