Product Recall Statistics: An FAQ For Manufacturers

Manufacturers of consumer products selling into thedirectly to the CPSC Web site). The second is when
U.S. market are aware of the potentially dangerousproactive or cautious manufacturers or distributors of
and costly consequences when their products containa given product suspect a defect or flaw and decide
a major design flaw or manufacturing defect. The U.S.to error on the side of caution by instituting their own
Consumer Product Safety Commission (CPSC) Webrecall campaign. Either way, the CPSC ultimately gets
site indicates that there is indeed reason for caution oninvolved with all consumer product recalls - provided
the part of all manufacturers: deaths, injuries, andthat the product in question is one of the 15,000
property damage from consumer product-relatedproduct types that falls under the CPSC's domain.
incidents cost the U.S. more than $700 billion eachFAQ #4: How should my company determine whether
year.we should issue a recall?
The CPSC's "November 2007 Recalls and ProductA: The determination as to whether your firm should
Safety News" report indicates a wide range of recentissue a product recall should depend upon a number of
recalls that were enacted in order to protectfactors, both internal and external to your company.
consumers from potential dangers ranging fromOften, multiple dimensions are to be taken into account
lead-based paint in toys to collapsing furniture.when considering whether to issue a campaign. Legal,
Here is an FAQ for those manufacturers who arefinancial, ethical, technical and political factors are all
currently considering a product recall or who operate ininvolved. If you are facing a potential product recall
industries that face a high degree of risk of productsituation and would like to find out more, visit the
recall-related incidents.Business section of the CPSC Web site for
FAQ #1: Which types of consumer products areinformation about regulations and industry guidance.
experiencing highest incidence of recalls?FAQ #5: What are the options available to me to get
A: According to an analysis of the "November 2007the message out to consumers and distributors in the
Recalls and Product Safety News" report available onevent of a recall?
the CPSC Web site, 36% of recalls in that monthA: The very nature of most product recall situations is
involved baby goods or toys. Following close behindone of urgency. Companies have a number of options
were products in the following categories: jewelryavailable to them in getting the word out to affected
costume jewelry (13%), electronics/electrical productsparties, including direct mail, press releases, e-mail and
(13%), furniture (9%), and machines/vehicles (6%).telephone-based campaigns. The fastest-to-implement
Other product categories represented among themedia for conducting recalls messaging campaigns are
multiple recall campaigns mediated by the CPSC intelephone and e-mail-based campaigns. However,
November include clothing, decorations, outdoortelephone-based campaigns are likely the most realistic
sporting goods, school supplies, paper goods, storageto implement, given that the typical company's
racks and tools.customer database often lacks e-mail addresses for
FAQ #2: What are the most prevalent potentialmany consumers, while telephone number data is
dangers related to recent recalls?readily available for most or all consumers.
A: The recalls in the aforementioned November reportFacing a product recall situation is something that
were implemented in order to avoid a number ofevery manufacturer or distributor would like to avoid.
potential public and consumer health hazards asHowever, given that most consumer product
indicated by the CPSC. By far the most prevalentcategories are potentially at risk for a recall - and given
potential hazard among recent recalls was that of thethe public health dangers at stake - the decision to
presence of lead in the recalled products (47%). Otherimplement a campaign is often the least-costly and
potential hazards include the risk of fire (19%), collapsemost ethical choice. If your company is facing a recall
bodily injury (11%), choking (6%), lacerations/cuts (6%),situation, it is important to make quick, accurate
strangulation/suffocation (6%), and electric shock (4%).judgments about whom to contact and how to
FAQ #3: What events typically lead up to a productdetermine the content of the recall message that
recall?consumers will hear. From that point forward, choose
A: A product recall can come about in two primarya medium for your messaging campaign based upon
ways. The first is the result of multiplethe following factors: time-to-launch, chances of
consumer-originated complaints to the CPSC or otherreaching the highest percentage of affected
government organizations about the same product.consumers, operational flexibility, and cost.
(Such complaints can be directed by consumersSource: U.S.