Product safety
To ensure product quality and consumer-safe products, all materials and product samples have to pass a rigid compliance process and are tested in accordance with standardised material and product testing specifications and procedures.
The adidas Group function ‘Product Safety and Environmental Services’ was expanded to further strengthen the internal infrastructure and ensure the consistent application of physical, chemical product safety and conformity standards across all brands of the adidas Group. This step was taken to roll out Group-wide product safety policies, to increase product checks and to engage more closely with the product teams on product safety issues.
2007 activities
This year product safety and product quality teams of the adidas Group and its brands focused their efforts in detailing safety policies and procedures for non-core products such as ‘gifts with purchase’ or promotional items. Policies were rolled out to all business entities that source these types of products.
Furthermore, special attention was given to Group entities and licensees who source and market kids products. In particular, Reebok kids’ licensees have been required to submit comprehensive plans that document their actions to ensure compliance with mandatory safety standards.
We intensified our engagement with internationally-recognised standard bodies, testing houses and consultancies on best practice standards, third-party testing and verification mechanisms.
Product recalls
The adidas Group faces a risk of selling defective products, which may result in injury to consumers and/or image impairment. We mitigate this risk through rigorous testing prior to production, close cooperation with suppliers throughout the manufacturing process, random testing after retail delivery, open communication about defective products and quick settlement of product liability claims when necessary.
In 2007, approximately 3,400 FSMK hockey masks which were delivered to retail in Canada, Europe and the USA, were subsequently recalled voluntarily due to a quality issue. The issue arose during subsequent random testing of products in inventory. During these random tests, a hockey puck was aimed at full speed directly at the face masks. Many of the masks dented and the coating chipped slightly. No incidents or injuries were reported before or after the recall.
Also in 2007, the US Consumer Product Safety Commission, in cooperation with Icon Health & Fitness Inc, Utah, a Reebok licensee for fitness equipment, announced a voluntary recall of its Nordic Track and Inversion Benches. The reason for the recall was that the ankle clamp mechanism could release unexpectedly, posing a fall hazard to consumers.
Our assessment of product quality risk remains unchanged versus the prior year. We regard the likelihood of significant product liability cases or having to conduct wide-scale product recalls as low. As we have insurance protecting us against the financial consequences of significant product liability cases, we also assess the financial impact as low.
- Copa Mundial, football boots