Recalls in the US

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Information about Recalls in the US
Business & Mgmt

Published on March 6, 2014

Author: USCPSC



General overview of the CPSC recall process.


What Prompts a CPSC Recall? • Industry self-reporting through Section 15 (CPSA) • Report that results in a staff determination of a substantial product hazard (SPH); or • Firm requests to conduct a Fast Track Recall (no determination); • Staff-initiated product investigation reveals a SPH; or • Violation of a CPSC statute, rule, regulation, standard, or ban resulting in a SPH; generally through • Marketplace surveillance • Sample Collections • Industry/ trade complaints

CPSC Recall Authority Statutory Authority • 15 U.S.C. Section 2061 (Section 12 – CPSA) • 15 U.S.C. Section 2064 (Section 15 – CPSA) • 15 U.S.C. Section 1275 (Section 15 – FHSA) Implementing Regulations • 16 C.F.R. Part 1115 • Section 1115.20 – Voluntary Remedial Actions - Corrective Action Plans • Section 1115.23 – Guidelines and Requirements for Mandatory Recall Announcements

What Is a Recall? Recall is a generic term used by the CPSC including any actions undertaken as part of a Corrective Action Plan (CAP) A recall may include, but is not limited to, the following: • Return of the product by the retailer to the distribution chain • Return of the product by the consumer to the retailer • Repair of the product for consumers or others, rather than repair by consumers • Replacement of the product by anyone in the distribution chain • Refund of the purchase price to consumers • Warning or other action to avoid the present risk

Corrective Action Plan (CAP) CAPs form the basis for actions to be taken and include specific steps related to products in the distribution chain. • A typical CAP agreement outlines: • a comprehensive communication plan (consumer notification), • the remedy to be implemented (repair/replace/refund/warn), and • specifies a recall monitoring plan and specific steps to take to dispose of or repair the products.

Recall Objectives Locate • Find all manufacturers, distributors, retailers, and consumers with defective/noncomplying products quickly Remove • Stop sale of defective/noncomplying products and remove from distribution chain and consumers possession, as warranted Communicate • Notify the public quickly and accurately about the defect/noncompliance, associated hazard, and MOTIVATE AFFECTED CONSUMERS TO TAKE ADVANTAGE OF THE APPROVED REMEDY.

Recall Notification A recall is communicated in many ways (by both the firm and CPSC) and is generally announced using a combination of these notification avenues: • • • • • • • • • • Joint press release Recall poster Social media (e.g., Blogs, Twitter, Google+, YouTube, Facebook) CPSC and Firm website notices Purchased mailing lists Paid advertisements Product inserts Recall Round Up, Video news release Online registration for remedy Other forms of notice, as appropriate 7

Recall Effectiveness Monitoring The effectiveness of a recall is measured by recall monitoring and includes actions taken by CPSC and the recalling firm. Firm Actions: • Provide timely, clear, and accurate notification to distribution chain before recall announcement. • Ensure distribution chain takes appropriate action to return recalled products. • Label corrected products to avoid future confusion. • Segregate returned products and properly dispose ( ). • Provide monthly progress reports to the CPSC. CPSC Actions: • Conduct Recall Verification Inspections. • Perform Marketplace Recall Checks. • Complete Internet Surveillance Checks ( ). 8

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