Regulatory Oversight or Lack of Foresight? Implications for Product Recall Policies and Procedures

The regulatory effectiveness, the impact on industry and consumers of product withdrawal and the associated wider issues relating to crisis management represent an under-researched area. The authors describe the mid-2003 government-ordered withdrawal of almost 2,000 complementary and alternative medicines, across multiple brand names, in Australia and New Zealand. The report is based on an examination of the media coverage of the event and on interviews with key informants in manufacturing and retailing and the regulatory system. This massive, multi-brand recall provides an opportunity to examine the effectiveness and efficiency of the management of a cross-border withdrawal from regulatory and consumer policy perspectives and makes recommendations for the management of future recall events. Lynne Eagle is Professor of Marketing, Middlesex University Business School, The Burroughs Hendon, London NW4 4BT, England; Fax: +020-8411-5357; E-mail: l.eagle@mdx.ac.uk. Lawrence C. Rose is Head of Department and Professor of Finance, Department of Commerce, Massey University (Auckland), Private Bag 102-904 North Shore Mail Centre, New Zealand; Fax: +64-9-441-8177; E-mail: l.c.rose@massey.ac.nz. Philip J. Kitchen is Professor of Strategic Marketing, The Business School, University of Hull, Hull, UK HU6 7RX; Fax: +44-0-1482-466637; E-mail: p.j.kitchen@hull.ac.uk. Jacinta Hawkins is an Assistant Lecturer, Department of Commerce, Massey University (Auckland), Private Bag 102-904 North Shore Mail Centre, New Zealand; Fax: +64-9-441-8177; E-mail: j.hawkins@massey.ac.nz.