I have friends lined up to buy juice, and that's fine. I trust most of them to work with me if there is an issue but where I grow concerned is if I sell to someone I don't know.
What sort of precautions do I need to take before filling simple orders from a web based store? A simple disclaimer/TOS seems to be too little in the world we live in these days. I'm small time, just started and in no way plan to go big but if someone wants to buy juice from me from across the country I want to make sure I cover my ass. Buying expensive insurance seems too much for someone who won’t turn a profit to pay for it.. but if that is the route I might have to reconsider selling to strangers.
Any suggestions? Good experience and horror stories welcome. I want to know what I could end up dealing with so I can figure out if it's worth it.
thank you.
I understand that most of the replies here are meant to be satirical and funny, but they're really bad advice. Accepting "donations" will not help you in the least, and neither will putting a disclaimer that the items are for decoration only.
Giving gift items as "donations" only works if you're a registered nonprofit organization with a valid tax exempt 501c3 identification number and certainly does not apply to any items that contain dangerous chemicals. You need to keep in mind that for all intensive purposes nicotine is a poison that is ml for ml more deadly than arsenic.
Additionally, adding a disclaimer will not save you. You can write whatever you want on the outside of that bottle it doesn't mean it will protect you in court. According to 21 U.S. Code § 360c code a-1-A-i:
> (i) A device for which the controls authorized by or under section 351, 352, 360, 360f, 360h, 360i, or 360j of this title or any combination of such sections are sufficient to provide reasonable assurance of the safety and effectiveness of the device.
(source)
A quick look at section 351 reveals:
(d) Mixture with or substitution of another substance
If it is a drug and any substance has been
(1) mixed or packed therewith so as to reduce its quality or strength or
(2) substituted wholly or in part therefor.
(source)
Therefore according to 21 U.S. Code § 360c your product that you either sold, gave away, or had been given as a "gift" is fully and legally bound as an adulterated drug or device intended for human consumption. Therefore since you are the progenitor of the mixture you're wholly responsible under federal law.
You guys need to realize that the only thing that can help you in these circumstances is liability insurance. Period. Not terms of service, reasonable use policies, warnings, notifications, gifting, or wording. Insurance.
You can get covered for as little as $4,000/year and they require 15-20% down to get coverage or about $800 which means (if they allow it) your monthly payment would be about $267 and gives you $250,000 worth of coverage. So think about it for a second. Lets say you get sued your first year. You can either pay the amount that you're sued for, or you can pay $4,000. Your choice, but I know which one I wanna pay.
Wow, thank you. That is a ton of great info. I have a little more stuff to figure out before I get to the insurance part but I thought I would poke around first. I really don't want to spend that sort of money but you have a good point, I should be prepared just in case. :(
On your back label write: "DO NOT UNDER ANY CIRCUMSTANCES OPEN THIS BOTTLE. THIS BOTTLE IS FOR DECORATION ONLY."
*In the courtroom sometime after:
Lawyer 1, "Your Honor, my client became very ill after using /u/thesynan's product!"
Lawyer 2, "Lawyer 1, tell me... How did your client use the product?"
Lawyer 1, "By the typical means of inhalation. Her e-cigaratte vaporized the-"
Lawyer 2, "So you're saying your client opened the bottle?"
Lawyer 1, (Turns to the Judge) "Your Honor, I don't see how Lawyer 2's question is relev-"
Lawyer 2, "DID YOU, OR DID YOU NOT OPEN THE BOTTLE?!"
[Lawyering Intensifies]
Judge, "ORDER IN THE COURT!!! I'M SICK OF THE BICKERING!
CASE DISMISSED!!!" (Slams down Gavel of Justice)
You win. Lawyers lose. And the next thing you know, McDonald's coffee cups have your warning label written on them... It's a vicious cycle...
^Okay, ^I'm ^done ^rambling... ^^^^For ^^^^now
There's always gonna be a risk in everything you do in life. Just by waking across a busy street could lead to death. No one here or any other forum can give you an answer that will relieve your liability. Plain and simple, if you make a product and distribute it to the public, then you are liable for any claims. Don't think one of your friends won't sue you either if they get sick from your juice either.
If I were you, I'd surf some furnished, well funded websites and note their warnings/ways of covering their ass. If it's going to cali I'd note "Nicotine is known to the state of CA to cause reproductive harm" and have a "keep out of reach of children" and some kind of "18+". surf websites and comprise a list!
Bombies has this on their site under policies:
"By purchasing Bombies' products, you agree that Bombies.com cannot be held responsible or liable for damages, both mentally and physically, to your well-being. If you are unsure if vaping is right for you, please consult a medically licensed physician."
As for purchases, get everyone to run orders through your site and have this on the product pages and check out with a check box that they acknowledge it.
I wouldn't worry too much. As long as you have something regarding safety and that they understand the risks. Noting that if they are unsure, they should speak to a doctor is a great touch.
I was thinking about trying to email the Bombies guy and ask him if he buys insurance. I don't know if he'd reply and if so, if he'd tell me haha..
Try it out and post up the best practises as you learn them.