U.S. Product Recall Events Drop, but Defective Units Surge in Q2 2024

U.S. product recalls across five major industries — automotive, consumer product, food and drink, medical device, and pharmaceuticals — dropped by 13.3% in the second-quarter of 2024 compared to the previous quarter, according to Sedgwick’s latest quarterly recall report.

The report counted 788 recall events in Q2 2024, compared to 909 events the previous quarter, which was the highest single-quarter recall total in over five years, Sedgwick reported.

Despite a decrease in recall events overall, the number of defective units recalled surged by 96.4% to 254.6 million from 129.6 million. The second quarter units affected was the second-highest quarterly total in the past nine quarters, according to the report. Taking a wider view, however, the total units recalled in the first half was lower than the first six months of 2023, with 384.2 million units in H1 2024, compared to 439.6 million units a year earlier.

“Even though recall data can fluctuate quarter-to-quarter, strict regulatory scrutiny has remained consistent across industries since 2020,” said Chris Harvey, senior vice president of Brand Protection for Sedgwick, stated. “Regulators are enforcing existing rules more stringently, while also working on or finalizing new rules that address emerging issues like AI. Companies will need to remain diligent in their preparation for recalls and in-market crises, as well as pay close attention to evolving regulations to ensure compliance.”

Industry-specific highlights from the report include:

• Automotive recalls fell 7.3% to 243 in the second quarter from 262 in Q1. The second quarter saw 5 million vehicles recalled, which was the second-lowest quarter in a 10-year period.
• Consumer product recalls declined 6.5% to 86 in 2Q from 91 the previous quarter.  However, the number of defective units in the consumer product sector rose by 67.3% to 39.1 million units, from 23.4 million in Q1.
• Food and drinks saw a 11.9% decline in the number of U.S. Food and Drug Administration (FDA) recalls to 118 events in the second quarter, from 134 events in Q1. Undeclared allergens was the leading cause of FDA recalls, accounting for 41 events, or 34.1% of the total.
• Medical device recall events fell 18.2% to 242, from 296 in Q1. But there was a 267.3% increase in recalled medical device units, rising to 196.2 million units in the second quarter from 53.4 million the prior quarter.
• Pharmaceutical recall events decreased 17% to 93 in Q@ from 112 in Q1. The number of affected units was 4.5 million, a 51.2% decline over 9.3 million in Q1.

Looking ahead, the report indicates potential regulatory challenges for specific industries.

“Artificial intelligence (AI) remains a focus for regulators across industries. The second quarter saw efforts to ensure safe and transparent use of AI technologies in the automotive, consumer products, and medical device sectors,” the report noted.

Ensuring that product labeling is honest is another cross-industry priority for regulators, Sedgwick reported. There were new rules and guidance around labeling issues for Food and Drink and Pharmaceutical products, the report noted.

“The second quarter also saw lawsuits filed alleging companies did not act quickly enough or take the right steps when products had been recalled. This includes both criminal and civil cases against companies and specific executives, as well as fines of more than $21 million,” according to the report.

Access the full report here. &