Product Recall - Managing The Process

The recent product recall procedure by a well known car manufacturer has underlined the growing number of companies having to take recall decisions and the impact that the tough regulatory framework, particularly that flowing from the EU, is having on product safety.

A reputation for product safety can generate consumer confidence and brand loyalty providing a tangible and significant benefit to the manufacturer.  

The current regulatory framework imposes obligations on manufacturers including importers and those with own brand lines to bring to market only those products that are safe - that is to say products that present no risk, or only minimal risks which are compatible with the product's use.

Product Safety - Managing the Risk

The Product Safety team at Ashfords Solicitors has found that manufacturers who have structures in place to prevent the introduction of unsafe products into the market place are best placed to successfully maintain the safety integrity of their products.  These structures include:

•    Formation of a Risk Management Team to oversee the organisation's product range in terms of safety.

•    Rigorous UK based testing regime, including spot testing on batch shipments.

•    The introduction of clear tracing and locating procedures to permit the identification and current location of individual product units and batches.

•    Systems to review and monitor consumer complaints to identify and catch potential safety issues early.

•    Consider recall insurance options.

Dealing with a potential product safety issue

The current regulatory framework, particularly that flowing from the EU, requires extremely swift action on identifying a potentially unsafe product line.  That underlines the advantage to manufacturers in having in place a pre-emptive strategy.  In the event of a threat to the safety of a product, the manufacturer would need to consider the following:

•    On receipt of information of a potential problem (either through consumer monitoring, or an ongoing testing regime) a pre-designated safety management team should be informed.

•    The safety management team should have immediate access to safety related information regarding the product being considered, including relevant risk assessments, test house result history and batching/tracing information.

•    The safety management team will need to consider immediate next steps following an initial quantification/assessment of product safety to include:
1.    Issuing an emergency stop notice to freeze affected units in the supply chain pending further investigation and in particular, to ensure no further consumer sales.
2.    Immediate additional testing to identify what, if any, safety related problem exists - consider scope of testing to include units from different batches in order to identify the extent of the problem and to establish the prospects of containment.
3.    Interrogate reporting systems in order to identify levels of complaints and other indications of a potential defect.
4.    Work up and implement, if necessary, a clear communication strategy to include specific briefing notes for designated telephone teams dealing with consumers.
5.    Identify and plan roll out of corrective measures  - to include assessment of recall options with appropriate advisors and assessment of availability and sourcing of replacement products.
6.    The safety management team to be aware of regulatory time constraints - for example the need to notify the competent authority within 3 days in the event of a serious risk.

In our experience a well prepared team will greatly enhance the opportunity for a manufacturer to demonstrate it's commitment to safety and to insulate a brand against adverse publicity in the event a product recall procedure does become necessary.

For expert advice call Rory Mac Neice, Partner at Ashfords  LLP, on 0117 321 8071.

Ashfords LLP is regulated by the Solicitors Regulation Authority.  The information in this note is intended to be general information about English law only and not comprehensive.  It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.  Links to other sites and resources provided by third parties are included for your information only.  We have no control over the content and accept no responsibility for them.