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Manufacturing and selling a product has various risks, regardless of the product type. Product defects are one of the worst situations any product business can face. A product defect is when there is a problem with the product that causes harm to the consumer. After a product defect is reported, another nightmare follows, known as a product recall.

Product recall is the procedure when a business professionally requests the public and retail stores to return every product with a defect. Companies have to pay millions to deal with the expenses related to a recall.

Product recalls often happen due to defects such as contaminations of toxic ingredients or malfunctioning components. Almost every company has had a product recall case that has made the news.

However, some product recall examples have shocked and surprised the public. These recall examples are famous due to the cost and well-known brand involved. Hence, the article will highlight five surprising product recall examples worldwide.

Top Surprising Product Recall Examples

Toyota Floor Mats

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When consumers purchase a car from a well-known brand, they fully trust it to be safe. There is an expectation for every component to work smoothly with no worry. Even if things go wrong, most cars warn the driver before it’s too late. However, this is not always the case.

Toyota is one of the well-known brands among the worst car product recall examples. The recall occurred in 2010 and was all due to a mat, believe it or not. The defect included the gas pedal getting stuck into the mat, resulting in the speed increase and the inability to stop. There were several crashes due to this defect, and Toyota had to recall 3.8 million vehicles

The recall cost added up to around US$ 2 billion due to the cost of informing the public, shipping and loss in sales. Such recalls must be urgent to avoid a massive number of accidents. The cost and negative outcome can be devastating for any company that does not have the proper company protection.

Samsung Exploding Phones

Almost everyone in today’s world owns a phone and uses it daily with no safety worries. Every year, there are new models that have a better battery, processing chips and are faster. Few brands are known for their phones and are trusted worldwide—one of them being Samsung.

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However, even Samsung had a disastrous product recall that shocked the world. It is one of the technology industry’s most famous product recall examples. The recall had to occur when there were numerous reports of the Samsung Galaxy Note 7 and S7 phones overheating and exploding. Various people were injured, and airlines even banned the phone on flights.

The multinational brand had to recall around 2.5 million phones, and the recall cost around US$ 5.3 billion. The example proves that product defects and expensive recalls could occur to any company, regardless of size or expertise. 

Mattel’s Lead Poising Toys 

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Toy brands cannot predict how children will play with the toy, especially if the toy is for younger children. Brands must ensure the toy is safe no matter how the target age uses it.

However, there is always a chance of defects that could harm the child or any other user. Mattel is one of the most famous brands known for Barbies and Hot Wheels. The brand is part of another product recall example due to the lead paint incident 2007. 

The brand recalled nearly nine million toys due to their manufacturer’s paint choice. Their manufacturer used a paint that was lead-based and poisonous for children. No matter whose fault the defect was, the selling brand is liable for the recall.

Kraft Heinz Cheese

Food product defects can lead to severe injuries and illness. A food defect could occur due to contamination or packaging. Even the biggest food brands can make mistakes that result in defects.

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Kraft Heinz is a famous food brand known and consumed worldwide. Recently, they conducted a voluntary product recall. The product recall example is surprising as the recall was made before any report or incident. The brand recalled nearly 84,000 Kraft singles American processed cheese cases due to a packaging defect.

The brand noticed an issue in one of the wrapping machines, which could have made it possible for the plastic to stick to the cheese. The packaging sticking to the product could result in choking or sickness if accidently consumed. Food defects must be immediately informed and recalled, avoiding severe injuries and illnesses worldwide.

Johnson & Johnson Crisis 

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Medicine product defects are among the worst defects, along with food defects. Consumers trust medical and health brands to produce products that cure or help them. There is rarely a thought about what if this painkiller is poisonous.

Johnson & Johnson is among brands that have been part of the cruellest product recall examples in history. The medical brand had a famous painkiller product called Tylenol. It was one of the most successful painkillers in the market and made up 19 % of the brand’s profit – till 1982.

In 1982, there were some malicious people or person who replaced the tablets in production with cyanide-induced tablets. Cyanide is a highly poisonous and fast-killing chemical. The switch and malicious contamination were only noticed when there were reports of death after consuming the medicine. 

Johnson & Johnson’s US$ 100 million recall included nearly 32 million bottles after seven unfortunate deaths. The incident had to be handled as soon as the information was found to avoid further deaths. In addition, Johnson & Johnson never sold the product again.

Insurance For Product Defects and Product Recalls

Every business in the product industry must have the proper protection to deal with product defects and the risks that follow.

The main insurance a product company needs is product liability insurance. The policy will help cover the expenses associated with the defect, such as legal, compensation and settlement costs. However, product liability insurance will not cover any expenses related to product recall.

Product recall insurance is a policy that can be an addition to product liability insurance. The insurance will cover most costs linked to recalling a batch of products. The cover will include public communication, shipping, warehouse storage and disposable costs.

Even if a business faces a defect and recall, insurance protects it to reduce substantial financial damage. The policies also ensure the affected customers are compensated, and the recall can occur quickly to prevent additional victims.

These product recall examples have occurred to the biggest brands; hence, every product business should have adequate protection.

 

 

To Learn More about product recall insurance and cover your recall risks, contact Red Asia Insurance.