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Product review

A manufacturer must regularly review its products taking into account any event that could materially affect the potential risk to the target market. At the very least, any review must ask:

  1. whether the product meets the identified needs, characteristics and objectives of the target market (including those with characteristics of vulnerability),
  2. whether the intended distribution strategy remains appropriate, including whether the product is being distributed to the target market or reaching retail customers outside the target market,[1] and
  3. whether products or services have been distributed to customers in the target market.[2]

Where a manufacturer identifies any circumstances related to the product that may adversely affect retail customers, it must:

  1. take appropriate action to mitigate the situation and prevent any further harm, and
  2. where appropriate, promptly inform other relevant persons in the distribution chain about the circumstances that led to action being taken and the remedial action taken.[3]

In terms of action it could take, a manufacturer could consider:

  1. making changes to a product or service,
  2. providing additional information to distributors or customers,
  3. amending the distribution strategy before making further sales,
  4. offering existing customers the option to leave the product or service without additional cost, or
  5. providing appropriate mitigation of any harm suffered.[4]

Next time

Next time, we’ll be turning our attention to look at product monitoring and governance, so stay tuned!

[1] PRIN 2A.3.7R

[2] FG 22/5, 6.65

[3] PRIN 2A.3.8R

[4] FG 22/5, 6.79