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Product Recall
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What is a Product Recall?
A Product Recall is a request that a batch or an entire production run of a product be returned to the manufacturer, usually due to the discovery of safety issues. The recall is an effort to limit liability for corporate negligence (which can cause costly legal penalties) and to curb bad publicity. Recalls are costly to a company because they often entail replacing the recalled product or paying for damages caused in use.
A country's consumer protection laws will have specific requirements in regards to product recalls. Safety-related recalls can be voluntarily initiated by the manufacturer, or made compulsory by a government agency if the risk is seen to be significant and if it is in the best interests of the consumer.