Working with Regulators throughout the Product Recall Process

By Mike Rozembajgier

December was once again a busy month for the Consumer Product Safety Commission (CPSC), with new rules on drop-side cribs and recalls of products ranging from night lights to shades to space heaters. With so much regulatory activity, manufacturers, distributors, and retailers may feel like they are under attack and be tempted to take a defensive position. But understanding that the CPSC’s mission is to protect the public – not to take down companies – can go a long way toward minimizing recall risks, opening lines of communication with regulators, and protecting the public from unnecessary risks.

As I said in a recent Forbes piece, retailers and manufacturers must understand that they and the government are both in the consumer safety business. Embracing this shared goal can yield positive results for companies, regulators, as well as the general public. Sharing information and promptly reporting potential risks allows regulators and companies identify product safety trends, understand risks that may not have been considered before, and work together in the event of a recall – rather than regulators simply imposing penalties.

While news reports may not always reflect it, effective recall management and compliance requires a mindset that recognizes recalls as a process, not an event. If a company determines that a particular product creates a danger for consumers, it is not enough to simply announce the recall, provide a fix, and then close the book on the issue.

Instead, companies must work with regulators on an ongoing basis to not only quickly and effectively replace or repair dangerous products, but also to demonstrate a commitment to preventing future problems and protecting the public. Open and transparent communication – with both regulators and the public – is critical before, during, and after a recall.

By making a commitment to working with regulators to protect the public, companies will not only reduce the risk of a future recall, but will also reduce the risk of fines and penalties should a recall – at least one outside of the company’s control – take place in the future. In addition, should this cooperation lead to the identification of new safety risks, companies can claim as much credit for protecting consumer safety as regulators – a win for consumers, regulators, and, just as important, for the company’s reputation.

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