Buyer Beware? Household Goods Comprise Majority of Product Recalls

Stericycle ExpertSOLUTIONS recently released the findings of its Q3 2015 Stericycle Recall Index, which found that household goods account for a significant majority of all product recalls in the U.S. since 2010. The report underscores that a number of factors are driving consumer goods' persistently high recall rates — making it more important than ever that manufacturers are prepared for the inevitability of a product recall.

Appliances, furnishings, and other household items regulated by the Consumer Product Safety Commission (CPSC) enjoy a longer shelf life than products in other categories. While this lengthy life span offers many consumer benefits, the Q3 Index found that it is a key contributing factor in the industry's high recall rates. According to the data, numerous household goods recalled over the last five years were actually manufactured and sold in the 1990s. Compared to their newer counterparts, these older products have a significantly higher risk of overheating and fire — the leading cause of recalls in this product category. To put the hazard into perspective, 15 million appliance units have been recalled due to fire concerns since 2010.

“It's evident from the Q3 Index that age and deterioration should be a key worry for all household goods manufacturers,” said Kevin Pollack, Vice President, Stericycle. “At the same time, products in this category are also growing more technologically complex. These advances give manufacturers the opportunity to design early-warning systems, but with more bells and whistles, there is also more that can go wrong. Given this trend, it's essential that companies have a plan for executing a recall — and continually update it to keep up with the latest advancements.”

In an interview with SCMR, Pollack said one of the more interesting findings of this Index is the role that technology has played in recent years.

“On one hand technology has helped manufacturers design early-warning systems that improve product safety, while on the other hand all the bells and whistles in today's products can lead to more things going wrong,” he said. “Given this trend, it's important that companies have a recall plan in place to keep up with the latest advancements.”

The Q3 Index found that children and infants are particularly vulnerable to recalls. Children's products comprised 12 percent of the quarter's total events, and more than half of all clothing recalled in the last five years was designed for children and infants. In addition, the report documented that the same root causes are creating problems year after year. For example, many children's clothing items continue to have drawstrings which can lead to strangulation and choking — two common recall drivers — despite a 2011 CPSC ruling deeming this feature dangerous. Adding to this complexity is the active resale market associated with children's clothing and products, which can make it difficult for retailers to stay abreast of recalls and other regulatory developments.

“The hand-me-down market underscores that recalls can be just as costly to the retailer as they are to the manufacturer,” continued Pollack. “The CPSC can levy financial penalties against businesses that have sold a recalled product, even if it was unintentional. With recalls frequently initiated more than 10 years after the original sale, navigating this environment requires significant time and resources. It's important that brands and their retail customers alike shoulder this burden, particularly given that younger populations are most adversely affected by the trend.”

Finally, when asked how a reverse logistics strategy might mitigate these risks, Pollack told SCMR, recalls are a fact of life for manufacturers across all industries.

“The key to handling one successfully is to have a recall plan in place before one happens. This plan should also be tested periodically. With every recall, there are four goals: Protect the public, protect the brand, protect the environment and close the event as soon as possible. Planning and testing can make the difference between an effective recall and one that has a negative impact on brand reputation and revenue.”

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