Posts Tagged ‘Product Recall’
More Information About the CPSIA Please
If you have been following this blog since its inception, you have noticed a mix of topics, from research regarding the financial impact of recalls on manufacturers to safety tips for consumers. The reason? A mix of readers. Much to my delight, this blog is read by consumers, manufacturers, retailers, academics and researchers. After several [...]
Halloween is Here… and with it Come More Halloween Recalls
Considering that most product defects that result in recalls are discovered through customer use, it is no surprise that Halloween related product recalls begin to show up immediately before the big day and continue for a few months after, as we are playing with our toys and prizes. If you read my last post, where [...]
Halloween Related Product Recalls – Make Sure Your Decor and Costumes Are Safe
If your family is anything like ours, Halloween decorations and other paraphernalia get packed back into boxes or bins and pushed to the depths of the garage within a day or two after the trick-or-treating comes to an end. The plastic witches and candy-collection pails then stay in their out-of-sight–out-of-mind state until, well, now – [...]
Another Crib Recall Prompted by Death of Infant Causes CPSC to Seek New Rules
Delta Enterprise voluntarily recalled more than 1.5 Million cribs today to repair missing or failed pegs needed to secure the crib’s drop-side mechanism. One baby is known to have died due to missing pegs. The incident has prompted the CPSC staff to recommend an evaluation of design and durability issues, potentially leading to stricter standards [...]
Company Costs of a Product Recall: Incentives to Fix or Ignore Recall Effectiveness Problems (Summary)
When I speak with consumers about possible ways to make locating recalled products easier for manufacturers, many balk at the idea, positing that companies would never have any incentive to improve recall effectiveness. For these individuals, the belief is that companies would rather not do everything possible to locate and retrieve defective products in order [...]
Batteries to Blame in RC Helicopter Fires
On Wednesday (09/10/08), yet another remote controlled toy helicopter was recalled – the eighth one this year and the ninth associated with fire and burn hazards since 2006. The culprit in nearly every case? Rechargeable Lithium batteries and/or their chargers.
The Effect of Product Recalls on Stock Performance (Summary)
In my paper, The Effect of Product Recall on Stock Performance, I discuss findings with regard to how much a company’s stock price changes with the announcement of a product recall. I also discuss studies that show how negative impacts can be mitigated. The full text of the post can be found by clicking the [...]
US Product Recall System is Ineffective…Still?
Every year millions of people are injured or killed in product-related accidents. In 2006 (the year before recalls regained the spotlight) product-related incidents in the US alone injured 33.1 million people and killed an additional 27,000.1 That same year, in attempt to quell those numbers, the CPSC recalled 471 products, accounting for 124 million product-units.2 [...]
Company Costs of a Product Recall: Incentives to Fix or Ignore Recall Effectiveness Problems (Full Post)
There are numerous costs involved in conducting a product recall. Many of these costs vary greatly depending on factors such as the type of product being recalled, the cost and price-point of the product, the number of units recalled, the geographic location of the companies involved and even the demographics of the end-user. This article [...]
The Effect of Product Recalls on Stock Performance (Full Post)
A 2005 statistical study published in the Quarterly Journal of Business and Economics analyzed the security prices of non-automotive recalls following the announcement of the product recall in the Wall Street Journal (WSJ).[1] [2] The study looked at a sample of 269 product recalls from 1984 through 2003 and reported the mean abnormal returns (MAR) [...]
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