Can You Make Money From a Product Recall? It Depends

You might have seen a recall on the news or social media, or gotten a letter in the mail. A familiar product is being recalled. How concerned should you be? What do you have to do?

The number of recalls in the first quarter of 2022 was the highest in five years, according to Quality Assurance Magazine. It’s important that consumers are aware of recalls to protect themselves physically and fiscally.

First, don’t panic.

Sometimes to a recall is as easy as throwing an item away. You might return it to the manufacturer, or bring it somewhere, as with a vehicle, to be repaired. It’s important to understand a recall so you don’t end up paying for repairs unnecessarily. And sometimes you can receive compensation as a result of a recall, but that requires knowing exactly what you need to provide to receive money.

Can You Be Compensated After a Product Recall?

Manufacturers are unlikely to compensate you past what they’ve outlined in their recall materials, unless you can show damage specifically related to the recall. There is no compensation for your time bringing your car to be repaired, for example.

Companies are required to set up toll-free hotlines when they have recalled products. You should be able to return a product and get a refund for it, even without the receipt. For example, for food recalls, if you use this FDA site and click on the food manufacturer, it will link you to the manufacturer’s recall contact information.

You can check these articles to see if any of the class-action settlements apply to you. Ideally you will not have a loss when something you own has been recalled. Ensuring your health and safety is priceless, right?

What to Do When You Find Out About a Recall

Here are the essentials about what a recall is…