Mass Tort Update- |
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Mass Tort Update
Recalls and alerts are steps taken by a maker when their product is discovered to have unforeseen safety hazards (i.e. malfunctions, side-effects, etc.) An alert is a warning made to the public by the maker or a third party when a safety hazards are discovered in a product. A product recall is a request to return to the maker a batch or an entire production run of a product, usually due to the discovery of safety issues. The recall is an effort to limit liability for corporate negligence (which can cause costly legal penalties) and to improve or avoid damage to publicity. Recalls are costly to a company because they often entail replacing the recalled product or paying for damages caused in use.
Consumer protection laws will have specific requirements in regard to product recalls and alerts. Such regulations may include how much of the cost the maker will have to bear, situations in which a recall is compulsory (usually because the risk is big enough), or penalties for failure to recall and alert.
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