ExpertRECALL Interview with Kenneth Ross
12-29-2009
Given the huge business and legal consequences of undertaking a recall in the first place and trying to make it as effective as possible, it is useful to consider what is going on in this area. There has been a flurry of recent activity from other countries and organizations on recall requirements and guidance on how to perform effective recalls. These all stem from the perception that recalls are not effective and that the goals of improving product safety are not being met.
We spoke with Kenneth Ross about the changes we can expect to see in recall requirements and regulatory involvement. Kenneth Ross is a former Partner and now Of Counsel to Bowman and Brooke LLP in Minneapolis, Minnesota. Mr. Ross has counseled manufacturers and product sellers on their post-sale responsibilities for over 30 years. This work includes preventive counseling related to post-sale issues, regulatory compliance, and counseling on recalls. He has also served as a counseling expert and testifying expert in litigation on recalls and other post-sale issues.
ExpertRECALL: There is a trend toward increased product safety legislation which includes new initiatives in Canada, Europe and China. What other legal jurisdictions are considering changes that manufacturers and retailers should be concerned about?
Kenneth Ross: The Australian Competition and Consumer Commission is undertaking a worldwide survey so it can draft recommendations to improve the handling of recalls in Australia. The ACCC is soliciting suggestions from various safety agencies and companies around the world in the hopes of coming up with “best practices.” Of course, these recommendations could assist with improving recalls in all countries.
Additionally, Japan has adopted new legislation forming a Consumer Affairs Agency which commenced operation on September 1, 2009. This agency has expanded recall responsibilities and powers and is working on a revision to a manual concerning recalls in Japan.
ExpertRECALL: Given the globalization of business, consumer safety has truly become a global concern. What are international organizations doing to address this issue?
Kenneth Ross: The International Consumer Product Safety Caucus (“ICPSC”) is facilitating the exchange of information on consumer product safety issues in the area of governmental policy, legislation and market surveillance with a view to strengthening collaboration and cooperation among governments and regulatory agencies around the world. Current active members of the ICPSC are representatives from several countries in Asia, Australasia, North and South America and Europe.
On September 10, delegates from twenty countries gathered in Stockholm, Sweden for the ICPSC International Conference on Product Traceability and Tracking Labels. And, the ICPSC and OECD will hold a workshop on recall effectiveness in Washington, DC, on February 15th in conjunction with the annual meeting of the International Consumer Product Health and Safety Organization. The workshop will include cutting edge research on recalls from Australia and recall notices from the Netherlands. The OECD will also present the results of their ongoing project on information sharing.
An international recall standard is being worked on by a committee of the International Organization for Standardization. The committee held its first meeting in May of 2009 in Malaysia. The target date for completion of this standard is 2012. The new standard will provide a guide for organizations “to plan and execute timely and cost effective product recalls…”
ExpertRECALL: What advice do you have for manufacturers in light of these pending regulatory changes?
Kenneth Ross: Manufacturers should not assume that their effectiveness rates are static and can’t be improved. Technology and enhanced retrieval services are available today that could increase their ability to quickly communicate with the distribution chain and even consumers about the recall. They should continually look for ways to significantly improve the success of their recalls and other post-sale remedial programs. And they should continually strive to properly and accurately document their efforts. Hopefully, this will minimize risks and the potential for accidents and provide some type of defense if an accident occurs.
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