Improving Recall Effectiveness

1
(No Transcript)
2
Improving Recall Effectiveness

• Ruth Mackay
• General Manager, Product Safety Hazard Response
  Branch,

3

• Australian Competition and Consumer Commission

4
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.

5
Recall Review Research

• File review (2006 2008)
• Market research
• Australian specialist regulator and international
  regulator system review
• Consumer and supplier feedback
• International questionnaire

6
Australian Recall Systems

• ACCC (Trade Practices Act)
• Domestic goods gt 40 000
• 8 State and Territory Fair Trading Acts
• Specialist Regulators
• Food
• Motor vehicles
• Pesticides
• Therapeutic goods
• Electrical goods

7
Common processes and levels of government interest

1. Notification
2. Assessment of recall strategy
3. Oversight of implementation
4. Assessment of completion
5. Auditing the recall
6. Ordering a compulsory recall

8
Australian Recall Statistics
9
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
10
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
11
Notification
12
Advising the Regulator
13
What is a recall?
14
Notify what? The Recall Strategy
15
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.

16
(No Transcript)
17
Communication
18
Forms of communication
Direct Indirect
mail Newspapers
email specialist magazines
telephone point of sale notices
catalogue notices
television
radio
online
19
(No Transcript)
20
(No Transcript)
21
(No Transcript)
22
(No Transcript)
23
(No Transcript)
24
(No Transcript)
25
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
26
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
27
Consumer Group Preferred communication method
Higher 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.
28
Words that resonate

• 1. Urgent
• 2. Recall
• 3. FDA
• 4. Danger
• 5. Warning
• 6. Unsafe
• 7. Alert
• 8. Safety

29
(No Transcript)
30
(No Transcript)
31
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.

32

• 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.

33
Retrieving the product
34
(No Transcript)
35
(No Transcript)
36
Warranty Cards
37
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
38
Online Registration
39
Dont Lose Focus
40
Low Cost Products
41
Closure
42
Find The Root Cause
43
Disposal
44
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

45
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

46
Thank You For Your Attention
47
www.accc.gov.au