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Category: Automotive Industry

Jun
18

When Recalls Come Back to Haunt You

WYou identified a potential safety issue with your product and conducted an investigation. You worked closely with your regulator to plan for and execute a recall. Your team worked tirelessly to communicate with consumers and fix the issue. Then the regulator closed the recall. And you moved on. Or so you thought. The National Highway Transportation Safety Administration recently launched separate investigations into whether two GM recalls conducted years ago were inadequate.

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Jun
11

Recalls in the Era of Fake News

Fake product recalls – unlike other claims of so-called “fake news” – are exceedingly rare. But they are not without precedence. Just last year, a car dealership in Washington, D.C., was heavily fined by the Federal Trade Commission for sending fake recall warnings to car owners in the hopes of drumming up more business for the dealership’s repair shop. The dealership sent out bright red mailers that mimicked official recall notices from the National Highway Traffic Safety Administration (NHTSA).

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May
14

Pointing Fingers: Who’s Liable When a Defective Product Causes Harm

PA swift and thorough product recall is the best way to mitigate any legal liability risk from a defective product, removing inventory from the market before problems become pervasive. But in many cases, product defects or dangers aren’t discovered until after harm has occurred and liability cannot be avoided. Product liability laws enable consumers to sue those parties responsible when a product causes property damage, injury or death.

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Apr
30

Buyer (and Seller) Beware of Recalled Items

Most consumers are aware that it’s illegal for retailers to sell products that have been recalled—the large fines resulting from these violations, often totaling millions of dollars, tend to receive a fair amount of media coverage. After all, intuitively it makes sense that retailers would be responsible for ensuring that their customers don’t go home with potentially dangerous or hazardous products.

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Apr
23

Birth of a recall

When a consumer’s smartphone spontaneously combusts, the word-of-mouth news spreads to millions within days if not hours. If a certain blood pressure medicine is contaminated with a potentially cancer-causing agent, it could take months before routine testing uncovers the defect, and weeks more before the news and notifications slowly trickle.

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