When there’s a recall, consumers think of the name on the package. Often that brand is the single company believed to be responsible, and that company is the one whose reputation is diminished. Perhaps nowhere is this more apparent than the food industry, where one ingredient from a supplier that consumers have never heard of can spark recalls across big brands and private labels.
Continue ReadingEarlier this month, the Food and Drug Administration confirmed the presence of asbestos in three products manufactured by Claire’s and Justice, two retailers whose products target pre-teens and teenagers. The contamination was first reported in 2017 and the FDA has now released test results that confirm the asbestos, which has been linked to various cancers and serious respiratory issues.
Continue ReadingSleeplessness is a common malady of business leaders whose companies have had to undergo a product recall. When a recall hits home, how well a company prepares for and manages the recall requirements can mean the difference between preserving customer loyalty and severely damaging the brand reputation, or even worse…sink a business entirely. Anxiety levels spike throughout the company as leaders brace for bad publicity, lower earnings, lost market share, legal liability, or a host of other unwanted outcomes.
Continue ReadingIt’s no surprise that notifying consumers directly about product recalls is the most effective way to get dangerous products out of circulation. What is surprising is how much more effective direct notifications are, and why manufacturers and retailers don’t use them more often. A study last year by the Consumer Product Safety Commission (CPSC) found that recalls which employ direct notifications have a healthy response rate of about 50 percent.
Continue ReadingWhile recalls vary widely in their scope and impact, the truth is that there really are no small recalls. When it comes to brand reputation and consumer perception, the scale of a recall often doesn’t matter. One negative media report or one simple mistake can turn a small, seemingly manageable event into a much larger problem. To truly protect their brands, companies need to be prepared for a recall of any size.
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