- 2 years ago
Certainly! Here are more detailed descriptions of some of the most costly and notable company-initiated product recalls:
1. **Ford Pinto (1970s)**
- **Reason for Recall**: The Ford Pinto was recalled due to a design flaw in the fuel tank that could cause it to rupture and catch fire in a rear-end collision.
- **Impact**: This defect led to numerous injuries and deaths, resulting in a recall of 1.5 million vehicles and costing Ford millions in settlements and legal fees.
2. **Tylenol (1982)**
- **Reason for Recall**: Johnson & Johnson recalled Tylenol products after bottles were found to be laced with cyanide, leading to several deaths.
- **Impact**: This incident led to a nationwide recall of 31 million bottles, costing the company over $100 million. It also resulted in the introduction of tamper-evident packaging.
3. **Samsung Galaxy Note 7 (2016)**
- **Reason for Recall**: The Galaxy Note 7 was recalled due to defective batteries that could overheat and catch fire.
- **Impact**: Samsung recalled about 2.5 million devices globally, leading to a loss of around $5.3 billion. The incident severely impacted Samsung's reputation and sales.
4. **Firestone Tires (2000)**
- **Reason for Recall**: Bridgestone/Firestone recalled tires that had a high failure rate, leading to tread separation and accidents.
- **Impact**: Over 6.5 million tires were recalled, linked to hundreds of accidents and fatalities. The recall cost the company over $500 million and damaged its relationship with Ford.
5. **Toyota Floor Mats (2009-2011)**
- **Reason for Recall**: Toyota recalled millions of vehicles due to floor mats that could trap the accelerator pedal, leading to unintended acceleration.
- **Impact**: The recall involved over 9 million vehicles and cost Toyota over $2 billion in fines and compensation. The issue also led to a temporary halt in sales and production of several models.
6. **Mattel Toys (2007)**
- **Reason for Recall**: Mattel recalled millions of toys due to lead paint and small magnets that could be swallowed by children.
- **Impact**: The recall involved over 19 million toys globally and cost Mattel over $100 million. It also led to increased scrutiny and regulation of toy manufacturing practices.
7. **Volkswagen Emissions Scandal (2015)**
- **Reason for Recall**: Known as Dieselgate, Volkswagen was found to have installed software in diesel engines to cheat emissions tests.
- **Impact**: This affected around 11 million vehicles worldwide and cost Volkswagen over $30 billion in fines, buybacks, and repairs. It severely damaged the company's reputation.
8. **General Motors Ignition Switch (2014)**
- **Reason for Recall**: GM recalled vehicles due to faulty ignition switches that could cause the engine to shut off unexpectedly, disabling power steering and airbags.
- **Impact**: Over 30 million vehicles were recalled, linked to numerous accidents and fatalities. The recall cost GM over $4 billion
1. **Ford Pinto (1970s)**
- **Reason for Recall**: The Ford Pinto was recalled due to a design flaw in the fuel tank that could cause it to rupture and catch fire in a rear-end collision.
- **Impact**: This defect led to numerous injuries and deaths, resulting in a recall of 1.5 million vehicles and costing Ford millions in settlements and legal fees.
2. **Tylenol (1982)**
- **Reason for Recall**: Johnson & Johnson recalled Tylenol products after bottles were found to be laced with cyanide, leading to several deaths.
- **Impact**: This incident led to a nationwide recall of 31 million bottles, costing the company over $100 million. It also resulted in the introduction of tamper-evident packaging.
3. **Samsung Galaxy Note 7 (2016)**
- **Reason for Recall**: The Galaxy Note 7 was recalled due to defective batteries that could overheat and catch fire.
- **Impact**: Samsung recalled about 2.5 million devices globally, leading to a loss of around $5.3 billion. The incident severely impacted Samsung's reputation and sales.
4. **Firestone Tires (2000)**
- **Reason for Recall**: Bridgestone/Firestone recalled tires that had a high failure rate, leading to tread separation and accidents.
- **Impact**: Over 6.5 million tires were recalled, linked to hundreds of accidents and fatalities. The recall cost the company over $500 million and damaged its relationship with Ford.
5. **Toyota Floor Mats (2009-2011)**
- **Reason for Recall**: Toyota recalled millions of vehicles due to floor mats that could trap the accelerator pedal, leading to unintended acceleration.
- **Impact**: The recall involved over 9 million vehicles and cost Toyota over $2 billion in fines and compensation. The issue also led to a temporary halt in sales and production of several models.
6. **Mattel Toys (2007)**
- **Reason for Recall**: Mattel recalled millions of toys due to lead paint and small magnets that could be swallowed by children.
- **Impact**: The recall involved over 19 million toys globally and cost Mattel over $100 million. It also led to increased scrutiny and regulation of toy manufacturing practices.
7. **Volkswagen Emissions Scandal (2015)**
- **Reason for Recall**: Known as Dieselgate, Volkswagen was found to have installed software in diesel engines to cheat emissions tests.
- **Impact**: This affected around 11 million vehicles worldwide and cost Volkswagen over $30 billion in fines, buybacks, and repairs. It severely damaged the company's reputation.
8. **General Motors Ignition Switch (2014)**
- **Reason for Recall**: GM recalled vehicles due to faulty ignition switches that could cause the engine to shut off unexpectedly, disabling power steering and airbags.
- **Impact**: Over 30 million vehicles were recalled, linked to numerous accidents and fatalities. The recall cost GM over $4 billion
Category
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LifestyleTranscript
00:00But something went wrong. It made its way onto numerous supermarket shelves after being detected in some Worcester sauce in Italy.
00:07Welcome to WatchMojo, and today we're counting down our picks for the top 20 most expensive product recalls in history.
00:14This morning, an urgent new message from Samsung.
00:17This is not a food safety issue. It's an issue of inhumane treatment.
00:22I think it's a tough holiday season, and I think it's going to be tough for toy manufacturers.
00:26For this list, we're looking at the costliest company-initiated product returns and why they needed to happen.
00:32Let us know in the comments if you've ever been part of these or any product recalls.
00:41The first thing we're saying to moms is don't panic.
00:44In 2010, over 1 million sling-style Infantino brand baby carriers were recalled from the market.
00:50The Consumer Product Safety Commission determined there was a risk of asphyxiation for those being carried.
00:55You might have your baby in a sling next to you and not notice that the baby has gone into this position where it cannot breathe.
01:03After three infant deaths occurred, an investigation was launched, which revealed sling-style carriers could fatally block air passages.
01:11The risk was especially great for those under the age of four months.
01:15In March 2010, the CPSC issued a report linking 14 deaths to the product, dating back as far as 1990.
01:22And just weeks later, the recall was issued.
01:25If you are going to shop Craigslist for any type of infant products, do you go to the CPSC website?
01:31I would check their website before you purchase something.
01:37I mean, people aren't always in a position to just yank them off the windows and go without.
01:42The exact number of deaths and injuries due to this product can be debated, as use of Roman blinds is so widespread.
01:49But what cannot be argued is the fact that in 2009, all Roman-style blinds were recalled from the market.
02:05What does all constitute? Well, around 50 million units.
02:10The United States Consumer Product Safety Commission pulled Roman-style blinds when several children became entangled in the shade's exposed inner cord.
02:19It's shocking, you know, because a lot of us have these in our homes.
02:22Ultimately, the report recommended consumers stop using Roman-style shades altogether if they were not equipped with updated safety precautions.
02:31Obviously, we want to sell a product that's safe. It's safe for our customers, it's safe for their pets, it's safe for their children.
02:40Introduced in 1963, the Easy-Bake Oven was immediately appealing.
02:44What can I get for 8,000 tickets?
02:47A BB gun or an Easy-Bake Oven?
02:49Hmm, hot food is tempting, but I just can't say no to a weapon.
02:54Kids getting to make tasty treats? What's not to like?
02:57In 2007, however, Hasbro recalled its latest model of the toy after they received numerous substantial complaints of children getting their fingers stuck in the oven's door.
03:07Do you remember putting your hand in there?
03:09So how come you're putting your hand in there again?
03:12Hasbro issued a voluntary recall and made available a free U.S. Consumer Product Safety Commission-approved guard for all who still wanted to keep the oven.
03:20Except it didn't work.
03:22The CPSC report revealed approximately 250 more cases of fingers getting caught in the door and nearly 80 cases of burns.
03:30New Easy-Bake, yeah, it's the one for you. Cakes and cookies, baking with friends.
03:38This brought on another recall.
03:40In the end, the recall affected nearly one million Easy-Bake Ovens.
03:44Who wants cupcake?
03:46Oh, me, me, me, me, me.
03:48You know, that batter is like 30 years old.
03:53Fears over the lead content of Chinese-manufactured Fisher-Price toys led to a huge recall in 2007.
04:00Mattel, owner of Fisher-Price, was found to be selling toys covered in paint with the harmful element.
04:06Poisoning can cause multiple symptoms and be fatal, particularly for younger people.
04:10There is absolutely no excuse for lead to be found in toys entering this country.
04:19In the U.S. alone, roughly 9 million lead-coated products were involved in the recall.
04:24The recall itself cost Mattel around $30 million.
04:28The company was also fined more than $2 million for selling the products in the first place.
04:34Molly Gettaker says all these toys have some lead in them, and these are not recalled items.
04:39And they've all come back at different levels, all above the regulatory limit for packaging and toys.
04:45Three years later, a similar scandal struck.
04:48Everyone wanted to be the one who rescued Rocky, and everyone thought they could do it without help from anyone else.
04:5516. McDonald's Shrek Glasses
04:58Trace amounts of the toxic metal cadmium were found in some limited-edition McDonald's glasses back in 2010.
05:04The items were part of a promotion for Shrek Forever After and featured everyone's favorite Shrek characters painted on them,
05:11along with the threat of ingesting an illness-inducing toxin.
05:15McDonald's tried to defend this by saying the glasses didn't actually contain that much cadmium.
05:26But we argue that any amount of a dangerous carcinogen is definitely too much, especially where children's drinkware is concerned.
05:33McDonald's offered customers a refund of $3 per glass.
05:48Considering it initially charged $2 and 12 million glasses were recalled,
05:53that put the company at least $12 million in the red.
05:5715. Ford Pintos
06:00In action movies, it's not uncommon to see a car explode after even the smallest impact.
06:09Starting as early as 1973, there were cases stating that the Ford Pinto might be volatile.
06:14It wasn't until 1974 that something official came about,
06:18with a petition put forth by the Center for Auto Safety to recall the carmake.
06:24Apparently, the Ford Pinto's gas tank was poorly positioned between the rear axle and bumper,
06:31and it tended to catch fire when it touched the shock absorber in the back of the car,
06:35and thus would frequently explode in rear-end collisions.
06:44Ford faced a slew of legal battles and accusations criticizing its decision-making both before and during the scandal.
06:51Ultimately, Ford issued a massive recall, and in 1980, they stopped producing the Pinto altogether.
07:0214. Westland Hallmark Meats
07:05In 2008, the largest meat recall in American history took place
07:10when California's Westland Hallmark Meat Company was caught up in an enormous scandal.
07:15Undercover footage from animal rights groups revealed that workers were mistreating certain cows
07:20that were part of their beef production.
07:22Those heinous actions are strictly against the law in the United States.
07:26The ensuing recall resulted in a final judgment of almost half a billion dollars for the company.
07:31This was thanks in part to the fact that the company provided meat to the U.S.'s school lunch program.
07:36The company's connection to education put even more attention on the scandal.
07:50Ultimately, Westland Hallmark's meat went bankrupt
07:53because nobody wanted to touch their products after such horrendous behavior.
08:0013. Sony Batteries
08:02Major laptop manufacturer Dell issued a recall for notebook laptops back in 2006
08:07because of the batteries inside.
08:09These Sony-made batteries carried a major flaw.
08:12They were a huge fire hazard.
08:14Multiple stories broke about people's laptops burning during use
08:17and reports of laptop owners getting injured.
08:20Dell has set up a hotline for consumers.
08:22We called it 10 times today and got the following message.
08:26Call volumes are extremely high for the Dell battery replacement hotline.
08:30Luckily, no one suffered any severe damage.
08:33But it seemed that Sony didn't completely fix the problem in the aftermath of the incident.
08:37Around two years later, the company announced that it was going to shut down.
08:42Around two years later, another recall of laptops containing Sony batteries was issued.
08:48This time it wasn't just Dell, but also Toshiba and HP.
08:54And in the worst consumer hat-trick ever,
08:57Dell recalled over 4 million computers due to batteries in 2011.
09:02Sony lost hundreds of millions of dollars for these missteps.
09:0612. Scarlet Red Dye
09:09For years, an illegal red food dye has been causing mass recalls in the United Kingdom and Europe.
09:16The specific dye in question, Bright Red Sudan 1 dye,
09:19was banned by the EU in 2003 because it was found to be a carcinogen.
09:23The dye was in a batch of chili powder used by Hertfordshire-based Premier Foods
09:28to manufacture a Worcester sauce.
09:30This was then used in a wide range of products,
09:33from soups to ready meals to pot noodles.
09:36That's definitely not the kind of thing you want it added to almost everything red you can buy in a store.
09:42Since it was found in chili and curry powders, chicken tikka and pesto,
09:46it was a pretty tricky thing to avoid at the time.
10:00The earliest recalls started in the mid-2000s,
10:03and after many warnings from the British Food Standards Agency to the companies in question,
10:07the recalls spread across the entirety of the European bloc.
10:1111. Tylenol
10:25This pain reliever was pulled from the market in October 1982 after it was linked to seven fatalities.
10:31Reports determined Tylenol in Chicago and its surrounding areas had been tampered with
10:36and laced with potassium cyanide.
10:42Johnson & Johnson, Tylenol's parent company, promptly issued warnings,
10:46suspended production and set in motion a full nationwide recall.
10:52Across the Orlando area, stores checked their extra-strength Tylenol stock.
10:56Many stores removed it.
10:58In total, Tylenol pulled nearly $100 million worth of product from the market,
11:03and the entire pharmaceutical industry developed special packaging to prevent tampering.
11:12Interestingly, no culprits in this case were ever caught.
11:15But in the wake of the crisis, the public was scared by several copycat offenses.
11:20The company faced yet another recall in 2010,
11:23but this time initiated due to mildew in its products.
11:3410. The Peanut Corporation of America's Peanut Products
11:41Remember that salmonella outbreak in 2008?
11:44If you don't, you should.
11:46The Centers for Disease Control and Prevention reported nine deaths
11:49and over 700 cases of food poisoning as a result of negligence.
12:01After an extensive collaborative investigation between the CDC and the FDA,
12:05the outbreak was traced back to a Peanut Corporation of America plant in Georgia.
12:16Reports on that facility, as well as the one in Texas,
12:19revealed unsanitary conditions such as dead animals and moldy ceilings.
12:24Reports also accused the plant and company CEO
12:27of approving the sale of products that had already tested positive for salmonella.
12:40The scandal's recall was the largest pertaining to food in U.S. history,
12:44and it forced the Peanut Corporation to bankruptcy.
12:479. Toyota Accelerator Pedals
12:56Between 2009 and 2011,
12:59millions of vehicles from many of Toyota's brands, including Lexus,
13:03had to be recalled because of a life-threatening fault with the accelerator pedals.
13:07This recall affected Toyota cars around the planet,
13:10with more than 14 million vehicles caught up in the proceedings.
13:13Close to 40 people may have lost their lives as a result of the faulty pedals,
13:17preventing cars from decelerating.
13:19An entire family tragically lost their lives in a Lexus in 2009.
13:23Repairing the catastrophic fault cost Toyota over $1 billion.
13:358. Bextra
13:36It's always frightening to think that a drug could make it to market
13:39that carries untold risks to anyone who needs to take it.
13:43That's why a lawsuit that cost American pharmaceutical company Pfizer
13:47over $2 billion was so significant.
13:50In 2005, an anti-inflammatory drug Bextra that was made and marketed by Pfizer
13:55was taken off shelves by the FDA.
13:58It was shown to increase the risks of a heart attack significantly.
14:02Pfizer was then caught up in numerous lawsuits about Bextra
14:05for defrauding the patients it intended to help,
14:08which was largely people suffering from arthritis.
14:22Luckily, plenty of safer alternative medications without adverse effects exist
14:27to help those who were using Bextra.
14:297. GM's Faulty Ignition Switches
14:32It was reported that over 100 people lost their lives
14:35due to faulty ignition switches in a wide range of General Motors vehicles.
14:40This led to a massive recall and costly lawsuits in 2014.
14:45Billions of dollars were spent recalling the faulty vehicles
14:48that could crash when their engines would cut out without warning.
14:56To make matters worse, no engines meant no airbags.
15:00But the situation got worse for the company
15:03and far more concerning for consumers.
15:05It eventually came out that GM had known the switches didn't work for close to 10 years.
15:10But lawsuits and congressional testimony this year has uncovered
15:14GM knew about these defective ignition switches dating back to 2002
15:19and did nothing to alert customers.
15:21And in many of those early cases,
15:23victims and families may not have documentation to get compensation.
15:28After the lawsuits started piling up,
15:31GM actually decided to do something about it to the tune of $3 billion.
15:366. Ford Explorer's Firestone Tires
15:40In 2000, after a warning from the National Highway Traffic Safety Administration,
15:44Ford launched an investigation into the quality of the Firestone tires that it used on its vehicles.
15:54They determined that several Firestone models failed far more often than what's considered normal.
15:59And after more tests,
16:01found that Explorers fitted with these tires tended to roll over when they failed.
16:14One possible reason for these problems?
16:16Before the Explorer was first put on the market,
16:19they discovered it was inclined to roll over in accidents.
16:22Instead of a complete redesign,
16:24they opted to reduce air pressure in the tires.
16:27However, low tire pressure can lead to accelerated deterioration of the rubber.
16:32Reports vary,
16:33but these Firestone tire failures are thought to have caused hundreds of deaths and thousands of injuries.
16:38The recall ultimately pulled over 14.4 million tires.
16:485. The Galaxy Note 7
16:52You may remember a large number of viral videos
16:55after the launch of Samsung's Galaxy Note 7
16:58that showed the cell phone spontaneously combusting.
17:01Design and manufacturing defects
17:03with the type of batteries used in the phones led to overheating.
17:11This flaw subsequently led to the device catching fire
17:15and causing the device to explode.
17:18This flaw subsequently led to the device catching fire in far too many cases.
17:23To make matters even more embarrassing for Samsung,
17:25they made a big mistake when trying to fix the issue.
17:28After changing to another battery supplier and issuing replacements,
17:31the new phones also ended up catching fire.
17:34It was a cell phone that certainly had potential.
17:37All in all, Samsung lost between 5 and 17 billion dollars from the fiasco.
17:47But nothing on the scale of the disaster that hit the Galaxy Note 7.
17:524. Vioxx
17:54Approved by the FDA in 1999,
17:57Vioxx was yet another drug that was the subject of a recall,
18:00this time in 2004.
18:02Almost 9 billion dollars went into recalling it
18:05after it was found to greatly increase the risk of heart attacks.
18:08And there was a horrible reason why Vioxx was allowed to stay on the market for so long.
18:13Merck and company, who produced Vioxx,
18:16didn't report all of the data linking the drug to increased risk of strokes and heart attacks.
18:27If the company had done due diligence,
18:29they would have potentially spread medical evidence
18:32that Vioxx seemed to be responsible for illness and fatal consequences
18:35years earlier than they did.
18:37Merck and company's serious lack of oversight
18:39was linked to over 140,000 separate cases.
18:43And a 4.85 billion dollar mass tort settlement
18:47between them and the lawyers of thousands of lawsuits.
18:513. Chinese Milk
18:58Back in 2008,
18:59China recalled approximately 9,000 tons of powdered baby formula.
19:03It was revealed that China's largest producer of the stuff
19:06had issued products cut with melamine,
19:08a dangerous chemical used for plastic
19:11that can also be used to falsely indicate high protein levels when added to milk.
19:15700 tons of milk powder have been yanked from Chinese store shelves,
19:19but parents' fear is sticking around.
19:21According to reports,
19:23it was this misleading nutritional information
19:25that led to at least 6 deaths from complications with their kidneys.
19:29Ultimately, the scandal affected 300,000 victims.
19:41The ultimate responsibility for that is, of course, with the government.
19:45Two men were sentenced to death
19:47by Shijiazhuang's Intermediate People's Court
19:49for their role in selling the contaminated powder.
19:522. Volkswagen
19:56Back in 2015,
19:57the U.S. Environmental Protection Agency
19:59charged Volkswagen with breaching the Clean Air Act,
20:02a 1963 law that tries to ensure exactly what its name implies.
20:07The investigation revealed that 11 million Volkswagen vehicles
20:10that had turbocharged direct-injection diesel engines
20:14were programmed using DEFEAT devices
20:16to keep emissions at approved levels during testing periods,
20:19but would forego those controls afterwards,
20:22thereby releasing unapproved levels of nitrogen oxide into the air.
20:32As a result,
20:33Volkswagen made plans to invest over $18 billion
20:36to refit affected models across the globe
20:39and reduce their emissions.
20:41As you can imagine,
20:42their reputation also took a bit of a hit.
20:55Before we continue,
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21:111. Takata Airbags
21:18Chances aren't bad that you've sat in a car with Takata Corporation airbags,
21:22given that they've been manufactured since 1988
21:25and covered 20% of the airbag market.
21:32Awww.
21:34However, in 2013,
21:36complaints against the company came pouring in,
21:39citing issues that may have spanned the previous 10 years.
21:42Honda asserted that their product caused 8 deaths
21:45and approximately 100 injuries,
21:48claiming that even in minor collisions,
21:50Takata airbags propelled deadly shrapnel upon deployment.
21:54The 34-year-old says when her airbag deployed,
21:57the flying shrapnel cut off more than half of her left ear.
22:00An investigation revealed it was a Takata production plant in Mexico
22:04that had inappropriately assembled the less stable parts of the airbags.
22:08Over the course of the controversy,
22:10several recalls were issued,
22:12necessitating the recall of millions of vehicles from various brands,
22:16including Ford, Toyota, Chrysler and BMW.
22:21This inflator had been recalled in 61 other countries by other manufacturers.
22:24Ford, NHTSA and Takata all knew that this inflator had problems.
22:29Do you agree with our picks?
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