Sedgwick releases first Australian Recall Index report
First edition of the report has highlighted significant findings
Sedgwick releases first Australian Recall Index report
INSURANCE NEWS
By Jonalyn Cueto
20 Sep 2024

Sedgwick brand protection has launched the first Australian edition of its Recall Index, which tracks product recalls and regulatory developments across five major industries.

The report, which has previously served professionals in the US, UK, and EU, provides a detailed analysis of recall trends over the past year and highlights the evolving regulatory landscape in Australia.

The biannual report covers the automotive, consumer products, food, pharmaceuticals, and medical device sectors, compiling data from key regulatory bodies, such as Food Standards Australia New Zealand (FSANZ), the Australian Competition and Consumer Commission (ACCC), the Department of Infrastructure, Transport, Regional Development, and Communications (DITRDC), and the Therapeutic Goods Administration (TGA).

Recalls over the past months

In the first half of 2024 (H1), the report recorded 602 corrective actions, a 2.7% increase compared to the 586 incidents reported in the second half of 2023 (H2).

The food sector saw the largest rise in recall events, with a 25.8% increase from H2 2023.The pharmaceutical and medical device sectors also reported significant increases in recall activity, up by 17.5% and 5.3%, respectively. In contrast, the automotive and consumer product sectors saw a decline in recall events, with reductions of 6.2% and 6.0%.

Alignment with regulatory compliance

Beyond recall data, the report highlights current regulatory priorities, including sustainability initiatives and environmental regulations. The DITRDC and ACCC are focused on new vehicle emissions standards, while the Australian government is pushing for collaboration across industries to achieve the country’s Net Zero 2050 targets.

The report also outlines ongoing reforms aimed at enhancing consumer safety, particularly in the pharmaceutical and medical device sectors. The TGA is working to improve recall systems to ensure timely consumer alerts, and new labelling requirements have been introduced to increase transparency for both food allergens and medical devices.

Chris Harvey, senior vice president of brand protection at Sedgwick, commented on the significance of this report for Australian businesses. “Commerce and supply chains are truly interconnected. What happens in Australia impacts the US and Europe, and vice versa,” he said.

“We are seeing regulators in multiple jurisdictions taking a more aggressive approach to enforcing consumer protection laws. This creates more risk for companies and increases the need for well-tested recall and risk management plans.”

The Sedgwick Australian Recall Index will be published twice a year to track changes in recall data and offer insights into regulatory shifts impacting businesses across various sectors.

Do you have any thoughts on the newly introduced report? Share them in the comments below.

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