Consumer Product Recalls

European Consumer Product Recalls More Than Double in 2005

21 February 2006 - The number of reported European recalls of dangerous and faulty consumer goods more than doubled last year, according to the latest European Commission (EC) figures analysed by PricewaterhouseCoopers. There has also been a significant increase in the number of mandatory recalls.

By the end of December 2005, an average of two recalls a day were being posted on the EC website, with a total of 706 reports filed at the end of the year. This equates to an overall 126% increase in reported recalls since figures were first compiled in 2004 and means that the weekly number of product recalls notified to the EC has increased from an average of six per week in 2004 to 14 per week in 2005. Mandatory recalls (as opposed to voluntary action taken by suppliers) increased by 154% from 176 in 2004 to 447 in 2005.

The General Product Safety Directive (GPSD) was introduced in January 2004 to help protect consumers from unsafe products by harmonising and increasing the notification obligation and introducing mandatory recalls on companies in the supply chain that do not take appropriate steps to safeguard consumer safety. Since the introduction of the directive and up until the end of 2005, there have been 1,018 reported product recalls across the European Union (EU).

Analysis by product recall specialists at PricewaterhouseCoopers has placed Hungary and Germany at the top of the EU member recall tables (with 132 and 101 recalls respectively in 2005). However, product recalls in the UK increased by 169% from 16 in 2004 to 43 in 2005. This places it in fourth place, after Hungary, Germany and Greece.

Sirshar Qureshi, Director in the Investigations and Forensic Services department at PricewaterhouseCoopers Czech Republic , said:

“In 2005 there were 39 notifications in the Czech Republic which were mainly enforced by the Czech authorities. This compares to 13 notifications last year which represents a 200% increase, which is in line with the experience within the rest of Europe.”

Graeme Berry, Director in the Insurance Claims and Forensic Services practice at PricewaterhouseCoopers, said:

“We predicted a sharp increase in the number of product recalls reported and the latest figures from the EC support this trend. As governments across the EU begin to incorporate the directive into their own regimes, manufacturers are realising how dramatically the legal environment has changed.

“The reported rise in recalls has led to more attention being given to risk management in the supply chain and to increased demand for product recall insurance cover. Increased take-up from manufacturers will be driven in particular by the new regulatory environment, greater transparency and awareness of the risk, and by the penalties for non-compliance. In the UK , the general product safety regulations enacted in October 2005 state that supplying an unsafe product can result in a fine of up to £5,000 for each offence, and/or a term of imprisonment of up to three months.”

END

Notes to the editor:

1. The source for the data can be found at http://europa.eu.int/comm/dgs/health_consumer/dyna/rapex/rapex_en.cfm

2. The top five countries in terms of notification (2005) were:

   1	Hungary	132
   2	Germany	101
   3	Greece	48
   4	UK	43
   5	Portugal	42
   …	Czech Republic	39
   …	Slovakia	22

   
   
   
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