Introduction: how speed and strategy shape the success of recalls

Product recalls present inherent challenges, but those driven by contamination concerns carry additional complexities. Whether due to public safety issues or regulatory scrutiny, contamination recalls demand immediate, coordinated responses to protect consumer trust, uphold brand reputation, and ensure legal compliance.

In one such case, a global consumer brand faced the challenge of recalling more than 4 million sunscreen units due to potential benzene contamination. The product’s seasonal nature exacerbated the situation, as the recall took place at the height of the summer season—a critical sales period.

With consumer and retailer concerns mounting, the brand needed to act quickly, balancing crisis management with regulatory adherence to preserve its standing in a competitive market.

Challenge: a nationwide contamination crisis with a time-sensitive window

The recall was triggered after a third-party testing company raised concerns regarding potential benzene contamination in a popular sunscreen product line. With millions of product already in the hands of consumers and on retailer shelves, the situation quickly escalated, gaining nationwide media attention.

From the discovery of N-Nitrosodimethylamine (NDMA) in metformin and ranitidine to benzene contamination in hand sanitizers and sunscreens, independent testing organizations have exposed companies to the risk of a product crisis. These discoveries often force them into a difficult decision: proactively announce a recall out of an abundance of caution, or delay and risk of being perceived as negligent for acting too slowly?

Unfortunately, even when a manufacturer takes the high road, swiftly announcing an expansive recall before all facts are confirmed, a swell of litigation can follow. In such cases, effective recall management can serve as a vital tool for mitigating both legal and reputational risks..

In this instance, the product’s seasonal nature added significant pressure. With a limited sales window, the company needed to recover quickly from the recall. Retailers and distributors demanded immediate solutions to prevent further losses, while consumers sought clarity and resolution. Meanwhile, the brand faced heightened media and regulatory scrutiny, requiring rapid, decisive action to manage the crisis and prevent long-term damage.

Solution: a multi-faceted approach to effective crisis management

Sedgwick Brand Protection was engaged to manage the execution of this nationwide recall. Our strategic approach ensured continuous customer-centric communications buttressed by rapid logistics to streamline returns and facilitate refunds.

1. Proactive Communication and Consumer Support:
   • Prior to the official recall announcement, we established a dedicated toll-free hotline and call center to manage the anticipated surge in consumer inquiries. This proactive measure enabled the brand to engage with consumers early, address their concerns, and efficiently process refunds.
   • To maintain transparency, we developed clear, timely messaging for consumers, ensuring that all touchpoints provided consistent, reassuring information.
2. Streamlined retailer and supply chain collaboration:
   • We coordinated with retailers and distribution partners to manage the large-scale return of affected products. Recognizing the importance of maintaining retailer relationships, we expedited product retrieval, provided on-site support, and ensured that return logistics were seamless.
   • To further support retail partners, we designed and delivered over 20,000 custom packages with tailored instructions to ensure smooth and safe product returns.
3. Logistical coordination and secure product handling:
   • Given the volume of recalled products and the need for secure handling, we established a centralized storage facility designed for secure, cost-effective handling.
   • Through collaboration with our network of logistics partners we tracked returned products to ensure they were stored securely and in compliance with regulatory requirements, preventing unauthorized resale and preserving evidence for potential litigation.

Results: minimizing impact through strategic planning and execution

Despite the challenges, Sedgwick Brand Protection executed the recall with precision, safeguarding the brand’s reputation and ensuring full regulatory compliance.

Key outcomes included:

• Efficient return management: to manage the high volume of nationwide returns from key retailers, we optimized the retrieval and storage process, ensuring fast collection and secure storage at a centralized facility.
• Cost reduction and operational efficiency: by centralizing storage and processing, we significantly reduced distribution costs associated with multiple warehouses and optimized logistics to efficiently manage high return volumes.
• Risk mitigation: we helped protect the brand from litigation risks by ensuring all recalled products were securely stored, preventing resale, and preserving evidence for future legal action if necessary.

Key Takeaways:

• Seasonal recalls require rapid action: seasonal products have narrow sales windows, making the need for immediate response and recovery even more critical. Companies must be prepared for a surge in consumer inquiries and retailer requests when an event is triggered during peak seasons.
• Industry contamination risks demand vigilance: contaminants like NDMA and benzene can affect an entire product category. Companies should stay vigilant and monitor industry recalls to proactively address potential exposure.
• Effective logistics and secure storage are essential: safely managing, storing recalled products, and ensuring certified destruction when appropriate are vital components of effective risk management. This approach ensures regulatory compliance, prevents unauthorized resale, and safeguards the brand from further legal and reputational damage.

À propos de Sedgwick Brand Protection

Brand and reputation are the most valuable and vulnerable assets a business has. Brands embody everything a business does, and its customers expect.

Nothing says more about a company’s commitment to its customers than its efforts to uphold promises of safety, quality, and service. That’s why companies are often remembered more for how they handle an in-market challenge than for the problem itself. We know what it takes to manage recalls in a way that upholds your commitments to customers, supply chain partners, and regulators.

Trusted by the world’s leading brands and businesses, Sedgwick Brand Protection works in partnership to manage the risks and minimize the impacts of in-market business and product crises. Since 1995, we have managed more than 7,000 of the most sensitive and time-critical product recall and remediation programs, spanning 150+ countries and 50+ languages.

To discover more about our product recall and incident response solutions, visit: www.sedgwick.com/product-recall

4MM+

benzene affected units

Multiple product lines sold over

3 years

20K

custom return packages dispatched in just 3 days

2K+

palettes of contaminated product processed