Sedgwick
MEMPHIS, Tenn. Sedgwick, a provider of technology-enabled risk, benefits and integrated business solutions published its latest U.S. product recall index report today. According to the findings in the report, the effects of the COVID-19 pandemic continue to keep inspections and recall incidents below record levels. However, as the world begins to re-open and with the prospect of new regulations ahead, an upsurge in recalls should be expected, Sedgwick said.
The new report reveals the latest recall data, trends and predictions in hopes to prepare businesses for the potential for an increasingly aggressive and complex regulatory environment that risk managers are forecasting for all industries in 2021.
Highlights include first-quarter data and predictions for what to expect in the remainder of 2021:
First quarter recall data:
- Consumer product recalls decreased 28.8% (compared to 2020's fourth quarter), the lowest number of quarterly events since the first quarter of 2019.
- The Food and Drug Administration (FDA) food recall activity represented a 4.3% decrease in events (compared to 2020's fourth quarter), but a 31.9% increase in units impacted quarter-over-quarter.
- The Department of Agriculture (USDA) recall events increased by 25% in the first quarter of 2021 compared to quarterly averages in 2020.
Looking ahead in 2021:
- Expect consumer product recalls to maintain their typical pace in the near term. However, as the U.S. Consumer Product Safety Commission (CPSC) adopts a newfound approach to oversight and seeks to reinvent itself to better protect consumers, stricter regulatory enforcement, increased legal risks and scrutiny are on the horizon.
- The food and beverage industry will see new food safety rules, increased oversight, enforcement activities and more lawsuits as it emerges from the COVID-19 pandemic. Expect a return to traditional oversight activity and new priorities on from the FDA inspections including protecting infants, children and expanded oversight related to contaminants.
"The COVID-19 pandemic has forced manufacturers to operate in one of the most turbulent and uncertain times in recent history," notes Chris Harvey, senior vice president at Sedgwick. "While consumers are eager for a return to normal, regulators and lawmakers see this as an opportunity to enact major changes that will have ripple effects across multiple industries. For businesses sleeping at the wheel, they stand to lose. We expect to see a surge in recalls as we emerge from the pandemic, rapid technological development, and lingering supply issues that will continue to be a major factor. The regulatory environment has forever changed. Businesses must prepare their recall management, crisis and communications plans now before it's too late."
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