1. Tim Brown, MAS, PPAI Product Responsibility Manager
How To Handle A Recall
Tim Brown, MAS, PPAI Product Responsibility Manager

2. This information is being furnished by PPAI for educational and informational purposes only. The Association makes no warranties or representations about specific dates, coverage or application. Consult with appropriate legal counsel about the specific application of the law to your business and products.

3. Agenda Why a recall strategy
Strategies to mitigate the risk of product recalls
Develop a plan for if or when a product is recalled
Steps to take when a recall becomes necessary
Much of this information is sourced from the CPSC Recall Handbook. Review it online for more information at

4. Product Recalls…It’s all about preparation

5. Consumer Product Safety Commission
The U.S. Consumer Product Safety Commission (CPSC) has jurisdiction over more than 15,000 kinds of consumer products used in and around the home, in sports, recreation and schools including:
Appliances
Clothing
Electronic / Electrical
Furniture
Household
Children's Products
Lighting / Lighter
Outdoor
Sports / Exercise

6. CPSC Comment On Recalls
“No company likes to recall one of its products, but when a safety problem makes a product recall necessary to prevent injuries and save lives, it benefits everyone to move quickly and effectively.”
- CPSC Recall Handbook
RECALL HANDBOOK

7. Benefit of Recall Readiness
Companies who develop a product recall plan before a product incident occurs are more able to move quickly and effectively in the event of a recall.
Save lives
Prevent injuries (or further injuries)
Limit damage to brand
Your company’s brand
Your customer’s brand
Decrease impact on the bottom line

8. Who Is Responsible? Recall responsibility impacts companies that:
Manufacture
Import
Distribute
Retail
Sell Consumer Products
Promotional products generally fall under consumer products

9. What Should You Do? Anticipate problem products
You have an obligation to continuously survey the market
Websites
Saferproducts.gov
Social media
Develop a system to maintain and review complaints, warranty returns and other critical analyses of products

10. Reporting Requirements
Outlined in the Consumer Product Safety Act
Section 15
Section 37
Child Safety Protection Act
Section 102

11. Section 15 A firm must notify the CPSC immediately if a product:
Fails to meet a consumer product safety standard or banning regulation
Contains a defect which could create a substantial hazard to a consumer
Creates an unreasonable risk of serious injury or death
Fails to comply with a voluntary standard which the Commission has relied on, under the CPSA

12. What and Where To Report Section 15
Must file a report with the CPSC Office of Compliance
Telephone:
Mail: 4330 East West Hwy, Bethesda, MD
Electronically:
Fax:
Designated contact with decision making authority, knowledge of product and reporting requirements
Identify all stakeholders and assign roles in advance to avoid confusion later
Recall Coordinator will lead the recall process and be responsible for:
Collecting data
Leading the recall team
Assembling resources
Overseeing the recall process
Communicating with management
Liaison with authorities
Review product line
Institute product identification system

13. Information Needed Section 15
Description of the product
Name and address of the company (manufacturer, distributor, importer or retailer)
The possible product defect or unreasonable risk of serious injury or death
Nature and extent of the injury or possible injury associated with the product
Name, address and telephone number of the person informing the Commission
A timetable for providing information not immediately available

14. When To Report Section 15 Must report “immediately”
Within 24 hours of obtaining the information
Encourages to report potential substantial product hazards even while own investigations are continuing
May conduct own investigation for 10 working days
Commission will presume that all information has been received and considered at the end of the 10 working days
The CPSC encourages companies to report potential hazards even while their own investigations are continuing
Reporting a product to the CPSC does not automatically trigger a recall

15. Evaluation of Report
Commission will evaluate whether or when an incident should have been reported
Evaluation based on what the company actually knew about the hazard posed by the product or on what a reasonable person should have known about the product hazard
A company is deemed to know what it would have known had it exercised due care in analyzing reports of injury, consumer complaints, warranty of returns, reports of experts, etc.
Reporting a product to the Commission under section 15 does not automatically mean that the Commission will conclude that the product creates a substantial product hazard or that corrective action is necessary.

16. Confidentiality of Reports Section 15
The Commission is prohibited to release information unless a remedial action plan has been accepted by the firm in writing, a complaint has been issued or the reporting firm consents to the release
The reporting firm must mark “confidential” on the report if the information submitted is trade secret, confidential commercial or financial information

17. Criteria For Substantial Product Hazards
Pattern of defect
Number of defective products distributed in commerce
Severity of risk
Likelihood of injury

18. Hazard Priority System
Class A Hazard
Highest level of attention
Risk of death, grievous or serious injury or illness is likely or very likely
Immediate action must be taken to identify and notify consumers, retailers and distributors having the defective product
Remedy the defect through repair, replacement, refunds, etc.
Class B Hazard
Risk of death or grievous injury or illness is not likely to occur, but is possible, or when serious injury or illness is likely or moderate injury or illness is very likely
Class C Hazard
Risk of seriously injury or illness is not likely but is possible or when moderate injury or illness is not necessarily likely, but is possible

19. Fast Track Product Recall Program
Expedites recall process
Within 20 working days of filing a potential product defect report, the CPSC can implement a consumer-level voluntary recall
Allows the company and the Commission to create an immediate corrective action with out spending time and other resources to investigate
Firms that file Section 15 reports may wish to use an alternative procedure that the Commission has established to expedite recalls

20. Fast Track Product Recall Program
Provide all information required for a full report
Request to participate in this program
Submit a proposed corrective action plan with sufficient time for the Commission to analyze any proposed repair, replacement or refund and to evaluate all notice material before implementation of the voluntary recall

21. Reporting Requirements – Section 37
Must notify the Commission immediately if a product:
Is the subject of at least three civil actions filed in federal or state court
Each suit alleges the involvement of the product in death or grievous bodily injury
During two-year periods, each of the three actions result in either a final settlement involving the manufacturer in a court judgment in favor of the plaintiff
Manufacturer is involved in the defense of or has notice of each action prior to the entry of the final order

22. Information Needed for Report Section 37
Name and address of the manufacturer
Model and model number
A statement as to whether the civil action alleged death or grievous bodily injury and the nature of injury
A statement as to whether the case resulted in a final settlement or judgment
Name and case number and the court in which is was filed

23. When and Where To Report Section 37
30 days after judgment or final settlement in the last of the three lawsuits
In writing to the Office of Compliance, U.S. Consumer Product Safety Commission

24. Confidentiality of Reports Section 37
Commission may not disclose to the general public any information reported under Section 37 (Unlike Section 15)
Reporting under Section 37 is not an admission of the existence of unreasonable risk of injury or defect, product hazard, or any other liability
Section 15 - The Commission is prohibited to release information unless a remedial action plan has been accepted by the firm in writing, a complaint has been issued or the reporting firm consents to the release

25. Reporting Requirements Section 102
Child Safety Protection Act requires companies to report certain choking incidents if:
A child, regardless of age, choked on a marble, small ball, balloon or small part; and
As a result of the incident, the child died, suffered serious injury, ceased breathing for any length of time or was treated by a medical professional

26. Information Needed For Reporting Section 102
Name and address of the child who choked
Name and address of the person who notified the firm of the incident
Any resulting injuries or medical treatment
Information about any changes made to the product involved or its warning labels
Details of any public notice or other corrective action planned

27. When and Where To Report Section 102
Must be filed within 24 hours of obtaining the information
Must be filed with the Office of Compliance
By Mail
By Telephone:
Telephone reports must be followed with written confirmation)
By Fax:

28. Confidentiality of Reports Section 102
Reports receive the same confidentiality treatment as information submitted under Section 15

29. Reporting Requirements (Recommendations)
Companies should develop a system for maintaining and reviewing information that might suggest a product defect or unreasonable risk of injury or death
Information should include:
Consumer complaints
Warranty returns
Insurance claims or payments
Product liability lawsuits
Reports of production problems
Product test reports
Design evaluations / risk assessments

30. Identifying A Defect What is the utility of the product?
What is the need for the product?
What is the nature of injury that could be caused?
What is the population exposed to the product?
What is the Commission’s experience with the product?
What other information sheds light on the product and patterns of consumer use?

31. Preparing for a Product Recall
Identify the defect that caused the hazard
Identify what caused the product defect
Locate the unsafe products and find out how many there are
Did the product fail to comply with government safety regulations?
Inform the government or appropriate regulatory body
Discontinue production and shipment

32. Preparing for a Product Recall
Notify distributors to stop selling the product
Press Release announcing a recall
Establish a toll free telephone service to handle expected calls
Estimate the cost of the product recall
Provide reports of the progress of the recall to the Commission
Upgrade quality control procedures to avoid similar situations in the future

33. Objectives of a Recall
Locate all defective product as quickly as possible
Remove defective products from the distribution chain and from the possession of consumers
To communicate accurate and understandable information in a timely manner to the public about the product defect, the hazard, and the corrective action.

34. Communicating Recall Information
A joint news release from the CPSC and the company
A video news release to complement written news release
Targeted distribution of the news release and a toll free number for consumers to call to respond to the recall
Information on company website

35. Communicating Recall Information
A national news conference and/or television or radio announcements
Notice to distributors, retailers, sales representatives
Social Media!
Incentives to consumers to return the product

36. Recall News Releases Written and Video
Must include the following:
Name and location of the recalling firm
Name of the product
Number of products involved
Description of the hazard
Number of deaths, injuries and incidents
Detailed description of the product including model numbers, colors, sizes, and labeling
A line drawing or photo of the product
Major retailers or where and when the product was sold and for what cost
Complete instructions for consumers on how to participate in the recall

37. Recall Poster Brief and eye-catching
Describe the hazard and tell consumers what to do
Use color to make the poster stand out
Use a font, size, and color that contrasts with the background
Include a phone number
Include a “post until” date [must be at least 120 days from recall announcement]
Consider tear off sheets so the consumer can take the information home
Recommended to be 11 x 17 inches, but can not be smaller than 8.5 x 11 inches

38. Designating a Recall Coordinator
Knowledge of the recall procedures
Ability and authority to function as the central coordinator for receiving and processing all information
Responsible for keeping the company’s CEO informed about the product recall
Responsible for making decisions about initiating product recalls
Authority to involve appropriate departments and offices within the firm in implementing a product recall
Responsible for serving as the company’s primary liaison with the CPSC

39. Records Maintenance
Records of complaints, warranty returns, insurance claims and lawsuits
Production records
Distribution records
Quality control records
Product registration cards
Tracking Labels

40. Tracking Labels
Permanent, distinguishing marks on the product (to the extent practicable) and packaging manufactured as of August 14, 2009
Manufacturer or private labeler name
Location of production
Date of production
Other information (batch, run number, sources)
The overall purpose is to enhance recall effectiveness
Tracking labels will provide information to help a manufacturer target the problem and initiate an effective corrective action program

41. Consumer Product Safety Database
Allows consumers to submit reports of harm or risk of harm
Allows consumers to search for safety information on products they own or may consider buying
Helps CPSC identify product hazards quicker and provide consumers with safety information

42. Resources PPAI: www.ppai.org PPAI Product Corporate Responsibility:
Tim Brown, MAS
@PromoSafetyGuy
Anne Lardner-Stone
Consumer Product Safety Commission: ;
CPSC Recall Handbook
UL: