Thursday, April 30, 2015

How to Execute a Product Recall - II

Recall
Recalls are an appropriate alternative method for removing or correcting marketed consumer products, their labeling, and/or promotional literature that violate the laws administered by the relevant country’s legislative body.  Recalls afford equal consumer protection but generally are more efficient and timely than formal administrative or civil actions, especially when the product has been widely distributed.  Manufacturers and/or distributors may initiate a recall at any time to fulfill their responsibility to protect the public health from products that present a risk of injury or gross deception, or are otherwise defective. Firms may also initiate a recall following notification of a problem by regulatory or statuary organization of the specific country or a state agency.

The executing a recall plan is not that easy, if you already read the first part of the How to Execute a Product Recall I, then this is later part of execution plan. Otherwise it is recommended to read the first part of the document before you read this to learn very first basic steps you need to know about it.

3. Isolation of Warehouse Stocks of Recalled Product
Identify and clearly mark stock of recalled products located in your warehouse or other storage facilities. These products should be isolated and segregated from other stock to prevent distribution.
Information should be made available to identify each product affected by the recall such as:
Description;
Style;
Colour;
Brand;
UPC code;
Lot number;
Item number;
Date of manufacture or date of import.

4. Tracking of Distributed Products
A product recall usually involves the following steps, which may differ according to local laws:
The manufacturer or dealer must notify the authorities that responsible for the type of recalled product of the company’s intention to conduct a product recall.
Consumer hotlines or other forms of communication channels must be established. The scope of the recall will provide: which serial numbers or batch numbers etc. are recalled, and 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 daily newspapers. In some cases, heightened publicity will result in news television reports advising of the recall.
When a consumer group learns of a recall, it will also establish a notification process to notify the public by various means.
In standard cases, the consumer is advised to return the goods, regardless of condition, to the seller for a full refund or replacement.
Avenues for possible consumer compensation will vary depending on the specific laws governing consumer trade protection and the cause of recall.
A defect could be the result of a manufacturing or production error; or it could result from the design of, or the materials used in, the product. A defect could also occur in a product’s contents, construction, finishing, packaging, warnings, and/or instructions.
Not all products that present a risk of injury are defective.

5. Determination of the consumer Action
“Instruct customers to remove the product from sale immediately. Determine whether the recalled products will be repaired, replaced, or destroyed. Determine whether customers will be instructed to return the recalled products to your warehouse or other location.”

6. Preparation and Distribution of e Recall Notice to Your Customers
The company has to be creative in the event of reaching owners of recalled products and have to motivate them to respond. The following are examples of types of notice that may be appropriate. This list is meant as a guide only, and is not all-inclusive. Companies should check for new and innovative methods of notice and means of communication that become available, such as use of the Internet, the staff encourages their use.
A joint news release from CPSC and the company;
Targeted distribution of the news release;
A dedicated toll-free number and/or fax number and/or email address for consumers to call to respond to the recall notice;
Information on company world wide web sites;
A video news release to complement the written news release;
A national news conference and/or television or radio announcements;
Direct notice to consumers known to have the product -- identified through registration cards, sales records, catalog orders, or other means;
Notices to distributors, dealers, sales representatives, retailers, service personnel, installers, and other persons who may have handled or been involved with the product;
Purchase of mailing lists of populations likely to use the product;
Paid notices via television and/or radio;
Paid notices in national newspapers and/or magazines to reach targeted users of the product;
Paid notices through local or regional media;
Incentives such as money, gifts, premiums, or coupons to encourage consumers to return the product;
Point-of-purchase posters;
Notices in product catalogs, newsletters, and other marketing materials;
Posters for display at locations where users are likely to visit, or retail stores where items are purchased, etc.
The Compliance staff must review and agree upon each communication that a company intends to use in a product recall before publication or distribution. It is, therefore, imperative that companies give compliance staff advance drafts of all notices or other communications for distribution to the media, customers, and consumers.

7. Verification of Effectiveness of the Recall
Follow-up with your customers to be sure that they have:
Received the recall notice;
Removed the products from sale; and
Completed the recall action as specified in the notice.

8. Notification of Consumers
There are many ways to notify consumers, however following are the most generic ways of doing it.

News releases
Recall news releases must include the following:
The name and location of the recalling company
The name of the product
The number of products involved
A description of the hazard
The number of deaths, injuries, and incidents involving the product
Detailed description of the product, including model numbers, colors, sizes, and labeling
A line drawing or photograph of the product
Major retailers and where and when the product was sold
Complete instructions for consumers on how to participate in the recall

Other Forms of Notice
Other sources used to communicate a recall can range from news releases and posters, letters, advertisements, bulletins and newsletters.  Each notice must provide sufficient information and motivation for the reader or listener to identify the product and to take the action requested. They should be written in the appropriate language for the intended audience.
Letters or other communications should be specific and concise.

The words “Important Safety Notice” or “Safety Recall” should appear at the top of each notice and cover letter and should also be on the lower left corner of any mailing envelope.

Notices to retailers and distributors should explain the reason for the recall, including the hazard, and must contain all the instructions needed on how to handle the product inventory, as well as instructions for displaying posters or notices, providing information to consumers, and disposing of returned products.

All letters and other notices to consumers should explain the reason for the recall; including injury or potential injury provide complete instructions on what should be done with the recalled items once collected.

9. Decide What to Do with the Returned Products
All recalled items must be disposed in a way that will ensure that unsafe products do not make their way back into the marketplace. Disposal of products must be carried out in a manner that is in compliance with municipal and provincial waste disposal requirements. If products are repaired or corrected, verify compliance with regulatory requirements before they are redistributed. All repaired or corrected products must be clearly distinguished from the recalled products.

10. Termination of a recall
Termination of the recall may be considered after all reasonable efforts have been made to remove the affected products from commerce, including reconciliation, recall effectiveness, and disposition.
A termination of the recall may be requested by submitting a written request to the regulatory authorities.

Mock Recall
In addition to an annual verification of the recall plan, the company may conduct a mock recall annually or whenever there are significant changes to the plan or personnel. The mock recall must  include the following elements:
Selecting a product which has reached the consumer market.
Tracing the product from the raw ingredient (e.g. source) level to the finished product in the marketplace.
Verifying communications systems (e.g. contact information, test emails and faxes, etc.) to outside contacts.
Modifying the recall plan to correct any problems encountered during the test.
Records of these mock recalls will be documented and filed appropriately.

Reference:
Sample Recall Plan: http://www.cdph.ca.gov/pubsforms/Documents/fdbRIgde23.pdf
Product Recall Guide: https://s0.hfdstatic.com/p/losscontrol/files/private/1287778604098.pdf
http://blog.matthews.com.au/index.php/product-recall-withdrawal-7-facts-every-manufacturer-know/
Developing a Product Recall and Withdrawal Program for Your Organization 


No comments:

Post a Comment