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Report Compiled by the Study Group on Improvement of Effectiveness of Product Recalls under the Consumer Product Safety Act

June 20, 2019

Focusing on a variety of challenges in implementing recalls of consumer products, the Study Group on Improvement of Effectiveness of Product Recalls under the Consumer Product Safety Act has been holding discussions on future actions to overcome such challenges, working with representatives of industrial players, consumers, academic experts and other fields, and the study group compiled the discussion results into a report.

1. Summary of the report

Along with a recent increase in the number of online transactions, product distribution channels are tending to diversify, as seen in the sales of imported products by overseas companies. This tendency causes difficulties, involving recalls of products, for administrative organizations to identify the causes of product accidents, raises potential risks that SMEs and micro enterprises with little financial power, which are often new entries to markets, cannot collect their products subject to recalls, and causes difficulties for manufacturers to collect their products subject to recalls due to the disposal of such products by consumers as the period of such recalls become longer. The study group held discussions on these challenges in recalls of consumer products and compiled the processes of these discussions and future measures for addressing these challenges into a report.

2. Future measures for addressing challenges

  1. Approaches to assessing the levels of the progress in product recalls, which are further tailored to current situations
    1. Reflect the rates of remaining products to be recalled in the rates of successfully recalled products; and
    2. Revise the frequencies at which businesses are required to submit regular reports on the progress of their product recalls; Clarify the procedure for ending product recalls.
  2. Challenges emerging along with the recent diversity of business transaction styles
    1. Thoroughly raise awareness among businesses of company’s liabilities and procedures for product recalls under the Consumer Product Safety Act;
    2. Cooperate with businesses in investigating the causes of product accidents;
    3. Share information seamlessly between administrative organizations and related industrial players and enhance collaboration between them; and
    4. Deal with product-recall cases requiring urgent actions.
  3. Discussions on approaches to encouraging SMEs and micro enterprises to make use of product-recall insurance.

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Division in Charge

Product Accident Information and Analysis Office, Product Safety Division, Commerce, Industrial and Product Safety Policy Group

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