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Benefits of a compliance program
A compliance program is a series of actions that suppliers must take before selling a product.
Compliance programs help business owners and managers to become more aware of the day-to-day operations of their business. They help to reduce the risk of supplying unsafe and non-compliant products.
Benefits of having a product safety compliance program include:
- clearly identifying the operational requirements of your business to meet the law
- reducing your risk of product failure causing injury to consumers
- reducing your risk of supplying non-compliant products that could result in court action and penalties
- providing records of controls and business systems
- providing a set of procedures that improve efficiency in managing your business
- helping to reduce and respond to complaints from consumers.
Develop a product safety compliance program
The following elements should be considered when developing a product safety compliance program.
Responsibility
Either the business owner or a senior manager, known as the compliance officer, must have the responsibility to administer the program.
Commitment
The compliance program must include a commitment to compliance and continual improvement, even if this is as simple as a series of checklists for the products you supply.
Inspections
The compliance officer must complete the checklists and conduct inspections of each shipment of products received.
Test certificates
The compliance officer must get appropriate test certificates to make sure products have been tested to the claims made or the mandatory standards where required.
Staff training
Staff should be trained or made aware of compliance requirements (depending on their role) and should report any concerns to the compliance officer.
New products should be shown to staff and the compliance requirements explained.
Fix problems
Any compliance failure must be fixed before the product is supplied.
Supply of non-compliant products can result in legal action against the supplier, or enforcement action from regulators. A recall with refunds to consumers may also be required.
Complaints
Customer complaints are often the first sign of non-compliance so they must not be ignored. Develop a complaint handling system as part of the compliance program.
Complaint handling system
Develop a complaint handling system that suits your business. The SA Equal Opportunity Commission provides a simple example of a complaint handling procedure.
You may wish to seek professional advice. Complaints that are ineffectively handled are often reported to government regulators.
Records
For your compliance program to be effective and reduce your risk you must keep written records on file.
Mandatory standards
Regulated products have mandatory requirements such as labelling, testing and performance levels. The compliance officer must be aware of these mandatory standards.
Compliance program
You can follow our guidance to implementing a business compliance program, including compliance program templates.
You can also find more information about compliance programs by buying ISO 37301:2021 Compliance management systems – Guidelines.