and Collateral Brand Damage and Collateral Brand Damage Presenters: - - PowerPoint PPT Presentation

and collateral brand damage
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and Collateral Brand Damage and Collateral Brand Damage Presenters: - - PowerPoint PPT Presentation

WEBINAR: Critical CPSC Recall Update PLUS 5 Things You Need to Know NOW PLUS 5 Things You Need to Know NOW to Avoid Product Safety Recalls, Fines to Avoid Product Safety Recalls, Fines and Collateral Brand Damage and Collateral Brand Damage


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WEBINAR:

Critical CPSC Recall Update

PLUS 5 Things You Need to Know NOW PLUS 5 Things You Need to Know NOW to Avoid Product Safety Recalls, Fines to Avoid Product Safety Recalls, Fines and Collateral Brand Damage and Collateral Brand Damage

Presenters: Matt Howsare and Matt Smith

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Presenters

Matt Howsare

  • Mintz Levin partner
  • Co-chair of Mintz Levin’s

Consumer Product Safety group.

  • Former Chief of Staff at the

Consumer Product Safety Commission

Matt Smith

  • Founder and chief strategist of ICIX
  • A recognized authority in supply chain risk

management and product safety

  • Champions industry-wide supply chain

solutions

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Agenda

CPSC Update

– Leadership Changes – What the CPSC announced last week – New requirements on recalls – General trends in fines and sanctions

Tips for doing recalls right Avoiding recalls in the first place Legal considerations and pitfalls Technology & processes that help avoid recalls

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“There’s a consensus that the way the CPSC does recalls is a little outdated in the era of Facebook and Instagram.”

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CPSC Leadership Changes

  • President Trump nominated acting

chair Ann Marie Buerkle to be the permanent chair

  • More changes are expected

Ann Marie Buerkle

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Why the CPSC is Exploring How to Improve Recall Effectiveness

  • Unanswered question: What is an effective recall?

– Recall effectiveness metrics

  • It isn’t good enough

– Consumer return rates between 6% and 10% – ‘Recall fatigue’ appears to be a factor.

  • Technological advances

– Social media – Apple Pay, Google Wallet, loyalty programs, apps

  • Ongoing issues & continuous improvement

– Issues and effort to improve are not unique to CPSC

Matt Howsare

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What changes in the recall process could companies see?

  • Large emphasis on direct notification
  • Required use of social media if your company uses

social media for marketing

  • More detailed data analytics reporting

(email open rates, click rates, etc.)

  • Tiered recall system

Matt Howsare

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The 3 most interesting things the CPSC said

  • Only 46% of cases reported to the CPSC

lead to a recall or recall alert

  • Recall alerts average a 50% consumer

response rate

– Recall alerts allowed where company has 95%+ customer contact information – Advantages to recall alerts

  • On premises retail recall posters may

soon be extinct.

Matt Howsare

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Death of the Recall Poster?

“If a company uses social media to market its products, it must use at least two social media platforms for recall notifications.”

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Assessment of current and future trends

  • How does the CPSC decide who should be fined?
  • How high will fines go?
  • How might recalls change in

the Trump administration?

Matt Howsare

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Tips for doing recalls right

  • Honesty and Transparency
  • Effective Communication

– Clear and concise language – Joint press release with CPSC – Direct to Consumer Notifications – Company Website – Social Media

  • Remedy

– Comprehensive and Easy

Matt Howsare

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Avoiding recalls in the first place

Critical to align your people and processes

  • Most important component:

– Train employees to send product safety information to the individual or team with responsibility and authority to act on it.

  • Other Considerations

– Obtain genuine senior management buy in. – Train the team with responsibility for product safety on CPSC and Health Canada requirements. – Identify all potential inputs of product safety information. – Audit and test your program to identify weaknesses.

Matt Howsare

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Matt Smith

Avoiding recalls in the first place

Technology you need to manage processes:

  • A comprehensive solution to give

you transparency across your products and supply chain

  • Flexibility via configuration to accommodate

process improvements

  • Enterprise-grade security and scalability
  • A strategic approach across operations
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Matt Smith

Leveraging Information

To enable communications and help prevent recalls, you need:

  • Access to current information on

your products and supply chain

  • To efficiently gather and distribute information to

internal and external systems

  • A platform to analyze, predict and identify trends,

and aid process improvements

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Q&A

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Thank you!