Connect with us

Hi, what are you looking for?

Business

Why Can Product Recalls Be So Difficult For Companies?

It’s something that you try to avoid as much as possible, but sometimes it happens. A product ends up being recalled because it is faulty, malfunctioning or dangerous. It’s a nightmare that can be very stressful for a company, because not only does it cause a lot of trouble and expense – it can also be damaging to the brand’s reputation.

A product recall occurs when a product must be returned because it has been discovered that it has safety issues or product defects that might endanger the customer or put the seller at risk for legal action. The recall must happen right away so that liability for corporate negligence can be limited and the corporate image can be preserved.

So what are some of the complicating factors that mean product recalls are very difficult for most companies? Here are just a few of the reasons why product recalls are such a stressful situation for companies:

They Have Lost the Trust of Their Customers

One of the major issues of a product recall is that one the company releases a product that is dangerous or faulty, they lose a lot of their reputation and trustworthiness in the eyes of the public. Depending on the seriousness of the recall, the average consumer might have lost faith in your brand and might not choose to buy your products – due to the fear of ending up with a faulty or dangerous item. Once you make a mistake, it’s difficult to win back the trust of your customers and demonstrate that your products can be relied upon.

Getting the Word Out is Complicated

When your products need to be recalled, it is important to get the word out to the thousands or even millions of customers who might have purchased them. This can be a challenge, as it will require getting the news out over a number of different mediums including television, internet, social media and much more. Companies should make sure that they have a great strategy for spreading the news about their product recall.

Consumer Protection Laws Are Complex

The consumer protection laws of each specific country can be complex and will have specific requirements when it comes to product recalls. These regulations will include any penalties for failing to recall a product, situations in which a recall is necessary or what percentage of the cost the maker must bear. Keeping track of these laws is very complicated and it can lead to confusion and mistakes.

You Need to Act Right Away

There is no time for dilly-dallying when a product recall is happening. It is important for companies to act very quickly, especially if the products that are currently on the market are dangerous and could potentially cause illness, harm or death. This puts a lot of stress on companies and it requires them to take action as quickly as possible. This is why a product recall can be stressful for a company, because it moves at such a high speed.

Recalls Can Be Very Costly

Recalls can cost companies a lot of money, because they will be responsible for replacing and refunding the faulty product. Also, if the product causes harm or damage the company might be held financially responsible for these consequences. This can be a huge cost and it is something that a company should be prepared for and have an emergency plan for.

These are just a small number of examples of why product recalls are so difficult for companies to deal with. It is a good idea for a company to have a contingency plan in place for what they will do if one of their products is recalled. It’s surprising how many companies have never done this, but it’s very advantageous to know how you would react in such a situation. If the worst does happen, you will already have a strategy that you can implement right away – saving yourself time and stress and increasing the chances that the recovery will go successfully.

Many companies opt to hire a product recall management company to help them deal with the situation. These are companies that have years of experience dealing with product recalls and they are able to help the company navigate through with the least amount of expense and damage to their reputation. The help that the expert consultants at a field marketing agency can offer is very valuable, so consider hiring them to assist your company with your next product recall.

Written By

Stuart Clock is a web entrepreneur and he loves to write about tech, gadgets and latest trending news. He explores his words in the article with his tremendous skill. Apart from blogging, he is doing journalism and working hard as an editor in some tech/world news sites. His ambition to be a famous blogger in the web world. Apart from his business he loves to do travelling, playing cricket and snooker is his favourite game.

1 Comment

1 Comment

  1. Laurie

    February 11, 2016 at 9:47 pm

    If a company has to recall a product they will take a hit in many different ways, absolutely. However, it is important that they act quickly and notify the customer. Thank you for sharing.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

You May Also Like