Consumer complaints: Risks business owners must plan for complaints

| Feb 12, 2021 | business litigation

Consumers play a large role in a company’s success. That is why it is one of the primary goals of businesses to keep consumers happy, so they come back and help the business grow.

However, consumers are not always easy to please. Even the smallest mistakes or oversights could lead to serious complaints that pose a considerable risk to a business’s reputation and success.

What are some of the most common consumer complaints?

As many people – business owners and consumers alike – would guess, the number one consumer complaint pertains to vehicles. Customers often file complaints about false advertising, defective parts or even financial issues against vehicle manufacturers or sellers.

However, as of 2017, some of the other common consumer complaints included:

  • False advertising or defective products in the retail and sales industry;
  • Failure to deliver or deceptive business practices in internet sales; and
  • Defects, improper work or failure to complete a job in construction.

There are times when these complaints do not amount to much. There is either no evidence to support the complaint or it is not a legal violation. Even so, complaints from consumers are often made public knowledge. Therefore, business owners should not overlook any type of complaint.

Companies must be prepared to respond to complaints

Consumers must follow a specific process when filing a complaint. After collecting evidence for their complaint, they must first reach out to the seller or company with an official complaint letter.

If California companies do not respond to these complaints properly or efficiently, it increases the risk that consumers will file a lawsuit. Whether the lawsuit is in small claims court or it becomes a civil suit, litigation is not often something that business owners want to risk.

This is why it is critical for all business owners, whether they own a construction company or a manufacturing plant, to have policies and practices in place to:

  • Establish a process to handle complaints
  • Monitor and track complaints proactively
  • Resolve issues and complaints effectively

It is also helpful to review the most common complaints and the business practices to avoid similar complaints in the future and ensure the practices comply with state and federal law.

Not every consumer will walk away happy. This is a reality in the business world. However, as with any other business matter, owners must formulate strategies to handle all risks before they become larger issues that put the business in jeopardy.