Food Law: Who’s Responsible When Things Go Wrong?

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Food Law: Who’s Responsible When Things Go Wrong?

“Food is symbolic of love when words are inadequate.” — Alan D. Wolfelt

Yet for food businesses, love (and risk) are written in the law.

Almost every Australian food entrepreneur wants to know: Who is liable if something goes wrong with a food product?

Here, we break down the basics of liability for food businesses in Australia, what the law actually says and why carefully drafted supply and manufacturing agreements matter.

Understanding Food Law and whose responsible for what

Australian food law starts with the Food Standards Australia New Zealand Act and the Australia New Zealand Food Standards Code, covering food composition, labelling, and safety.

Every product must be safe, honestly labelled, and legally compliant—whether it’s peanut butter in a jar or a ready-to-eat meal.

The other pillar is the Australian Consumer Law. This sets out strict product safety rules and consumer guarantees. If you make, package, or sell food—even via a contract packer—you are likely responsible if something is wrong, unsafe, or misleading.

Famous Case: The Caustic Soda Incident

One notorious case involved a harmful caustic soda

The notable Australian court case on caustic soda and the importance of packaging warnings involved Glendale Chemical Products Pty Ltd, the supplier of Glendale Caustic Soda. In this Federal Court case (Barnes v Glendale Chemical Products Pty Ltd), Mr Barnes was severely injured when caustic soda erupted violently as he attempted to clear a drain, resulting in burns to his face and eyes. The ACCC brought the action under the product liability provisions of the Trade Practices Act.

Justice Emmett found that the warnings and instructions on the caustic soda packaging were inadequate. While the label noted the product was corrosive and should be kept away from eyes and skin, the Court said this was not enough, given the dangers when the product mixes with hot water and is used in confined spaces like drains. The instructions failed to warn that undissolved caustic soda should not be poured directly into confined drains, as violent eruptions can occur.

The Court ruled that consumers were entitled to clear warning labels about the ways in which caustic soda could be unsafe, not just general cautionary notes. As a result, damages were awarded to Mr Barnes, and Glendale was required to amend its labels to clearly state the specific risks and correct use methods. The Full Federal Court upheld this decision, reinforcing that suppliers who repackage and brand products are deemed manufacturers and can be liable for product defects—even if they did not make the product themselves.

This case highlights that under Australian law, product warnings must be specific and genuinely inform end users about real-world dangers and correct usage—not just rely on general cautions. Inadequate warnings, including on food products, can result in legal consequences.

Legal Risks for Food Businesses

These include: Product recalls for undeclared allergens, contamination, or misleading claims, fines for unsafe or non-compliant labelling or packaging, litigation from injured consumers or business partners, regulatory investigations and penalties by FSANZ and the ACCC, and reputational harm following failure to address risks or errors rapidly can all expose an Australian food business to significant legal, financial, and brand damage if food safety standards and compliance are not rigorously managed.

FAQs About Food Law

Q1: Who is responsible for labelling?
Usually, brand owner is liable—even if others manufacture or pack. Always confirm.

Q2: if someone else packed the food or beverage am I off the hook legally?
No – just because you use a contract packer (someone else bottles, packs, or finishes your product), you aren’t automatically covered for legal liability if something goes wrong with your food. The law in Australia generally makes the brand owner or business selling the product to consumers responsible for things like unsafe products, mislabelling, or contamination. A lot of people think using a contract packer moves the risk, but unless your agreement says exactly who is responsible for what, you could still be held liable. The contract should spell out who covers compliance, insurance, and recalls.

Q3: What regulations apply to allergen labelling?
It is mainly FSANZ and ACCC enforce strict rules and serious fines for errors.

Q4: What should my manufacturing agreement include?
Roles, responsibilities, remedies, insurance, indemnity, dispute resolution.

How Sharon Givoni Consulting Can Help

• Advice or review of food law, compliance, and liability for brand owners, manufacturers, and packers.
• Drafting and updating manufacturing agreements, supply contracts, and product recall protocols.
• Assistance with trade mark registration, IP protection, and labelling compliance.

Please note the above article is general in nature and does not constitute legal advice.

Please email us info@iplegal.com.au if you need legal advice about your brand or another legal matter in this area generally.