Product recall clause: Copy, customize, and use instantly
Introduction
A product recall clause outlines the responsibilities and procedures for addressing defective or unsafe products that require removal from the market. It establishes clear guidelines for initiating and managing recalls, ensuring consumer safety while minimizing liability and reputational damage.
Below are templates for product recall clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.
Manufacturer-driven recall clause
This variation applies when the manufacturer initiates the recall.
In the event that a product manufactured by [Manufacturer Name] is determined to be defective or unsafe, [Manufacturer Name] shall have the sole responsibility to initiate a product recall. [Manufacturer Name] will bear all costs associated with the recall, including notification, logistics, and replacement expenses, and will cooperate with distributors and retailers to remove affected products from the market.
Distributor-driven recall clause
This variation applies when the distributor is responsible for the recall process.
If a product sold by [Distributor Name] is determined to be defective or unsafe, [Distributor Name] shall be responsible for initiating and managing the product recall. [Distributor Name] will coordinate with the manufacturer to execute the recall and shall bear the costs associated with notifying affected parties, logistics, and product replacement.
Joint responsibility recall clause
This variation applies when both the manufacturer and distributor share recall responsibilities.
In the event of a product defect or safety issue, [Manufacturer Name] and [Distributor Name] shall jointly manage the recall process. Both parties agree to share the costs and responsibilities associated with the recall, including notification, logistics, and product replacement, based on a mutually agreed-upon allocation.
Retailer-driven recall clause
This variation applies when the retailer is responsible for managing product recalls.
If a product sold by [Retailer Name] is subject to a recall due to safety or quality concerns, [Retailer Name] shall coordinate the recall process in consultation with the manufacturer and distributor. [Retailer Name] will notify consumers and facilitate the return or replacement of affected products, with costs reimbursed by [Manufacturer Name].
Voluntary product recall clause
This variation applies when the recall is voluntary and initiated proactively.
If any product is identified as potentially defective or unsafe, [Party Name] may voluntarily initiate a recall to remove the product from the market. All costs associated with the recall, including customer notification, shipping, and replacement, shall be borne by [Party Name]. The recall shall be conducted in compliance with all applicable laws and regulations.
Mandatory product recall clause
This variation applies to recalls mandated by regulatory authorities.
In the event of a recall mandated by a regulatory authority, [Party Name] shall comply promptly with the recall order and take all necessary actions to remove the affected product from the market. [Party Name] shall bear the costs associated with the recall and ensure compliance with all applicable laws and regulations.
Product recall notification clause
This variation applies to setting notification requirements for recalls.
If a recall is initiated, [Party Name] shall notify all affected parties, including distributors, retailers, and customers, within [time frame] of identifying the issue. Notification shall include detailed information about the defect, safety concern, and instructions for returning or replacing the product.
Product recall indemnification clause
This variation applies when indemnification for recall-related losses is specified.
[Party Name] agrees to indemnify and hold harmless [Other Party Name] against any losses, damages, or expenses arising from a product recall, including but not limited to customer claims, replacement costs, and legal fees, except where such recall is caused by the negligence of [Other Party Name].
Product recall cost allocation clause
This variation applies to allocating costs associated with a recall.
In the event of a product recall, the costs shall be allocated as follows: [Manufacturer Name] shall bear [percentage] of the costs, [Distributor Name] shall bear [percentage], and [Retailer Name] shall bear [percentage]. The parties agree to cooperate fully to minimize the financial impact and resolve the recall efficiently.
Consumer compensation recall clause
This variation applies when compensation to affected consumers is included in the recall process.
In the event of a product recall, [Party Name] shall provide compensation to affected consumers, which may include a replacement product, refund, or credit, as determined appropriate. Compensation terms shall be communicated clearly to consumers during the recall process.
International product recall clause
This variation applies to managing recalls across multiple jurisdictions.
If a product recall involves multiple countries, [Party Name] shall ensure compliance with the laws and regulations of each affected jurisdiction. [Party Name] will coordinate with local distributors, retailers, and regulatory authorities to execute the recall efficiently and minimize disruption.
Product recall record-keeping clause
This variation applies to maintaining records of recall actions.
[Party Name] shall maintain detailed records of all recall activities, including the nature of the defect, affected batch numbers, customer notifications, and resolutions. Records shall be retained for a minimum of [time period] and made available upon request by regulatory authorities.
Third-party product recall clause
This variation applies when a third party is involved in the recall process.
In the event of a product recall, [Party Name] may engage a third-party service provider to manage recall logistics, including customer notifications and product returns. The costs of engaging the third party shall be borne by [responsible party], and the recall must comply with all applicable regulations.
Recall testing and verification clause
This variation applies to testing products during the recall process to verify defects.
During the recall process, [Party Name] shall conduct testing of returned products to confirm the defect or safety concern. Results of such testing shall be documented, and a summary provided to all affected parties and regulatory authorities as required.
Product recall escalation clause
This variation applies when escalation to senior management or regulatory bodies is required.
If a product recall cannot be resolved at the operational level within [time frame], the matter shall be escalated to senior management for immediate action. If necessary, [Party Name] shall notify relevant regulatory authorities and provide updates on corrective measures.
Recall timeline clause
This variation applies to defining the timeline for completing a product recall.
[Party Name] shall ensure that all recall activities, including product removal, consumer notification, and replacement or refund, are completed within [specified time frame]. Any delay must be reported to all affected parties and regulatory authorities with an explanation and revised timeline.
Recall communication strategy clause
This variation applies to establishing a communication plan during a recall.
In the event of a product recall, [Party Name] shall implement a communication strategy to inform stakeholders, including customers, retailers, and regulatory bodies. This strategy shall include press releases, direct notifications, and updates on the company’s website.
Recall insurance clause
This variation applies when insurance coverage is used to address recall costs.
[Party Name] shall maintain adequate recall insurance to cover expenses related to product recalls, including notification, transportation, and product replacement. Claims made under this insurance shall be processed promptly to minimize disruptions.
Recall compliance monitoring clause
This variation applies to monitoring compliance during the recall process.
[Party Name] shall appoint a compliance officer to monitor adherence to all regulatory and contractual obligations during the recall. The compliance officer shall provide regular reports to stakeholders on progress and compliance status.
Recall contingency planning clause
This variation applies to preparing for potential product recalls in advance.
[Party Name] shall develop and maintain a contingency plan for managing product recalls. This plan shall include procedures for identifying defects, notifying stakeholders, and executing recalls efficiently, ensuring minimal disruption to business operations.
Recall reporting obligations clause
This variation applies to setting reporting requirements for recall activities.
[Party Name] shall submit detailed reports on recall activities, including affected products, corrective actions, and stakeholder communications, to [Other Party Name] and regulatory authorities as required by applicable laws. Reports shall be submitted within [specified time frame].
Recall prevention clause
This variation applies to actions aimed at preventing future recalls.
Following the completion of a product recall, [Party Name] shall conduct a root cause analysis and implement corrective measures to prevent recurrence. These measures shall include enhanced quality control, supplier audits, and employee training.
Recall partnership clause
This variation applies when multiple parties collaborate during a recall.
In the event of a product recall, [Manufacturer Name], [Distributor Name], and [Retailer Name] shall collaborate to ensure an effective recall process. Responsibilities shall be divided as follows: [specific responsibilities for each party], with costs shared proportionally.
Urgent recall clause
This variation applies to situations requiring immediate recall actions.
If a product defect or safety issue poses an immediate threat to consumer health or safety, [Party Name] shall initiate an urgent recall within [time frame]. Priority shall be given to notifying consumers and removing products from the market promptly.
Recall cost reimbursement clause
This variation applies when reimbursement for recall expenses is specified.
[Party Name] agrees to reimburse [Other Party Name] for any reasonable expenses incurred during the recall process, including notification, logistics, and product replacement, provided such expenses are documented and submitted within [time frame].
Supplier liability recall clause
This variation applies when suppliers are held responsible for defects leading to recalls.
If a product recall is caused by defective components or materials supplied by [Supplier Name], [Supplier Name] shall bear all costs associated with the recall and cooperate fully with [Party Name] to address the issue and mitigate further risks.
Recall termination clause
This variation applies to defining conditions for ending a recall process.
The recall process shall be deemed complete once all affected products have been removed from the market, and [Party Name] has provided confirmation to all relevant stakeholders, including regulatory authorities, within [time frame].
Recall public relations clause
This variation applies to managing public perception during a recall.
In the event of a product recall, [Party Name] shall appoint a public relations team to manage communications with the media and the public. All statements must be approved by senior management and aligned with the recall strategy.
Voluntary defect notification clause
This variation applies when notifying consumers of defects without a formal recall.
If a product defect is identified but does not warrant a formal recall, [Party Name] shall notify consumers voluntarily, providing details of the defect, its potential risks, and any recommended actions to mitigate harm.
Recall dispute resolution clause
This variation applies when disputes arise between parties during a recall.
Any disputes arising from the execution or costs of a product recall shall be resolved through [method of dispute resolution, e.g., mediation or arbitration]. The parties agree to cooperate in good faith to minimize disruptions during the recall process.
Recall jurisdiction clause
This variation applies to specifying legal jurisdiction for recall disputes.
All disputes related to product recalls shall be governed by the laws of [jurisdiction]. Any legal action must be filed in the courts of [specified location].
Consumer refund policy clause
This variation applies to ensuring refunds for recalled products.
Consumers returning products subject to a recall shall be entitled to a full refund, provided the product is returned within [time frame] from the date of recall notification. Refunds shall be processed within [time frame] of receiving the returned product.
Product recall logistics clause
This variation applies to defining logistics during a recall.
[Party Name] shall coordinate all logistical aspects of the product recall, including the transportation and storage of defective products. [Party Name] shall ensure that all affected products are securely handled and disposed of in compliance with applicable regulations.
Recall indemnification clause
This variation applies to indemnifying one party against recall-related liabilities.
[Party Name] agrees to indemnify and hold harmless [Other Party Name] against all liabilities, damages, and costs arising from the recall, except where such liabilities result from the negligence or willful misconduct of [Other Party Name].
Recall contingency fund clause
This variation applies to maintaining a fund for potential recall costs.
[Party Name] shall establish a contingency fund of [specified amount] to cover potential product recall expenses, including logistics, notifications, and consumer compensation. The fund shall be reviewed annually and adjusted based on risk assessments.
Recall notification timeline clause
This variation applies to setting specific timelines for notifying stakeholders.
In the event of a recall, [Party Name] shall notify all stakeholders, including regulatory authorities, distributors, retailers, and consumers, within [specified time frame] of identifying the issue. Notifications must include detailed information about the defect and required actions.
Recall testing reimbursement clause
This variation applies to reimbursing costs associated with testing recalled products.
[Party Name] shall reimburse [Other Party Name] for all reasonable costs incurred in testing and verifying defects in recalled products. Reimbursement claims must be submitted with supporting documentation within [time frame].
Recall regulatory compliance clause
This variation applies to ensuring adherence to regulatory standards during recalls.
[Party Name] shall ensure that all recall activities comply fully with the laws and regulations of [jurisdiction(s)], including reporting requirements, notification protocols, and product disposal procedures.
Recall coordination clause
This variation applies to assigning coordination responsibilities during a recall.
[Party Name] shall appoint a recall coordinator to oversee all aspects of the recall process, including stakeholder communications, logistics, and compliance. The coordinator shall provide weekly updates to all relevant parties until the recall is resolved.
Recall customer support clause
This variation applies to providing dedicated support to customers during a recall.
[Party Name] shall establish a dedicated customer support team to address inquiries related to the recall. The support team shall provide information on the recall process, replacement options, and compensation within [specified time frame].
Recall notification accuracy clause
This variation applies to ensuring the accuracy of information shared during a recall.
[Party Name] shall verify the accuracy of all notifications and communications issued during the recall process. Any inaccuracies identified must be corrected immediately, and updated information must be provided to all stakeholders.
Recall collaboration clause
This variation applies to requiring collaboration among parties during a recall.
In the event of a product recall, [Manufacturer Name], [Distributor Name], and [Retailer Name] agree to collaborate fully to ensure an efficient and effective recall process. Responsibilities shall be outlined in a mutually agreed recall plan.
Recall employee training clause
This variation applies to training employees on recall procedures.
[Party Name] shall provide mandatory training to employees on recall procedures, including defect identification, customer communication, and regulatory compliance. Training sessions shall be conducted annually or upon updates to the recall policy.
Recall data protection clause
This variation applies to protecting customer data during recalls.
[Party Name] shall ensure that all customer data collected during the recall process is handled in compliance with applicable data protection laws, including [specific regulations]. Data must be stored securely and used solely for the purpose of managing the recall.
Recall oversight committee clause
This variation applies to establishing a committee to oversee recall processes.
[Party Name] shall establish a recall oversight committee responsible for monitoring the recall process, ensuring compliance with regulations, and providing strategic guidance. The committee shall include representatives from quality control, legal, and operations teams.
Recall media response clause
This variation applies to managing media inquiries during a recall.
[Party Name] shall designate a spokesperson to handle all media inquiries related to the recall. The spokesperson shall issue statements approved by senior management to ensure accurate and consistent messaging.
Recall cross-border coordination clause
This variation applies to recalls involving multiple countries.
In the event of a cross-border recall, [Party Name] shall coordinate with international partners and comply with the recall laws and regulations of each affected jurisdiction. Communication and logistics plans shall be adapted to address regional differences.
Recall notification escalation clause
This variation applies to escalating notifications if responses are delayed.
If initial recall notifications are not acknowledged within [time frame], [Party Name] shall escalate the communication to senior representatives of the affected parties and provide updates to regulatory authorities if required.
Recall packaging disposal clause
This variation applies to handling the disposal of defective product packaging.
[Party Name] shall ensure that all defective product packaging involved in the recall is disposed of in an environmentally responsible manner, in accordance with applicable laws and regulations.
Recall consumer dispute resolution clause
This variation applies to resolving disputes with consumers during recalls.
Any disputes raised by consumers regarding the recall process, compensation, or replacements shall be resolved through [dispute resolution mechanism, e.g., mediation or arbitration]. [Party Name] shall respond to disputes within [time frame] of receipt.
Recall logistics service provider clause
This variation applies when third-party logistics providers manage recalls.
[Party Name] may engage third-party logistics providers to manage the transportation, storage, and disposal of recalled products. All service providers must comply with the recall plan and applicable regulatory requirements.
Recall performance evaluation clause
This variation applies to assessing the recall process post-completion.
Upon completion of the recall, [Party Name] shall conduct a performance evaluation to identify strengths and weaknesses in the recall process. Findings shall be documented, and recommendations for improvement shall be implemented.
Recall multi-party liability clause
This variation applies to defining liability among multiple parties in a recall.
In the event of a product recall involving multiple parties, liability shall be allocated as follows: [specific percentages or responsibilities]. Each party agrees to bear its share of the costs and cooperate to minimize disruptions.
Recall monitoring technology clause
This variation applies to using technology to track recalls.
[Party Name] shall implement monitoring technology to track the progress of the recall process, including product returns, customer communications, and corrective actions. Data collected shall be used to improve recall efficiency.
Recall subcontractor accountability clause
This variation applies to ensuring subcontractor compliance during a recall.
In the event of a recall involving subcontracted products or components, [Party Name] shall hold subcontractors accountable for defects and require their full cooperation in managing recall activities. Subcontractors may be required to reimburse costs attributable to their supplied goods.
Recall proactive risk assessment clause
This variation applies to conducting risk assessments to prevent recalls.
[Party Name] shall perform periodic risk assessments to identify potential defects or safety issues that could lead to a recall. Identified risks must be documented and mitigated through updated manufacturing, quality control, and distribution practices.
Recall advance notification clause
This variation applies to notifying key stakeholders before public announcements.
[Party Name] shall provide advance notice to regulatory authorities, distributors, and key partners prior to issuing a public announcement about the recall. The notice shall include details about the defect, affected products, and recall plan.
Recall indemnity cap clause
This variation applies to capping indemnity obligations for recall-related costs.
The total indemnity obligation of [Party Name] for recall-related costs shall be capped at [specified amount or percentage], except in cases of gross negligence or willful misconduct.
Recall regulatory audit clause
This variation applies to facilitating audits during or after a recall.
[Party Name] shall provide full access to records, facilities, and personnel to facilitate regulatory audits conducted in connection with the recall. All findings and recommendations from the audit shall be implemented promptly.
Recall sustainability clause
This variation applies to integrating sustainability practices in recalls.
[Party Name] shall ensure that all recalled products and associated materials are recycled or disposed of in an environmentally sustainable manner, in compliance with applicable laws and corporate sustainability goals.
Recall corrective action clause
This variation applies to implementing corrective actions after a recall.
Following the completion of the recall, [Party Name] shall implement corrective actions to address the root cause of the defect. These actions may include supplier audits, design modifications, and enhanced quality control measures.
Recall multi-brand coordination clause
This variation applies when managing recalls involving multiple brands.
In the event of a recall affecting products under multiple brands owned or managed by [Party Name], a unified recall strategy shall be implemented to ensure consistent communication and efficient execution across all affected brands.
Recall financial reserve clause
This variation applies to setting aside financial reserves for potential recalls.
[Party Name] shall maintain a financial reserve equivalent to [percentage or amount] of annual revenue to cover potential recall costs, ensuring the company is financially prepared to address recall-related expenses promptly.
Recall logistics chain audit clause
This variation applies to auditing the logistics chain during a recall.
[Party Name] shall conduct an audit of the logistics chain during the recall process to identify inefficiencies or gaps that may delay product removal or customer notifications. Findings shall be documented, and improvements implemented immediately.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.