The National Highway Traffic Safety Administration (NHTSA) has issued a Supplemental Notice of Proposed Rulemaking (SNPRM) to amend the means by which manufacturers must notify consumers about product recalls. The SNPRM proposes amendments to 49 CFR part 577 requiring manufacturers of vehicles or vehicle parts to issue recall notifications to affected consumers through electronic means, in addition to first-class mail.
NHTSA has been working on the proposed rule since 2016. The agency was authorized to expand the means of recall notification by the Moving Ahead for Progress in the 21st Century Act (MAP-21) in 2012. TheFixing America’s Surface Transportation (FAST) Act later mandated that NHTSA amend 49 CFR part 577 in 2015.
Details of the proposed rule
The SNPRM makes some notable changes from the Notice of Proposed Rulemaking (NPRM) that was first issued in 2016. Specifically, the proposed rule now calls for a two-tiered approach to issuing electronic recall notifications. Original equipment manufacturers (OEM) must first make “all reasonable efforts” to send electronic notifications through contact information specific to each vehicle or part owner and purchaser.
If the OEM does not have the appropriate contact information or otherwise cannot send the electronic notification through those means, then a second notification must be issued by another electronic method “reasonably calculated to reach the owners and purchasers who could not be reached through individual contact information.”
The electronic recall notifications should include an “internet hyperlink” to a representative copy of a recall notice that complies with 49 CFR part 577.5(b) through (g). The notification must also provide instructions for how an owner or purchaser can determine whether their vehicle or equipment is impacted. If the notification is not issued directly through contact information specific to an owner or purchaser, OEMs must direct people to either NHTSA’s vehicle identification number (VIN) search tool or the manufacturer’s VIN search tool to determine if they are impacted.
NHTSA grants manufacturers flexibility in choosing the electronic means used to notify owners and purchasers about recalls. These options include email, text, radio or television broadcasts, in-vehicle infotainment alerts, social media or targeted online campaigns, phone calls, or other “similar electronic means.”
The proposed rule also requires manufacturers to submit plans to NHTSA, detailing their “anticipated approaches to electronic recall notification.” These plans must be updated at least once every five years. In addition to specifying the intended methods of electronic notification, the plan must outline how the manufacturer will evaluate and select the electronic channels used for recall notifications. Any deviations from the plan must be communicated to NHTSA at least ten business days before the expected issuance of electronic notifications.
Considerations for manufacturers
While NHTSA’s proposed rule has the potential to streamline the recall notification process for automotive manufacturers, it also presents new challenges. Prior to the rule’s finalization, manufacturers will need to conduct a thorough audit of their existing owner and purchaser data to ensure they are able to adequately contact those impacted by a recall via electronic means.
The prevailing resource for owner and purchaser data is VINs, which can be used to track which vehicles are still on the road, their owners, and how to contact them. However, this information is not always accurate, which can lead to difficulties in reaching affected parties. OEMs will need to audit their existing data to identify gaps and, in some cases, supplement their databases with third-party resources. Modern tools can enhance VIN-based tracking by more accurately verifying current owners and removing incorrect or extraneous data.
These supplemental data sets can provide a more accurate picture of where recalled vehicles are located, enabling automakers to target their outreach efforts more efficiently, and achieve higher remedy rates. It also opens up additional notification channel options, particularly when vehicle owner emails and phone numbers have been verified.
Manufacturers should carefully consider which electronic notification methods are most effective, considering both the nature of the recall and the approach likely to yield the highest response rate. OEMs must strike a balance between notification fatigue among owners, and complying with NHTSA’s requirements to make “all reasonable efforts” to reach those affected. NHTSA offers OEMs more than 10 different options for electronic means, but companies are only required to select two.
Newer vehicles often come equipped with infotainment systems, which OEMs can leverage to send messages directly to vehicle. However, many vehicle owners may have opted out of receiving manufacturer messages on in-vehicle systems or vehicle-associated phone apps, which may potentially limit the effectiveness of these channels.
To successfully navigate the requirements of NHTSA’s proposed rules, OEMs must take a strategic approach to assessing their customer data, identifying gaps, and determining the most effective mix of notification methods. This requires careful consideration of factors such as vehicle capabilities, owner demographics, and communication preferences to maximize recall response rates. Leveraging external expertise can help optimize this process, ensuring compliance while enhancing recall effectiveness.
Looking ahead
NHTSA’s SNPRM is open for public comment until March 11, 2025. While manufacturers are encouraged to provide feedback as appropriate, it is equally important to begin evaluating the steps needed to achieve compliance with the proposed rule. Once the final rule is issued, manufacturers will have a one-year window to implement the necessary plans and processes before it takes effect.
For advice on developing an effective electronic notification strategy, selecting the most appropriate channels, and preparing compliance with the proposed rule, contact Wayne Mitchell at [email protected]
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