Kaiser and Newstead Explain Steps to Take to Prepare for Product Recall

Partners Scott Kaiser and Alison Newstead co-presented a comprehensive review of the steps businesses can take to prepare for a recall in a webinar for the Manufacturers’ Compliance Institute, September 25, 2019. 

In “Is Your Business Ready for a Recall? 5 Steps to Prepare,” Kaiser, Newstead and four other presenters discussed best practices for managing the life cycle of a recall, from preparation to resolution. For example, the group set out the key steps to successful preparation: a comprehensive plan that includes training, crisis communications strategy and simulations; ensuring the company’s infrastructure is set up to handle an influx of customer contacts; understanding the expectations of regulatory agencies; establishing clear lines of communications; and ensuring the company provides the right remedy, which might include multiple options or customer incentives. 

The true cost of a recall, according to the presenters, includes the potential damage to brand reputation, stock price declines, civil or criminal penalties, a negative impact on customer loyalty and litigation. 

In addition to Kaiser and Newstead, the presenters were Peter Tolsdorf, vice president of litigation and deputy general counsel for the National Association of Manufacturers (NAM); Graham Owens, director of legal and regulatory policy for NAM; Chris Harvey, director of recall solutions for Stericycle; and Sean Wood, executive vice president, global issues and crisis for Weber Shandwick. 

Shook is one of six law firm members of the Manufacturers’ Compliance Institute, with Sidley Austin, Littler Mendelson, Squire Patton Boggs, Wiley Rein and Crowell & Moring. The group, which was founded to provide education and guidance to members of NAM, received the Association of Corporate Counsel’s In-House Innovator Award in 2018.