In order to deal with these situations properly, it is vital that general counsel across the country prepare for the event that their company is affected. The biggest mistake that can be made is being caught off guard. This preparedness will apply to the consequences associated with the public as well as the government. The procedures associated with federal reporting requirements, for instance, are stringent, and deadlines are almost instantaneous.
For example, the rules state that if a company learns about a safety problem they must report the issue to the Consumer Product Safety Commission (CPSC) within a 24-hour time period. If, on the other hand, an issue comes to light and the company subsequently conducts an internal investigation to determine its cause, they are still required to report the issue within 10 days.
So how should general counsel prepare? It is vital that they have a strategy in place in the event that one of their company's products is recalled. Often this will come in the form of having a type of "emergency plan" whereby an in-house team has already been set up and outside lawyers have already been chosen and can be contacted quickly. The most important tip is to act immediately instead of wasting several days trying to get a game plan together.
Obviously, with such a large undertaking, most in-house departments will need to look to outside sources in order to react properly and effectively. This process can be an extensive one and may involve many steps including conducting investigative work to determine why the problem occurred in the first place, establishing what was affected, locating defective products in the marketplace and ensuring that consumers don't use them, and deciding how to deal properly with a concerned public. Also, it is important that general counsel attempt to ensure that product tracking systems are in place before any issues arise. This way, a company can determine where the problem may lie and focus the recall appropriately.
Of course, the ultimate objective is to ensure that consumers are safe, and therefore, all actions should be tied to that goal. This is why when something happens it is best to report it immediately to the CPSC. Even if the issue isn't serious enough to warrant a recall (in the eyes of the CPSC), it can place the company in a favorable light for being overly cautious. Even if the public is not aware of what has transpired, the company will improve upon their relationship with the CPSC.
Above all else, general counsel across the country need to ensure that they are prepared because it is likely that lawmakers will take matters into their own hands and enact legal modifications that aim to further protect consumers and alter product safety and reporting requirements for the new year.
