Legal Question in Business Law in New Jersey
I am a reseller (owner of an LLC) of a wt loss supplement manufactured in china and sold in the US through one contracted distributor. Recently another reseller(LLC) had four lots of the product tested by an independent laboratory and all lots were positive for a banned substance, Sibutramine. The LLC did voluntarily recall the four lots of this product. They notified the FDA, the same lots were tested again confirming the results. The FDA published a press release stating these results in October. I contacted the exclusive distributor and she states this is not "our" product although the UPC number stated in the FDA report matches the UPC number of "our" product and the reseller/LLC that initiated the recall confirms this is the same product. The distributor also reports that she has voluntarily given the FDA bottles to test twice in the past year and a half and has never been told by the FDA the product is tainted. She has never provided us with any written proof of this despite requests from resellers. My question is what are my legal risks if I continue to sell this product (even though I do not have any evidence my supply is tainted and the sole US importer states in an email the product has been tested and she's never gotten results stating there is an unapproved substance in the product)? Of note, there has never been a complaint reported to the FDA regarding medical problems or serious side effects from this supplement. Even the LLC that initiated the investigation states there were no complaints reported. Legally what is the best way to go about notifying customers and discontinuing the sale of this product? Can I just stop selling without explanation or should I disclose what I do know to protect myself? I want to do what's morally and legally right and avoid tarnishing my reputation as I would like to continue my business going forward with other products.
1 Answer from Attorneys
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