INDIANAPOLIS, Nov. 12, 2019 /PRNewswire/ -- U.S. product
recalls remained flat from the second to third quarter, but are
soon likely to increase as regulators turn their attention to
currently unregulated categories, according to the third
quarter 2019 Recall Index released today by Stericycle
Expert Solutions (NASDAQ: SRCL).
Pressure from lawmakers and consumer groups is mounting on
federal agencies to get ahead of fast-moving issues regarding
cybersecurity, food safety modernization, children's sleep products
and cannabis, where regulation is currently unclear or
uncertain.
For the Consumer Product Safety Commission, it's not just
inclined sleepers but growing scrutiny on the entire infant sleep
category. For the FDA, it's not just e-cigarettes, but the entire
vaping supply chain – from tobacco alternatives to the practice of
vaping cannabis or even vitamins and minerals.
"We're at a point in time when product offerings are so vast,
innovation so rapid, and competition so fierce, that research and
science isn't keeping up. It's a challenge that plagues nearly
every industry we see," said Chris
Harvey, director of recalls at Stericycle Expert
Solutions.
Given how short-staffed the regulators are, it is impossible for
them to keep track of everything. This empowers consumer advocacy
organizations like Consumer Reports and Kids in Danger to continue
their consumer product safety campaigns and launch new ones. On the
drug and medical device side, you have Members of Congress
propelling themselves into the debate and states creating their own
rules and regulations.
"It's a dangerous mix for any company that finds itself in the
middle of it all," added Harvey. "Companies and organizations need
to be sensitive to the fact that, even where there is no clear
regulatory standards or guidance, they may find themselves facing
unbearable pressure from consumer groups, Congress, and the news
media to announce a recall, change marketing strategies, issue
consumer warnings, or even eliminate a product line entirely. How
those decisions are made and communicated will ultimately determine
the reputational impact on the company going forward."
As the Index and expert observers indicate, some "hot-button"
industries can expect special regulatory scrutiny in the months to
come.
Consumer Products
Consumer product recalls remained
steady during the third quarter, and two more deaths were reported
in connection with recalled products. Yet, the number of consumer
product safety incidents is currently trending to be the lowest
since 2004.
Watch out for more infant sleep product recalls as scrutiny
expands beyond just inclined sleepers. This broadened category has
the potential to lead to increased recall activity and incident
reports in the fourth quarter as Members of Congress call for
recalls and CPSC rulemaking.
Pharmaceutical
cGMP deviations continue to plague the
industry, causing 25 percent of pharmaceutical recalls and
impacting more than 93 percent of all units. As long as the drug
supply chain remains so complex, ensuring quality will remain a
challenge. The ongoing NDMA issue, which has impacted a significant
percentage of two product categories, is a textbook example.
Meanwhile, recalls are not out of the question for companies and
organizations throughout the vaping supply chain. Just because we
haven't seen any yet doesn't mean we won't.
Medical Device
Recalls are ongoing even though they
are smaller and we hear less about them. Thanks to their connected
nature, the fixes they require can happen nearly entirely without
doctor or medical organization involvement.
We expect this will continue until one of two things happen: the
fix requires more patient involvement or the device has a confirmed
cybersecurity vulnerability.
Food & Beverage
Undeclared allergens were the most
frequent cause of food recalls at both FDA and USDA, but in terms
of units or pounds impacted, another different reason took the
lead. Foreign material accounted for nearly 50 percent of FDA
recalled units, while bacterial contamination caused about 31
percent of USDA recalled pounds.
When it comes to food, expect baby food and pet food to be in
the hotseat as FDA examines safety concerns. On the USDA side,
there's very likely a long tail associated with a major recall by a
poultry supplier that will play out through the fourth quarter.
Automotive
Automotive recalls continue to be the
industry with the steadiest recall activity, consistently logging
180-220 recalls every quarter. But what's worrisome is the ongoing
issues related to core safety components of a vehicle, such as
airbags, seat belts, and brakes. In fact, service brakes accounted
for more than one-third of all recalled units.
No change is expected in the volume of recalls, but auto
retailers and rideshare companies are very likely going to face
increasing pressure as NHTSA tries to reduce the number of cars
with open recalls on the road.
The full Q3 2019 Recall Index - with additional data,
predictions, and analysis - is available
at https://www.stericycleexpertsolutions.com/recall-index/.
About the Stericycle Recall Index
The Stericycle
Recall Index is the only report that aggregates and tracks recall
data to help manufacturers and other industry stakeholders navigate
the regulatory environment and identify trends. Each quarter
Stericycle analyzes data from the U.S. Consumer Product Safety
Commission (CPSC), the National Highway Traffic Safety
Administration (NHTSA), the FDA, and the USDA. For more
information, please
visit http://www.stericycleexpertsolutions.com/thought-leadership.
About Stericycle
Stericycle, Inc., (Nasdaq: SRCL) is a
U.S. based business-to-business services company and leading
provider of compliance-based solutions that protect people and
brands, promote health and safeguard the
environment. Stericycle serves more than one million customers
in all 50 U.S. states and 20 countries worldwide with solutions for
regulated waste management, secure information destruction,
compliance, customer contact, and brand protection. For more
information about Stericycle, please visit www.stericycle.com.
About Stericycle Expert Solutions™
Stericycle Expert
Solutions™ is the industry leader in managing automotive, consumer
product, pharmaceutical, medical device, juvenile product, and food
and beverage recalls. Expert Solutions streamlines the entire
product recall process and manages Notification & Response,
Processing & Tracking, and Compliance & Reporting for
leading global companies. For more information,
visit www.stericycleexpertsolutions.com.
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SOURCE Stericycle Expert Solutions