Fonterra will offer compensation

World News: Fonterra will offer compensation to companies supplied with potentially contaminated whey protein concentrate. This has been reported in Fairfax NZ News this morning.

A lawyer said to Fairfax NZ News that Fonterra would give compensation freely and it was unlikely companies would sue, he said, adding the only way a lawsuit would come about was if there was a case of personal injury.

Fairfax Media is the largest integrated metropolitan, rural and regional, magazine and digital media company in New Zealand and Australia.

Eight companies were supplied with the potentially contaminated product and New Zealand supermarkets were recalling two types of infant formula. While there were no reports of sickness from the contaminated product, difficulty would arise if someone became ill.

ACC law prevents people in NZ from suing Fonterra if they became sick. ACC is NZ’s accident compensation corporation body responsible for administering the country’s universal no-fault accidental injury scheme.

However if someone in another country became sick from the contaminated products they could sue the company,depending on the law of their country.