Failure Analysis & Recall
History shows us that very often both the smallest and the largest of companies can run into trouble regarding the distribution and marketing of non compliant products in the Australian market. Sometimes, the issues are so big that it is necessary to implement a recall of the product(s) affected. Whether it is a voluntary recall or one instigated by the ACCC, the exercise is time consuming, costly and potentially can have a negative impact on both company reputation and brand. The ACCC rules for conducting recalls are very specific and need to be followed implicitly. BWES Compliance and Consulting has over 10 years’ experience of managing product recalls on behalf of clients both large and small. We will manage all aspects of the recall, right up to liaising with the ACCC on your behalf. As well, we have significant resources at our disposal should the products require some rework or modification to allow them to be released for sale again. Our 10 minute checklist is designed to identify the issue and detail the steps and timeframe required to remedy the issue.
What you can expect from our Failure Analysis & Recall service
- Our Product failure analysis report can assist with the decision to conduct a recall or otherwise.
- Who should a supplier notify about a recall of consumer goods? Compliance to the ACCC ruling is imperative on this.
- Penalties - supplier-initiated recalls.
- Penalties - a supplier who fails to notify the Commonwealth minister within 48 hours of becoming aware of the incident may be found guilty of a criminal offence.
- When can a minister order a compulsory recall? What can a supplier do to prevent a compulsory order.
- What can a compulsory recall notice require a supplier to do, such as mandatory ACCC notifications.
- Reporting and replacement or refund of recalled product.
- A supplier who does not comply with a compulsory recall notice may be found guilty of a criminal offence. The maximum fine is $220,000 for an individual or $1.1 million for a body corporate.
- Understanding potential penalties - recalls ordered by a minister.
- Correcting non-compliant product for replacement purposes to limit replacement costs. In some cases existing stock can be reworked and used to replace non-compliant stock.
Fast and simple Failure Analysis & Recall
You need an experienced professional on your side in the event of potential recalls. While the majority of BWES services are designed to mitigate the chance of a recall even with the best of plans a product may have a problem that requires consideration of a recall.
Even the largest of companies with the best product introduction procedures may end up conducting a product recall.
The ACCC rules for conducting recalls are very specific, non-adherence can be costly. BWES Compliance and Consulting has over 10 years’ experience of managing product recalls on behalf of clients both large and small. We will manage all aspects of the recall, right up to liaising with the ACCC on your behalf. As well, we have significant resources at our disposal should the products require some rework or modification to allow them to be released for sale again. Our 10 minute checklist is designed to identify the issue and detail the steps and timeframe required to remedy the issue. A well run recall can also result in improved internal systems and procedures and in turn reduce the chance of a future recall. BWES Compliance and Consulting appreciate the sensitive nature that surrounds a potential recall. We can assure our clients of complete confidentiality and professionalism when working with your organisation.
Failure Analysis & Recall FAQs
Once you have been made aware of the issue, you should assemble the product recall team. The first task should be to determine if the number of returns and the type of problem being shown justifies a recall. If the decision is made to recall, all retailers/wholesalers should be advised immediately of your intention to remove the offending product. Thereafter, the cause of the failure should be investigated and relayed to the manufacturer as a matter of urgency.
Ideally, your organisation should be aware of the circumstances surrounding a potential recall and should aim to solve the issue before any involvement from the ACCC. If ACCC do contact your organisation then you should be prepared to detail your response to the situation clearly stating the steps taken to remove the product and protect the consumer.
It is very important that you give serious attention to such an incident. The first step is to arrange for the product to be returned to you ASAP. Organising for a courier to collect the good from the consumer is preferable. You should offer to replace the product with a new one, (once the item has been tested) or offer a different model if available. Commit to keeping the consumer fully informed of your actions and where practical nominate a date when you expect to finalise the matter.
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