Katana VentraIP

Product recall

A product recall is a request from a manufacturer to return a product after the discovery of safety issues or product defects that might endanger the consumer or put the maker/seller at risk of legal action.

For the episode of the American TV series The Office, see "Product Recall".

The recall is an effort to limit ruination of the corporate image and limit liability for corporate negligence, which can cause significant legal costs. It can be difficult, if not impossible, to determine how costly can be releasing to the consumer a product that could endanger someone's life and the economic loss resulting from unwanted publicity. Recalls are costly. Costs include having to handle the recalled product, replacing it and possibly being held financially responsible for the consequences of the recalled product.


A country's consumer protection laws may include 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.

The business gathers information and analyses the problem. The affected products and batches, their locations within the , and probable causes of the problem are identified. Responsible authorities are informed of the issue and provide assistance.

supply chain

Direct suppliers, customers and logistics providers may be informed to help identify causes of the problem, and to place a precautionary hold on affected products in their possession to help limit the extent of a potential recall.

The business carries out a risk assessment to decide if a recall is warranted and the scope of the recall. If a recall is warranted, the business notifies the authorities responsible of their intention to recall a product. In some cases the government can also request a recall of a product.

Product recalls are communicated to affected businesses, consumer groups and customers. Notices may be published on the respective government agency's website (if applicable), the business's own website and social media platforms, in major daily newspapers, and in stores selling the product. If the owners of an affected product can be reasonably identified (e.g. a vehicle recall, where owners can be identified using the motor vehicle register), notices may be sent directly to them through post or email.

Typically, the consumer is advised to return the goods, regardless of condition, to the seller for a full refund or modification. Depending on the instructions of the recalling business, the seller returns the product to the recalling business, or may dispose or modify the product on site.

The seller reports recalled items to the recalling business, allowing them to reconcile the returned amount with the amount produced and determine if there is still product in the supply chain or the possession of end consumers. The recalling business will generally compensate the seller for the disposition or modification of the product.

Avenues for possible consumer compensation over and above direct costs will vary depending on the specific laws governing consumer trade protection and the cause of recall.

When the recall is completed, the business will generally to identify issues in the recall process and put in measures to prevent further similar recalls.

debrief

A product recall usually involves the following steps, which may differ according to local laws:[1]

Standards[edit]

The British Standards Institute's PAS 7100:2022 standard, Supporting Better Product Recalls, aims to help businesses plan in advance for conducting a product recall.[2]

USA: 1959-60 .[3]

Cadillacs

Recalls by industry[edit]

Automotive industry[edit]

In general, the number of recalls has been increasing – with an exception during the economic crisis of 2009–2010 – due to time, cost and market pressure. Per year, global automotive warranties are estimated as US$40 billion, 3–5% loss in sales.


Low-priced production often leads to minor quality, and outsourcing leads to a shift of knowledge concerning techniques and processes.[159] This way, technical failures are more likely to occur due to communication problems between the different parties engaged in the supply chain and missing definitions for technical interfaces. Despite the increasing number of recalls, a Mojo Motors, Inc. study found only .005 percent of customers ask about recalls when contacting dealerships.[160] Since 1966, 390 million motor vehicles have been recalled in the USA.[161] 29 million cars were recalled in 2018. That number is down from its peak of 50 million in 2016, but on average, recalls are on the rise. More cars have been recalled between 2015 and 2020 than between 2003 and 2014.[162]


Some of the largest automotive recalls include 1.12 million cars recalled by Toyota in December 2022. The recall included various models of Avalon, Camry, Corolla, RAV4, Lexus ES series, RX350 Highlander, and Sienna Hybrid, due to a fault in the Occupant Classification System (OCS) sensors that could cause the airbags not to deploy as designed.[163]


Manufacturers have to notify the owner when there is a recall notice, but in the case of a second, third or fourth owner of the car, the company may be sending the notice to a previous one.[164]

Contamination control

Duty to warn

FDA Recall Classification Levels

Lead poisoning

Toy safety

Track and trace

at Curlie

Product recall