Why recall?

It is in the best interest of suppliers and consumers to make sure that unsafe consumer products are effectively removed from the marketplace. Consumers may suffer serious injury from such products and, if they do, suppliers can be liable under the product liability provisions of the Trade Practices Act 1974 or at common law.

Under the Trade Practices Act, the Minister responsible for consumer affairs (currently the Minister for Competition Policy and Consumer Affairs) can order the recall of a product that will or may cause injury if the supplier has not taken satisfactory action to prevent the product causing injury to any person. However, most recalls are initiated voluntarily by manufacturers and suppliers when they become aware of a defect in a product that makes it unsafe.

This guide aims to help you, as a supplier, to recall such an unsafe product. Remember that it is important to treat a recall as a positive experience - as a chance to enhance your reputation with consumers and other key clients.

Aims of a voluntary recall

Your aims in voluntarily recalling an unsafe consumer product should be to:

• minimise the risk of injury or death to consumers by removing an unsafe product from use
• retrieve or repair as many of the defective products as possible
• minimise the cost and inconvenience to consumers and the company, and
• minimise the need for involvement by government authorities by voluntarily complying with the law

When to Recall

You should consider a recall as soon as you become aware of a possible defect in a product that may make it unsafe. To decide if a recall is necessary:

• gather all available information on the suspected defect (eg, arrange testing, talk to consumers who have complained) and assess the reliability of that information
• undertake a comprehensive risk analysis
• identify how the problem occurred - consider the possibility of tampering after the product left your premises, or misuse or abuse of the product
• look at all possible ways of addressing the defect and decide whether you can repair or modify the product, and
• decide what needs to be done.

See Checklist on How to Conduct a Recall

What type of Publicity is Best?

The traditional way of publicising recalls is to advertise in newspapers. However, you may need to consider alternative types of publicity depending on the risk associated with using the product, where the product has been distributed, and the particular consumers you want to reach. In some cases (eg, where only a few products have been sold and they can all be traced) there may be no need for a general media notice.

The best guide is to use the type of publicity most likely to get the message across to the relevant consumers quickly enough to minimise the risk of injury. You can:

• advertise in daily or community newspapers
• display signs in retail outlets for the product
• issue a media release to newspapers, radio and television
• write to known customers, including by registered mail
• advertise on radio and television
• advertise in retail flyers (eg, supermarkets, retail chains and department stores often send flyers to householders)
• ask relevant industry and community organisations to publicise the recall in their newsletters
• advertise in special-interest publications if appropriate
• advertise prominently on your web site, and/or
• contact known customers by email or facsimile

Guidelines on types of publicity

Media release

A media release can result in free publicity about the recall on radio, television and in newspapers, with coverage on television news or current affairs programs being particularly effective. A media release should be short, clear and written in simple language. It should contain the names, address, phone numbers and email addresses of people who can be contacted for further information.

Newspaper/magazine advertisement

Advertise the recall in newspapers published in areas where the product has been distributed.

It is important to place recall advertisements where consumers are most likely to see and read them. Place advertisements in the first five pages of newspapers if possible.

In all instances you should use the example hatched border with the safety triangle and the recommended minimum dimensions. The ACCC recommends that recall advertisements also contain a clear description of the product, including the name, date product sold, the potential risk, and what action the consumer should take.

Note: If the recall is a consequence of an identified breach of a Trade Practices Act mandatory standard, or of a hazard identified by the ACCC, the conduct of the recall should be negotiated with the ACCC. Such negotiation would include: placement of recall advertisements; form and content of advertisements; and the corrective action to be taken by the supplier/s and by affected consumers.

The following is the example of the format for a recall advertisement:

The recall advertisement should:

• be at least two columns in width, with a suggested minimum size of 10 by 12 centimetres
• use the example hatched border with the safety triangle in the upper left-hand corner-this is an internationally recognised safety symbol
• use a font size of at least 10 point for the print in the advertisement
• include the words 'Product Safety Recall' prominently at the top of the advertisement, and
• include the words 'See www.recalls.gov.au for Australian product recall information' at the base of the advertisement.

Guidelines for Preparing Publicity Material.

All publicity material should include the following information:

• a clear description of the product, including the name, make, model, distinguishing features, batch or serial number
• a drawing or photograph of the product if available
• clear identification of the supplier, including logo, trademark or letterhead, street, postal, e-mail and web site address, facsimilie and telephone number
• a statement of the hazard and the associated risk
• dates when the product was available for sale
• what immediate action consumers should take (eg, cease use, store safely)
• who consumers should contact to receive a refund or have the product repaired or replaced (eg, manufacturer, wholesaler, agent or retailer)
• business and after hours telephone numbers for further information, preferably toll-free, and
• advice that the recall is at the expense of the supplier.

How the ACCC can help with your recall

The ACCC can help you by providing guidance on recall procedures, advising on the type of publicity suitable for your recall, and posting your recall to the Product Recalls Australia web site at www.recalls.gov.au.

While the ACCC can assist suppliers with such recall matters, the ACCC is not able to provide legal advice to suppliers. In relation to this, suppliers should obtain their own separate legal advice on recall matters, if required.

For further information contact:

Australian Competition and Consumer Commission Infocentre
GPO Box 3131
CANBERRA ACT 2601
Phone: 1300 302 502
Email: recalls@recalls.gov.au