Compulsory product recalls, when to recall a product.
Why recall a product?
A high profile, open and successful recall will give a strong positive message to your customers. Customers will see that your company is working in their best interests.
The aims of a product recall should be:
- to minimise the risk of injury to the public by recalling the product as quickly as possible
- to get back as many of the faulty products as possible
- to minimise the cost and inconvenience for the consumer and the company.
If you are planning a product recall, notify us by:
- email; or
- phone 0508 627 774.
Fair Trading Act - compulsory product recalls
Compulsory product recalls can be ordered by the Minister of Consumer Affairs under Section 32 of the Fair Trading Act 1986 if:
- the goods are likely to cause injury, OR
- do not comply with a prescribed standard, OR
- they are goods in respect of which an unsafe goods notice banning the goods is in force (Section 32), AND
- the supplier has not recalled the goods or taken satisfactory action to recall the goods.
The Minister can require the suppliers at their own expense to do all or any of the following:
- recall the goods
- inform the public why or how the goods are unsafe or about any other matter relating to the goods which the Minister specifies
- repair or replace the goods, or
- refund sums of money to purchasers.
It is an offence under the Fair Trading Act 1986 to supply, or offer to supply, or advertise to supply any goods that do not comply with the requirements set out in a Product Safety Standard. The Courts may impose fines of up to $60,000 for any one individual, or up to $200,000 for a company.