As a business owner, controlling your product is of the utmost importance.
Your reputation is at stake, which is why you are careful to only sell products that are of the highest quality. Any other merchandise that doesn’t meet your expectations - because they are defective, off-specification, returned or outdated - are disposed of so that they can’t be sold.
But, how do you prevent your products from ending up on the “gray market,” being sold without your permission?
While many manufacturers just find the most ecological and economical way of handling this type of waste stream to take care of it, simply sending a product to a recycler or landfill doesn’t necessarily mean you are protecting it. In fact, if your product ends up in the wrong hands, your business can face a host of problems, including:
- Brand erosion
- Liability from faulty products
- Violations of court orders
Certified production destruction services ensure your brand is not harmed because the process destroys or safely disposes of any merchandise so that it doesn’t land in the hands of unscrupulous individuals looking to make a quick buck. Many industries use it to dispose of sensitive information, defective products or outdated items that include branded merchandise, pharmaceutical waste and even electronic waste.
Need more convincing? Here’s why you should use certified product destruction services for your business
Your Brand Gets An Extra Layer Of Protection
Your goods can end up on the gray market in a lot of different ways. For example, employees of a disposal 
company might sell items you believe were discarded. Or, if you simply “throw out” items you can no longer sell, anyone can pick these items up and do what they wish with them. And, this can include your own employees.
Your packaging can also be at risk. When you introduce new designs and a type of packaging is discontinued, your packaging should be properly disposed of. In an effort to get rid of it, you might hire someone your old packaging to the trash. However, by doing this, it can end up in the hands of someone who instead inserts knock-offs of your items in your old packaging.
Either way, your brand could suffer from the damaged or counterfeit goods being sold on the market. That’s because consumers will still associate these inferior products with your company.
It’s important to make sure the product destruction service company you work with is certified, licensed and bonded. The company also should have experience in handling and destroying product.
A reputable company will come to your location to remove the product, providing the necessary equipment and tools needed to do so in a secure fashion. A company should always provide verification (photos, video, certificates, etc.) that proves your finished goods were disposed of appropriately.
Your Liability Is Limited
A certified product disposal company can protect your business from any legal issues that may arise because of improper disposal or faulty products.
Defective and expired products expose your company to significant liability risk if they’re not properly destroyed.
For example, let’s say the Food and Drug Administration has just issued a warning about tainted dog food and is issuing a recall for your brand. Making sure all dog food that falls under this recall is adequately destroyed and disposed of is important to securing your brand, which is already taking a hit because of the recall.
Now imagine the potentially-tainted dog food you thought was properly disposed of ends up being sold on the market. This could further open you up to liability issues, costing you money and harming your reputation irreparably.
In some cases even, certified product destruction is required to satisfy court orders. Not doing so can have costly legal ramifications for your company.
There’s also the issue of sensitive information like customer credit card numbers, social security numbers and other information protected under federal and state consumer privacy laws that can be obtained through discarded e-waste. Shredding materials simply won’t do.
It Keeps You Compliant
This is especially important for any company that works with hazardous chemicals or toxic substances. These types of
substances require their own special handling to protect your company from complex regulations instituted by the U.S. Environmental Protection Agency and the California Department of Toxic Substances Control.
Defective or expired products may contain hazardous chemicals, and therefore post a significant liability risk if disposed of improperly. And, while most people think of hazardous substances as common in the pharmaceutical and medical equipment industries, they also are present in a number of industries, such as cosmetics.
It’s critical that any company you work with properly disposes of these substances and properly documents the disposal so you can ensure these products do not end up back onto the market. Make sure you obtain a certificate of destruction form as well to prove that secure product destruction has taken place.
If not, you can be held responsible. Think of it as you need to follow the “Cradle to Grave” approach, which means you are responsible for compliance with regulations from the moment you generate the product, through the transportation process for disposal, to the disposal itself.
Bottom Line
Products that make their way into the gray market can be devastating for your company.
Whether it’s the packaging your products come in, hazardous substances inside your products, or simply the products themselves that can’t be sold because of defects or other issues, your brand can suffer if they are not properly disposed of or destroyed.
Your liability and legal costs from potential violations can be just as damaging, which is why it’s important that you have a cost-effective solution and secure option to dispose of your product.
When choosing a certified destruction service, make sure it maintains tracking and security throughout the entire disposal process and works with a state-of-the-art disposal facility. This not only provides you with peace of mind, but also ensures you retain control of your product up until the end of its life.
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