Improving Recall Effectiveness

Ruth Mackay

General Manager, Product Safety Hazard Response Branch,

• Australian Competition and Consumer Commission

Productivity Commission Report Recommendation

“As the success in recovering unsafe products is variable (and especially poor for low value products) the Ministerial Council on Consumer Affairs should undertake a review of existing recall guidelines to ensure that recalls are undertaken in the most effective manner.”

Recall Review Research

• File review (2006 – 2008)

• Market research

• Australian specialist regulator and international regulator system review

• Consumer and supplier feedback

• International questionnaire

Australian Recall Systems

• ACCC (Trade Practices Act)– Domestic goods

> $40 000• 8 State and Territory Fair Trading

Acts • Specialist Regulators

– Food– Motor vehicles– Pesticides– Therapeutic goods– Electrical goods

Common processes and levels of government interest

1. Notification2. Assessment of recall

strategy3. Oversight of

implementation4. Assessment of

completion5. Auditing the recall6. Ordering a compulsory

recall

Australian Recall Statistics

Total recalls vs consumer recalls

0

100

200

300

400

500

600

700

800

900

198619871988198919901991199219931994199519961997199819992000200120022003200420052006200720082009

Consumer recalls

Total recalls

Recall return rates by regulator

Ranking Regulator Average return rate

1 Motor Vehicles 80%

2 Therapeutic goods 72%

3 Consumer goods 39%

4 Food 36%

Product

category

Most common products

% of all recalls

Average

return rate

equipment

and supplies

welding tools, jacks and electrical parts

13% 53%

sporting and

fitness

bikes and exercise equipment

13% 49%

electrical

products

air conditioners, heaters and fans

22% 48%

homewares candles, blinds and

furniture

18% 34%

toys products vary widely 26% 30%

clothing sunglasses and sleeping bags

8% 18%

Notification

Advising the Regulator

What is a recall?

Notify what? The Recall Strategy

Notification so far…

1 Who is notified - clarity required; duplication avoided; process streamlined.

2 Define ‘recall’ - preferably broadly.

3 Identify critical information requirements; assess actively.

Communication

Forms of communication

Direct Indirect

mail Newspapers

email specialist magazines

telephone point of sale notices

catalogue notices

television

radio

online

Consumer Group Preferred communication method

Nation builders

(65+)

TV and radio – tend to view / listen throughout the day so flexible as to the time-slot

Newspapers – thorough readers, need not be a front page notice

Websites – general web browsing, particularly news and weather

Email

Baby boomers

(46-65)

Drive-time radio

Television – evening news, current affairs

and evening viewing

Newspapers and catalogues – but needs

to be a reasonably prominent notice

Websites – general web browsing is

popular, with some limited use of blogs

and social networking

Email

Consumer Group Preferred communication method

Generation X

(31-45)

Word-of-mouth chat groups

Television – News and evening entertainment

Drive-time radio

Social networking – there is a more significant take up of

social networking in this generation

Websites – blogs increasingly popular

Email

Generation Y

(18-30)

Evening entertainment television – news much

less popular

Websites – general entertainment and as a

primary source of news

Blogs and micro-blogging – a large take up on

sites such as Twitter

Social networking – a rapid take up

Email

Newspapers – possible resurgence

Consumer Group Preferred communication methodHigher income

earners and lower

income earners

Higher incomes – significantly increased use of

online communication; websites, social

networking, blogs and email

Lower incomes – much less internet

communication. Favours TV, radio and

newspapers (age depending)

Families with children TV, radio and newspapers – Generally popular

given spread of ages across household

Internet communication – significantly more

likely to have the internet. Age depending, higher

popularity of websites, social networking and

Blogs

Gender Little effect on internet use, although men are

statistically slightly more likely to use internet

communication.

Largely depends on age and whether the product

is gender oriented.

Words that resonate

1. Urgent

2. Recall

3. FDA

4. Danger

5. Warning

6. Unsafe

7. Alert

8. Safety

Printed Recall Notices

• The border should be printed in colour – either black and yellow

or black and red.

• The recall notice should include a photograph of the product.

• The recall notice should contain a hazard symbol.

• The recall notice should have a font size no less than 11 point.

Every recall notice should include the following features:

• A title using one or more ‘impact’ words.

• The title should be in at least 16 point andin bold text.

• A clear description of the product including serial and model numbers or other unique identification.

• A clear description of the risk and potential injury.

• ‘What to do’ which explains the action the consumer is to take.

• Contact details for the supplier including the recalls.gov.au website in 14 point and bold text.

• Details about how the supplier plans to reduce the inconvenience caused to the consumer including refund, replacement or repair options.

Retrieving the product

Warranty Cards

Recall Registration Cards

PRODUCT REGISTRATION FOR SAFETY ALERT OR RECALL

We will use the information provided on this card to contact you only if there is a safety alert or recall of this product. We will not sell, rent or share your personal information. To register your product, please complete and mail back this card or visit our online registration at www.WEBSITE NAME.com

Online Registration

Don’t Lose Focus

Low Cost Products

Closure

Find The Root Cause

Disposal

Recall effectiveness

Recall Effectiveness can be assessed by:

• the percentage of product returned from both offer of supply and the hands of consumers

• the breadth and depth of the recall advertising including repeated recall messages

• the communication methods, how effectively the communication strategy is targeted and whether it has reached the intended audience

Recall Effectiveness (continued)

• where relevant, a decrease in the number of injuries and complaints about the product

• the likelihood of the product remaining in use

• notification of others in the supply chain

• information about the disposal of the product

Thank You For Your Attention

www.accc.gov.au