Introduction: mitigating thermal risk – a structured recall response to lithium-ion battery incidents

Lithium-ion batteries have revolutionized modern technology, powering everything from personal devices to critical infrastructure. As these batteries are integrated into more products—spanning from everyday electronics to high-performance industrial systems—their role in driving progress is undeniable.

However, as their presence grows, so too do the challenges they present. When a defect is identified in a lithium-ion battery, the response must be swift and precise. Managing a recall of these products requires more than just logistical coordination; it demands nuanced regulatory expertise, meticulous planning, and a deep understanding of the potential risks involved. With so many industries depending on the reliability of these batteries, a well-orchestrated recall response is paramount to safeguard consumers, protect brand reputation, and ensure business continuity.

Challenge: a recall with far-reaching consequences

Recently, a world leading telecommunications provider faced a significant recall of 2.5 million defective lithium-ion batteries used in their personal hotspot devices. These devices were especially critical for consumers and businesses alike relying on uninterrupted internet connectivity, making the urgency of the situation even more pronounced. A swift, efficient recall was crucial—not only to meet regulatory compliance but to ensure minimal disruption for those who depended on these products.

As with any recall involving lithium-ion batteries, the complexity was magnified by the stringent regulatory requirements enforced by federal environmental and transportation agencies. The hazardous nature of the products demanded highly specialized, compliant packaging and transportation methods to mitigate safety risks.

Furthermore, the company encountered an overwhelming surge in consumer inquiries. With their call centers already handling normal service volumes, the influx of recall-related communications added an unprecedented layer of operational strain. Coordinating these efforts while ensuring continuous regulatory reporting further compounded the complexity of the situation.

Solution: a tailored, scalable response

Sedgwick Brand Protection provided a comprehensive solution, leveraging both strategic insight and operational expertise to manage the recall seamlessly. Our approach was multifaceted and highly targeted:

1. Strategic consumer communication and engagement:
   • We launched a purpose-built microsite designed to streamline consumer engagement and recall management. This platform allowed consumers to easily register their products and request return kits, relieving pressure from the client’s overburdened call centers.
   • We immediately issued targeted email notifications to inform affected consumers about the recall, providing them with clear instructions for product return and replacement.
2. Bespoke packaging and specialized logistics:
   • We provided the company with comprehensive guidance on the transportation requirements for lithium-ion batteries, ensuring full compliance with safety standards.
   • Custom packaging was developed specifically for the recalled devices, ensuring the safe transport of hazardous products while preventing further risk during the return process.
   • Our logistics partners were engaged to facilitate the swift and compliant return of defective units, ensuring no delays or safety compromises during the transportation phase.
3. Consumer-Centric Approach:
   • Maintaining consumer trust was paramount. We ensured that the return process was as seamless and customer-friendly as possible, offering swift response times and proactive outreach to ensure that consumers felt supported at every stage.
   • We also provided affected consumers with replacement units, ensuring service continuity and minimizing potential frustration.

Results: mitigating risk and upholding brand integrity

Thanks to a swift and coordinated response, the recall was executed within a short window, reducing the risk of harm to consumers and safeguarding the brand’s reputation. Immediate consumer notifications accompanied by the dedicated microsite facilitated efficient and compliant return of faulty products, while minimizing disruption.

By carefully managing the transportation logistics, we ensured the hazardous batteries were safely removed from circulation. This process not only mitigated the potential for harm but also protected the company from costly litigation by ensuring strict adherence to all safety and regulatory guidelines.

Through transparent communication and meticulous planning, the company successfully navigated the complexities of the recall without suffering reputational impact.

In a year where we faces what felt like never-ending waves of crisis fatigue, your actions have kept the swell to a minimum and made what could have been something significant a non-event. Best of all, you maintained the trust of our customers and reaffirmed that we will always lead with transparency and accountability. Our brand was left untouched and preserved. Our sincere thanks.”

Key Takeaways:

• Precision in packaging and logistics: the safe transport of hazardous lithium-ion batteries requires customized, compliant solutions. Companies must ensure they have a detailed plan in place for the return process to mitigate any risks.
• Clear communication is crucial: effective communication—both with consumers and regulators—can significantly ease the burden of a recall. A pre-emptive approach with clear instructions helps maintain customer satisfaction and regulatory compliance.
• Proactive preparation is essential: businesses should understand compliance requirements in advance and establish a comprehensive recall management plan. Familiarizing oneself with federal agency protocols ensures that recalls are executed promptly and effectively when the need arises.

About 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

2.5MM+

lithium-ion batteries recalled

Multiple product lines sold over

4 years

Regulatory compliant return

kits

manufactured

Dedicated

online

returns solution