Product recall

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A product recall is a request to return to the maker a batch or an entire production run of a product, usually due to the discovery of safety issues. The recall is an effort to limit liability for corporate negligence (which can cause costly legal penalties) and to improve or avoid damage to publicity. Recalls are costly to a company because they often entail replacing the recalled product or paying for damages caused in use, albeit possibly less costly than indirect cost following damages to brand name and reduced trust in the manufacturer.

A good example is the recent recall of over 500,000 Toyota Tundra pickup trucks. The Tundra had a steering problem which resulted in several accidents, forcing the manufacturer to attempt to right the problem.

A country's consumer protection laws will have specific requirements in regard to product recalls. Such regulations may include how much of the cost the maker will have to bear, situations in which a recall is compulsory (usually because the risk is big enough), or penalties for failure to recall. The firm may also initiate a recall voluntarily, perhaps subject to the same regulations as if the recall were compulsory. In the case of a compulsory recall, consumers who fail to dispose of it or return it to the manufacturer for replacement or refund could be fined for as much as $5000.

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[edit] Product defect awareness

Consumer organisations examine products and warn the public of possible defects that diminish a product's functional value or safety. On the other hand, a class of activists known as muckrakers may use grassroot tactics to bring attention to corporate transgressions, including writing to newspapers and posting information on product defects, threatening the maker's publicity if the faults are not put right. A famous example is Unsafe at Any Speed, written by Ralph Nader, which targeted GM's Chevrolet Corvair sports car that had a faulty rear suspension causing frequent skidding and occasional flipping.

[edit] Information on recalls

Being aware of product recalls is important for the safety of anyone who comes in contact with the product and perhaps for the enjoyment of a product's full value. Recalls are not always easy to learn about, and companies do not always publicize a recall in an effort to limit the cost of replacing the product.

Common Sources of Recall Information

  • Grocery Stores (listings)
  • Mailings
  • News (television/print)
  • Internet, particularly consumer groups' websites

[edit] General Steps to a Product Recall

A product recall usually involves the following steps, which may differ according to local laws:

  • Maker or dealer notifies the authorities responsible of their intention to recall a product. Consumer hotlines or other communication channels are established. The scope of the recall, that is, which serial numbers or batch numbers etc. are recalled, is often specified.
  • Product recall announcements are released on the respective government agency's website (if applicable), as well as in paid notices in the metropolitan daily newspapers. In some circumstances, heightened publicity will also result in news television reports advising of the recall.
  • When a consumer group learns of a recall it will also notify the public by various means.
  • Typically, the consumer is advised to return the goods, regardless of condition, to the seller for a full refund or modification.
  • Avenues for possible consumer compensation will vary depending on the specific laws governing consumer trade protection and the cause of recall.

[edit] Commonly Recalled Products

  • Things causing harm or danger
  • Other defects diminishing functionality
  • Inadequate documentation (typically requires just re-shipment of documentation rather than a recall)

[edit] Instances of Product Recalls

  • USA (October 1982): Tylenol scare
  • USA (1998-1999): Chevrolet Malibu incident: Failure to recall resulted in multiple fatal occurrences
  • USA (May 2000): Ford Motor Company's handling of the recall of the 6.5 million 15-inch Firestone tires fitted to the Ford Explorer SUV. This soon culminated in the resignation of Ford's CEO at the time, Jacques Nasser. (See Firestone vs Ford Motor Company controversy.)
  • Australia (April 2003): The recall of a variety of goods manufactured by Pan Pharmaceuticals as a result of failures in quality assurance and standards. The company was soon put under receivership.
  • United Kingdom and Canada (February 2005): Potentially carcinogenic Sudan I food colouring was found in over 400 products containing Worcester sauce and had to be recalled.
  • Ireland and United Kingdom (24th June 2006): Cadbury-Schweppes announced that there has been a salmonella scare in their products, causing millions of chocolate bars from stores across Ireland and the UK to be recalled.
  • 2006 Sony notebook computer batteries recall:
    • August 2006: Dell recalls over four million notebook computer batteries, after a number of instances where the batteries, made by Sony, overheated or caught fire. Most of the defective notebooks where sold in the US, however some one million faulty batteries could be found elsewhere in the world.
    • August 2006: Following Dell's battery recall Apple Computer also recalls 1.8 million Sony notebook computer batteries. Similar to Dell, most of the notebooks were sold in the United States. However some 700,000 units could be found overseas.
    • September 2006: Matsushita (Panasonic) recalls 6,000 batteries.
    • September 2006: Toshiba recalls 340,000 batteries.
    • September 2006: IBM/Lenovo recalls 500,000 batteries.
    • October 2006: Hitachi recalls 16,000 batteries.
    • October 2006: Fujitsu recalls 338,000 batteries.
    • October 2006: Sharp recalls 28,000 batteries.
    • February 2007:Lenovo and Sanyo recalls 200,000 batteries.
  • March 2007: Menu Foods recalls wet varieties of dog and cat food because of several currently conflicting reasons; the recall has since spread to other brands, such as Hill's Prescription Diet and Purina

[edit] See also

[edit] External links

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