Product recall

From Free net encyclopedia

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 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.

1 Product defect awareness
2 Information on recalls?
3 General Steps to a Product Recall
4 Commonly Recalled Products
5 Infamous Instances of Product Recalls
6 External links

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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.

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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 Scources of Recall Information

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

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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.

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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)
Offensive Items (i.e Confederate Flags, and Grand Theft Auto: San Andreas)

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Infamous Instances of Product Recalls

USA (October 1982): Tylenol scare
USA (1998-1999): GM 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.