Product recalls have almost tripled since the European Union launched stricter rules one year ago, PricewaterhouseCoopers (PwC) said on Monday.
Germany leads the list with 73 withdrawals of products from the market in 2004, followed by Hungary and Spain with 46 and 39 respectively, the consultancy firms' analysis showed.
"Since the introduction of the General Product Safety Directive at the beginning of 2004, the weekly volume of product recalls notified to the Commission has leapt by 175 percent, from an average of four per week in February 2004 to 11 in February 2005," PwC said in a statement.
The new EU rules reflect heightened awareness of consumer product safety.
PwC said 373 products were reported in total, including tattoo ink, tights, rattles, garden sheds, popcorn machines, decongestion cream and a variety of toys.
The reported rise in recalls is likely to lead to an increased demand for product recall insurance cover, currently an under-developed market, it said.
Increased demand from manufacturers is driven in particular by the new regulatory environment, greater transparency and awareness of the risk and the harsh penalties for non-compliance.
"In the UK, companies who fail to withdraw unsafe products might soon face fines of up to 20,000 pounds ($37,960) or a prison term of 12 months under terms currently in consultation by the Department for Trade and Industry," PwC said.
In the UK, 20 recalls were recorded last year.
Source: Reuters
19.04.2005