Wednesday, April 25, 2007

Research on Product recall.

Source: http://en.wikipedia.org/wiki/Product_recall

A product recall is a request to return to the maker a batch or an entire production run of a product, usually due to the discovery of safety issues. The recall is an effort to limit liability for corporate negligence (which can cause costly legal penalties) and to improve or avoid damage to publicity. Recalls are costly to a company because they often entail replacing the recalled product or paying for damages caused in use, albeit possibly less costly than indirect cost following damages to brand name and reduced trust in the manufacturer.

General Steps to a Product Recall

-Maker or dealer notifies the authorities responsible of their intention to recall a product. Consumer hotlines or other communication channels are established. The scope of the recall, that is, which serial numbers or batch numbers etc. are recalled, is often specified.
-Product recall announcements are released on the respective government agency's website (if applicable), as well as in paid notices in the metropolitan daily newspapers. In some circumstances, heightened publicity will also result in news television reports advising of the recall.
-When a consumer group learns of a recall it will also notify the public by various means.
-Typically, the consumer is advised to return the goods, regardless of condition, to the seller for a full refund or modification.
-Avenues for possible consumer compensation will vary depending on the specific laws governing consumer trade protection and the cause of recall.


Source: http://www.dti.gov.uk/files/file21808.pdf

What triggers the product recall?
-Customer complaints
-Accidents
-Made aware by service or returns
-Discovery in-house
-Official body ruling

The product recall procedure initiated by a manufacturer or importer will also vary from the procedure initiated by a retailer.

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