The United States is on track to break the record for the most products recalled in a single year

Sedgwick Brand Protection Releases U.S. Product Recall Index for Q2 2022

MEMPHIS, Tenn., August 18, 2022 /PRNewswire/ — The number of US products recalled this year has already exceeded one billion, according to the US Product Recall Index recently released by Sedgwick’s Brand Protection Division. Only two other years on record have seen over a billion units recalled: 2018 and 2021. In those years, it took a full year to reach that threshold. In 2022, it only took the first seven months of the year, making it a record year for product recalls in number of units.

The automotive, consumer products, food and beverage, medical device and pharmaceutical industries continue to face challenges related to increased regulatory oversight, as well as geopolitical issues and issues persistent public health threats, including COVID-19 and monkeypox.

Sedgwick’s quarterly industry-leading Brand Protection Report provides in-depth insight into the economic, regulatory and legal challenges affecting various industries and insights into how businesses can protect their reputation and brands. Along with the latest data on product recalls and trends for Q2 2022, the report also includes insights, analysis and forecasts from brand protection experts and Sedgwick’s network of strategic partners.

Second Quarter Recall Data Highlights

  • Automotive recall events increased in the second quarter of 2022 to 245, after two consecutive quarters of decline. The number of affected units is relatively stable compared to the previous quarter at 9.2 million.
  • The number of consumer product recalls decreased by 15.6% in Q2 2022, from 77 events in Q1 to 65. The total number of recalled units also decreased in Q2, but by only 3.5% to 6 .7 million units.
  • U.S. Food and Drug Administration (FDA) food and beverage recall events rose to 120 in the second quarter of 2022, up 9.1% from the first quarter. However, the number of impacted units decreased significantly (81.3%) to 27.5 million units. Food recalls from the United States Department of Agriculture (USDA) have reached their highest level in more than two years, with 13 events. The number of affected units also saw a significant increase of 1,391% to 973,374 pounds.
  • While medical device recalls rose 34% (to a two-year high of 268 events), the number of affected units fell 96.8% to a 10-year low (10 million ).
  • For a second consecutive quarter, there were a total of 94 pharmaceutical product recalls. The number of affected units fell to its lowest level in more than a year, at 20.6 million units in the second quarter.

In anticipation of the second half of 2022

  • The National Highway Traffic Safety Administration (NHTSA) had an active second quarter, finalizing several fuel efficiency standards and increasing civil penalties, which means the auto industry could soon face millions of dollars in fines. Autonomous vehicles will remain a priority for NHTSA; The agency is working to update safety standards that could put automakers on the burden of compliance, but will increase consumer confidence in self-driving vehicles.
  • As we have seen for several quarters, child safety will continue to be a priority for consumer products industry regulators. Per- and polyfluoroalkyl chemicals (PFAS) are high on the list of regulators and litigants of harmful substances to target with regulations and lawsuits.
  • Infant food recalls continue to have a lasting impact on the food and beverage industry as the FDA and other regulators examine causes, poor response times and preventative measures. The FDA should start strictly enforcing Foreign Supplier Verification Programs (FSVPs), increasing the risks for food importers.
  • As medical device technology advances, the FDA issues guidelines to protect devices from cyberattacks. This space will likely remain a priority for the FDA, as a cybersecurity breach could result in the death of a patient. Lawmakers are also working to update public health emergency preparedness, including reforms that could impact the medical device industry.
  • Enforcement will be a focus for the pharmaceutical industry, with the FDA issuing warning letters for cannabis-containing products and banning the sale of an e-cigarette company’s products. Although the ban has been overturned, it is likely that this will not be the end of the problem. The FDA made subsequent efforts to initiate a ban on non-tobacco flavorings, including menthol in cigars and cigarettes.

“Regulators and lawmakers have increased their scrutiny of every industry, introduced new guidelines and rules, and started publicly calling out companies they believe are non-compliant. Add to the mix current geopolitical issues and public health crises in course, and companies find themselves facing new risks that are increasingly difficult to manage,” said Chris Harvey, senior vice president of brand protection at Sedgwick. “Faced with these hurdles, companies must continually assess and update their product recall, crisis and communication plans to ensure their brands and reputation will weather any new challenges that arise.”

“This is the second year in a row that we’ve seen over a billion units affected by product recalls in the United States. If the first half of the year is any indication, we should expect that 2022 will eclipse all previous years on record for recalled products,” said Amanda Combs, Recall Advisor in Sedgwick’s Trademark Protection Division. “While regulatory agencies may not have returned to pre-pandemic working levels, companies cannot relax their focus on product safety. Inspections and enforcement actions are still ongoing. .”

The Recall Index is published quarterly by Sedgwick’s trademark protection experts. It is the only report that aggregates and tracks recall data from multiple regulatory agencies and industries to help industry stakeholders navigate the regulatory environment, product recalls and other challenges on the market. market. For more information, visit sedgwick.com/brandprotection.

To download the latest recall index, see the US Product Recall Index Report.

About Sedgwick

Sedgwick is a leading global provider of integrated risk, benefit and business technology solutions. The company provides a wide range of resources tailored to the specific needs of our clients in the areas of property and casualty, marine, employee benefits, brand protection and other lines. In Sedgwick attention matters; Through the dedication and expertise of nearly 30,000 colleagues in 80 countries, the company cares for people and organizations by mitigating and reducing risk and loss, promoting health and productivity, protecting reputation of brands and by controlling costs that can have an impact on performance. Sedgwick’s majority shareholder is The Carlyle Group; Stone Point Capital LLC, Caisse de depot et placement du Quebec (CDPQ), Onex and other management investors are minority shareholders. To learn more, see sedgwick.com.

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Alejandro L. Myatt