graphic
Personal Finance
Tips for tracking recalls
July 27, 2001: 6:32 a.m. ET

Auto and consumer product safety recalls are monitored differently
By Julie Vallese
graphic
graphic graphic
graphic
WASHINGTON (CNNfn) - It may be the age of information technology, but when it comes to alerting the public that its health or safety is at risk, product recall announcements are still the best known vehicle for getting the job done.

All too often, however, they leave consumers with more questions than answers.

What was the name of that model again? What year were the recalled products made? How do I find out more?

Under the microscope

It's rocky terrain to say the least. Thousands of recalls are issued each year on everything from children's clothing to camping gear. And there's no single federal agency that keeps track of them all.

Last year alone, for example, recalls were announced on more than 300 consumer products and on hundreds of vehicles. Some are reported in the mainstream press; others are not.

But before you give up, you should know there are several ways to track down recall information -- if you know where to look and understand which branch of the government oversees what.

First, you should know that two federal agencies are responsible for the majority of recalls in this country -- the Consumer Product Safety Commission (CPSC) and the National Highway Traffic Safety Administration (NHTSA).

The CPSC is responsible for ensuring the safety over 15,000 consumer products. They are not responsible for food, medication or vehicles. NHTSA is responsible for all motor vehicles -- trucks, vans, cars and motorcycles.

While the mission of the two agencies is the same, the means by which they gather and distribute their information are very different.         

The CPSC, for example, relies heavily on the public and the press for product recalls. Under federal regulations, companies and manufacturers are required to report possible problems or injuries related to products. Consumers also can report product problems directly to the agency via their Web site or by calling: 800-638-2772.

Once the agency has what it feels is adequate information it can investigate possible product defects. The agency is not allowed to publicize what it is investigating.    

  graphic FILL OUT YOUR CARDS  
    Product identification cards are the only way companies can contact consumers directly once they leave the store.        
   
If the CPSC finds cause to issue a recall, there are really only two ways to get the word out. The media, on which it relies heavily, publicize a recall by reporting it on air or in print or digital publications.

The company involved in the recall also tries to contact those customers who return its product identification cards. It is important to fill these cards out because it is the only way to contact consumers directly once they leave the store.

Many people fear the cards will be used for marketing or mailing list purposes. While some companies may have used the cards to track customer buying trends, they are not used for mailing lists and the information is not made public. The CPSC currently is writing a new recommendation allowing companies to ask for name, address and phone number for use only in the event of a recall.         

A different story

In the case of vehicle recalls, it is a different story.

NHTSA is required by law to publicize what it is investigating for possible defects. There are three stages to a transportation recall investigation.      

The first is the preliminary investigation. This is the fact-finding mission. The agency tries to determine how big a problem exists and if there is a trend or pattern in its performance.         

If there is reason to move forward, the agency opens an engineering analysis. This occurs when investigators actually test products and attempt to simulate the problems found in the real world. This is a process that can take at least a year and in most cases wraps up in two years.      

If the agency finds a product is defective, it can ask a company to recall the product, which the majority do. However, if a manufacturer declines, then a longer process for a mandatory recall begins.      

The process of finding consumers is much easier for NHTSA than for the CPSC. NHTSA and car manufacturers track vehicle owners through the vehicle identification number or VIN. All cars have one and each time a vehicle changes ownership the VIN number also is recorded. Cards are sent in the mail notifying consumers of the recall. Look for them -- many people throw them out and say they were never notified.

Head for the Web

If you'd rather not surf the government Web sites periodically, there is one other way to stay on top of vehicle recalls -- by registering with one of the Web site services that do it for you. Both autobytel.com and carpoint.com have sections in which consumers can register their car and be notified via e-mail if there is a recall associated with that car.                           graphic

  RELATED SITES

National Highway Traffic Safety Administration

Consumer Product Safety Commission

Autobytel.com

Carpoint.com


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.