Product recalls were up in almost every industry in 2021
As regulators around the world update legislation on product safety, it is interesting to look at product recall cover for what is becoming an increasingly common issue for manufacturers and retailers.
The ongoing global health crisis means continued uncertainty in terms of supply chains, normal business operations and regulatory oversight. Regulators are looking at updates to old legislation across several industries to reflect the risk to consumers from technologies that were not in use when the regulations were written. In many cases, regulators are working to update laws written 20 years ago, before the widespread adoption of online marketplaces and connected devices.
While the goal of these changes is to protect consumers and in some cases the environment, they are likely to cause challenges for businesses who may need to make significant adjustments to their business processes to comply with new regulations.
No one wants to admit that they will face a product recall, however, if plans to mitigate such instances are tested and updated – and become as routine as other business processes – then when the inevitable occurs, both your brand and bottom-line will remain protected.
Our friends at Sedgwick have produced a State of the Nation report looking at recall statistics in various industries.