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Product Recall

HP announced a recall for lithium-ion batteries sold from 2006 to 2007 due to fire hazards. Learn about incidents, response speed, and impact.

robertjenkins
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Product Recall

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  1. Product Recall • What:HP Computer Batteries • Recall Date:October 30, 2008 [1]. • Why:The recalled lithium-ion batteries can overheat and rupture, posing fire and burn hazards to consumers. • Incidents: There have been 19 reports of the batteries overheating, including 17 reports of flames/fire (10 resulting in minor property damage). Two consumers experienced minor burns. • Number of Units Sold:About 65 000($100-$160) [2]. • When Sold:July 2007 to May 2008

  2. Management Issues • Recognition of Problem:The batteries that were affected by the recall have been manufactured from 2006 through 2007. Approximately 35 000 have been recalled and replaced. The CSPC has received 19 reports but not a single person was seriously harmed [2]. HP in cooperation with the battery manufacturer and CSPC announced a world wide voluntary recall and replacement program, free of charge, available for consumers [2]. • Speed of Response:The response has been slow industry wide. HP knew about all accidents but did not notify CSPC on time about the defect which could create a substantial product hazard [3]. • Responsibility:HP and the battery manufacturer are taking this action as part of their commitment to provide the highest quality of service to their notebook customers. They are proactively notifying their customers of the issue and are prepared to replace all verified battery packs [4].

  3. Impact of Recall • Legal Consequences:HP was aware of all incidents but did not notify CSPC about them. Federal law requires manufacturers, distributors and retailers to report to CPSC immediately after obtaining information reasonably supporting the conclusion that a product contains a defect [3]. • Reputation:The incident seems have little or no effect on the reputation of HP. The company’s stock haven't changed since the day the recall has been announced. • Sales: Due to the lack of information on internet about HP’s sales before and after the recall I am not able to say how the recall affected HP’s sales.

  4. References [1] http://bpr.hpordercenter.com/hbpr/M14.aspx [2] http://www.cpsc.gov/en/recalls/2011/hp-expands-recall-of-notebook-computer-batteries-due-to-fire-hazard/ [3] http://www.recallresults.com/?p=864 [4] http://bpr.hpordercenter.com/hbpr/ [5] http://www.consumerreports.org/cro/news/2011/05/recall-expanded-hp-notebook-computer-battery-mdash-fire-hazard/index.htm

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