Are Consumers Entitled to Refund For Product Recalls?

Several reputable companies, especially in the food business, have experienced issues with the quality of their products that may be dangerous to people, leading to the recall of these goods from the market. Consumers are also strongly advised to return any products they have purchased impacted by the issue. However, do customers have the right to receive refunds for items that have been recalled?

Why Are Product Recalls Initiated?

(Photo : Unsplash/Joel Muniz)

Product recall refers to a formal request to the manufacturer to return a product, either an entire run or a specific quantity, typically due to concerns regarding safety, design flaws, or labeling errors. Defects that appear to pose a threat to the safety of customers and that influence a significant number of customers are typically the reason why businesses recall items. Aside from that, the conventional procedures for warranties are sufficient as part of the best practices for marketing. Therefore, recalls are more of a preventative nature, and they are done to avoid costly disputes and monetary and goodwill damages.

Consumer Rights on Recalled Products

The companies that initiate product recalls will provide consumers with comprehensive information regarding the recall details and the corresponding actions required. It is unlikely that customers would be allowed to receive a refund since a car recall, for example, will require repairs to rectify any concerns that may have occurred.

On the other hand, food recalls generally involve a request for consumers to return the product to the location where it was purchased, where they would be given a refund. It is reportedly the corporation's responsibility to inform the stores about the recall.

As per the Consumer Rights Act of 2015, products must be adequate and suitable for their intended use, including being safe and long-lasting. When a product has been voluntarily recalled or the subject of a safety alert, it is considered to have failed to satisfy these criteria. If this occurs, you can request a refund, a repair, or a replacement from the retailer, depending on the specific circumstances.

The faulty products tool they provide can initiate a claim against the company if you acquired the product after October 1, 2015. Your claim for defective items is more difficult to process if there has been a recall and you do not feel the responsibility for taking this step should be placed on the customers.

Additionally, purchasers who acquired the product before October 1, 2015, are entitled to a repair or replacement from the retailer under the Supply of Goods and Services Act or the Sale of Goods Act.

Compensation for Damage, Injury, or Death Caused By Recalled Products

If you have been injured as a result of an unsafe product, even if you did not purchase the products for yourself, you have the right to file a lawsuit against the manufacturer under the Consumer Protection Act of 1987

You also have the right to file a lawsuit for compensation for a death or injury. Accordingly, damages to private property or losses resulting from defective products may also give rise to a lawsuit, provided that the extent of the damages exceeds £275 or about $350.

No maximum amount can be claimed for compensation; nevertheless, the amount of money that can be claimed will be determined by the extent of the harm sustained.