Latest Recall Legislation Could Deter Voluntary Recalls

By Mike Rozembajgier

Last month, the Consumer Recall Protection Act of 2011 – a piece of legislation that could have a major impact on companies dealing with recalled products – was introduced by Sen. Charles Schumer (D-NY). If enacted, this legislation would prohibit the sale of any product that had been previously recalled, no matter what the cause of the recall. While a commendable idea in concept, there are industry concerns that this new regulation could actually deter companies from executing voluntary recalls.

Companies often perform voluntary recalls to remedy something as simple as a labeling error, which means that the actual products are generally still fine for resale. But this new legislation could lead some companies to try to hide their error, especially if it poses no immediate threat to consumer safety, in an effort to keep their products on the market and avoid what is in their mind an unnecessary product loss.

Despite these concerns, however, companies should always put the consumer’s best interest first in order to protect their brand and maintain credibility. We’ve seen time and time again how even a brief hesitation in ordering a recall can lead to regulatory investigations, expensive lawsuits, and irreparable brand damage. No matter what the impact of this new legislation, manufacturers should still maintain their commitment to consumer safety.

In today’s increasingly stringent regulatory environment, there is no such thing as over-compliance. Companies should be proactive as soon as an issue arises. Protecting consumers is still the best way for a company to protect itself.

Honesty and transparency will always help establish credibility with customers, and that can pay dividends down the road. By contrast, attempting to cover up or delay addressing a problem may be cheaper initially, but is likely to have devastating consequences down the road. Companies can no longer afford to wait until public attention makes a recall inevitable. Over-compliance and proactive recall action are now the standard against which all companies are being judged all the time.

Stericycle ExpertRECALL™ is the industry leader in recall logistics and regulatory compliance for consumer product, pharmaceutical, medical device, juvenile product, and food and beverage recalls. ExpertRECALL’s professionals are experts in recall management who can help you streamline the entire product recall process.