product recall
Definition
A product recall is when a company pulls a product off the market and retrieves it from customers because the product has been found to be unsafe, defective, or in violation of regulations. The company typically notifies customers, offers a refund or replacement, and works to fix the underlying problem before selling the product again.
Example
If you sell a children's toy and discover that a small part can break off and become a choking hazard, you would issue a recall by contacting customers who bought it and offering them a full refund.
Watch Out
Failing to issue a recall quickly once you know about a safety problem can expose you to serious legal liability if someone gets hurt in the meantime.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.