Product recall

Product Recall

Product Recall is when a company puts out a notice requesting all of a given product to be returned, usually due to safety issues discovered after the product has been released. The actual action of recalling a product is in effort to limit corporate negligence, and to curb bad publicity. Recalls are costly to a company because they most often entail providing a product for the consumer to replaced the recalled one.

A country's consumer protection laws will have specific requirements in regards to product recalls. Safety related recalls can be voluntarily taken up by the manufacturer, or made compulsory by a governmental agency if the risk is seen to be severe and seen to be in the best interests of the consumer.

As product recalls can result in unwanted negative publicity for the manufacturer, the company's conduct and handling of a recall is dependent upon the respective government agencies upholding their trade or consumer safety laws in the public interest.

Muckrakers

Product Recalls are sometimes forced by muckrakers, people who use grassroots tactics to bring attention to corporate trangressions. Muckrakers often will write newspaper articles or post information about faulty products in order to force action from the company. A famous example is Ralph Nader who wrote a book "Unsafe at any Speed" which targeted GMC's Corvair Sports Car that had faulty rear suspension causing frequent skidding and ocassionally flipping.

Where can I learn about Recalls?

Being aware of Product Recalls is important both for personal safety and safety of others who come in contact with the product. Recalls are not always easy to learn about, and are often hidden by the company in order to limit the need for replacement products.

Common Possible Scources of Recall Information

• Grocery Stores (Listings)
• Mailed Notices
• Newspapers (listings and articles)

General Steps to a Product Recall

A product recall usually involves the following steps (A country's legislation will vary the steps in which a recall is issued):

Company/Supplier notifies the respective government agency of their intention on conduct a product recall on their goods for a specific set of reasons. Official hotlines or appropiate means of communications are established to inform of latest events and advice for any possible recourse the consumer can pursue.

Product recall announcements are released on the respective government agency's webiste (if applicable), as well as releasing product recall advertisments on the metropolitan daily newspapers. In some circumstances, heightened publicity will also result in news television reports advising of the recall.

Typically, the consumer is advised to return the goods (regardless of its merchantability - i.e. used or unused) to the store from which it was purchased for a full refund, or for modification/repairs.

Avenues for possible consumer compensation will vary depending on the specific laws governing consumer trade protection.

Commonly Recalled Products

• Baby Safety Seats
• Children's Toys

Product Recalls

Product recalls are a result of a manufacturer to officially or voluntarily recall a product due to its defects, depending on the severity and risk of consumer injury as a result of this defect. This product is essentially any good of merchantable quality; inclusive of manufactured, therapeutic, and general consumer goods.

Infamous instances of Product Recalls

USA (May 2000): Ford Motor Company's handling of the recall of the 6.5 million 15-inch Firestone tires fitted to the Explorer SUV. This soon culminated in the resignation of Ford's CEO at the time, Jacques Nasser.

Australia (April 2003): The recall of a variety of goods manufactured by Pan Pharmaceuticals (a provider of theraputical and medicinal goods) as a result of failures in quality assurance and standards. The company was soon put under receivership.