Companies, consumers, and investors dread the word “recall”. A recall is a request from a manufacturer to return a product after safety issues or product defects have been discovered, potentially posing a danger to the consumer or making the maker/seller vulnerable to legal action. Environmental concerns may also trigger a recall, as is the case with the 2015 Volkswagen scandal known as “Dieselgate”, when the diesel engines emitted pollutants up to 40 times above the levels allowed by U.S. standards.
The cars were equipped with software that cheated emission tests. While recalls are often the fault of the manufacturer, sometimes they are caused by malicious and criminal outsiders. In 1982, Tylenol was laced with cyanide, resulting in the death of seven people. Johnson & Johnson recalled 31 million bottles. The tragedy resulted in the development of tamper-proof technology that exists on all medication today. Recalls are scary, but at least some good can come from them.
infographic by: www.yourlawyer.com