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Spike in Product Recalls Expected in Aftermath of COVID-19INDIANAPOLIS, May 21, 2020 /PRNewswire/ -- Product recalls are still occurring, but the process has become more challenging and time-consuming as a result of the current regulatory and business environment, according to Stericycle Expert Solutions' First Quarter 2020 Recall Index released today. While the second quarter started with a dip in recalls in certain industries, the experts at Stericycle Expert Solutions predict that the coronavirus pandemic will lead to an eventual spike of recalls across the food, drug, consumer product, medical device, and auto industries once restrictions on businesses are lifted and regulators resume their traditional oversight activities. "By and large, the FDA is continuing to post warning letters on its website and request voluntary recalls. Despite the publicized regulatory discretion, that agency hasn't fully backed off product safety. And in the case of the CPSC, it looks more like the regulator has put the pedal to the metal," warns Chris Harvey, Director of Recalls at Stericycle Expert Solutions. COVID-19 Effect Similar to 2019 Government Shutdown "While we began to see a drop in pharmaceutical and medical device recalls in April, it's not unlike the dip in activity we saw during the government shutdown early last year," added Amanda Combs, Recall Consultant at Stericycle Expert Solutions. "But we also know that trend does not necessarily apply across the board, as CPSC and FDA food recalls were significantly higher in April than they were in January 2019." Companies are operating in a completely new environment with remote workforces, supply chain disruptions, and shuttered facilities. With staff stretched thin and regulators making fewer on-site visits, quality and safety procedures are more likely to slip. "While it may be too early to tell whether recalls will drop for the duration of the second quarter across the board, we're more confident that a spike will occur in the months after enforcement discretion and emergency authorizations are lifted, regulatory officials get back on the road and inspectors return to the field. Anything that may have slipped through the cracks will be rectified," Harvey said. "What companies need to worry about is the reputational hit of a recall announced two months too late. Not to mention the fact that recalls will be harder to execute if consumers are still in a panic about COVID-19." First-Quarter Recall Highlights
Meanwhile, consumer concern about a perceived lack of food safety is at a point it's never been before; this has the potential to drive advocacy campaigns and increase pressure on regulators who will then impose stricter rules. As for the consumer-product industry, we're already seeing an increase of recalls now that children are spending more time at home. "Now's the time to get your crisis management and recall plans ready," advises Harvey. "The regulators are going to be unforgiving when the pandemic subsides." Stericycle Expert Solutions' First Quarter Recall Index brings more of what you need to know about the trends and changes in safety regulation, how COVID-19 will impact recalls in all industries, and what to expect in the second quarter and beyond. The Index also features expert insight and analysis from its strategic partners at leading law firms, insurance companies, and communications firms. The full First Quarter 2020 Recall Index is available here: http://pages.stericycleexpertsolutions.com/2020-q1-recall-index-us About the Stericycle Recall Index About Stericycle Expert Solutions™ Media Contact:
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