Overview of FDA's Food Defense Activities - Food and Drug Law ...

9Insurance Industry ResponseMalicious Product TamperingTriggered by the actual or threatened intentional, malicious orillegal alteration or contamination of an insured product so as torender it unfit for the use for what it was intended or create suchan impression with the public.‣ SO, there is a deliberate desire to cause economic harmor inflict bodily injury. The harm is directed againstinsured and it is known to the public.‣ Examples: pins found in lettuce at a major mid Atlanticretailer; cyanide in Chilean grapes; glass in baby food jars,etc.17INSCATECH Copyright 2012Insurance Industry ResponseProduct Extortion - any threat or connected series of threats tocommit a malicious product tampering of the insured product, forthe purpose of demanding extortion monies communicated to theinsured.‣ Basically I threaten to contaminate your product if you don’tpay me!Example: Australia Mars candy received threat that candy barswould tampered post production unless $$ received. All candypulled from shelves; significant brand rehab expense. Cost of$8 MM US - sadly $$ was used to pay gambling debts.INSCATECH Copyright 2012