Product Recall

Product recall

Product recall is a request to return to the maker a batch or an entire production run of a product, usually due to the discovery of safety issues. The recall is an effort to limit liability for corporate negligence (which can cause costly legal penalties) and to improve or avoid damage to publicity. Recalls are costly to a company because they often entail replacing the recalled product or paying for damages caused in use, albeit possibly less costly than indirect cost following damages to brand name and reduced trust in the manufacturer.

Information on recalls

Being aware of product recalls is important for the safety of anyone who comes in contact with the product and perhaps for the enjoyment of a product's full value. Recalls are not always easy to learn about, and companies do not always publicize a recall in an effort to limit the cost of replacing the product.

Common Sources of Recall Information:-

Grocery Stores (listings)
Mailings
News (television/print)
Internet, particularly consumer groups' websites

General Steps to a Product Recall

A product recall usually involves the following steps, which may differ according to local laws:
Maker or dealer notifies the authorities responsible of their intention to recall a product. Consumer hotlines or other communication channels are established. The scope of the recall, that is, which serial numbers or batch numbers etc. are recalled, is often specified.

Product recall announcements are released on the respective government agency's website (if applicable), as well as in paid notices in the metropolitan daily newspapers. In some circumstances, heightened publicity will also result in news television reports advising of the recall.

When a consumer group learns of a recall it will also notify the public by various means.
Typically, the consumer is advised to return the goods, regardless of condition, to the seller for a full refund or modification.

Avenues for possible consumer compensation will vary depending on the specific laws governing consumer trade protection and the cause of recall.

Commonly Recalled Products

Things causing harm or danger
Other defects diminishing functionality
Inadequate documentation (typically requires just re-shipment of documentation rather than a recall)

Reference: http://en.wikipedia.org/wiki/Product_recall