Product recalls fell in Q2 in 5 key industries

U.S. product recalls fell in the auto, consumer products, food and beverage, medical device and pharmaceutical industries in the second quarter, according to a new report from Sedgwick.

Sedgwick’s US Retrenchment Index found that the 788 layoffs in those industries represented a 13.3% decline compared to the first three months of 2024 — a period that marked the largest total of layoffs in a single quarter for more than five years.

However, the number of defective units in the five industries highlighted rose to 254.6 million in Q2 2024 from 129.6 million in Q1 2024. The number marked the second highest quarterly total in the past nine quarters , Sedgwick said.

The report shows that the number of vehicle recalls fell 7.3% in Q2 2024 from Q1 2024 to 5 million recalled vehicles. This was the second lowest number of car recalls in 10 years.

Looking ahead

Cars: The EPA issued final rules to set emissions standards for the auto industry early in the second quarter, but when the Supreme Court struck down the Chevron Doctrine, the agencies’ ability to take the lead in interpreting the vague legislation could be severely damaged. Electric vehicles also remain a focus for regulators.
Consumer product: The FTC continues to pursue Made in USA violations, while the Justice Department is seeking criminal charges against two executives who failed to comply with the Consumer Product Safety Act. Artificial intelligence and child safety will continue to be high on the agenda of regulators.
Food and drinks: The FDA received final approval on its proposed reorganization plan to create a Unified Human Food Program in May. This will be the focus of the agency.
Pharmaceutical: Regulators have focused on marijuana, cannabis and menthol cigarettes. Even as lawmakers work to reschedule marijuana, they deny a regulatory path for cannabis-derived products. The FDA is also under pressure from advocacy groups to ban menthol cigarettes.
Medical device: Enforcement activity is on the rise, with the DOJ announcing two major settlements involving device makers in the second quarter. Manufacturers should be aware that agencies are willing to pursue not only civil but also criminal penalties for non-compliance.

Equipment, linked to 42 events, was the most dominant cause of car recalls in Q2 2024. Electrical systems were the second most common concern, cited in 38 recalls. Steering has been at fault for 30 recall events.

Rollover prevention systems were the most common reason for car recalls by volume, with 1.66 million units affected in 12 events, according to Sedgwick.

Consumer product recalls fell 6.5% to 86 in Q2 2024, while the number of defective units rose 67.3% from 23.4 million in Q1 to 39.1 million in Q2 , according to the report.

Sports and recreation accounted for the most withdrawals by product category in Q2 2024, with 25 events. Furniture and home decor was second with 13 withdrawals, and baby products was third with nine events.

Toys lead categories by volume of recalls, with 22.01 million units affected, mainly due to the risk of hazardous materials from liquid resin.

Personal care products were recalled with 8.46 million units, the second largest in volume – 8.26 million were for liquid laundry detergent packages that leaked, posing a risk to children.

Electronics was the third largest product category in Q2 with 3.91 million units recalled.

There were two electronics-related events involving more than one million units: a clothing steamer (1.60 million units) and rechargeable lights (1.24 million units), the report said.

Food and beverage recalls fell 11.9%, and total units recalled fell 68.5% from the first quarter. The main cause of recalls was undeclared allergens, according to the report.

There were 196.2 million defective units in the medical device industry in Q2, an increase of 267.3% from Q1 2024. In contrast, the number of recalls decreased from 296 in Q1 to 242 in Q2.

Pharmaceutical recalls fell from 112 in Q1 2024 to 93 in Q2. The number of defective units fell 51.2% to 4.5 million in Q2. About 173 different companies were involved in the medical device recalls for T2, the report said.