Recalls by Manufacturers

AuthorJeffrey Wilson
Pages365-370

Page 365

Background

Sometimes certain defects in a product become apparent after the product has entered the marketplace and been sold. These defects can be related to safety, such as when a certain model of automobile has problems with its braking system, where small pieces from a toy pose a choking hazard to young children, or where a medication poses a previously undiscovered, serious adverse health risk to users. Sometimes the problem is another kind of defect, as when a certain model of vacuum cleaner consistently fails to work properly. A recall may be necessary to remedy problems with a product. Recalls are procedures taken by a manufacturer to remove a product from the market. Recalls allow a manufacturer the opportunity to repair or replace the defective product. Recalls can be costly procedures for manufacturers, but are often less costly than multiple lawsuits or the loss of goodwill among consumers. Recalls may be voluntary on the part of a manufacturer, or they may be mandated by the government.

Six agencies within the U.S. government have jurisdiction over recalls:

The Consumer Product Safety Commission (CPSC) has jurisdiction over thousands of products used in homes, schools, and for sports and recreation

The Food and Drug Administration (FDA) has oversight over food, drugs, medical devices, animal feed, cosmetics, and radiation-emitting products such as lasers, micro-waves, and cell phones

The Food Safety and Inspection Service (FSIS) of the Department of Agriculture (USDA) inspects and regulates meat, poultry products, and eggs and egg products

The National Highway Traffic Safety Administration (NHTSA) is responsible for recalls of motor vehicles and related equipment, child safety seats, and tires

The Coast Guard covers recreational boats and related equipment

The Environmental Protection Agency (EPA) has recall jurisdiction over insecticides, rodenticides, fungicides, and vehicle emission testing

Consumer Product Recalls

Manufacturers recall many of their own products every year when defects and/or safety risks are discovered in their products. Most recalls occur for safety-related reasons. Sometimes, a manufacturer will voluntarily recall products, and sometimes they are compelled to issue recalls.

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The Consumer Product Safety Commission has jurisdiction over more than 15,000 consumer products. According to the agency, deaths, injury, and property damage from consumer product incidents costs the U.S. more than $700 billion a year. CPSC contends that its advocacy since 1972 has resulted in a 30 percent reduction in death and injury from consumer products. CPSC announces recalls of products that present risks to consumers because the products are either defective or violate mandatory safety standards issued by CPSC.

When a consumer discovers that a product that she owns is recalled, she should stop using it. The consumer should also follow the specific guidance in CPSC's recall announcement on that product. A product recall usually lasts indefinitely. Even if more than a year has passed since CPSC issued a recall notice, product owners should read and follow the instructions in the recall notice.

The remedies for recalled products are specific to each product; no single remedy applies to all products. Each recall announcement is as specific as possible and details the remedy for the product. An announcement typically includes information on where the product was sold, the type and number of injuries or damage caused by the product, and contact information needed to obtain the remedy. The announcement frequently limits recalls to products manufactured during a specific time period. For example, CPSC may announce a recall on toy X, manufactured between June 17, 2005 and August 23, 2006. Owners may or may not get a refund of their recalled product.

Food, Drug, and Cosmetics Recalls

The Food and Drug Administration is charged with overseeing the safety and effectiveness of food, drugs, and many cosmetics products. As with other consumer goods and motor vehicles, recalls may be necessary when it is determined that a consumable product may pose considerable risk of harm to individuals. In terms of food, drugs, or cosmetics, recalls may proceed under a manufacturer's own initiative, by FDA request, or by FDA order. There are three classes of recalls in descending order of urgency:

Class I recalls are cases in which there is a reasonable chance that the use of or exposure to a product will cause serious adverse health consequences or even death.

Class II recalls are cases in which exposure to a product may cause temporary or reversible adverse health consequences, or where the odds of serious adverse health consequences are not great.

Class III recalls are situations in which use of or exposure to a product is unlikely to cause adverse health consequences.

Examples of Class I recalls are foods found to contain botulinal toxin, foods with...

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