US product recalls increased in first quarter, says Sedgwick

The number of product recalls in the US increased 14.2% during the first quarter of 2023, according to Sedgwick brand protection’s latest US product recall index report. It noted that this marks the highest single-quarter total in four years.

The number of recalled units fell 21.6% from the previous quarter, but Sedgwick noted that “with three-quarters in the year yet to be reported and regulatory and consumer scrutiny continuing to increase, there is still the possibility of a third consecutive year with over a billion recalled units”.

Automotive recalls increased 3.4% to 245 events in the first quarter of 2023, the report states. Electrical systems were the leading cause with 48 events, followed by equipment with 46, and airbags with 17. The consumer product industry recorded the most recalls in a single quarter since Q3 2015 with 94 events. The number of units recalled also increased significantly from the previous quarter, up 442.1% to 23.1 million units. Only one quarter in the last five years saw more units recalled, said Sedgwick.

US Food and Drug Administration (FDA) recalls increased 23.2% from the previous quarter to 117 events, but the number of units impacted decreased 78.7% to 39.3m, the report notes. In contrast, the number of US Department of Agriculture recalls remained at 11 events for the second consecutive quarter, even as the number of pounds recalled increased 1,129% to 2.9 million.

The number of medical device recalls increased 4.6% to 252 events. Sedgwick says that while manufacturing defects accounted for the greatest proportion of these (with 59), quality concerns were the leading cause in terms of units impacted, with 68.5 million or 82.3% of all recalled devices.

The first quarter of 2023 marked the most pharmaceutical recalls in a single quarter in the past 18 years, with 144 events, according to Sedgwick. The number of units impacted increased 1,071.8% to 49.5m after an unusually low number of units were recalled in Q4 2022.

Looking ahead, Sedgwick says technology advancements and increased adoption of electric vehicles will push regulators to move quickly to ensure that vehicles equipped with the latest features are safe for the road. The report states: “Following in the footsteps of the EU, we may also see a continued push from the Biden administration, regulators, and other legislators to adopt new standards for low to zero emissions vehicles. Manufacturers should be prepared for a slate of new regulations and guidance as regulators work to ensure vehicle safety.”

Sedgwick adds that the US consumer product industry will see strict regulatory enforcement continue from both the Consumer Product Safety Commission (CPSC) and the Federal Trade Commission. “The CPSC will likely continue its more public efforts to pursue remedies from manufacturers and its practice of issuing civil penalties. Manufacturers will want to update their recall and communications plans to align with CPSC’s new, more aggressive enforcement strategy,” the report notes.

It adds: “The FDA has outlined an ambitious list of topics it will tackle in 2023 with draft or final guidance, including allergens, dietary supplements, food additives, topics related to the Food Safety Modernization Act, and labelling. The infant formula industry is also on notice from the FDA, which issued a constituent update and sent a letter to stakeholders encouraging them to quickly improve their processes and implement the programs it outlined.”

Chris Harvey, Sedgwick senior vice president of brand protection, said: “As the number of recall events increase across industries, the risks to manufacturers grow more serious, with increased regulatory enforcement and a more publicised recall process. Regulators are working to prioritise product safety while balancing innovation with oversight – meaning manufacturers can expect to contend with new rules and regulations. Businesses will need to remain agile to keep pace with these changes and prepare for future ones.”