Total recall needn’t be drama for manufacturers
21st March, 2014
Today's manufacturing businesses have stringent quality control and safety procedures and make superb products. But what happens if something goes wrong and they are faced with a decision on whether to recall a product?
First of all you need to take charge.
A senior figure should be nominated to take control of recall procedures and notified immediately a problem occurs.
Ensure you have a written recall procedure accessible to all relevant employees so that everyone knows where they stand and what their responsibilities are.
Keep an accurate record of all products and the customers to whom they have been supplied so that in the event of a recall, these people can be quickly and easily contacted.
Good communication – relevant senior employees should be nominated to liaise with all major customers to keep them informed of the problem and the steps being taken to rectify it. Brief your marketing and communications team to keep external lines of communication open and manage any publicity arising from the situation.
Check the paperwork – warranties, maintenance details, etc. – for all machinery purchased from suppliers so that if the problem has been caused by a third party’s machinery, they can be contacted immediately to rectify it as quickly as possible.
You should also check the details of all suppliers used in manufacturing the product so they can be contacted if the problem is due to something at their end.
You will need to check your terms and conditions of business to ensure that all liability arising out of a product recall is excluded or limited as far as possible.
Review your insurance policies and, if necessary, upgrade them, to ensure that any liability is covered, including the costs of dealing with the actual recall.
Finally, get good legal advice.
Your lawyers should be involved in preparing and maintaining the product recall procedure and should be instructed as soon as a product recall appears likely so that all legal issues can be controlled.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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