Recalling Unsafe Products

This Topic Includes:
Aims of a recall
Assessing the need for a recall
Product defects
Carrying out the recall
Notifying relevant agencies
Type of publicity
Content of publicity
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How the Ministry can help

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.

Aims of a recall

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.

Assessing the need for a recall

When you become aware of a possible defect in a product that may make it unsafe you will need to consider a recall. To decide if a recall is necessary

• gather all available information on the defect. Arrange testing, talk to buyers/customers who have complained
• identify the number of goods affected (models, batches)
• locate the goods - where they have been distributed (warehouses, retailers, customers)
• assess the degree of danger – injury potential and likelihood of injury
• consult others who may have received complaints or who can offer advice on the need for a recall.

Product defects

The fault in a product could be:

with the product itself

eg, a manufacturing fault causes a weld on a bicycle to fail and the bicycle collapses while it is being ridden.

failure to meet a mandatory standard

eg, a product safety standard made under the Fair Trading Act, an electrical safety standard cited under electrical safety legislation, or a vehicle standard set out in the Transport Regulations.

with the packaging

eg, a cap on a bottle of household cleaner that does not fit properly.

caused by the use made of a product

eg, the fuel line in a motor vehicle fractures under extreme temperature and road conditions or a mug shatters when filled with hot liquid.

Carrying out the recall

Once a problem in a product has been identified a recall should be carried out quickly and efficiently. 

This checklist will help you to organise a recall:

• Nominate one person to coordinate the recall.
• Stop production and distribution of the product.
• Identify which models/ batches of the product are affected (eg by serial numbers, batch marking). Find out when these were produced and where they have been distributed.
• Notify distributors, wholesalers, importers, agents and retailers quickly and in writing.
• If the hazard is particularly serious notice should be given by fax or telephone, followed by a letter (see "Content of Publicity").
• Notify relevant government departments that you are undertaking a recall (see Notifying Relevant Agencies below).
• Make arrangements for providing refunds, replacing or repairing the recalled product.
• Notify individual customers directly of the recall where records are available.
• Prepare and undertake a publicity programme to ensure all users of the product are aware of the recall.
• Arrange to destroy the faulty products or to store them securely until they can be made safe.
• Keep a record of items returned. Record who returned the goods and the date. Keep a count of how many items are still outstanding.
• Evaluate the success of the recall using the record of returns. If the recall has not achieved a satisfactory rate of return you will need to develop new strategies for publicising the recall.
• Analyse the record to see which groups of buyers or which regions have a low return rate and choose suitable methods to inform these groups of the recall.

Notifying relevant agencies

Electrical goods

Inform the Energy Safety [External Website].

Food, foodware

Inform the New Zealand Food Safety Authority [External Website] about any food recalls.

Food safety emergencies range for industry-initiated product recalls, through those initiated by the regulator in response to regulatory non-compliance, food borne illness investigation or public complaint, to major threats to the integrity of all of the food supply or its components.

Medicines, medical devices and toxic substances

Inform the Ministry of Health [External Website] before you start the recall. The Ministry has specific information available on carrying out drug recalls and can also assist with food recalls.

Vehicles, seatbelts, child restraints, helmets, CNG and LPG equipment and any other vehicle or vehicle-operator related products

Inform the Land Transport Safety Authority [External Website].

Other products

Inform the Ministry's Measurement and Product Safety Service. The Ministry can offer advice on carrying out the recall.

Type of publicity

Recalls are usually publicised through direct contact with customers, or through newspaper advertising.

However, there are other ways you can publicise a recall. You need to consider which is most likely to get the message to the people who are using the product concerned. Some groups in the population are not regular newspaper readers, others will read some papers but not others, eg community newspapers but not daily newspapers. Think about who you are trying to reach.

Here are some of the possible means of publicising a recall:

• display signs in shops that sold the product
• ask relevant organisations to publicise the recall in their newsletters, eg Plunket might publicise the recall of a toy
• advertise in magazines in which the product was advertised
• advertise in daily or community newspapers
• issue a media release to newspapers, radio and television
• advertise on radio or television
• advertise in retailers' mailers. Supermarkets, retail chains, department stores often send mailers to every household.

You need to decide which combination of methods will reach the most users of the product.

Media release

A media release can result in free publicity for your recall on radio, television and in newspapers. Coverage of a recall on television news or programmes such 'Fair Go' can be particularly effective.

A media release should be short, frank and written in simple language. The main point should come first and quotes should be used if possible.

eg, Two Wheels NZ Limited today announced the recall of one batch of Bikerlite cycles. "We are concerned about the safety of the public", said Ms Forbes, Managing Director of Two Wheels.

The media release should contain the information listed under Content of Publicity, and the names and phone numbers of two people who can be contacted for further information

Newspaper/magazine advertisement

Place advertisements in newspapers published in the regions where the product has been sold. Advertisements should be placed in the in the news section not the Public Notices.

The information listed under Content of Publicity should be given and an illustration of the product should be included. An eye-catching heading should be used - eg, Safety Warning - Recall.

It should be obvious that the notice is about a recall for safety reasons.

The advertisement should be at least two columns wide with a suggested minimum of 11cm by 14cm. The advertisement will be more eye-catching if boxed.

Content of publicity

Any publicity for the recall needs to include the following information:

• a clear description of the product including the name, make, model, colour, batch or serial numbers
• a clear drawing or photograph of the product
• the dates that the product was available for sale
• a statement of the problem and the associated risk
• immediate action to take - eg, cease use, safe storage instructions
• what action consumers should take in order to receive a refund or to have the product repaired or replaced
• a contact telephone number for further information, preferably a toll free number.

Advertisement

As a guide, the Ministry of Consumer Affairs would expect a recall notice to include the following information:

Here is another example of a recall notice that could appear in a newspaper, mailer, shop sign, etc:

How can the Ministry help?

The Ministry of Consumer Affairs can assist you to undertake a recall by:

• providing contact names, addresses and fax numbers for sending out media releases
• advising on the best type of publicity for your recall
• issuing a supporting media release
• providing contacts in organisations that could help to publicise your recall
• access to Ministry information and assistance

  Telephone:               0508 MAPSS Info

                                0508 627 774

  International Clients:  0064 3 962 2580

PDF of publication

Carrying out a Product Recall - A Guide for Importers and Retailers publication is Only available in PDF version (253 KB). Instructions for obtaining the Adobe Acrobat viewer.