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Voluntary recalls can minimize product liability claims

On Behalf of | Apr 2, 2023 | Product Liability

Manufacturing a product is often a viable way for a company to generate revenue. But, it must be remembered that each retail sale translates to some degree of company liability. Even highly-successful organizations can end up in the red when a few bad weeks at a production facility or poorly-tested new designs lead to product failures.

Organizations that are hoping to minimize financial liability for product failures will need to take numerous steps to achieve that goal. Carrying the right insurance is crucial to protecting the organization. It will also be important to invest sufficiently in research and development, as well as product testing to prevent issues from occurring in the first place. Finally, quality control for both materials and finished products is of the utmost importance to ensure consistent and reliable products that do not fail and injure consumers.

Additionally, when a business does release products that don’t live up to expectations, a voluntary recall could protect the business from catastrophic losses.

How voluntary recalls work

Perhaps there have been a few consumer complaints that seem to have the same underlying issue. Maybe an organization recently terminated someone from its production facility for doing a poor job. There are numerous reasons why a company could become aware of defective products on the market.

Whatever the reason for the bad batches of products, companies have the option of notifying consumers and initiating a recall. In fact, companies can and should have a plan in place to quickly implement a recall in the event of an issue with one of their products.

Communicating with retailers and with those who have already purchased and registered products will help ensure that those who could end up injured by a product failure have the opportunity to return the item or present it for repairs. When executed appropriately, product recalls can significantly reduce the likelihood of an organization facing a product liability lawsuit.

Product failures can be incredibly expensive

Bad wiring in a $5 toy could lead to a house fire. Defects in consumer goods can lead to massive personal injury and property damage losses, which is why businesses that sell goods to the public and companies that manufacture them need to understand the role of recalls and how to participate in them.

Taking proactive steps to minimize product liability concerns can help organizations to avoid lawsuits and to present a successful defense against any related claims that may ultimately be filed against them.