Product Recall is one of the most severe crisis situations for any manufacturer or importer. When a product poses a threat to consumer health or safety, the company is obliged to remove it from the market. This process often triggers not only logistical and financial problems but also a wave of legal disputes from injured consumers, regulators, and partners. Legal support for product recall involves managing the process to minimize company liability and reputational damage. This includes communication with state agencies (e.g., Market Surveillance Agency), settlement with victims, and defending the company's interests in court.
What does the Product Recall Litigation service cover?
Our service covers the full legal cycle of crisis management:
- Risk Assessment and Notification: Preparing and sending the mandatory notification to the Market Surveillance Agency immediately upon discovering the defect.
- Recall Plan Development: Legal structuring of the product withdrawal strategy (how to return the product, what compensation the consumer receives).
- Litigation Defense: Defending against class action or individual consumer lawsuits (Product Liability Claims) in court.
- Recourse Claims: Shifting liability to the supplier or manufacturer (if you are an importer) who provided the defective product.
- Crisis Communication: Reviewing public statement texts with the PR team to avoid unnecessary admission of guilt.
Common Scenarios and Needs
Product recalls occur due to: Automotive Industry: Factory defects in braking systems or airbags. Food: Discovery of harmful bacteria (e.g., salmonella) or banned substances in food products. Electronics: Device batteries overheating and posing a fire hazard. Children's Products: Toys containing toxic paint or small parts.
Georgian Legislation and Regulations
The process is regulated by the Product Safety and Free Movement Code, which obliges the manufacturer/distributor to immediately withdraw dangerous products and warn consumers. Also applicable are the Food/Feed Safety Code and the Law on Consumer Rights Protection. Liability arises under the tort section of the Civil Code. Regulatory bodies include the Market Surveillance Agency and the National Food Agency.
Step-by-Step Process
The crisis begins with receiving information (from a lab or consumer). The lawyer assesses the risk: is the product "dangerous" within the meaning of the law. Then the regulator is informed (Notification). A public statement is drafted. Physical removal of products from the network begins. Concurrently, negotiations with victims regarding compensation take place to avoid litigation.
Why Legal.ge?
Product recall is a stressful and expensive process. Legal.ge offers lawyers with experience in crisis management. We will help you comply with legal requirements, manage relations with the regulator, and protect the company from bankruptcy. Manage risks professionally with Legal.ge.
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