Thought Leadership

When a consumer’s smartphone spontaneously combusts, the word-of-mouth news spreads to millions within days if not hours.

Advances in technology tend to be mixed blessings for product recalls. They often introduce new product safety vulnerabilities while, at the same time, may offer new capabilities that improve recall efficacy. The impact of technologies like artificial intelligence (AI), Internet of Things (IoT), robotics, big data, and others on product recalls are slowly unfolding, but emerging patterns give us some sense about how these technologies might affect product safety and recall management in the future.

In December of 2018, Congress passed the farm bill, which, among other things, broadened the ways in which hemp can be cultivated and transported. While hemp can be used to create a variety of products, the market for cannabidiol, a hemp extract commonly known as CBD, is attracting the most attention by far. CBD is said to promote relaxation without the psychoactive effects of the THC compound found in marijuana, and manufacturers have been adding the compound to everything from beverages to shampoo since the bill passed.

Earlier 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.

Sleeplessness 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.