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This Chapter provides information on initiating a product recall when the CPSC staff determines that the hazard associated with a product warrants such action.

Once the CPSC staff determines that a product is in violation of a Commission statute or regulation, it will notify you in the LOA that corrective action to address the violation is warranted. The LOA generally will also include specific corrective actions the CPSC staff believes are appropriate to address the violation. Where appropriate, based on the nature of the hazard and the likelihood of injury associated with the noncomplying product, the Compliance staff will request that the firm recall the product from the marketplace, including consumers who already own the product. This corrective action plan, after being reviewed by the CPSC staff for adequacy, forms the basis for any action you take to resolve the problem. It is unlikely that any two recall programs will ever be identical. Therefore, companies should be prepared to address issues that invariably arise. For instance:

• How did the product fail to comply with government safety regulations?
• Where are the unsafe products located? How many are there?
• Has the firm discontinued production and shipments of these products to distributors and retailers?
• Has the firm notified distributors and retailers to stop selling the product and asked them to help identify consumers who own the product?
• Has the firm started reviewing existing databases to identify potential product owners, e.g., product registration and customer service records?
• Has the firm drafted a press release announcing the recall? What other forms of public notice are needed?
• Has the firm set-up a toll-free telephone service that will be able to handle the number of calls expected after the recall is announced?
• Is the firm prepared to deploy people and/or fund an effort to provide replacement parts for defective products or to exchange them for new products that do not have the problem?
• Has the firm developed a plan to ship replacement parts or new units to distributors and/or retailers involved in the product recall, or otherwise repair the units in their inventory?
• Is the firm prepared to monitor the product recall and provide timely reports to the Commission on the progress of the recall?
• Has the firm developed a plan to dispose of recalled units?
• How is the firm upgrading its quality control or risk analysis procedures to prevent a similar product recall in the future?

This list addresses administrative and operational functions of a firm involved in a product recall. Even if a product recall is merely potential, a firm should be prepared to respond to the questions listed above.

A firm that undertakes a recall should develop a comprehensive plan that reaches throughout the entire distribution chain and to consumers who have the product. The firm must design each communication to motivate people to respond to the recall and take the action requested by the firm.

Once the CPSC Compliance staff and a firm agree on a remedy to correct a violative product, the CPSC Compliance staff works with the firm to put together an effective plan for public notification and implementation of the recall. The Commission will publicize the terms of the plan to inform the public of the nature of the noncomplying product hazard and the actions being undertaken to correct that hazard.

1. To locate all noncomplying products as quickly as possible;
2. To remove noncomplying products from the distribution chain and from the possession of consumers; and
3. To communicate accurate and understandable information in a timely manner to the public about the noncomplying product, the hazard, release provides the foundation for preparing other notice documents. The Commission discourages unilateral releases issued by companies because they create confusion among the media and public, particularly if CPSC is also issuing a release on the
same subject.

The CPSC´s Office of Information and Public Affairs sends the news releases to national wire services, major metropolitan daily newspapers, television and radio networks, and periodicals on the agency´s news contact mailing list. News releases from the Commission receive wide media attention and generate a good response rate from consumers. Each recall news release should use the word "recall" in the heading and should begin, "In cooperation with the U.S. Consumer Product Safety Commission (CPSC)...."

• The name and location of the recalling firm
• 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 and retail cost
• Complete instructions for consumers on how to participate in the recall CPSC posts recall news releases on its Internet web site (available via: www.cpsc.gov or www.recalls.gov) and requests companies to provide color photographs of recalled products for the web site.

When a recalling firm has the ability to reach all owners of a recalled product through direct notification (for example, by registration cards, membership or loyalty cards, catalog sales, credit card purchases, extended warranty sales, etc.), the staff will prepare a recall alert in the form and style of a press release. It will be posted on the CPSC website (available via: www.cpsc.gov or www.recalls.gov) so consumers can confirm and verify the Commission is involved in the recall. Summaries of recall alerts are also provided to national wire services.

A video news release (VNR) is a video version of the written news release that describes the recall in audiovisual terms. Distributed via satellite to television stations nationwide, it is an effective method to enhance a recall announcement. A VNR increases the chances that television news media will air information about a recall because it effectively provides news of the recall to television news producers in the form that they need.

Commission staff works with firms to produce VNRs announcing recalls. Like news releases, VNRs need to communicate basic information clearly and concisely. VNRs should incorporate the same information as the news release, as well as video images of the product. They often also include brief statements of firm officials and/or the Chairman of the Commission. When writing a VNR script, remember that, if this information is to reach consumers, television networks or local stations must pick it up -- which means that the script must be written for television producers. A brief guide describing how to produce a VNR is available from the Office of Compliance upon request or at: http://www.cpsc.gov/BUSINFO/vnrprod.html.

Posters are an effective means of providing continuing notice of recalls to consumers at points of purchase or other locations that they visit. Guidelines for posters and counter cards are as follows:

• Keep them BRIEF and eye-catching; in general, a poster requires far fewer words than a news release.
• Describe the hazard and tell consumers what to do.
• Use color to make the poster stand out.
• Use a print font, size, and color that provides a strong contrast to the background color of the poster.
• Include the terms "safety" and "recall" in the heading.
• Use a good quality line drawing or photograph of the product with call outs identifying product information, such as model numbers and date codes.
• The firm’s toll-free telephone number should be in large size type at the bottom of the poster.
• The poster should include "Post until [date at least 120 days from recall announcement]."
• Consider tear-off sheets with each poster with information on the recall for consumers to take home.

When a firm produces a point of purchase poster announcing a recall, it must contact its retailers or other entities that the firm wants to display the posters before the recall is announced. The firm must explain the reason for the recall and the contribution to public safety that the posters provide. The firm must also:

• Advise retailers or other firms to place the posters in several conspicuous locations in their stores or offices where customers will see them, e.g., the area where the product was originally displayed for sale, store entrances, waiting rooms in pediatric clinics, service counters at repair shops.
• Provide sufficient numbers of posters for retailers or others to display them in more than one place in each store or location, and provide a contact for ordering additional posters.

CPSC recommends that posters be 11 x 17 inches, but in no case smaller than 8.5 x 11 inches. These two sizes are easiest to mail in bulk quantities. Larger sizes may be appropriate for repair and service shops. Also, many retailers, particularly large chains, have specific requirements for posters, including size and some product identification information. To avoid delays and having to reprint, a firm producing a recall poster must contact retailers in advance to see if they have any such requirements.

Like news releases and posters, letters, advertisements, bulletins, newsletters, and other communications about a recall need to provide sufficient information and motivation for the reader or listener to identify the product and to take the action you are requesting. They should be written in language targeted to the intended audience.

• Letters or other communications should be specific and concise.
• The words "Important Safety Notice" or "Safety Recall" must appear at the top of each notice and cover letter or in the subject line of an email notification and must also be on the lower left corner of any mailing envelope.
• Notices to retailers and distributors must explain the reason for the recall, including the hazard, and include all the instructions needed to tell them how to handle their 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 must explain clearly the reason for the recall, including injury or potential injury information, and provide complete instructions.

A firm conducting a recall must provide a toll-free (800/888/877/866) telephone number for consumers to respond to the recall announcement. Generally, this number should be dedicated only to the recall. Historically, the Commission staff has found that most firm’s systems for handling consumer relations or for ordering products, repairs, or accessories are unable to respond effectively to callers about recall announcements, particularly during the first few weeks after the initial announcement. When establishing a telephone system to handle a recall, be over-generous in estimating consumer response, especially during the first several days/weeks. It is easier to cut back than it is to add more capacity once a recall is announced, and consumers who are unable to get through may get upset. Whether you use an automated system or live operators to answer the calls, prepare scripts and instructions for responding to questions. Operators or taped messages should begin by identifying the firm and product and explaining the reason for the recall. Most consumers who hear about a recall by radio, television, or word of mouth will not remember all the information they initially heard. Again, at its beginning, the message should reinforce the need for listeners to act, particularly if the message is lengthy. CPSC Compliance staff must review all scripts before the recall is announced. All automated systems should provide a number for consumers to contact the firm for special problems, e.g., problems completing repairs or installing parts.

Companies should post and make available a notice of the recall in a conspicuous location on their own website. The recall information should be segregated from other company information with a 11 distinct icon or heading designating this safety information. Firms should provide historical recall information since not all products are returned during the designated recall period. Companies should provide an opportunity for owners of recalled products to register for the recall remedy on-line.

Companies whose products come under the jurisdiction of the CPSC should develop an organizational policy and plan of action before a product recall or similar action becomes necessary. This policy and any related plans should focus on the early detection of product safety problems and prompt response.

Designating a firm official or employee to serve as a "recall coordinator" is a significant step that a firm can take to meet its product safety and defect reporting responsibilities. Ideally, this coordinator has full authority to take the steps necessary (including reporting to the Commission) to initiate and implement all recalls, with the approval and support of the firm´s chief executive officer.

• Knowledge of the statutory authority and recall procedures of the Consumer Product Safety Commission;
• Ability and authority to function as the central coordinator within the firm for receiving and processing all information regarding the safety of the firm’s products. Such information includes, e.g., quality control records, engineering analyses, test results, consumer complaints, warranty returns or claims, lawsuits, and insurance claims;
• Responsibility for keeping the firm's chief executive officer informed about reporting requirements and all safety problems or potential problems that could lead to product recalls;
• Responsibility for making decisions about initiating product recalls;
• Authority to involve appropriate departments and offices of the firm in implementing a product recall;
• Responsibility for serving as the firm's primary liaison with CPSC.

At the outset, the recall coordinator should fully review the firm's product line to verify regulatory conformance of each product. The firm should institute a product identification system if one is not now in use. Model designations and dateof- manufacture codes should be used on all products, whether they carry the firm's name or are privately labeled for other firms. If a product recall is necessary, this practice allows the firm to identify easily all affected products without undertaking a costly recall of the entire production. Similarly, once a specific product has been recalled and corrected, a new model number or other means of identification used on new corrected products allows distributors, retailers, and consumers to distinguish products subject to recall from the new items. Until a production change can be made to incorporate a new model number or date code, some companies have used sticker labels to differentiate products that have been checked and corrected from recalled products.

The goal of any product recall is to retrieve, repair, or replace those products already in consumers’ hands as well as those in the distribution chain. Maintaining accurate records about the design, production, distribution, and marketing of each product for the duration of its expected life is essential for a firm to conduct an effective, economical product recall. Generally, the following records are key both to identifying noncomplying products and conducting recalls:

1. Records of complaints, warranty returns, insurance claims, and lawsuits. These types of information often highlight or provide early notice of safety problems that may become widespread in the future.
2. Production records. Accurate data should be kept on all production runs -- the lot numbers and product codes associated with each run, the volume of units manufactured, component parts or substitutes use, and other pertinent information which will help the firm identify defective products or components quickly.
3. Distribution records. Data should be maintained as to the location of each product by product line, production run, quantity shipped or sold, dates of delivery, and destinations.
4. Quality control records. Documenting the results of quality control testing and evaluation associated with each production run often helps companies identify possible flaws in the design or production of the product. It also aids the firm in charting and sometimes limiting the scope of a corrective action plan.
5. Product registration cards. Product registration cards for purchasers of products to fill out and return can help to identify owners of recalled products. The easier it is for consumers to fill out and return these cards, the greater the likelihood the cards will be returned to the manufacturer. For example, some firms provide pre-addressed, postagepaid registration cards that already have product identification information, e.g., model number, style number, special features, printed on the card. Providing an incentive can also increase the return rate. Incentives can be coupons towards the purchase of other products sold by the firm, free accessory products, or entry in a periodic drawing for a product give away. The information from the cards then needs to be maintained in a readily retrievable database for use if recall becomes necessary.
6. Membership/Bonus/Loyalty cards. Many stores, whether membership or available to all consumers, offer bonus or loyalty value cards which may be useful in identifying purchasers of recalled products. Availability and storage of these records should be considered in the event of a recall.
7. Credit card purchases. An increasing number of firms are utilizing records from credit card purchases of recalled products as a way of identifying and notifying owners of recalled products. Through the cooperation of issuing banks or through the firms own branded credit cards, many owners of recalled products have been directly notified of the recall, often avoiding other more traditional means of generic notification.

Consumers no longer view product recalls in a negative light. Many thousands of products have been recalled over the years. Today, consumers believe they enjoy a safer, better product as a result of a recall. How well a firm conducts a timely, reasonable recall of a product it produced can have a strong influence on the consumer’s attitude about the firm. Successful product recalls in the past have often rewarded companies with continuing consumer support and demand for the firm’s products.