Product recall 

For The Office episode, see Product Recall (The Office).
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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.1

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.

Contents

General steps to a product recall

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

Instances of major product recalls

Product recall agency by country

United States

Canada

Australia

The Netherlands

Ireland

See also

References

  1. ^ Toyota Tundra Recall Information - Toyota Recalls & Problems
  2. ^ Jeffrey Gold, Importer told to recall Chinese tires, AP, June 25, 2007
  3. ^ "Topps Meat Co. folds after beef recall.", New York Times (October 5, 2007). Retrieved on 25 September 2007. "Topps Meat Co. of Elizabeth, which is involved in the second-largest beef recall in U.S. history, said today it is going out of business after more than six decades" 
  4. ^ Australia bans China-made toy on toxic drug risk | International | Reuters
  5. ^ USDA orders recall of 143 million pounds of beef - CNN.com
  6. ^ Sony VAIO type T TZ series recall announcement (Japanese)

External links