Product Recall
A product recall is a request from a manufacturer or distributor to return products
after the discovery of defects, health or safety issues that may endanger consumers or put the
manufacturers or sellers at risk of legal actions. The product recalls happen due to various
reasons such product contamination, misbranding, an undeclared ingredient, and lack of
inspection benefits, possible processing deviation and due to under-processing. Product recall is,
therefore, explicitly done to put consumers out of danger and an effort to limit damaging the
corporate image. It also limits the liability for corporate negligence against the risk of legal
actions that can amount to significant legal costs (Rayfield & Unsal, 2018).
Even though recalls are significantly costly, it is challenging to determine how
costly it is to release to consumer products that could endanger their lives and the economic loss
as a result of the unwanted publicity. The costs associated with recalls include handling costs of
recalled products, product replacement, and possibly held financially liable for the consequences
of recalled products. In my knowledge, recalls are actions taken by manufacturers and
government to protect the public from products that may endanger their lives and cause safety
and health problems. Recalls are part of reverse logistics, which may include banning of product
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sales or returning products for replacement. A manufacturer or seller should provide the
component that mitigates the danger of using the product. According to Rayfield and Unsal
(2018), reverse logistics should establish an efficient recall process that protects the consumer
and the company from recalled products and reporting of safety concerns. Various website and
sites such as recalls.gov, FDA.gov, and Foodsafety.gov provide essential information about the
product that could endanger public and ensure proper safety measures are followed. Consumer
protection laws provide specific requirements for the product recalls such as the manufacturer’s
cost, situations for mandatory recalls and penalties for failure to recall.
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References
Rayfield, B., & Unsal, O. (2018). Product recalls lobbying and firm value. Management
Decision.
