Do you have a CBD Recall Plan?

Do you have a CBD Recall Plan?

An effective product recall plan can mean the difference between survival and the loss of your CBD business that you have worked hard to build according to the Consumer Protection Safety Commission (CPSC).

A CBD business faces both immediate and incidental costs when faced with a product recall. It is easy to calculate immediate costs such as salaries for staff to redirect resources into the management of a recall plan. This includes the cost of advertisements to notify the public of your CBD product recall.

However, it is the incidental costs associated with not having a product recall plan already established that could have the biggest bearing on the survival of your CBD company’.

Do you have a plan on offering refunds?

What is a Recall Plan? If your products are contaminated, a recall plan is a policy in place to inform your customers and the community on how and when to destroy or mail back your products.

If you are a manufacturer, importer, distributor, or retailer of consumer CBD products, you may need to conduct a product recall in the future.

The importance of a Recall Plan

Authorities have determined that the best way to ensure that a product recall is efficient is to have a recall plan already in place. CBD brands are advised to execute their plans as quickly as possible.

A well-thought-out recall plan can save lives and prevent injuries in addition to limiting damage to your company’s brand and pockets.

According to the CPSC, many recalls at their administration begins when a company follows the law and reports its product to the CPSC.

Additional recalls often happen after reports are received from customers and other CBD industry experts. Once the CPSC decides that a recall is necessary, CPSC staff will expect your company to respond quickly to its requests for information and to work closely with a member of the CPSC’s Office of Compliance.

United States Consumer Protection Safety Commission

The CPSC has compiled resources to assist companies that manufacture, import, distribute, retail, or sell consumer CBD products.

These resources highlight the issues critical to the CPSC for a CBD company to include in its recall plan. CBD brands should also carefully review the CPSC Recall Handbook in order to:

  • become familiar with their reporting requirements under sections 15(b) and 37 of the Consumer Product Safety Act, and Section 102 of the Child Safety Protection Act, Pub. L. 103-267;
  • help companies learn how to recognize potentially hazardous consumer products as soon as possible; and
  • assist firms that discover they have manufactured, imported, distributed, or retailed such products to develop and implement “corrective action plans” that address the hazards.

Resources

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