From issues involving exploding batteries and overheating electronics to poison-laced painkillers and lead paint-coated children’s toys, the issues companies face can be unprecedented and unexpected.

Here, we will tell you about some high-profile examples of product recalls to help you look for warning signs of any product issues within your business.

Samsung’s Exploding Phones

In October 2016, Samsung was forced to issue a global recall of its Galaxy Note 7 and S7 smartphones after the batteries began overheating and catching fire. When the issue was discovered, Samsung released very little information publicly, deciding instead to make sure people weren’t using the phones before announcing their recall. In response, Samsung announced it would design a new battery compartment to allow for more space inside the phone and combat any damage from physical drops.

Mattel’s Lead Poisoning Barbie

In 2012, hundreds of thousands of Barbie toys and accessories were recalled after it was found that they contained excessive amounts of lead paint. Mattel’s UK division recalled 2,540 toys, while globally, Mattel recalled up to 850,000 toys due to the same lead paint issue. While Mattel was emphatic that there were no Barbie dolls themselves being recalled, and it was just the accessories, the brand name attachment to the crisis was somewhat of a PR nightmare. However, Barbie is still an enduring brand over a decade later, with the 2023 live-action film being the highest-grossing of the year.

The Johnson & Johnson Cyanide Crisis

In 1982, seven people died after taking Tylenol (an over-the-counter painkiller like paracetamol) laced with potassium cyanide. Parent company Johnson & Johnson spent upwards of $100 million recalling over 30 million bottles of the tablets and then later relaunching the Tylenol brand… ensuring no traces of cyanide.

This sounds like an absolute PR disaster; however, because of Johnson & Johnson’s swift action and honesty with the public when the cyanide traces were discovered, the relaunch of Tylenol was met positively and is still sold over 40 years later.

Hasbro’s Overcooked Easy-Bake Ovens

Hasbro has been distributing Easy-Bake Ovens since 1963, and you would hope that they would have the design down to a T, but apparently not. In 2007, Hasbro issued a recall of 1 million Easy-Bake Ovens after over 300 reports of children getting their hands caught inside the toy’s opening and being severely burnt. One five-year-old girl had to have a finger partially amputated due to her burns.

Hasbro’s stock was severely affected by the recall at the time, however, their reputation wasn’t damaged for too long, as Easy-Bake Ovens are still sold over 15 years later.

Takata’s Lethal Airbags

Airbags save lives…well, at least they’re supposed to. In 2004, Japanese firm Takata was embroiled in a product recall scandal when it discovered that its airbags were effectively ticking time bombs. At the time, one in five cars globally was fitted with Takata airbags. 

Takata’s airbags were powered by volatile Ammonium nitrate, which is prone to violent explosions. The company discovered that if a car fitted with its airbags were in a collision, the airbags would likely seriously injure or even kill the driver and/or passengers.

Protect your company with product recall insurance

Product recall insurance won’t protect your business from manufacturing issues but will help you mitigate any disasters that may crop up. It provides financial protection against the costs associated with a recall, including customer notification, product destruction, replacement, and any legal expenses that may arise.

If you’re ready to safeguard your business against the unexpected, contact Mann Broadbent to learn how our tailored product recall insurance can provide the security your business needs to thrive in any situation.