Product recalls are increasing. In 1988, the U.S. Consumer Product Safety Commission was involved in some 221 recalls covering about 8 million product units. Five years later, in 1993, those numbers had risen to 367 recalls covering about 28 million product units. Recalls for both new and established products occur all too often, and they can have serious repercussions. In some cases, they have destroyed brands and even companies.
A version of this article appeared in the September–October 1996 issue of Harvard Business Review.