A product recall is a request that a batch or an entire production run of a product be returned to the manufacturer, 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 curb bad publicity. Recalls are costly to a company because they often entail replacing the recalled product or paying for damages caused in use.
A country's consumer protection laws will have specific requirements in regards to product recalls. Safety-related recalls can be voluntarily initiated by the manufacturer, or made compulsory by a government agency if the risk is seen to be significant and if it is in the best interests of the consumer.
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 GM's Corvair sports car that had a faulty rear suspension causing frequent skidding and occasional flipping.
Where can I learn about recalls?
Being aware of product recalls is important for the safety of anyone who comes in contact with the product. 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 Scources of Recall Information
- Grocery Stores (listings)
- Mailings
- News (television/print)
- Internet
General Steps to a Product Recall
A product recall usually involves the following steps, which may differ according to local laws:
Company/Supplier notifies the respective government agency of their intention to recall a product. Consumer hotlines or other communication channels are established.
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.
Typically, the consumer is advised to return the goods, regardless of condition, to the store from which it was purchased for a full refund or modification.
Avenues for possible consumer compensation will vary depending on the specific laws governing consumer trade protection.
Commonly Recalled Products
- Things causing harm or danger
- Defective products
- Inadequate documentation
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 as a result of failures in quality assurance and standards. The company was soon put under receivership.