A product recall is the process of retrieving and/or replacing defective products from the consumers. In the United States, the Consumer Protection Safety Commission (CPSC) oversees product recalls. There are three ways the CPSC may discover products that need to be recalled: (1) CPSC discovers dangerous products on their own; (2) Consumers submit complaints to the CPSC; or (3) the business proactively submits a report to the CPSC.
Once the CPSC is notified of a product that needs to be recalled, the CPSC will be a part of the recall process to make sure the recall satisfies their requriements.
Initiating a Recall
Initiating a recall starts within the business. Below is a list of actions that may need to happen.
- Stop production
- Identify affected UPC, date codes, and model numbers
- Isolate inventory
- Notify distribution chain to stop sale and isolate products
- Contact recipients of any in‐transit shipments of products
- Determine remedy (full refund, repair, or replacement)
- Test replacement or repair
- Redesign future production to eliminate hazard
- Enhance quality control measures
- Change model/serial numbers of redesigned product
- Relabel packaging of reworked products to distinguish from defective products
- Draft a reverse logistics plan
- Determine how returns will be processed at all levels of distribution
Recall Notice Documents and Related Items
Public notices need to be made to notify consumers. Below are ways that notices may happen.
- Toll‐free number
- Joint Press Release
- Retail Poster
- Customer Service Script or FAQ
- Social Media Plan (Twitter, Facebook, Pinterest, etc.)
- Link to recall information on Firm’s home page
- Individual letters to distribution chain (retailers, consumers, distributors)
- Contact information for all retailers, distributors, and consumers
- Envelopes marked with “Important Safety Message” or “Safety Recall” (in red ink) for recall notice mailing
After the Public Announcement
After the recall process starts, the CPSC will be following the business to make sure the recall is effective. The CPSC may take the following actions:
- CPSC will monitor the recall by contacting retailers and/or consumers
- Report monthly on recall participation as required
- Keep recall notice information posted on the firm’s website for the duration of the recall
- Keep posters up in retail locations for 120 days or longer
- Consult frequently with Compliance staff working with you on the recall to avoid problems