Many companies have been compelled to withdraw stock from circulation for replacement or repair because the goods are defective, or due to product extortion, negative publicity, breach of local or international legislation in manufacture, packaging, distribution, or retail.
The costs withdrawing stock, repairing or replacing it, transport, destruction, re-stocking, additional labour costs, professional consultants, loss of turnover to you and customers and other costs can be astronomical and have put some sizeable enterprises into liquidation.
The introduction of the Consumer Protection Act is expected to result in an increased number of companies being compelled to withdraw their stock from the supply chain, as it did in other countries when similar legislation was introduced.
The costs of advertising to restore the brand to it`s former reputation can be far greater than the costs of the recall.
This post was written by Shado