Case study: Managing an air conditioner recall with unexpectedly high call volumes

During the warmer months, air conditioning offers comfort in some parts of the country ― and can be a necessity in others. When a global appliance manufacturer discovered a defect in some of their popular window air conditioners at the height of summer, they needed a rapid recall plan that balanced regulatory urgency with high levels of customer attachment to the product. Sedgwick developed a flexible strategy that prioritized consumer experience and safeguarded brand equity. 

Challenge

The company initiated a recall of approximately 1.7 million window air conditioners after identifying a design flaw that allowed water to accumulate inside the units, posing a potential mold hazard. They had received 152 reports of mold, including 17 involving health symptoms such as respiratory infections and allergic reactions. 

The manufacturer was under immense pressure to notify customers about the recall as soon as possible to meet safety regulations. There was also an urgency to launch the recall ahead of an impending new product announcement. As a result, the recall began while certain remedy pathways were still being finalized ― a familiar challenge for companies managing rapidly evolving risk landscapes.

In addition, the company underestimated the response rates and downplayed customer loyalty. The product was highly thought of and one of the best-selling units within its market. These issues, combined with the remedy challenges, resulted in significantly higher call volumes ― well beyond the company’s internal capacity.

To comply with regulatory requirements, mitigate health risks and protect the brand, they needed a strategic partner with the ability to mobilize and scale quickly.

Solution

Sedgwick established a call center with a dedicated toll-free number and ramped up support agents to effectively meet rising demand while ensuring consistent service quality. Agents were trained to address consumers’ concerns and provide tailored guidance on available remedies, including repair and refund options. Customers who opted for a repair could choose to have a technician complete it or do it themselves with a kit provided. Other options included full and prorated refunds based on the purchase date.

To enhance the customer experience, our brand protection team developed a dedicated recall microsite, offering detailed contact information, frequently asked questions and other resources. Multiple site updates and revisions were deployed to support remedy changes and support decision making. 

Results

During the first nine weeks of the recall, call volumes ranged from 19,000 to more than 30,000 a week, far surpassing initial projections. Our flexible response capabilities, including a scalable call center and dedicated web team, helped customers access the necessary resources and supported an efficient, compliant recall process for the company. To date, nearly 400,000 consumers have registered for a refund or repair. Despite the early uncertainties, the recall was executed with precision, reinforcing consumer trust and safeguarding the brand during a time of heightened scrutiny.

Key takeaways

This event demonstrates the risk of announcing a recall before a company is fully prepared and has thought through all remedy options. It also highlights the importance of understanding customer loyalty levels and the impact they can have on recall response rates.

• Build a robust, consumer-centric remediation plan: Remedy pathways should be fully considered from the consumer’s point of view and include clear, actionable guidance to reduce friction.
• Prepare for the response: Strong brand loyalty can significantly increase recall participation and call volumes. Preparedness requires forecasting for both.
• Design flexible solutions: Scalable infrastructure is essential to adapt to real-time response trends.   
• Partner with proven specialists: An experienced recall team can provide quick, consistent customer support and scalable solutions, helping you navigate uncertainty with confidence.

About Sedgwick’s brand protection solutions  

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’s brand protection team 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 8,000 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 our website.

1.7M

units recalled

221K

calls taken

Dual

remediation pathways: repair or refund

Nearly

400K

customers registered