Recalls and Market Withdrawals
If you have a recalled product, the first thing you should do is to follow the instructions provided by the firm that issued the recall. You should extend the recall to consignees, and you should report the number of items that were recalled and accounted for. You should also report any effectiveness checks or delays in getting the product back on the market. A product recall can help limit the damage to consumer health and the reputation of your organization. This way, you can restore trust with consumers and minimize the cost of damage to your business.
Once a recall is issued, manufacturers are supposed to contact registered owners via first-class mail within 60 days of the announcement. The automaker should provide a free or affordable remedy for the problem. Currently, only one-third of recalled vehicles can be fixed. Some repairs will require the replacement of an electronic circuit control center. The recalled vehicle is also not available for sale. Despite the potential consequences, a recall is a great way to get the part fixed in your vehicle.
A market withdrawal is different from a legal action by the FDA. Typically, a voluntary recall is made by the manufacturer. The FDA will review the information provided by the firm and will advise on a new strategy to correct the problem. Market withdrawals are usually placed in the weekly FDA Enforcement Report. It is critical that firms do not delay removal and correction of recalled products. This can increase the risk of an adverse reaction. It is important to contact the FDA as soon as possible, but it is not always possible.