The recall system is a system that protects consumers from harm in advance and imposes legal liability on business operators.
Concept of product recall
- Product recall refers to a consumer protection measure whereby a business entity, whose goods, etc. are judged, either by itself or the government, to cause or to be likely to cause danger or injury to consumers' lives, bodies, or property due to their defects, shall remove, destroy, or repair such goods, etc., exchange them for other goods, etc., refund their cost, prohibit their manufacture, import, sale or supply, or take other necessary measures. (Articles 48-50, 「Framework Act on Consumers」)
Types of product recall
- Recalls can be classified into voluntary recalls by the business entity itself and compulsory recall ordered by the government (Articles 48-50, 「Framework Act on Consumers」)
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Division
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Description
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Voluntary recall
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Voluntary recall refers to a voluntary corrective action undertaken by a business entity that deems that the goods, etc. that it supplies to consumers cause or are likely to cause danger or injury to consumers' lives, bodies, or property due to their defects. (Articles 48, 「Framework Act on Consumers」)
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Compulsory recall
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If the head of a central administrative agency deems that the goods, etc. supplied by a business entity cause or are likely to cause danger or injury to consumers' lives, bodies or property due to their defects, he/she may recommend that the business entity concerned remove, destroy, or repair such goods, etc. According to the severity of the defect and its urgency, compulsory recall can be recommended or ordered. (Articles 49 and 50, 「Framework Act on Consumers」)
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· Major recall systems under the current laws
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Classification
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Relevant Act
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Recall Criteria
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All goods and services
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Framework Act on Consumers
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When a product defect etc. causesor is likely to cause significant harm to the life, body, and property of consumers.
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Automobiles
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Motor Vehicle Control Act
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When a defect that does not meet the safety standards or interferes with safe driving occurs or is likely to occur in multiple vehicles.
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Clean Air Conservation Act
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When violations of the emission standards for manufacturing vehicles are detected as a result of checksfor defects in exhaust gas-related parts.
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Food
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Food Sanitation Act
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When it is recognized that a food hygiene risk has occurred or is likely to occur.
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Framework Act on Food Safety
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When it is recognized that harm to public health has occurred or is likely to occur.
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Functional Health Foods Act
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When it is recognized that a sanitary risk has occurred or is likely to occur.
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Medicine and medical supplies
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Pharmaceutical Affairs Act
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When there is a problem with safety or effectiveness due to violations of the related laws.
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Livestock products
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Livestock Products Sanitary Control Act
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Livestock products that have or are likely to pose a risk to public health.
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Industrial products
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Framework Act on the Safety of Products
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When there is a risk of harm to the life, body, or property of consumers due to defects in product manufacturing, design, or labeling, etc.
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Quality Management and Industrial Product Safety Management Act
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When a product has not received a safety certification or does not conform to the safety standards, etc.
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Electrical Appliances Safety Management Act
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When a product has not received a safety certification or does not conform to the safety standards, etc.
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Drinking water
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Drinking Water Management Act
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When the quality of potable spring water products, containers and packaging does not meet the standards, and is found to cause or deemed likely to cause harm to public health
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Types of recall include voluntary recall, recall recommendation, and recall order.
Voluntary recall
- Submission of a correction plan by the business operator
· Where a business entity intends to take the necessary measures to correct productdefects, it shall submit a correction plan to the head of the competent central administrative agency. (Article 48, 「Framework Act on Consumers」 and Article 36, 「Enforcement Decree of the Framework Act on Consumers」)
- Recalls
· If a business entity executes a product recall, customers can remove, destroy, or repair such goods, etc., exchange them for other goods, etc. (Articles 48, 「Framework Act on Consumers」)
- Reporting of recall results
· Upon completing the voluntary corrective measures, the business entity concerned shall report the results thereof to the head of the competent central administrative agency. (Article 36, 「Enforcement Decree of the Framework Act on Consumers」)
Recommendation of recall
- Recommendation of recall by central administrative agency
· If the head of a central administrative agency judges that goods, etc. furnished by a business entity cause or might cause danger or injury to consumers' lives, bodies or property due to their defects, he/she may recommend that business entity concerned remove, destroy, or repair such goods, etc., exchange them for other goods, etc., refund their cost, prohibit their manufacture, import, sale or supply, or take other necessary measures. (Article 49(1), 「Framework Act on Consumers」)
- Notification of acceptance of recall recommendation by the business operator
· A business entity that has received a corrective recommendation shall notify the head of the competent central administrative agency of its acceptance or refusal of the corrective recommendation within seven days. (Articles 49(2), 「Framework Act on Consumers」 and Article 37(3), 「Enforcement Rules of the Framework Act on Consumers」)
· If a business entity that has received a recall recommendation fails to comply with it without justifiable reason, the head of the central administrative agency may publish or broadcast the following facts. (Article 49(4), 「Framework Act on Consumers」 and the main text of Article 37(4), 「Enforcement Decree of the Framework Act on Consumers」)
√ Name of the business operator.
√ Names of the goods, etc. subject to the recall recommendation.
√ Details of the recall recommendation and reasons for the business operator’s refusal to accept it.
√ Opinion of the head of the central administrative agency regarding the reason for the business operator’s refusal to accept the recall recommendation.
√ Other matters related to the recall recommendation.
- Recall procedure
· Where the business operator accepts the recall recommendation, the procedure is the same as the voluntary recall procedure.
Recall order
- Recall orders from central administrative agencies
· If the head of a central administrative agency judges that a business entity causes or is likely to cause danger or injury to consumers' lives, bodies, or property due to a defect(s) in the goods, etc. that it supplies to consumers, he or she may order that business entity to remove, destroy, or repair such goods, etc., exchange them for other goods, etc., refund their cost, or prohibit their manufacture, import, sale or supply, and to repair facilities related to such goods, etc. or take other necessary measures, subject to the procedures prescribed by Presidential Decree. (Articles 50(1), 「Framework Act on Consumers」)
- Submission of a correction plan by the business operator
· A business entity that has received an order for correction shall submit to the head of the competent central administrative agency a correction plan within seven days of receiving such order and take the necessary corrective measures pursuant thereto. (The former part of Article 38(3), 「Enforcement Decree of the Framework Act on Consumers」)
- Notification of recall plan to consumers
· Where the addresses of consumers are known: via registered mail; Where the addresses of consumers are unknown or it is required to promptly inform many consumers or sellers, etc. of the plan for corrective measures: via the publication of advertisements in newspapers etc., public broadcasts, or the posting of notices at large-scale outlets, etc. or at places that sell or provide the goods, etc. (Article 50(1), 「Framework Act on Consumers」 and Subparagraph 5, Article 38(3), 「Enforcement Decree of the Framework Act on Consumers」)
- Recalls
· If a business entity fails to comply with the order, the head of the central administrative agency may directly remove and destroy such goods, etc., or prohibit the supply thereof, or take other necessary measures. (Articles 50(2), 「Framework Act on Consumers」 and Article 38(7), 「Enforcement Decree of the Framework Act on Consumers」)
- Reporting of recall results and government supervision
· A business entity that has submitted the correction plan in accordance with the order shall submit a report on the results of any corrective measures it has taken to the head of the competent central administrative agency. (Article 38(6), 「Enforcement Decree of the Framework Act on Consumers」)
- Penalty for violations
· A person or business entity that violates a recall order issued by the head of a central administrative agency shall be liable to imprisonment without labor for not more than three years or to a fine not exceeding 50 million won. (Subparagraph 1, Article 84(1), 「Framework Act on Consumers」)