Business owners, company managers, and manufacturers at all levels know the dangers of product recalls. Product recalls are expensive and can cause an unfortunate public disgrace for your business. Three of the most famous product recalls in US history show us just how long lasting that public disgrace is. Make sure to learn from their responses so you can properly handle any product recalls that happen to you.
Extra-Strength Tylenol Recall in 1982
While there are many famous and infamous product recalls, the Chicago Tylenol Murders is one of the biggest. These weren’t intentional murders, but the unfortunate name stuck after seven people died after consuming poisoned extra-strength Tylenol in the Chicago area. Johnson & Johnson, the parent company of Tylenol, didn’t know how the cyanide got into their medication. However, they did spend millions of dollars recalling millions of painkillers, publishing national warnings, providing an advice hotline, and relaunching the brand.
This recall didn’t just affect Johnson & Johnson. The Food and Drug Administration created security seals for over-the-counter medication following this major event.
Bridgestone/Firestone Tire Recall in 2000
In 2000, Bridgestone/Firestone recalled over six million tires after the National Highway Traffic Safety Administration linked faulty tire treads with hundreds of car accidents and dozens of deaths. These tires were primarily used for Ford vehicles, especially their Explorers and Light trucks. Initially, the tire company tried to blame Ford for the car problems, claiming that these vehicles had a likelihood to tip over regardless of tires. Ford claimed the peeling tire treads were to blame.
Ultimately, Bridgestone/Firestone had to absorb the cost of millions of tire recalls, cooperate in a federal investigation, and go through dozens of court cases. They also terminated their contract with Ford.
Peanut Corporation of America Salmonella Recall from 2007–2008
The Peanut Corporation of America was crippled between 2007 and 2008 when their products led to the largest food recall in US history. They shipped thousands of products, which they knew contained deadly salmonella, across the US and Canada. Since some of their products were ingredients manufacturers used in their own foods, this recall affected hundreds of companies. Now there are quick guides to product recalls for manufacturers, but back then, most manufacturers had to wait for the Centers for Disease Control and Food and Drug Administration to determine the cause.
This massive recall damaged the entire peanut industry, not just the Peanut Corporation of America, costing roughly a billion dollars. The Peanut Corporation of America filed for bankruptcy the following year.
Learning about three of the most famous product recalls in US history can feel depressing at first. However, you can learn from these successes and mistakes. Tylenol is still a popular painkiller because Johnson & Johnson did the right thing and restored faith in their product. The Peanut Corporation of America hid its own purposeful mistake and never recovered. If you are honest and put in the work, your company can come back from a product recall. Coming back from a recall will cost a lot of money, but the investment is worth it so your business can thrive.
