The title of this blog sounds like an oxymoron. But it is the subject of an interesting article in Reliable Plant on how a swift recall and restitution to consumers can minimize harm to the company – and even improve customer satisfaction after the recall.
Of course, it depends on the product. Hydroxycut is through. Samantha Jones (little Sex and the City reference) herself could not save Hydroxycut. But the author cites the Tylenol scare in the 80s as a good example:
The best example of how to deal with a product recall is the Tylenol tampering case in the 1980s. Johnson & Johnson demonstrated that the safety of consumers was paramount by swiftly recalling the product, cooperating fully with regulators, and communicating openly about the issue, the researchers noted. Subsequently, the firm undertook a series of operational and design measures to ensure that such tampering would not occur again.
The big problem that drug and medical device companies usually fall into is that they wait too long to cut their losses. Look at drugs like Yaz and Januvia that have not been recalled and remain on the market despite the risks. If the manufacturers of these drugs would cut their losses and recall the product, it would be a good outcome not only for patients but for the companies themselves.