The number of reported European recalls of dangerous and faulty consumer goods more than doubled last year, according to the latest European Commission (EC) figures analysed by PricewaterhouseCoopers LLP.
There has also been a significant increase in the number of mandatory recalls.
The EC website witnessed a 126% increase in reported recalls since figures were first compiled in 2004 and means that the weekly number of product recalls notified to the EC has increased from an average of six per week in 2004 to 14 per week in 2005.
Mandatory recalls (as opposed to voluntary action taken by suppliers) increased by 154% from 176 in 2004 to 447 in 2005.
Analysis by product recall specialists at PricewaterhouseCoopers said product recalls in the UK increased by 169% from 16 in 2004 to 43 in 2005. This places it in fourth place, after Hungary, Germany and Greece.
Graeme Berry, director in the insurance claims and forensic services practice at PricewaterhouseCoopers, said: “We predicted a sharp increase in the number of product recalls reported and the latest figures from the EC support this trend. As governments across the EU begin to incorporate the directive into their own regimes, manufacturers are realising how dramatically the legal environment has changed.
"The reported rise in recalls has led to more attention being given to risk management in the supply chain and to increased demand for product recall insurance cover. Increased take-up from manufacturers will be driven in particular by the new regulatory environment, greater transparency and awareness of the risk, and by the penalties for non-compliance.
"In the UK, the general product safety regulations enacted in October 2005 state that supplying an unsafe product can result in a fine of up to £5,000 for each offence, and/or a term of imprisonment of up to three months.”
