The Hidden Costs of a Product Recall

For entrepreneurs, few events are more damaging than a product recall . The immediate image is always financial: refunds, fines and settlements. But anyone who has been inside these cases knows the true cost runs far deeper. Recalls erode consumer trust, unravel years of brand building and expose systemic failures in leadership.

I have seen firsthand how these crises unfold. In nearly every instance, the warning signs were there. Companies knew about risks. Employees raised concerns. Complaints trickled in. Yet leadership chose to wait, to monitor, to hope the problem would fade. It never does. When companies delay action, injuries multiply, lawsuits escalate, and reputations are permanently scarred.

When delay turns deadly

Consider Peloton. The company faced reports of injuries and