AVOIDING PRODUCT RECALLS
CD: How would you gauge the extent of product liability risks that manufacturers face? Have any recent legal and regulatory updates heightened this risk?
Newstead: Products are becoming ever more complicated and the markets in which they are sold often span the globe. This presents a plethora of challenges in terms of minimising both pre-and post-market risk. Consumer safety is high on the agenda of governments and regulation is increasing across all product sectors, along with the level of scrutiny by regulators. Several recent cases have highlighted that regulators are willing to take manufacturers and individuals to task for failing to act swiftly and effectively to address safety issues. Prison sentences for late notification of safety issues and regulators forcing manufacturers to take prescribed action – both of which have been seen in the past year – may well become commonplace.
CD: What are some of main causes of a product recall in today’s market?
Newstead: What may prompt a product recall has evolved significantly over the past decade. Historically, recalls commonly arose from defects in design or materials used to manufacture products. These still remain common reasons for the recall of many products. However, we are increasingly seeing products recalled due to shortcomings in labelling – in particular in relation to food allergens. Several fatal reactions to allergens in food have heightened manufacturers’ awareness of the need to label products correctly. Recalls due to cyber risks are also on the rise – we have seen medical devices, vehicles and children’s toys recalled due to potential hacking risks.
Jan-Mar 2020 issue
Shook, Hardy & Bacon L.L.P.