1. Product Recall ETM627 Rachel Hockenberger - Tectron International 3-in-1 USB Charger 26 November 2014 1 What: Tectron International 3-in-1 USB Charger Recall Date: October 30, 2014 Why: During use, the charger may overheat and melt which poses a fire hazard. Incidents: CPSC and Tectron International have received 2 reports of the charger overheating and melting. However, there have been no reported injuries or damage [1]. Number of Units Sold: About 55,000 ($3.50 each). When Sold: July 2014 to August 2014 at distributers for school fundraisers

2. Figure 1: 3-in-1 USB Charger[1] Product Description Used to charge iPhone4S/4G/3GS/3G/5, iPad mini/iPad4 and android phones 10 ft white cable One end has USB plug and the other end has 3 plugs: 30-pin plug, Lightning plug, and Mini USB plug Comes in transparent, sealed pouch with Item No. USB29B printed on label [1] ETM627 Rachel Hockenberger - Tectron International 3-in-1 USB Charger 26 November 2014 2

3. Management Issues ETM627 Rachel Hockenberger - Tectron International 3-in-1 USB Charger 26 November 2014 3 Recognition of Problem: “The charging cable recall is the latest in a series of safety issues related to tech items in 2014. In April, nearly 100,000 mobile phone chargers sold at retailer Five Below were recalled after complaints of melted parts, leaking batteries and fire. Then in July, industry supplier Jetline (asi/63344) recalled about 31,000 mobile power adapters because of a possibility they could overheat.” [2] Speed of Response: The response was fairly quick. The defective chargers were only sold between July 2014 and August 2014 with Tectron International voluntarily recalling the faulty product on October 30 of the same year [2]. There was initially a link on the home page of Tectron’s website about the recall and how to obtain a refund, but the link and other information directly regarding the recall are no longer present on the website [3]. Responsibility: Tectron voluntarily recalled the faulty charger and provided customers with full refunds. All USB chargers were temporarily unavailable for purchase on their website, and a link concerning the recall and how to receive a refund was available on Tectron’s homepage. [4]

4. Impact of Recall ETM627 Rachel Hockenberger - Tectron International 3-in-1 USB Charger 26 November 2014 4 Legal Consequences: No lawsuits have been held against Tectron International due to the defect, since there were no injuries or damage reported. Tectron’s fast response time and provision of a refund also helped to prevent legal action. Reputation: Tectron’s reputation is probably not significantly damaged. This is partially due to the quick, self-reported, recall. Additionally, this company is more known for inexpensive as opposed to high quality products. It is somewhat difficult to tell exactly how much the recall affected Tectron’s reputation, because they are not publically traded. Sales: Tectron is not publicly traded, making it difficult to see how it has financially affected the company. Currently, there is a new 3-in-1 USB charger listed on the Tectron website, which is only sold in large quantities. However, it appears to be a different product, as its SKU is USB34 as opposed to the recalled charger’s SKU of USB29B. [3][5]

5. References ETM627 Rachel Hockenberger - Tectron International 3-in-1 USB Charger 26 November 2014 5 [1] US Consumer Product Safety Commission. (2014). Tectron International Recalls USB Chargers Due to Fire Hazard. (CSPC Recall number: 15-016). Washington, DC: Office of Information and Public Affairs. Retrieved from http://www.cpsc.gov/en/Recalls/ 2015/Tectron-International-Recalls-USB-Chargers/#remedy [2] Counselor (2014). Supplier Recalls USB Charging Cables. The Advertising Specialty Institute. Retrieved from http://www.asipublications.com/counselor/news/ content.aspx?id=1649 [3] Tectron (2014). Tectron Int Website. Tectron Int. Retrieved from http://www.tectronint.com/ [4] Simpson, I. (2014). Tectron USB storage chargers recalled over fire risk. Reuters. Retrieved from http://www.reuters.com/article/2014/10/30/us-usa-recall-chargers- idUSKBN0IJ26Q20141030 [5]Consumer Digest (2014). Tectron International cites overheating in USB charger recall. Consumers Digest Communications, LLC. Retrieved from http://www.consumersdigest.com/recalls/tectron-international-cites-overheating-in-usb- charger-recall http://www.consumersdigest.com/recalls/tectron-international-cites-overheating-in-usb- charger-recall NOTE: All sources were retrieved November 24, 2014