Bindeez Product Recall: 9 Lessons for Crisis Management
“Moose Enterprise has announced an immediate and voluntary Australian-wide product recall for its Bindeez Beads toy after being informed that some children who had swallowed the pearls required medical attention.
As a precaution, Moose Enterprise has advised that parents and caregivers of children should remove the product immediately. The company has advised that if the product has been ingested, parents should seek immediate medical attention, even if the child does not show any adverse symptoms.
Moose Enterprise, Manny Stul CEO, says the safety of children is the company’s first priority. To better protect the safety of children who have been or may come into contact with the toy, the company has voluntarily recalled the product and is cooperating fully with health and consumer affairs organizations.
The company’s products, which are manufactured by internationally approved toy manufacturers in China, are subject to independent testing of global standards. Moose Enterprise has not experienced any security issues with its products since the company was bought by its current management team six years ago.
The product was immediately recalled from sale yesterday and parents can receive a refund by calling toll free 1800 303 895 or emailing [email protected] More information will be made available as soon as possible. “
This was the official statement issued by Moose toys on November 7, 2007, a day after they were removed from the shelves.
Can Bindeez recover from your product recall?
The award-winning children’s toy has been recalled because it contains a chemical that becomes a dangerous party drug when metabolized in the body.
Bindeez They are made in China and are reported to contain hundreds of pearls that can cause seizures, drowsiness or coma if ingested.
It is a huge blow to the company that has seen tremendous growth since winning the 2007 Australian Toy of the Year award in the Melbourne Hobby & Toy Fair.
The announcement also had an impact on equity markets around the world.
UK-listed toy company shares, Group of characters fell 22 percent after an ad to customers that would recall the colorful bead toy Bindeez.
The group appears in the AIM Market in London and distributes Bindeez in the United Kingdom and Ireland on behalf of Melbourne, Moose Enterprise.
“Character Group believes that its stock of Bindeez products is compliant with UK safety standards.
“However, the group, as a preventive safety measure, has instructed an independent testing laboratory and an EU toxicologist to immediately test and analyze the chemical composition of representative samples from the group’s Bindeez stocks in order to fully satisfy your security, “he said. a spokesman.
Group of characters shares fell 43 pence to 146 pence.
This shows that a product recall, even by a supplier, can have a negative impact on stock prices.
It has not been a positive time for toy manufacturers or retailers. Parents may be very concerned because between the months of May and July of this year they select lines of toys sold by the American giant Mattel they were found to have high levels of lead paint.
An outside manufacturer in China was found to be at fault, but more than 19 million toys had to be recalled worldwide.
Tea Bindeez The recall only added fuel to the fire, as these irate parents commented on the Media motivators Blog.
“Why do so many companies that manufacture abroad take so little responsibility for the quality of their products?” said one of the parents.
“Why does someone always have to get sick or even die before action is taken? Why do I hear this recall statement over and over again” the manufacturer substituted an ingredient without our knowledge “?
In my opinion the final quality test should always remain with the local distributor / importer and you should batch test your products in Australia to check if they meet local safety requirements.
You are fully responsible for your products.
Please, I beg of you, for the sake of our children, please review your products before releasing them for sale. “
Another parent also noted: “After having to deal with my daughter’s disappointment at losing one of her favorite toys and putting my three young children at risk without knowing it, there is no way I would risk buying this product again.” .
“I also have a pile of Bindeez at my place. I no longer have receipts and many of them have been used to “create” works of art. What should I do to get my money back? ”Said another parent.
Media reports suggest that the beads should contain a non-toxic glue, but instead contain the chemical that the body metabolizes into gamma-hydroxy butyrate (GHB), also known as fantasy or serious bodily harm.
Everybody Bindeez The products will be withdrawn from sale and households with the toy are urged to dispose of it.
What can we learn from this case study?
There are nine actions Bindeez should take now to minimize reputational risk:
1. Commit and participate
Accept responsibility, don’t blame others, interact with stakeholders, especially consumers.
2. Clear plan
Work to meet deadlines, resolve differences, and uncover any ‘dirt’ or negative actions.
Company leaders must show confidence, care, and assurance in a time of uncertainty.
4. Currency and precision
The key messages, focused on human life, show empathy for those affected, accurate facts and figures, what the company is doing to help and what is the call to action for concerned parents.
5. Control the media
Rehearse to stay in the message, no speculation, no “logs”, no “ambushes.”
Disseminate information, get it to the point and in a timely manner.
Establish a crisis team, a crisis center, hold a press conference to make the action a “one-to-many” communication activity.
Set up up-to-date lists and distributions and publishing information.
Evaluate, review and correct if necessary any erroneous information.