Any company involved in food production saw its Product Recall risk greatly magnified last year with the enactment of the U.S. Food Safety Modernization Act (FSMA), says Louis Lubrano, New York-based senior vice president of global crisis management for Liberty International Underwriters (LIU).
Under FSMA, the federal government for the first time is empowered to order recalls of food products even when authorities only suspect a problem with a product but have no hard evidence, Lubrano says.
“That's a game-changer,” he observes. “The issue is still evolving on what could trigger a recall,” Lubrano says, but for now, “it's what the government believes” rather than what it knows is a risk.
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