Consumer product recalls double in 2005

Forty-three products were recalled in the UK in 2005 - up 163% on 2004, analysts at PricewaterhouseCoopers said. This gave Britain the fourth highest number of withdrawals of all EU member states.

Product recalls across Europe rose to an average 14 per week in 2005 compared with six per week the previous year. Mandatory recalls as opposed to voluntary action taken by companies rose to 447 last year from 176 in 2004.

The European Commission's general product safety directive came into force in January 2004 to protect consumers from unsafe goods. The rules were transcribed into law in the UK following the General Product Safety Regulations, which came into effect on 1 October last year.

A breach of the UK regulations can result in a fine of up to £20,000 or a custodial sentence of up to twelve months.

Positive effect

Analysis of new European Commission figures by PricewaterhouseCoopers placed Hungary at the top of the table with 132 recalls last year. Germany came second with 101, followed by Greece at 48, the UK at 43 and Portugal at 42.

PricewaterhouseCoopers' Graeme Berry said: "As governments across the EU begin to incorporate the directive into their own regimes, manufacturers are realising how dramatically the legal environment has changed."

Norwich Union Risk Services' liability risk adviser, Ashley Hutton, said the increase in consumer product recalls suggested that the new regulations were having a positive effect on risk management in the supply chain.

"Most importantly, by developing appropriate product recall systems suppliers are reducing the risk of injury to consumers," he said. "Secondly, suppliers are better controlling their exposure to product liability civil claims and criminal liability action."

The European directive introduced mandatory recalls on companies which did not take appropriate steps to safeguard consumer safety.

Under the UK regulations, producers and distributors of items for consumers who find that they have placed an "unsafe" product on the market are required under law to notify the appropriate authorities.

Taking action

Products covered include - but are not restricted to - clothing, medicines, primary agricultural and horticultural products, DIY tools and equipment, food and drink, household goods, nursery goods and motor vehicles.

In general, producers and distributors in Britain have to notify their local authority of unsafe products, which in turn pass the information on to the Department of Trade and Industry (DTI). The system is part of the EU's rapid exchange of information scheme (RAPEX), which aims to prevent, restrict or impose conditions on potentially dangerous products throughout the continent.

As well as notifying local authorities about an unsafe product, producers and distributors must also inform them about what action has been taken to remove any risk to consumers.

Products used by consumers in the course of a service rather than actual services fall within the scope of the General Product Safety Regulations - for example, a hairdryer provided in a hotel room for the guest's own use. In contrast, a hairdryer used in a salon by a hairdresser rather than the client does not.

Also, products originally intended for professional use, but which might reasonably be expected to be used by consumers - for example specialist hand tools that may be obtained by hobbyists - also fall within the scope of the regulations.