Staying Current on the Changing Recall Process Could Save You Millions
By Howard Aughinbaugh
With the regulatory landscape in constant flux, it is critical that manufacturers, retailers and the industry experts who serve them stay up to date on recall regulations and the latest methods to ensure compliance in advance of product recalls.
Recently, I participated as a faculty member at the Product Safety and Recall Seminar in Chicago, IL. Participation in these types of events gives me an opportunity not only to teach, but to learn what’s top of mind for manufacturers and retailers worried about recalls of consumer products. Other panelists at the seminar included Ken Ross of Bowman and Brooke, LLP; Jason Hertzberg, PhD, of Exponent, Inc.; and Kevin Owens of Johnson and Bell, Ltd.
The focus of the seminar was four-fold: 1) share best practices in for post-sale duties and responsibilities; 2) explore ways to design products to reduce the probability of a recall; 3) learn the latest methods to ensure recall compliance; and 4) learn how best to defend a product liability case after a recall occurs.
Key questions and concerns that arose from the conference included:
- What is the impact of social media (blogging, Twitter, Flickr, etc.)? How is it changing the face of recall notification? What is its role in creating heightened awareness with consumers and the subsequent impact on response rates? How should manufacturers factor social media into their recall plan and be prepared to adequately respond?
- What is the state of the changing regulatory requirement created by the Consumer Product Safety Improvement Act of 2008 and how do manufacturers and retailers stay current in this very dynamic regulatory environment?
- What actions should be taken before, during and after a recall to mitigate the legal risks should a product liability case arise? What is a sound record-retention policy? Does the failure of a consumer or product user to follow clearly written instructions included with the product constitute a defense?
- What is the impact of both common law and regulatory law on post-sale recall obligations?
We live in complicated times that are growing in complexity. It is critical that we ask the tough questions before a recall crisis hits. Manufacturers must invest the necessary time and effort to educate themselves on these topics and adequately prepare to perform post-sale duties in a manner that reflects well on their brands and mitigates the legal and economic risks associated with any post-sale actions set in motion by consumers and activists.
I cannot stress enough the need for all manufacturers and retailers to create the time to consider these issues and stay up to speed with the latest developments. Failing to do so now may needlessly cost your company millions of dollars later.
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