Shook Partner Alison Newstead participated in an interview on avoiding product recalls for the January-March 2020 issue of Corporate Disputes. The interview focuses on risks that manufacturers face, proactive steps to mitigate those risks, and the legal, financial and reputational consequences of a recall.
"Manufacturers of products that are aimed at vulnerable individuals, such as children, the elderly or the sick, or whose products are likely to create a serious risk if they fail in some way are commonly attuned to the potential consequences of product liability issues—both in terms of claims and recall risk," Newstead states. "However, in my experience, it is more common for businesses not to have a recall policy and plan than to have a tried and tested policy and process in place. In the UK, regulators have taken steps to encourage businesses to implement recall plans and have indicated that they will be actively looking at whether a business has a recall plan in place when a safety incident arises."