Source obtained from: http://en.wikipedia.org/wiki/Product_recall
http://www.recalls.gov.au/recall.pdf
- A product recall is a request to return to the maker or producer, a batch or an entire production run of a product having in mind the best interest of suppliers and consumers to make sure that unsafe consumer products are effectively removed from the marketplace.
- 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.
- 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 newspaper. 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.
Aims of product recall
- Minimise the risk of injury or death to consumers by removing an unsafe product from use
- Minimise the cost and inconvenience to consumers and the company
When to recall?
- A recall is done as soon as one becomes aware of a possible defect in a product that
may make it unsafe.
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