What do you do when you realize that you have sold defective product and there is more out there in your distributor’s inventory? Just remember, the quicker the response to this situation the less the damage, so now is the time to review your product recall action plan, not when you already have a product needing recall. This plan should consider protecting your brand/reputation and not just on your legal risks. Have the plan ready to use anytime. This plan should cover operational, legal and public relations. Have the team responsible in place. Have backup people for the main people. Practice a mock recall. Have contact lists of all key people set up on automated notification systems. Plan to communicate with all involved. For example; send out reassuring messages to employees. It is better for them to hear about it internally as opposed to from external sources. Don’t wait for external regulatory agencies to protect your reputation. While each regulatory agency that can get involved in product recalls has its own process to follow, that process can often cause delays before consumers and distributors are notified. It’s your reputation that will be effective so swift action is the best action. Focus your attention to the most affected. For example: customers directly affected and distributors. In this day of technology a very few angry people can make it larger than it actually is. The plan in place should include a greater focus on communicating directly to key complainants.
Be sure to seek advice and purchase insurance from those who understand your business!