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.
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 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, 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.

General steps to a product recall

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

1958

1959

Automotive industry

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 USD 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. 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. Since 1966, 390 million motor vehicles have been recalled in the USA. 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 in the past five years than between 2003 and 2014.
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.

Food industry

Over 3000 food products were recalled in the US in 2016 according to the US Food and Drug Administration Enforcement reports. Individual recall events caused by contamination from foreign bodies has increased by 76% in 2016 compared with 2015. This increase in 2016 is even more marked when looking at the number of products recalled due to foreign body contamination. In 2016 there were 422 products recalled due to foreign body contamination, whilst in 2015 there were 108; almost a 300% increase.

Pet food recalls

Every year, there are several pet food and treat recalls due to spoiled or tainted ingredients. Perhaps the most known was in 2007. The 2007 pet food recalls involved the massive recall of many brands of cat and dog foods beginning in March 2007. The recalls came in response to reports of renal failure in pets consuming mostly wet pet foods made with wheat gluten from a single Chinese company, beginning in February 2007. The recall began voluntarily with the Canadian company Menu Foods on March 16, 2007, when a company test showed sickness and death in some of the test animals. Overall, several major companies have recalled 150 different brands of food comprising more than 5,000 separate pet food products. The FDA and USDA investigation found the food to be intentionally contaminated with the chemical melamine.
However pet food recalls are not rare at all. The 2007 recall stands out and is well known because of the sheer size, scope, and number of animals affected. But pet food recalls occur on a regular basis. For instance, on September 12, 2008 Mars Petcare US announced a voluntary recall of all dry pet food products produced at its plant in Everson, Pennsylvania, citing potential contamination with salmonella.

Snack food recall

On July 23, 2018 Pepperidge Farm announced that the Flavor Blasted Xtra Cheddar Goldfish crackers were being recalled due to possible salmonella contamination in the whey powder used on them. This recall also affected the Flavor Blasted Sour Cream and Onion, Whole Grain Xtra Cheddar, and Xtra Cheddar and Pretzel varieties.
Also more snack products were recalled for various safety reasons. Mondelēz Global LLC recalled all Ritz Crackers products that are containing whey after traces of salmonella were detected on the whey powder. The recall includes Ritz cheese cracker sandwiches and mixed cookie and cracker variety packs. Flower Foods recalled all of their Swiss Rolls products sold under the H-E-B, Food Lion, Mrs. Freshley's, Baker's Treat, Market Square, and Great Value brands due to contamination of salmonella. John Derst's Old Fashioned Bread was also affected by the recall. Pinnacle Foods, Inc. issued a recall on all Hungry Man BBQ boneless chicken wing products due to salmonella being detected in the whey powder of the ranch dressing.