Product Recall Statistics: An FAQ For Manufacturers

Manufacturers of consumer products selling into theproactive or cautious manufacturers or distributors of
U.S. market are aware of the potentially dangerousa given product suspect a defect or flaw and decide
and costly consequences when their products containto error on the side of caution by instituting their
a major design flaw or manufacturing defect. Theown recall campaign. Either way, the CPSC ultimately
U.S. Consumer Product Safety Commission (CPSC)gets involved with all consumer product recalls -
Web site indicates that there is indeed reason forprovided that the product in question is one of the
caution on the part of all manufacturers: deaths,15,000 product types that falls under the CPSC's
injuries, and property damage from consumerdomain.
product-related incidents cost the U.S. more thanFAQ #4: How should my company determine
$700 billion each year.whether 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 ofissue a product recall should depend upon a number
recent recalls that were enacted in order to protectof factors, both internal and external to your
consumers from potential dangers ranging fromcompany. Often, multiple dimensions are to be taken
lead-based paint in toys to collapsing furniture.into account when considering whether to issue a
Here is an FAQ for those manufacturers who arecampaign. Legal, financial, ethical, technical and political
currently considering a product recall or who operatefactors are all involved. If you are facing a potential
in industries that face a high degree of risk ofproduct recall situation and would like to find out
product recall-related incidents.more, visit the Business section of the CPSC Web
FAQ #1: Which types of consumer products aresite for information about regulations and industry
experiencing highest incidence of recalls?guidance.
A: According to an analysis of the "November 2007FAQ #5: What are the options available to me to get
Recalls and Product Safety News" report available onthe message out to consumers and distributors in the
the CPSC Web site, 36% of recalls in that monthevent of a recall?
involved baby goods or toys. Following close behindA: The very nature of most product recall situations
were products in the following categories: jewelryis one of urgency. Companies have a number of
costume jewelry (13%), electronics/electricaloptions available to them in getting the word out to
products (13%), furniture (9%), and machinesaffected parties, including direct mail, press releases,
vehicles (6%). Other product categories representede-mail and telephone-based campaigns. The
among the multiple recall campaigns mediated by thefastest-to-implement media for conducting recalls
CPSC in November include clothing, decorations,messaging campaigns are telephone and e-mail-based
outdoor/sporting goods, school supplies, paper goods,campaigns. However, telephone-based campaigns are
storage racks and tools.likely the most realistic to implement, given that the
FAQ #2: What are the most prevalent potentialtypical company's customer database often lacks
dangers related to recent recalls?e-mail addresses for many consumers, while
A: The recalls in the aforementioned Novembertelephone number data is readily available for most or
report were implemented in order to avoid a numberall consumers.
of potential public and consumer health hazards asFacing a product recall situation is something that
indicated by the CPSC. By far the most prevalentevery manufacturer or distributor would like to avoid.
potential hazard among recent recalls was that of theHowever, given that most consumer product
presence of lead in the recalled products (47%).categories are potentially at risk for a recall - and
Other potential hazards include the risk of fire (19%),given the public health dangers at stake - the decision
collapse/bodily injury (11%), choking (6%), lacerationsto implement a campaign is often the least-costly and
cuts (6%), strangulation/suffocation (6%), andmost ethical choice. If your company is facing a recall
electric shock (4%).situation, it is important to make quick, accurate
FAQ #3: What events typically lead up to a productjudgments about whom to contact and how to
recall?determine the content of the recall message that
A: A product recall can come about in two primaryconsumers will hear. From that point forward, choose
ways. The first is the result of multiplea medium for your messaging campaign based upon
consumer-originated complaints to the CPSC or otherthe following factors: time-to-launch, chances of
government organizations about the same product.reaching the highest percentage of affected
(Such complaints can be directed by consumersconsumers, operational flexibility, and cost.
directly to the CPSC Web site). The second is whenSource: U.S.