Could Your Promotional Products Business Withstand a Recall?

For consumer products, the law requires immediate notification of the Consumer Products Safety Commission (CPSC) when a company obtains information that supports a conclusion that a product distributed in commerce fails to meet a product standard or contains a defect that can create a substantial risk or injury to consumers. If CPSC staff concludes that a recall is warranted, they will usually suggest a "voluntary recall" although the Commission has the right to enforce a mandatory recall. FDA has similar procedures for the products it regulates. Promotional products that fall within FDA oversight include hand sanitizer, sunglasses, first aid kits as well as food and food contact items.

As painful as a recall can be, failure to report can be even worse. Sometimes companies will find out about an injury or that a product it distributed has failed a test, and will try to handle it on its own, without involving the governmental agency, perhaps by notifying customers to return the item. CPSC is particularly unforgiving in these instances no matter how sincere or thorough a company may be in its attempt to self-resolve the issue. Public Citizen, a watchdog group, reports that between 2002 and 2007 CPSC fined companies an average of $452,000 for filing late reports or withholding key details from the agency such as information about customer complaints. In more recent cases the agency has become even more aggressive with some fines in excess of $1 million.

So what about that ounce of prevention? What are some things you can do to prevent a product safety nightmare? The answers may seem obvious or common sense but you'd be surprised how easy they can be to overlook when you're stressed or rushing to complete a last minute promotion.

1. Slow down. Take the time to understand the promotion and how the client is going to use the product. Who is the intended audience? Are children involved? How old are the children?
2. How well do you know the supplier and the supplier's products? What do you know about the supplier's processes to ensure safe and compliant products? What tests are conducted, by whom and how often?
3. Did you obtain an actual sample of the product? How well is it constructed? Does it have any sharp edges? Could the material shatter? Can you foresee any safety issues?
4. Is the product a potential choke hazard for children? If so, does it have proper warnings?
5. Is the product an electric product? If so, does it have an independent lab safety rating, such as by Underwriters Laboratory?
6. Have you researched whether there any state or Federal regulations that apply to the product or its packaging? If so, have you received current test reports from the supplier and had a qualified person confirm that the test reports are thorough and that the product meets all required standards? (PPAI has a very good tool on its website called Turbo Test which can help identify any applicable regulations.)
7. Does your client have any testing requirements that go beyond the state and Federal requirements? Some companies require a product to pass children's product or toy standards even if they aren't children's products.

Most of us have owned a product that was involved in a recall sometime during our lives. Maybe it was a car or a coffee pot, a battery or a crib. Mistakes happen even to the most sterling and trustworthy brands. Search "product recall" on Google and your hits will include Mercedes Benz, BMW, GE, Apple Computer and Fisher Price. But while you can't guarantee immunity from every problem, if you're a savvy shopper, learn the risk factors and always do your homework, you'll exponentially reduce the risk of a product safety fiasco.