“Moose Enterprise announced an immediate and voluntary product recall across Australia for its Bindeez Beads toy after being informed that some children who had ingested the beads needed medical attention.
As a precaution, Moose Enterprise advised parents and guardians of children to remove the product immediately. The company advised that if the product was ingested, parents should seek medical attention immediately, even if the child does not show adverse symptoms.
Moose Enterprise, CEO, Manny Stul, says the safety of children is the company’s first priority. In order to best protect the safety of children who have or may come into contact with the toy, the company has voluntarily withdrawn the product and is fully cooperating with health and consumer organizations.
The company’s products, made in China by internationally approved toy manufacturers, are subject to independent testing of world standards. Moose Enterprise has not encountered any security issues with its products since the company was bought by its current management team six years ago.
The product was immediately withdrawn from sale yesterday and parents can receive a refund by calling 1800 303 895 free of charge or by emailing return@moosetoys.. Further information will be made available as soon as possible “.
This is the official press release issued by Moose toys on November 7, 2007, one day after they were taken off the shelves.
Power Bindeez recover from your product recall?
The award-winning children’s toy was recalled because it contains a chemical that turns into a dangerous party drug when metabolized in the body.
Bindeez they are made in China and are said to contain hundreds of beads that can induce seizures, drowsiness or coma if you eat.
It is a blow to the company that has experienced great growth since winning the Australian toy of the year 2007 prize al Melbourne Toy and Hobby Fair.
The announcement also impacted equity markets around the world.
Shares of the UK-listed toy company, Group of characters it fell 22% following an announcement to customers that it would recall the colorful bead toy Bindeez.
The group is listed in the AIM market in London and distributes Bindeez in the UK and Ireland on behalf of Melbourne Moose enterprise.
“Character Group believes its stock of Bindeez products is compliant with UK safety regulations.
“However, the team, as a precautionary safety measure, commissioned an independent testing laboratory and an EU toxicologist to immediately test and analyze the chemical composition of representative samples of the group’s Bindeez stocks in order to fully satisfy their safety.” , a spokesperson said.
Group of characters the 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 was not a good time for toy manufacturers or retailers. Parents may rightly be worried because between the months of May and July of this year they select lines of toys sold by the American giant. Mattel were found to have high levels of lead paint.
A third-party manufacturer in China was found guilty, but more than 19 million toys had to be recalled globally.
The Bindeez the recall of the product only added fuel to the fire as these angry parents commented Media motivators blog.
“Why do so many offshore manufacturing companies take so little responsibility for the quality of their products?” one parent said.
“Why does someone always have to get sick or even die before action is taken? Why do I hear this claim from being warned over and over again” the manufacturer has 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 see if they meet local safety requirements.
You are fully responsible for your products.
Please, please, for the sake of our children, check your products before putting them on sale. “
Another parent also remarked: “After facing my daughter’s disappointment at losing one of her favorite toys and unknowingly putting all three of my young children at risk, I would never risk buying this product again.”
“I also have a stack of Bindeez in my house. I no longer have receipts and many have been used to “create” works of art. At what point am I getting my money back? ”Said another parent.
The media suggests that the beads should contain a non-toxic glue but instead contain the chemical that the body metabolizes into gamma-hydroxybutyrate (GHB), also known as fancy or severe physical harm.
Everyone Bindeez the products will be removed from sale, and families with the toy have been urged to get rid of it.
What can we learn from this case study?
There are nine actions Bindeez should take now to minimize the risk to their reputation:
1. Commit and commit
Accept responsibility, don’t blame others, interact with stakeholders, especially consumers.
2. Clear plan
Meet deadlines, resolve differences, and bring out any “dirty” or negative actions.
3. Calm down
Business leaders need to show trust, attention, and certainty in a time of uncertainty.
4. Evaluation and accuracy
The key messages – human life focus – show empathy towards those affected, accurate facts and figures, what the company is doing to help, and what the call to action is for concerned parents.
5. Check the media
Try to stay on the message, no speculation, no “non-verbal”, no “ambush”.
Release the information, get to the point, and promptly.
Establish a crisis team, a crisis center, hold a press conference so that action is a one-to-many communication activity.
Set up distribution and updated lists and version information.
Evaluate, review and correct, if necessary, any misinformation.
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